Question 1

As compared to a firm with low financial leverage, a firm with a high amount of financial leverage in an expanding market should have

Accepted Answer

A)  lower profits. 
B)  higher profits. 
C)  higher earnings per share. 
D)  lower earnings per share. 
E)  higher sales revenue. 
A)  lower profits. 
B)  higher profits. 
C)  higher earnings per share. 
D)  lower earnings per share. 
E)  higher sales revenue.

Question 2

The ability of competitors to use duplicated resources and capabilities to imitate the other firm's success is called

Accepted Answer

A)  imitability. 
B)  durability. 
C)  transferability. 
D)  transparency. 
E)  replicability. 
A)  imitability. 
B)  durability. 
C)  transferability. 
D)  transparency. 
E)  replicability.

Question 3

The part of an industry's value chain that is most important to a company and the point where its greatest expertise and capabilities lie is called the company's

Accepted Answer

A)  functional crossroads. 
B)  center of gravity. 
C)  dynamic equilibrium. 
D)  R&D intensity. 
E)  economy of scope. 
A)  functional crossroads. 
B)  center of gravity. 
C)  dynamic equilibrium. 
D)  R&D intensity. 
E)  economy of scope.

Question 4

A company's center of gravity is usually the point at which the company started.

Accepted Answer

A) True 
 B)False

Question 5

The concept that suggests that unit production costs decline by some fixed percent each time the total accumulated volume of production in units doubles is referred to as

Accepted Answer

A)  the experience curve. 
B)  the R&D mix. 
C)  technological competence. 
D)  economy of scale. 
E)  economy of scope. 
A)  the experience curve. 
B)  the R&D mix. 
C)  technological competence. 
D)  economy of scale. 
E)  economy of scope.

Question 6

The rate at which a firm's underlying resources, capabilities, or core competencies can be duplicated by others is called

Accepted Answer

A)  replicability. 
B)  transparency. 
C)  imitability. 
D)  durability. 
E)  transferability. 
A)  replicability. 
B)  transparency. 
C)  imitability. 
D)  durability. 
E)  transferability.

Question 7

Knowledge that can be easily articulated and communicated is known as

Accepted Answer

A)  tacit knowledge. 
B)  explicit knowledge. 
C)  imitable knowledge. 
D)  transferable knowledge. 
E)  durable knowledge. 
A)  tacit knowledge. 
B)  explicit knowledge. 
C)  imitable knowledge. 
D)  transferable knowledge. 
E)  durable knowledge.

Question 8

The business model used by HP in selling printers and printer cartridges is the

Accepted Answer

A)  profit pyramid model. 
B)  advertising model. 
C)  customer solutions model. 
D)  efficiency model. 
E)  multi-component system/installed base model. 
A)  profit pyramid model. 
B)  advertising model. 
C)  customer solutions model. 
D)  efficiency model. 
E)  multi-component system/installed base model.

Question 9

Which of the following describes a typical functional structure?

Accepted Answer

A)  Employees tend to be specialists in the business functions important to that industry such as manufacturing, marketing, finance, and human resources. 
B)  This is most appropriate for large corporations with many product lines in several related industries, with employees acting as specialists attempting to gain synergy among divisional activities. 
C)  This is most appropriate for small, entrepreneur-dominated companies with one or two product lines that operate in a small niche market, with employees acting as jack-of-all trades. 
D)  Employees have two or more superiors, a project manager and a functional manager. 
E)  This is most appropriate for large corporations with many product lines in several unrelated industries, with employees acting as specialists but with no attempt at gaining synergy among the divisions. 
A)  Employees tend to be specialists in the business functions important to that industry such as manufacturing, marketing, finance, and human resources. 
B)  This is most appropriate for large corporations with many product lines in several related industries, with employees acting as specialists attempting to gain synergy among divisional activities. 
C)  This is most appropriate for small, entrepreneur-dominated companies with one or two product lines that operate in a small niche market, with employees acting as jack-of-all trades. 
D)  Employees have two or more superiors, a project manager and a functional manager. 
E)  This is most appropriate for large corporations with many product lines in several unrelated industries, with employees acting as specialists but with no attempt at gaining synergy among the divisions.

Question 10

Transferability is the ability of competitors to use duplicated resources and capabilities to imitate the other firm's success.

Accepted Answer

A) True 
 B)False

Question 11

According to Porter, a manufacturing firm's support activities usually begin with inbound logistics, go through an operations process in which a product is manufactured, and continue on to outbound logistics and finally to service.

Accepted Answer

A) True 
 B)False

Question 12

Cultural integration is the degree to which members of a unit accept the norms, values, or other culture content associated with the unit - showing the culture's depth.

Accepted Answer

A) True 
 B)False

Question 13

The resources of an organization include tangible assets, human assets, and intangible assets.

Accepted Answer

A) True 
 B)False

Question 14

Flexible manufacturing emphasizes

Accepted Answer

A)  high-volume output of mass produced products. 
B)  the cost advantages of an intermittent system with the customer-oriented advantages of a continuous system. 
C)  the learning curve is longer since technology is automated. 
D)  economies of scope over economies of scale. 
E)  economies of scale over economies of scope. 
A)  high-volume output of mass produced products. 
B)  the cost advantages of an intermittent system with the customer-oriented advantages of a continuous system. 
C)  the learning curve is longer since technology is automated. 
D)  economies of scope over economies of scale. 
E)  economies of scale over economies of scope.

Question 15

The second step in value chain analysis is to

Accepted Answer

A)  identify the legal ramifications and responsibilities of their product or service. 
B)  examine the linkages among the product's or service's value chain. 
C)  confirm that all variables have been included and taken into consideration. 
D)  ensure that quality management is adequately addressed. 
E)  examine the potential synergies among the corporation's product or business units. 
A)  identify the legal ramifications and responsibilities of their product or service. 
B)  examine the linkages among the product's or service's value chain. 
C)  confirm that all variables have been included and taken into consideration. 
D)  ensure that quality management is adequately addressed. 
E)  examine the potential synergies among the corporation's product or business units.

Question 16

Which one of the following best describes a divisional structure?

Accepted Answer

A)  Work is divided into subunits on the basis of such functions as manufacturing, marketing, finance, and human resources. 
B)  This is most appropriate for large corporations with many product lines in several related industries, with employees acting as functional specialists attempting to gain synergy among divisional activities. 
C)  This is most appropriate for small, entrepreneur-dominated companies with one or two product lines that operate in a small niche market, with employees acting as jack-of-all trades. 
D)  Employees have two or more superiors, a project manager and a functional manager. 
E)  This is most appropriate for large corporations with many product lines in several unrelated industries, with employees acting as functional specialists but with no attempt at gaining synergy among the divisions. 
A)  Work is divided into subunits on the basis of such functions as manufacturing, marketing, finance, and human resources. 
B)  This is most appropriate for large corporations with many product lines in several related industries, with employees acting as functional specialists attempting to gain synergy among divisional activities. 
C)  This is most appropriate for small, entrepreneur-dominated companies with one or two product lines that operate in a small niche market, with employees acting as jack-of-all trades. 
D)  Employees have two or more superiors, a project manager and a functional manager. 
E)  This is most appropriate for large corporations with many product lines in several unrelated industries, with employees acting as functional specialists but with no attempt at gaining synergy among the divisions.

Question 17

A core competency can be easily imitated to the extent that it is transparent, transferable, and replicable.

Accepted Answer

A) True 
 B)False

Question 18

eBay and Amazon.com have successfully used the efficiency model by acting as an intermediary to connect multiple sellers to multiple buyers.

Accepted Answer

A) True 
 B)False

Question 19

According to the text, which one of the following is NOT descriptive of a corporation's culture?

Accepted Answer

A)  A corporation's culture is a collection of beliefs, expectations, and values learned and shared by the corporation's members and transmitted from one generation of employees to another. 
B)  Corporate cultures are only temporary and can be easily changed. 
C)  Culture gives a company a sense of identity. 
D)  The culture reflects the company's values. 
E)  Cultures have a powerful influence on the behavior of managers and can strongly affect a corporation's ability to shift its strategic direction. 
A)  A corporation's culture is a collection of beliefs, expectations, and values learned and shared by the corporation's members and transmitted from one generation of employees to another. 
B)  Corporate cultures are only temporary and can be easily changed. 
C)  Culture gives a company a sense of identity. 
D)  The culture reflects the company's values. 
E)  Cultures have a powerful influence on the behavior of managers and can strongly affect a corporation's ability to shift its strategic direction.

Question 20

What are the two distinct attributes of corporate culture?

Accepted Answer

A)  differentiation and integration 
B)  durability and imitability 
C)  concern for people and concern for task 
D)  intensity and integration 
E)  amount of complexity and tolerance of change 
A)  differentiation and integration 
B)  durability and imitability 
C)  concern for people and concern for task 
D)  intensity and integration 
E)  amount of complexity and tolerance of change

As compared to a firm with low financial leverage, a firm with a high amount of financial leverage in an expanding market should have

The ability of competitors to use duplicated resources and capabilities to imitate the other firm's success is called

The part of an industry's value chain that is most important to a company and the point where its greatest expertise and capabilities lie is called the company's

A company's center of gravity is usually the point at which the company started.

The concept that suggests that unit production costs decline by some fixed percent each time the total accumulated volume of production in units doubles is referred to as

The rate at which a firm's underlying resources, capabilities, or core competencies can be duplicated by others is called

Knowledge that can be easily articulated and communicated is known as

The business model used by HP in selling printers and printer cartridges is the

Which of the following describes a typical functional structure?

Transferability is the ability of competitors to use duplicated resources and capabilities to imitate the other firm's success.

According to Porter, a manufacturing firm's support activities usually begin with inbound logistics, go through an operations process in which a product is manufactured, and continue on to outbound logistics and finally to service.

Cultural integration is the degree to which members of a unit accept the norms, values, or other culture content associated with the unit - showing the culture's depth.

The resources of an organization include tangible assets, human assets, and intangible assets.

Flexible manufacturing emphasizes

The second step in value chain analysis is to

Which one of the following best describes a divisional structure?

A core competency can be easily imitated to the extent that it is transparent, transferable, and replicable.

eBay and Amazon.com have successfully used the efficiency model by acting as an intermediary to connect multiple sellers to multiple buyers.

According to the text, which one of the following is NOT descriptive of a corporation's culture?

What are the two distinct attributes of corporate culture?

Basic Concepts in Strategic Management

Corporate Governance

Ethics and Social Responsibility in Strategic Management

Environmental Scanning and Industry Analysis

Strategy Formulation: Situation Analysis and Business Strategy

Strategy Formulation: Corporate Strategy

Strategy Formulation: Functional Strategy and Strategic Choice

Strategy Implementation: Organizing for Action

Strategy Implementation: Staffing and Directing

Evaluation and Control

Suggestions for Case Analysis

Filters

Exam 5: Internal Scanning and Organizational Analysis

As compared to a firm with low financial leverage, a firm with a high amount of financial leverage in an expanding market should have

The ability of competitors to use duplicated resources and capabilities to imitate the other firm's success is called

The part of an industry's value chain that is most important to a company and the point where its greatest expertise and capabilities lie is called the company's

A company's center of gravity is usually the point at which the company started.

The concept that suggests that unit production costs decline by some fixed percent each time the total accumulated volume of production in units doubles is referred to as

The rate at which a firm's underlying resources, capabilities, or core competencies can be duplicated by others is called

Knowledge that can be easily articulated and communicated is known as

The business model used by HP in selling printers and printer cartridges is the

Which of the following describes a typical functional structure?

Transferability is the ability of competitors to use duplicated resources and capabilities to imitate the other firm's success.

According to Porter, a manufacturing firm's support activities usually begin with inbound logistics, go through an operations process in which a product is manufactured, and continue on to outbound logistics and finally to service.

Cultural integration is the degree to which members of a unit accept the norms, values, or other culture content associated with the unit - showing the culture's depth.

The resources of an organization include tangible assets, human assets, and intangible assets.

Flexible manufacturing emphasizes

The second step in value chain analysis is to

Which one of the following best describes a divisional structure?

A core competency can be easily imitated to the extent that it is transparent, transferable, and replicable.

eBay and Amazon.com have successfully used the efficiency model by acting as an intermediary to connect multiple sellers to multiple buyers.

According to the text, which one of the following is NOT descriptive of a corporation's culture?

What are the two distinct attributes of corporate culture?

Basic Concepts in Strategic Management

Corporate Governance

Ethics and Social Responsibility in Strategic Management

Environmental Scanning and Industry Analysis

Strategy Formulation: Situation Analysis and Business Strategy

Strategy Formulation: Corporate Strategy

Strategy Formulation: Functional Strategy and Strategic Choice

Strategy Implementation: Organizing for Action

Strategy Implementation: Staffing and Directing

Evaluation and Control

Suggestions for Case Analysis

Filters