Question 1

An offensive to yield good results can be short if

Accepted Answer

A)  buyers respond immediately (to a dramatic cost-based price cut or imaginative ad campaign). 
B)  competition creates an appealing new product. 
C)  the technology needs debugging. 
D)  new production capacity needs to be installed. 
E)  consumer acceptance of an innovative product takes time. 
A)  buyers respond immediately (to a dramatic cost-based price cut or imaginative ad campaign). 
B)  competition creates an appealing new product. 
C)  the technology needs debugging. 
D)  new production capacity needs to be installed. 
E)  consumer acceptance of an innovative product takes time. A

Question 2

Alliance management is considered an organizational capability and

Accepted Answer

A)  develops over time, out of effort and learning. 
B)  decreases a company's knowledge assets. 
C)  creates successful strategic alliances. 
D)  decreases a company's knowledge capabilities. 
E)  rapidly transfers assets into the strategic alliance. 
A)  develops over time, out of effort and learning. 
B)  decreases a company's knowledge assets. 
C)  creates successful strategic alliances. 
D)  decreases a company's knowledge capabilities. 
E)  rapidly transfers assets into the strategic alliance. A

Question 3

Instead of entering into an alliance or partnership, Smith Limited opts to merge with Design Limited. What are the reasons for preferring a merger to an alliance or partnership? Explain the other organizational mechanisms that are also preferable to alliances.

Accepted Answer

There are circumstances when other organizational mechanisms are preferable to alliances and partnering. Mergers and acquisitions are especially suited for situations in which strategic alliances or partnerships do not go far enough in providing a company with access to needed resources and capabilities. Ownership ties are more permanent than partnership ties, allowing the operations of the merger or acquisition participants to be tightly integrated and creating more in-house control and autonomy. Other organizational mechanisms are also preferable to alliances when there is limited property rights protection for valuable know-how and when companies fear being taken advantage of by opportunistic partners.

Question 4

A blue-ocean type of offensive strategy

Accepted Answer

A)  is an offensive attack used by a market leader to steal customers away from unsuspecting smaller rivals. 
B)  involves a preemptive strike to secure an advantageous position in a fast-growing market segment. 
C)  works best when a company is the industry's low-cost leader. 
D)  offers growth in revenues and profits by discovering or inventing a new industry or distinct market segment that renders rivals largely irrelevant and allows a company to create and capture altogether new demand. 
E)  involves the use of highly creative, never-used-before strategic moves to attack the competitive weaknesses of rivals. 
A)  is an offensive attack used by a market leader to steal customers away from unsuspecting smaller rivals. 
B)  involves a preemptive strike to secure an advantageous position in a fast-growing market segment. 
C)  works best when a company is the industry's low-cost leader. 
D)  offers growth in revenues and profits by discovering or inventing a new industry or distinct market segment that renders rivals largely irrelevant and allows a company to create and capture altogether new demand. 
E)  involves the use of highly creative, never-used-before strategic moves to attack the competitive weaknesses of rivals.

Question 5

What are the strategic disadvantages of a forward vertical integration strategy?

Accepted Answer

The most serious drawbacks to vertical i

Question 6

The strategic impetus for forward vertical integration is to

Accepted Answer

A)  gain better access to end users and better market visibility. 
B)  achieve the same scale economies as wholesale distributors and/or retail dealers. 
C)  control price at the retail level. 
D)  bypass distributors and dealers and sell direct to consumers at the company's website. 
E)  build a core competence in mass merchandising. 
A)  gain better access to end users and better market visibility. 
B)  achieve the same scale economies as wholesale distributors and/or retail dealers. 
C)  control price at the retail level. 
D)  bypass distributors and dealers and sell direct to consumers at the company's website. 
E)  build a core competence in mass merchandising.

Question 7

What are the three principal advantages of strategic alliances over vertical integration or mergers/acquisitions?

Accepted Answer

The principal advantages of strategic al

Question 8

What are the strategic advantages of being a first-mover? Are there any strategic advantages of being a follower or late-mover?

Accepted Answer

Being first to initiate a strategic move

Question 9

Relying on outsiders to perform certain value chain activities offers such strategic advantages as

Accepted Answer

A)  ensuring more costly components or services. 
B)  improving the company's inability to innovate by allying with "best-in-class" suppliers. 
C)  reducing the company's risk exposure to changing technology and/or changing buyer preferences. 
D)  increasing the firm's inability to assemble diverse kinds of expertise speedily and efficiently. 
E)  reducing its information technology and operational costs so that organizational flexibility is maintained. 
A)  ensuring more costly components or services. 
B)  improving the company's inability to innovate by allying with "best-in-class" suppliers. 
C)  reducing the company's risk exposure to changing technology and/or changing buyer preferences. 
D)  increasing the firm's inability to assemble diverse kinds of expertise speedily and efficiently. 
E)  reducing its information technology and operational costs so that organizational flexibility is maintained.

Question 10

A hit-and-run or guerrilla warfare type offensive strategy

Accepted Answer

A)  involves random offensive attacks used by a market leader to steal customers away from unsuspecting smaller rivals. 
B)  involves undertaking surprise moves to secure an advantageous position in a fast-growing and profitable market segment; usually the guerrilla signals rivals that it will use deep price cuts to defend its newly won position. 
C)  works best if the guerrilla is the industry's low-cost leader. 
D)  involves pitting a small company's own competitive strengths head-on against the strengths of much larger rivals. 
E)  involves unexpected attacks (usually by a small-to-medium size competitor) to grab sales and market share from complacent or distracted rivals. 
A)  involves random offensive attacks used by a market leader to steal customers away from unsuspecting smaller rivals. 
B)  involves undertaking surprise moves to secure an advantageous position in a fast-growing and profitable market segment; usually the guerrilla signals rivals that it will use deep price cuts to defend its newly won position. 
C)  works best if the guerrilla is the industry's low-cost leader. 
D)  involves pitting a small company's own competitive strengths head-on against the strengths of much larger rivals. 
E)  involves unexpected attacks (usually by a small-to-medium size competitor) to grab sales and market share from complacent or distracted rivals.

Question 11

What is a blue-ocean strategy, what is its appeal, and what is its drawback?

Accepted Answer

A blue-ocean strategy seeks to gain a dr

Question 12

Which of the following is NOT one of the factors that affects whether a strategic alliance will be successful and realize its intended benefits?

Accepted Answer

A)  picking a good partner 
B)  recognizing that the alliance must benefit both sides 
C)  minimizing the amount of resources that the partners commit to the alliance 
D)  ensuring that both parties live up to their commitments 
E)  structuring the decision-making process so actions can be taken swiftly when needed 
A)  picking a good partner 
B)  recognizing that the alliance must benefit both sides 
C)  minimizing the amount of resources that the partners commit to the alliance 
D)  ensuring that both parties live up to their commitments 
E)  structuring the decision-making process so actions can be taken swiftly when needed

Question 13

What are the strategic advantages of a backward vertical integration strategy?

Accepted Answer

Backward vertical integration can produc

Question 14

The two big drivers of outsourcing are

Accepted Answer

A)  an increased ability to cut R&D expenses and an increased ability to avoid the problems of strategic alliances. 
B)  that outsiders can often perform certain activities better or more cheaply, and outsourcing allows a firm to focus its entire energies on those activities that are at the center of its expertise (its core competencies). 
C)  a desire to reduce the company's investment in fixed assets and the need to narrow the scope of the company's in-house competencies and competitive capabilities. 
D)  the ability to avoid capital investments that accompany vertical integration and a desire to reduce the company's risk exposure to changing technology and/or changing buyer preferences. 
E)  that a smaller in-house workforce and a low investment in intellectual capital will produce cost savings. 
A)  an increased ability to cut R&D expenses and an increased ability to avoid the problems of strategic alliances. 
B)  that outsiders can often perform certain activities better or more cheaply, and outsourcing allows a firm to focus its entire energies on those activities that are at the center of its expertise (its core competencies). 
C)  a desire to reduce the company's investment in fixed assets and the need to narrow the scope of the company's in-house competencies and competitive capabilities. 
D)  the ability to avoid capital investments that accompany vertical integration and a desire to reduce the company's risk exposure to changing technology and/or changing buyer preferences. 
E)  that a smaller in-house workforce and a low investment in intellectual capital will produce cost savings.

Question 15

Which of the following is NOT among the intended outcomes of horizontal merger and acquisition strategies?

Accepted Answer

A)  expanding a company's geographic coverage 
B)  gaining quick access to new technologies or complementary resources and capabilities 
C)  leading the convergence of industries whose boundaries are being blurred by changing technologies and new market opportunities 
D)  extending the company's business into new product categories 
E)  suppressing a rival's breakthroughs in management or technology 
A)  expanding a company's geographic coverage 
B)  gaining quick access to new technologies or complementary resources and capabilities 
C)  leading the convergence of industries whose boundaries are being blurred by changing technologies and new market opportunities 
D)  extending the company's business into new product categories 
E)  suppressing a rival's breakthroughs in management or technology

Question 16

Which one of the following is NOT a good type of rival for an offensive-minded company to target?

Accepted Answer

A)  market leaders that are vulnerable 
B)  runner-up firms with weaknesses in areas where the offensive-minded challenger is strong 
C)  small local and regional companies with limited capabilities 
D)  struggling enterprises that are on the verge of going under 
E)  other offensive-minded companies with a sizable war chest of cash and marketable securities 
A)  market leaders that are vulnerable 
B)  runner-up firms with weaknesses in areas where the offensive-minded challenger is strong 
C)  small local and regional companies with limited capabilities 
D)  struggling enterprises that are on the verge of going under 
E)  other offensive-minded companies with a sizable war chest of cash and marketable securities

Question 17

For a backward vertical integration strategy into the business of suppliers to be viable and profitable, a company must possess

Accepted Answer

A)  the capability to achieve the same scale economies as outside suppliers and also match or beat suppliers' production efficiency with no drop in quality. 
B)  considerable expertise in supply chain management, transportation logistics, and inventory control techniques. 
C)  large state-of-the-art production facilities so that it can fully capture all economies of scale in producing parts and components. 
D)  a distinctive competence in production process technology and at least a core competence in manufacturing R&D. 
E)  excess production capacity so that it has an ample in-house ability to undertake additional production activities. 
A)  the capability to achieve the same scale economies as outside suppliers and also match or beat suppliers' production efficiency with no drop in quality. 
B)  considerable expertise in supply chain management, transportation logistics, and inventory control techniques. 
C)  large state-of-the-art production facilities so that it can fully capture all economies of scale in producing parts and components. 
D)  a distinctive competence in production process technology and at least a core competence in manufacturing R&D. 
E)  excess production capacity so that it has an ample in-house ability to undertake additional production activities.

Question 18

Vertical integration strategies

Accepted Answer

A)  extend a company's competitive scope within the same industry by expanding its operations across multiple segments or stages of the industry value chain. 
B)  are one of the best strategic options for helping companies win the race for global market leadership. 
C)  offer good potential to expand a company's lineup of products and services. 
D)  are particularly effective in boosting a company's ability to expand into additional geographic markets, particularly the markets of foreign countries. 
E)  are a good strategy option for helping a company revamp its value chain and bypass low value-added activities. 
A)  extend a company's competitive scope within the same industry by expanding its operations across multiple segments or stages of the industry value chain. 
B)  are one of the best strategic options for helping companies win the race for global market leadership. 
C)  offer good potential to expand a company's lineup of products and services. 
D)  are particularly effective in boosting a company's ability to expand into additional geographic markets, particularly the markets of foreign countries. 
E)  are a good strategy option for helping a company revamp its value chain and bypass low value-added activities.

Question 19

A vertical integration strategy can expand the firm's range of activities

Accepted Answer

A)  backward into sources of supply and/or forward toward end users. 
B)  backward into other industry business lines and/or forward to suppliers of raw materials. 
C)  to enable the supply chain the opportunity for expansion. 
D)  to complement the industry's horizontal value chain line of profitability. 
E)  to establish full integration by participating in a tapered integration (without the outsourced and in-house activities). 
A)  backward into sources of supply and/or forward toward end users. 
B)  backward into other industry business lines and/or forward to suppliers of raw materials. 
C)  to enable the supply chain the opportunity for expansion. 
D)  to complement the industry's horizontal value chain line of profitability. 
E)  to establish full integration by participating in a tapered integration (without the outsourced and in-house activities).

Question 20

Launching a preemptive strike type of offensive strategy entails

Accepted Answer

A)  sapping the rival's financial strength and competitive position. 
B)  weakening the rival's resolve. 
C)  moving first to secure advantageous competitive assets that rivals can't readily match or duplicate. 
D)  threatening the rival's overall survival in the market. 
E)  using hit-and-run tactics to grab sales and market share away from complacent or distracted rivals. 
A)  sapping the rival's financial strength and competitive position. 
B)  weakening the rival's resolve. 
C)  moving first to secure advantageous competitive assets that rivals can't readily match or duplicate. 
D)  threatening the rival's overall survival in the market. 
E)  using hit-and-run tactics to grab sales and market share away from complacent or distracted rivals.

An offensive to yield good results can be short if

Alliance management is considered an organizational capability and

Instead of entering into an alliance or partnership, Smith Limited opts to merge with Design Limited. What are the reasons for preferring a merger to an alliance or partnership? Explain the other organizational mechanisms that are also preferable to alliances.

A blue-ocean type of offensive strategy

What are the strategic disadvantages of a forward vertical integration strategy?

The strategic impetus for forward vertical integration is to

What are the three principal advantages of strategic alliances over vertical integration or mergers/acquisitions?

What are the strategic advantages of being a first-mover? Are there any strategic advantages of being a follower or late-mover?

Relying on outsiders to perform certain value chain activities offers such strategic advantages as

A hit-and-run or guerrilla warfare type offensive strategy

What is a blue-ocean strategy, what is its appeal, and what is its drawback?

Which of the following is NOT one of the factors that affects whether a strategic alliance will be successful and realize its intended benefits?

What are the strategic advantages of a backward vertical integration strategy?

The two big drivers of outsourcing are

Which of the following is NOT among the intended outcomes of horizontal merger and acquisition strategies?

Which one of the following is NOT a good type of rival for an offensive-minded company to target?

For a backward vertical integration strategy into the business of suppliers to be viable and profitable, a company must possess

Vertical integration strategies

A vertical integration strategy can expand the firm's range of activities

Launching a preemptive strike type of offensive strategy entails

What Is Strategy and Why Is It Important

Leading the Process of Crafting and Executing Strategy

Evaluating a Companys External Environment

Evaluating a Companys Resources and Competitive Position

The Five Generic Competitive Strategies: Which One to Employ

Strategies for Competing in Foreign Markets

Diversification: Strategies for Managing a Group of Businesses

Ethical Business Strategies, Social Responsibility, and Environmental Sustainabil ITY

Building an Organization Capable of Good Strategy Execution

Managing Internal Operations: Actions That Promote Good Strategy Execution

Corporate Culture and Leadership: Keys to Good Strategy Execution

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Exam 6: Supplementing the Chosen Competitive Strategy: Other Important Business Strategy Choices

An offensive to yield good results can be short if

Alliance management is considered an organizational capability and

Instead of entering into an alliance or partnership, Smith Limited opts to merge with Design Limited. What are the reasons for preferring a merger to an alliance or partnership? Explain the other organizational mechanisms that are also preferable to alliances.

A blue-ocean type of offensive strategy

What are the strategic disadvantages of a forward vertical integration strategy?

The strategic impetus for forward vertical integration is to

What are the three principal advantages of strategic alliances over vertical integration or mergers/acquisitions?

What are the strategic advantages of being a first-mover? Are there any strategic advantages of being a follower or late-mover?

Relying on outsiders to perform certain value chain activities offers such strategic advantages as

A hit-and-run or guerrilla warfare type offensive strategy

What is a blue-ocean strategy, what is its appeal, and what is its drawback?

Which of the following is NOT one of the factors that affects whether a strategic alliance will be successful and realize its intended benefits?

What are the strategic advantages of a backward vertical integration strategy?

The two big drivers of outsourcing are

Which of the following is NOT among the intended outcomes of horizontal merger and acquisition strategies?

Which one of the following is NOT a good type of rival for an offensive-minded company to target?

For a backward vertical integration strategy into the business of suppliers to be viable and profitable, a company must possess

Vertical integration strategies

A vertical integration strategy can expand the firm's range of activities

Launching a preemptive strike type of offensive strategy entails

What Is Strategy and Why Is It Important

Leading the Process of Crafting and Executing Strategy

Evaluating a Companys External Environment

Evaluating a Companys Resources and Competitive Position

The Five Generic Competitive Strategies: Which One to Employ

Strategies for Competing in Foreign Markets

Diversification: Strategies for Managing a Group of Businesses

Ethical Business Strategies, Social Responsibility, and Environmental Sustainabil ITY

Building an Organization Capable of Good Strategy Execution

Managing Internal Operations: Actions That Promote Good Strategy Execution

Corporate Culture and Leadership: Keys to Good Strategy Execution

Filters