Question 1

What is the relationship between a company's corporate-level strategy and its business model?

Accepted Answer

Corporate-level strategies drive a compa

Question 2

An advantage of horizontal integration is that by staying in one industry,a firm can focus its resources and capabilities on competing successfully in just one area.

Accepted Answer

A) True 
 B)False

Question 3

Horizontal integration in an industry tends to

Accepted Answer

A) increase rivalry among firms. 
B) reduce rivalry among firms. 
C) have little effect on rivalry among firms. 
D) reduce the number of consumers buying the products. 
E) none of these choices. 
A) increase rivalry among firms. 
B) reduce rivalry among firms. 
C) have little effect on rivalry among firms. 
D) reduce the number of consumers buying the products. 
E) none of these choices.

Question 4

When a company decides to expand into new industries,it must

Accepted Answer

A) construct its business models at two levels. 
B) secure government approval from the Securities and Exchange Commission (SE
C) . 
C) select a new CEO. 
D) all of these choices. 
E) none of these choices. 
A) construct its business models at two levels. 
B) secure government approval from the Securities and Exchange Commission (SE
C) . 
C) select a new CEO. 
D) all of these choices. 
E) none of these choices.

Question 5

Vertical integration can strengthen a company's differentiation advantage.

Accepted Answer

A) True 
 B)False

Question 6

Strategic alliances are

Accepted Answer

A) short-term agreements between two companies to jointly develop new products. 
B) short-term agreements between two companies to jointly market new products. 
C) short-term partnerships between two companies. 
D) long-term commitments between two companies to share research and development activities. 
E) long-term agreements between two or more companies to jointly develop products that benefit all companies involved in the alliance. 
A) short-term agreements between two companies to jointly develop new products. 
B) short-term agreements between two companies to jointly market new products. 
C) short-term partnerships between two companies. 
D) long-term commitments between two companies to share research and development activities. 
E) long-term agreements between two or more companies to jointly develop products that benefit all companies involved in the alliance.

Question 7

A company seeking to form a long-term strategic alliance needs to enter the agreement with total trust in its partner to live up to its end of the agreement.

Accepted Answer

A) True 
 B)False

Question 8

To ensure the easy transfer of important competitive information between a firm and its outsourcing contractors,the firm should

Accepted Answer

A) exchange hostages. 
B) use parallel sourcing. 
C) lengthen the supply chain. 
D) develop trust. 
E) become a virtual corporation. 
A) exchange hostages. 
B) use parallel sourcing. 
C) lengthen the supply chain. 
D) develop trust. 
E) become a virtual corporation.

Question 9

Vertical integration is based on a company entering industries that add ____ to its core products.

Accepted Answer

A) costs 
B) little or nothing 
C) incremental elements 
D) shipping expenses 
E) value 
A) costs 
B) little or nothing 
C) incremental elements 
D) shipping expenses 
E) value

Question 10

Even though companies may invest in specialized assets to build competitive advantage,it is seldom necessary that suppliers do so.

Accepted Answer

A) True 
 B)False

Question 11

Vertical integration can raise costs if,over time,a company continues to purchase inputs from company-owned suppliers when independent suppliers can supply the same inputs at lower cost.

Accepted Answer

A) True 
 B)False

Question 12

Antitrust regulation

Accepted Answer

A) favors large companies. 
B) reduces industry competition. 
C) is concerned with companies' abuse of their market power to raise prices for consumers above the level that would exist in more competitive situations. 
D) tends to raise prices for consumers. 
E) enables the achievement of market power. 
A) favors large companies. 
B) reduces industry competition. 
C) is concerned with companies' abuse of their market power to raise prices for consumers above the level that would exist in more competitive situations. 
D) tends to raise prices for consumers. 
E) enables the achievement of market power.

Question 13

Ownership of retail outlets may be important for a manufacturer if

Accepted Answer

A) the products produced by the manufacturer are not complex. 
B) after-sales service is required for complex products. 
C) products are expended in consumption. 
D) products are intended for one-time use. 
E) products are inexpensive. 
A) the products produced by the manufacturer are not complex. 
B) after-sales service is required for complex products. 
C) products are expended in consumption. 
D) products are intended for one-time use. 
E) products are inexpensive.

Question 14

A company should first choose a corporate-level strategy and then look at how changes will affect a company's current business model and strategies.

Accepted Answer

A) True 
 B)False

Question 15

Companies that outsource most or all of their value creation activities are often referred to as virtual corporations.

Accepted Answer

A) True 
 B)False

Question 16

A specialized asset is one that is designed to

Accepted Answer

A) perform a multitude of generic tasks. 
B) perform a specified sequence of tasks. 
C) perform several nonsequential tasks. 
D) perform a specific task. 
E) none of these choices. 
A) perform a multitude of generic tasks. 
B) perform a specified sequence of tasks. 
C) perform several nonsequential tasks. 
D) perform a specific task. 
E) none of these choices.

Question 17

Outsourcing occurs when a firm

Accepted Answer

A) buys one of its rivals. 
B) merges with one of its suppliers. 
C) enters into a joint venture with a rival. 
D) hires another firm to perform value creation activities. 
E) enters into contracts with two suppliers simultaneously. 
A) buys one of its rivals. 
B) merges with one of its suppliers. 
C) enters into a joint venture with a rival. 
D) hires another firm to perform value creation activities. 
E) enters into contracts with two suppliers simultaneously.

Question 18

Competitive bidding makes suppliers reluctant to make investments that tie them closely to their trading partners.

Accepted Answer

A) True 
 B)False

Question 19

When Citibank offers home mortgages and credit cards to its checking account customers,it is using cross-selling.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is not an accurate statement about outsourcing?

Accepted Answer

A) Outsourcing should be done for an entire function¾for example,all of human resources. 
B) Outsourcing requires that some value creation activities be performed outside an organization. 
C) A risk of outsourcing is the decreased control that organizations have over how the functions are performed. 
D) Outsourcing means that activities can be performed by companies that specialize in that activity. 
E) Outsourcing is a strategy that is primarily used by small firms who cannot afford skilled personnel in every specialty. 
A) Outsourcing should be done for an entire function¾for example,all of human resources. 
B) Outsourcing requires that some value creation activities be performed outside an organization. 
C) A risk of outsourcing is the decreased control that organizations have over how the functions are performed. 
D) Outsourcing means that activities can be performed by companies that specialize in that activity. 
E) Outsourcing is a strategy that is primarily used by small firms who cannot afford skilled personnel in every specialty.

What is the relationship between a company's corporate-level strategy and its business model?

An advantage of horizontal integration is that by staying in one industry,a firm can focus its resources and capabilities on competing successfully in just one area.

Horizontal integration in an industry tends to

When a company decides to expand into new industries,it must

Vertical integration can strengthen a company's differentiation advantage.

Strategic alliances are

A company seeking to form a long-term strategic alliance needs to enter the agreement with total trust in its partner to live up to its end of the agreement.

To ensure the easy transfer of important competitive information between a firm and its outsourcing contractors,the firm should

Vertical integration is based on a company entering industries that add ____ to its core products.

Even though companies may invest in specialized assets to build competitive advantage,it is seldom necessary that suppliers do so.

Vertical integration can raise costs if,over time,a company continues to purchase inputs from company-owned suppliers when independent suppliers can supply the same inputs at lower cost.

Antitrust regulation

Ownership of retail outlets may be important for a manufacturer if

A company should first choose a corporate-level strategy and then look at how changes will affect a company's current business model and strategies.

Companies that outsource most or all of their value creation activities are often referred to as virtual corporations.

A specialized asset is one that is designed to

Outsourcing occurs when a firm

Competitive bidding makes suppliers reluctant to make investments that tie them closely to their trading partners.

When Citibank offers home mortgages and credit cards to its checking account customers,it is using cross-selling.

Which of the following is not an accurate statement about outsourcing?

Strategic Leadership: Managing the Strategy-Making Process for Competitive Advantage

External Analysis: The Identification of Opportunities and Threats

Internal Analysis: Distinctive Competencies, Competitive Advantage, and Profitability

Building Competitive Advantage Through Functional-Level Strategy

Building Competitive Advantage Through Business-Level Strategy

Business-Level Strategy and the Industry Environment

Strategy and Technology

Strategy in the Global Environment

Corporate-Level Strategy: Related and Unrelated Diversification

Corporate Performance, Governance, and Business Ethics

Implementing Strategy in Companies That Compete in a Single Industry

Implementing Strategy in Companies That Compete Across Industries and Countries

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Exam 9: Corporate-Level Strategy: Horizontal Integration, Vertical Integration, and Strategic Outsourcing

What is the relationship between a company's corporate-level strategy and its business model?

An advantage of horizontal integration is that by staying in one industry,a firm can focus its resources and capabilities on competing successfully in just one area.

Horizontal integration in an industry tends to

When a company decides to expand into new industries,it must

Vertical integration can strengthen a company's differentiation advantage.

Strategic alliances are

A company seeking to form a long-term strategic alliance needs to enter the agreement with total trust in its partner to live up to its end of the agreement.

To ensure the easy transfer of important competitive information between a firm and its outsourcing contractors,the firm should

Vertical integration is based on a company entering industries that add ____ to its core products.

Even though companies may invest in specialized assets to build competitive advantage,it is seldom necessary that suppliers do so.

Vertical integration can raise costs if,over time,a company continues to purchase inputs from company-owned suppliers when independent suppliers can supply the same inputs at lower cost.

Antitrust regulation

Ownership of retail outlets may be important for a manufacturer if

A company should first choose a corporate-level strategy and then look at how changes will affect a company's current business model and strategies.

Companies that outsource most or all of their value creation activities are often referred to as virtual corporations.

A specialized asset is one that is designed to

Outsourcing occurs when a firm

Competitive bidding makes suppliers reluctant to make investments that tie them closely to their trading partners.

When Citibank offers home mortgages and credit cards to its checking account customers,it is using cross-selling.

Which of the following is not an accurate statement about outsourcing?

Strategic Leadership: Managing the Strategy-Making Process for Competitive Advantage

External Analysis: The Identification of Opportunities and Threats

Internal Analysis: Distinctive Competencies, Competitive Advantage, and Profitability

Building Competitive Advantage Through Functional-Level Strategy

Building Competitive Advantage Through Business-Level Strategy

Business-Level Strategy and the Industry Environment

Strategy and Technology

Strategy in the Global Environment

Corporate-Level Strategy: Related and Unrelated Diversification

Corporate Performance, Governance, and Business Ethics

Implementing Strategy in Companies That Compete in a Single Industry

Implementing Strategy in Companies That Compete Across Industries and Countries

Filters