Question 1

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

Accepted Answer

Answer will vary

Question 2

What outcomes do horizontal merger and acquisition strategies intend?

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)   All of these. E

Question 3

Which of the following is a prime example of a blue-ocean market strategy?

Accepted Answer

A)   eBay online auction industry
B)   Starbucks coffee shops
C)   Dollar General discount retailing
D)   FedEx overnight shipping
E)   All of these. E

Question 4

Which of the following signals can be given to challengers to warn that strong retaliation is likely?

Accepted Answer

A)   Publicly announcing management's commitment to maintain market share.
B)   Publicly committing to a company policy of matching competitors' terms or pricing.
C)   Maintaining a war chest of cash and marketable securities.
D)   Making a strong counter response to the moves of weak competitors.
E)   All of these.

Question 5

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

Accepted Answer

The answer of What are the strategic advantages of a...

Question 6

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

Accepted Answer

The answer of What are the strategic disadvantages of a...

Question 7

Vertical integration strategies

Accepted Answer

A)   extend a company's competitive scope within the same industry by expanding its operations across more parts 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 to revamp its value chain and bypass low value-added activities.

Question 8

Being first to initiate a particular strategic move can have a high payoff when

Accepted Answer

A)   pioneering helps build up a firm's image and reputation with buyers.
B)   first-time buyers remain strongly loyal to pioneering firms in making repeat purchases.
C)   moving first can result in a cost advantage over rivals.
D)   moving first can constitute a preemptive strike, making imitation extra hard or unlikely.
E)   All of these.

Question 9

What are the merits of strategic alliances and collaborative partnerships for companies racing to seize opportunities in an industry of the future? Under what circumstances do they make sense? How do they contribute to competitive advantage?

Accepted Answer

The answer of What are the merits of strategic alliances...

Question 10

In which of the following cases are late-mover advantages (or first-mover disadvantages)not likely to arise?

Accepted Answer

A)   When the costs of pioneering are much higher than being a follower and only negligible learning/experience benefits accrue to the pioneer
B)   When the marketplace is skeptical about the benefits of a new technology or product being pioneered by a first-mover
C)   When the pioneer's products are somewhat primitive and are easily bested by late movers
D)   When opportunities exist to invent a new industry or distinctive market segment that creates altogether new demand
E)   When technological change is rapid and fast-following rivals find it easy to leapfrog the pioneer with next-generation products of their own

Question 11

Which of the following is not one of the benefits of outsourcing value chain activities presently performed in-house?

Accepted Answer

A)   Streamlines company operations in ways that improve organizational flexibility and cut the time it takes to get new products into the marketplace
B)   Allows a company to concentrate on its core business, leverage its key resources, and do even better what it already does best
C)   Helps the company assemble diverse kinds of expertise speedily and efficiently
D)   Enables a company to gain better access to end users and better market visibility
E)   Improves a company's ability to innovate

Question 12

Incorporating opportunities for organizational learning can

Accepted Answer

A)   increase a company's knowledge assets and capabilities.
B)   decrease a company's knowledge assets.
C)   automatically create successful strategic alliances.
D)   decrease a company's knowledge capabilities.
E)   rapidly transfer assets into the strategic alliance.

Question 13

What are the potential strategic objectives of merger and acquisition strategies?

Accepted Answer

The answer of What are the potential strategic objectives of...

Question 14

Which one of the following is not a strategically beneficial reason why a company may enter into strategic partnerships or cooperative arrangements with key suppliers,distributors,or makers of complementary products?

Accepted Answer

A)   To improve access to new markets
B)   To expedite the development of promising new technologies or products
C)   To enable greater opportunities for employee advancement
D)   To improve supply chain efficiency
E)   To overcome disadvantages of small production volumes that limit scale economies and low production costs

Question 15

A company that fails in managing their strategic alliance probably has not

Accepted Answer

A)   incorporated contractual safeguards.
B)   made opportunities for learning a routine management process.
C)   created a system to manage alliances in a systematic fashion.
D)   established strong interpersonal relationships to facilitate communication
E)   All of these.

Question 16

The range of product and service segments that the firm serves within its market is known as the firm's

Accepted Answer

A)   horizontal scope.
B)   vertical integration.
C)   vertical scope.
D)   product outsourcing.
E)   joint venture partnership.

Question 17

Identify at least three factors that can aid companies in forming a successful strategic alliance.

Accepted Answer

The answer of Identify at least three factors that can...

Question 18

What are the merits of strategic alliances and collaborative partnerships for companies racing for global market leadership? Under what circumstances do they make sense? How do they contribute to competitive advantage?

Accepted Answer

The answer of What are the merits of strategic alliances...

Question 19

What does a company racing to stake out a strong position in an industry of the future need strategic alliances for?

Accepted Answer

The answer of What does a company racing to stake...

Question 20

Which of the following is typically the strategic impetus for forward vertical integration?

Accepted Answer

A)   Being able to control the wholesale/retail portion of the industry value chain
B)   Fewer disruptions in the delivery of the company's products to end-users
C)   Gaining better access to end users and better market visibility
D)   Broadening the company's product line
E)   Allowing the firm access to greater economies of scale

Exam 6: Strengthening a Companys Competitive Position: Strategic Moves, timing, and Scope of Operation

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

What outcomes do horizontal merger and acquisition strategies intend?

Which of the following is a prime example of a blue-ocean market strategy?

Which of the following signals can be given to challengers to warn that strong retaliation is likely?

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

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

Vertical integration strategies

Being first to initiate a particular strategic move can have a high payoff when

What are the merits of strategic alliances and collaborative partnerships for companies racing to seize opportunities in an industry of the future? Under what circumstances do they make sense? How do they contribute to competitive advantage?

In which of the following cases are late-mover advantages (or first-mover disadvantages) not likely to arise?

Which of the following is not one of the benefits of outsourcing value chain activities presently performed in-house?

Incorporating opportunities for organizational learning can

What are the potential strategic objectives of merger and acquisition strategies?

Which one of the following is not a strategically beneficial reason why a company may enter into strategic partnerships or cooperative arrangements with key suppliers,distributors,or makers of complementary products?

A company that fails in managing their strategic alliance probably has not

The range of product and service segments that the firm serves within its market is known as the firm's

Identify at least three factors that can aid companies in forming a successful strategic alliance.

What are the merits of strategic alliances and collaborative partnerships for companies racing for global market leadership? Under what circumstances do they make sense? How do they contribute to competitive advantage?

What does a company racing to stake out a strong position in an industry of the future need strategic alliances for?

Which of the following is typically the strategic impetus for forward vertical integration?