Question 1

The T in SWOT represents

Accepted Answer

A)  threat. 
B)  tactic. 
C)  technique. 
D)  task. 
E)  time.

Question 2

SO strategies attempt to take advantage of opportunities by overcoming weaknesses.

Accepted Answer

A) True 
 B)False

Question 3

Discuss the reasons a firm may form a strategic alliance.

Accepted Answer

The answer of Discuss the reasons a firm may form...

Question 4

The focus strategies will likely predominate when many small- and medium-sized local companies compete for relatively small shares of the total market in a(n)

Accepted Answer

A)  united industry. 
B)  fragmented industry. 
C)  consolidated industry. 
D)  isolated industry. 
E)  integrated industry.

Question 5

Differentiation is a viable strategy for earning above-average returns in a specific business because the resulting increased value to the customer

Accepted Answer

A)  lowers costs. 
B)  lowers price sensitivity. 
C)  lowers customer loyalty. 
D)  lowers market share. 
E)  lowers entry barriers.

Question 6

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 7

According to Porter, the generic competitive strategy that reflects the ability to provide unique and superior value to the buyer in terms of product quality, special features, or after-sale service is called

Accepted Answer

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

Question 8

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.

Question 9

According to Porter, the generic competitive strategy that reflects the ability of the corporation or its business unit to design, produce, and market a comparable product more efficiently than its competitors is called

Accepted Answer

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

Question 10

As an industry becomes hypercompetitive, firms initially respond by

Accepted Answer

A)  raising entry barriers. 
B)  moving into untapped markets. 
C)  attacking the strongholds of other firms. 
D)  competing on cost and quality. 
E)  working their way to a situation of perfect competition.

Question 11

The SFAS Matrix summarizes an organization's strategic factors by combining the external factors from the IFAS Table with the internal factors from the EFAS Table.

Accepted Answer

A) True 
 B)False

Question 12

What is a propitious niche? Provide an example of a firm that has been able to occupy a propitious niche successfully.

Accepted Answer

The answer of What is a propitious niche? Provide an...

Question 13

When firms follow each other's lead to reduce the level of competition such as GE and Westinghouse did in steam turbines, it is referred to as

Accepted Answer

A)  explicit collusion. 
B)  a strategic alliance. 
C)  a mutual service consortium. 
D)  conscious parallelism. 
E)  partnering.

Question 14

Product engineering, creative flair, and strong cooperation from channels are commonly required skills and resources for which of Porter's generic strategies?

Accepted Answer

A)  cost leadership 
B)  differentiation 
C)  cost leadership focus 
D)  differentiation focus 
E)  collusion

Question 15

When a company is concerned that the higher price it charges for its higher quality is too far above the price of the competition, the company is likely addressing a risk of following which competitive strategy?

Accepted Answer

A)  cost leadership 
B)  focus 
C)  stuck-in-the-middle 
D)  differentiation 
E)  competitive scope

Question 16

According to the text, unique market opportunities that are available for only a particular time are called

Accepted Answer

A)  situational occasions. 
B)  critical openings. 
C)  strategy implementation. 
D)  strategic windows. 
E)  trigger points.

Question 17

According to Porter, a business unit in a competitive marketplace with no generic competitive strategy is

Accepted Answer

A)  achieving synergy. 
B)  practicing innovative leadership. 
C)  stuck in the middle. 
D)  not goal directed. 
E)  last in line.

Question 18

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.

Question 19

Which of the following is not a reason companies or business units may form a strategic alliance?

Accepted Answer

A)  to obtain access to specific markets 
B)  to reduce financial risk 
C)  to reduce political risk 
D)  to set prices in the industry 
E)  to learn new capabilities

Question 20

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

Exam 6: Strategy Formulation: Business Strategy

The T in SWOT represents

SO strategies attempt to take advantage of opportunities by overcoming weaknesses.

Discuss the reasons a firm may form a strategic alliance.

The focus strategies will likely predominate when many small- and medium-sized local companies compete for relatively small shares of the total market in a(n)

Differentiation is a viable strategy for earning above-average returns in a specific business because the resulting increased value to the customer

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

According to Porter, the generic competitive strategy that reflects the ability to provide unique and superior value to the buyer in terms of product quality, special features, or after-sale service is called

In a SFAS Matrix,

According to Porter, the generic competitive strategy that reflects the ability of the corporation or its business unit to design, produce, and market a comparable product more efficiently than its competitors is called

As an industry becomes hypercompetitive, firms initially respond by

The SFAS Matrix summarizes an organization's strategic factors by combining the external factors from the IFAS Table with the internal factors from the EFAS Table.

What is a propitious niche? Provide an example of a firm that has been able to occupy a propitious niche successfully.

When firms follow each other's lead to reduce the level of competition such as GE and Westinghouse did in steam turbines, it is referred to as

Product engineering, creative flair, and strong cooperation from channels are commonly required skills and resources for which of Porter's generic strategies?

When a company is concerned that the higher price it charges for its higher quality is too far above the price of the competition, the company is likely addressing a risk of following which competitive strategy?

According to the text, unique market opportunities that are available for only a particular time are called

According to Porter, a business unit in a competitive marketplace with no generic competitive strategy is

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

Which of the following is not a reason companies or business units may form a strategic alliance?

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