Question 1

According to D'Aveni's book,Hypercompetition,which of the following statements is true?

Accepted Answer

A)  Except for a few stable industries, strategy initiatives do not provide sustainable competitive advantage. 
B)  Hypercompetition is rare. 
C)  It is enough to gain competitive advantage by being the lowest cost competitor. 
D)  The theory of hypercompetition is not supported by any research. 
E)  The American home appliance industry was immune to hypercompetition. 
A)  Except for a few stable industries, strategy initiatives do not provide sustainable competitive advantage. 
B)  Hypercompetition is rare. 
C)  It is enough to gain competitive advantage by being the lowest cost competitor. 
D)  The theory of hypercompetition is not supported by any research. 
E)  The American home appliance industry was immune to hypercompetition.

Question 2

The goal of strategy is to find an extremely favorable niche so well suited to the firm's internal and external environment that other corporations are not likely to challenge or dislodge it.

Accepted Answer

A) True 
 B)False

Question 3

Business strategy focuses on

Accepted Answer

A)  ensuring that the company maintains the existing market share that it has historically enjoyed. 
B)  improving the competitive position of a corporation's products or services within the industry or market segment served. 
C)  providing adequate shareholders' return on investment. 
D)  preventing the competition from gaining a competitive edge by undermining their marketing plan. 
E)  recovering the competitive lead by using all available resources that the company can provide. 
A)  ensuring that the company maintains the existing market share that it has historically enjoyed. 
B)  improving the competitive position of a corporation's products or services within the industry or market segment served. 
C)  providing adequate shareholders' return on investment. 
D)  preventing the competition from gaining a competitive edge by undermining their marketing plan. 
E)  recovering the competitive lead by using all available resources that the company can provide.

Question 4

Business strategy focuses on improving the competitive position of a company's or business unit's products or services within the specific industry or market segment that the company or business unit serves.

Accepted Answer

A) True 
 B)False

Question 5

In licensing arrangements,which of the following is not true?

Accepted Answer

A)  The licensee can gain technical expertise. 
B)  Companies can be aided in entering new countries directly. 
C)  The licensee might become a competitor to the licensing firm if they license their distinctive competencies. 
D)  Companies should never license their distinctive competencies. 
E)  The licensee is usually following a differentiation strategy. 
A)  The licensee can gain technical expertise. 
B)  Companies can be aided in entering new countries directly. 
C)  The licensee might become a competitor to the licensing firm if they license their distinctive competencies. 
D)  Companies should never license their distinctive competencies. 
E)  The licensee is usually following a differentiation strategy.

Question 6

Apple is an example of a company following which of Porter's generic competitive strategies?

Accepted Answer

A)  cost leadership 
B)  differentiation 
C)  cost focus 
D)  competitive scope 
E)  diversification 
A)  cost leadership 
B)  differentiation 
C)  cost focus 
D)  competitive scope 
E)  diversification

Question 7

Disadvantages of joint ventures include all of the following EXCEPT

Accepted Answer

A)  loss of control. 
B)  lower profits. 
C)  probability of conflicts with partners. 
D)  likely transfer of technological advantage to the partner. 
E)  mutual dependence. 
A)  loss of control. 
B)  lower profits. 
C)  probability of conflicts with partners. 
D)  likely transfer of technological advantage to the partner. 
E)  mutual dependence.

Question 8

A secret salary cap was the contention in a 2012 collusion lawsuit filed against

Accepted Answer

A)  KFC. 
B)  The National Football League. 
C)  GE. 
D)  Major League Baseball. 
E)  ESPN. 
A)  KFC. 
B)  The National Football League. 
C)  GE. 
D)  Major League Baseball. 
E)  ESPN.

Question 9

A method developed in the mid-1990s as an efficient means to quickly consolidate a fragmented industry can be referred to as a

Accepted Answer

A)  merger. 
B)  strategic rollup. 
C)  cost strategy. 
D)  differentiation strategy. 
E)  focus strategy. 
A)  merger. 
B)  strategic rollup. 
C)  cost strategy. 
D)  differentiation strategy. 
E)  focus strategy.

Question 10

Tacit collusion

Accepted Answer

A)  involves direct communication among competing firms. 
B)  is most likely to be successful if there are many competitors. 
C)  is seen with conscious parallelism as practiced by GE and Westinghouse in the pricing of turbine engines. 
D)  is not illegal. 
E)  is most effective when the industry does not have a firm that acts as a price leader. 
A)  involves direct communication among competing firms. 
B)  is most likely to be successful if there are many competitors. 
C)  is seen with conscious parallelism as practiced by GE and Westinghouse in the pricing of turbine engines. 
D)  is not illegal. 
E)  is most effective when the industry does not have a firm that acts as a price leader.

Question 11

SWOT is an acronym that stands for Strategy,Weaknesses,Opportunities,and Threats.

Accepted Answer

A) True 
 B)False

Question 12

In a SFAS Matrix,

Accepted Answer

A)  all strategic factors are weighted equally. 
B)  the number of strategic factors can become unmanageable. 
C)  the same criticisms found in the SWOT Matrix are replicated. 
D)  a factor may be listed as both a strength and a weakness. 
E)  only internal strategic factors are included. 
A)  all strategic factors are weighted equally. 
B)  the number of strategic factors can become unmanageable. 
C)  the same criticisms found in the SWOT Matrix are replicated. 
D)  a factor may be listed as both a strength and a weakness. 
E)  only internal strategic factors are included.

Question 13

The ability to market a comparable product or service more efficiently than competitors is the one skill not required in a cost leadership strategy.

Accepted Answer

A) True 
 B)False

Question 14

Alliances do not take less financial resources than do acquisitions or going it alone and are not easier to exit if necessary.

Accepted Answer

A) True 
 B)False

Question 15

One of the first steps in good strategy design should include crafting the mission statement for the organization.

Accepted Answer

A) True 
 B)False

Question 16

Competitive scope is

Accepted Answer

A)  the breadth of the company's target market. 
B)  a business strategy. 
C)  the common thread found in the firm's mission statement. 
D)  the foundation of the choice between cost leadership and differentiation strategies. 
E)  an element of the marketing mix. 
A)  the breadth of the company's target market. 
B)  a business strategy. 
C)  the common thread found in the firm's mission statement. 
D)  the foundation of the choice between cost leadership and differentiation strategies. 
E)  an element of the marketing mix.

Question 17

Which of the following is not cited as one of the questions that development of a competitive strategy should raise?

Accepted Answer

A)  Should we compete on the basis of lower cost? 
B)  Should we compete head-to-head with major competitors? 
C)  Should we differentiate our products or services on some basis other than cost? 
D)  Should we compete by garnering political support of influential leaders? 
E)  Should we compete in a niche market that we can satisfy which is superior to that of the competition? 
A)  Should we compete on the basis of lower cost? 
B)  Should we compete head-to-head with major competitors? 
C)  Should we differentiate our products or services on some basis other than cost? 
D)  Should we compete by garnering political support of influential leaders? 
E)  Should we compete in a niche market that we can satisfy which is superior to that of the competition?

Question 18

Business strategy is composed of

Accepted Answer

A)  corporate and competitive strategy. 
B)  functional and divisional strategy. 
C)  competitive and cooperative strategy. 
D)  corporate and cooperative strategy. 
E)  divisional and competitive strategy. 
A)  corporate and competitive strategy. 
B)  functional and divisional strategy. 
C)  competitive and cooperative strategy. 
D)  corporate and cooperative strategy. 
E)  divisional and competitive strategy.

Question 19

Walmart,as a discount retailer,is an example of a company following which of Porter's competitive strategies?

Accepted Answer

A)  differentiation 
B)  cost leadership 
C)  differentiation focus 
D)  competitive advantage 
E)  cost focus 
A)  differentiation 
B)  cost leadership 
C)  differentiation focus 
D)  competitive advantage 
E)  cost focus

Question 20

If it is to be successful,Porter advises that a division possess strong marketing abilities,product engineering,a creative flair,strong capability in basic research and a corporate reputation for quality or technological leadership,for which one of the following generic competitive strategies?

Accepted Answer

A)  focus 
B)  differentiation 
C)  overall cost leadership 
D)  vertical growth 
E)  concentration 
A)  focus 
B)  differentiation 
C)  overall cost leadership 
D)  vertical growth 
E)  concentration

According to D'Aveni's book,Hypercompetition,which of the following statements is true?

The goal of strategy is to find an extremely favorable niche so well suited to the firm's internal and external environment that other corporations are not likely to challenge or dislodge it.

Business strategy focuses on

Business strategy focuses on improving the competitive position of a company's or business unit's products or services within the specific industry or market segment that the company or business unit serves.

In licensing arrangements,which of the following is not true?

Apple is an example of a company following which of Porter's generic competitive strategies?

Disadvantages of joint ventures include all of the following EXCEPT

A secret salary cap was the contention in a 2012 collusion lawsuit filed against

A method developed in the mid-1990s as an efficient means to quickly consolidate a fragmented industry can be referred to as a

Tacit collusion

SWOT is an acronym that stands for Strategy,Weaknesses,Opportunities,and Threats.

In a SFAS Matrix,

The ability to market a comparable product or service more efficiently than competitors is the one skill not required in a cost leadership strategy.

Alliances do not take less financial resources than do acquisitions or going it alone and are not easier to exit if necessary.

One of the first steps in good strategy design should include crafting the mission statement for the organization.

Competitive scope is

Which of the following is not cited as one of the questions that development of a competitive strategy should raise?

Business strategy is composed of

Walmart,as a discount retailer,is an example of a company following which of Porter's competitive strategies?

If it is to be successful,Porter advises that a division possess strong marketing abilities,product engineering,a creative flair,strong capability in basic research and a corporate reputation for quality or technological leadership,for which one of the following generic competitive strategies?

Basic Concepts in Strategic Management

Corporate Governance

Social Responsibility and Ethics in Strategic Management

Environmental Scanning and Industry Analysis

Organizational Analysis and Competitive Advantage

Strategy Formulation: Corporate Strategy

Strategy Formulation: Functional Strategy and Strategic Choice

Strategy Implementation: Global Strategy

Strategy Implementation: Organizing and Structure

Strategy Implementation: Staffing and Directing

Evaluation and Control

Suggestions for Case Analysis

Filters

Exam 6: Strategy Formulation: Business Strategy

According to D'Aveni's book,Hypercompetition,which of the following statements is true?

The goal of strategy is to find an extremely favorable niche so well suited to the firm's internal and external environment that other corporations are not likely to challenge or dislodge it.

Business strategy focuses on

Business strategy focuses on improving the competitive position of a company's or business unit's products or services within the specific industry or market segment that the company or business unit serves.

In licensing arrangements,which of the following is not true?

Apple is an example of a company following which of Porter's generic competitive strategies?

Disadvantages of joint ventures include all of the following EXCEPT

A secret salary cap was the contention in a 2012 collusion lawsuit filed against

A method developed in the mid-1990s as an efficient means to quickly consolidate a fragmented industry can be referred to as a

Tacit collusion

SWOT is an acronym that stands for Strategy,Weaknesses,Opportunities,and Threats.

In a SFAS Matrix,

The ability to market a comparable product or service more efficiently than competitors is the one skill not required in a cost leadership strategy.

Alliances do not take less financial resources than do acquisitions or going it alone and are not easier to exit if necessary.

One of the first steps in good strategy design should include crafting the mission statement for the organization.

Competitive scope is

Which of the following is not cited as one of the questions that development of a competitive strategy should raise?

Business strategy is composed of

Walmart,as a discount retailer,is an example of a company following which of Porter's competitive strategies?

If it is to be successful,Porter advises that a division possess strong marketing abilities,product engineering,a creative flair,strong capability in basic research and a corporate reputation for quality or technological leadership,for which one of the following generic competitive strategies?

Basic Concepts in Strategic Management

Corporate Governance

Social Responsibility and Ethics in Strategic Management

Environmental Scanning and Industry Analysis

Organizational Analysis and Competitive Advantage

Strategy Formulation: Corporate Strategy

Strategy Formulation: Functional Strategy and Strategic Choice

Strategy Implementation: Global Strategy

Strategy Implementation: Organizing and Structure

Strategy Implementation: Staffing and Directing

Evaluation and Control

Suggestions for Case Analysis

Filters