BUSI 400 Read & Interact Dess, McNamara, Eisner, & Lee Chapter 5 solutions complete answers

BUSI 400 Read & Interact Dess, McNamara, Eisner, & Lee Chapter 5 solutions complete answers 

 

Companies that cannot identify any type of competitive advantage are classified as ______.

 

A successful overall cost leadership strategy requires a tight set of interrelated tactics that include which of the following? (Check all that apply.)

 

Salvamoser Steel fabricates widgets. When the company first began production, it had high unit costs because it was trying to figure out the most efficient manufacturing method. After a few years, Salvamoser Steel had ironed out its production issues, and unit costs of production declined, even as cumulative output increased. This is known as ______.

 

An overall cost leadership strategy helps companies erect substantial industry entry barriers through _______.

 

Which type of strategy is based on creating differences in the firm's product or service offering by creating something that is perceived industrywide as unique and valued by customers?

 

Research has found that companies that ______.

 

Firms that use a differentiation strategy may be able to decrease buyer power ______.

 

______ is a generic strategy based on appeal to the industrywide market using a competitive advantage based on ______.

 

A ______ strategy is a firm's generic strategy based on appeal to a narrow market segment within an industry.

 

______ is the decline in unit costs of production as cumulative output increases.

 

Which of the following are ways that companies can combine overall cost leadership and differentiation? (Check all that apply.)

 

Which of the following are ways an overall cost leadership strategy can improve a company's position vis-a-vis Porter's forces? (Check all that apply.)

 

A firm's ability to manufacture unique products in small quantities at low cost is known as ______.

 

Companies that use differentiation strategies may use which of the following to differentiate their products or services? (Check all that apply.)

 

Which of the following are ways that a combination strategy can improve a company's position vis-a-vis Porter's forces? (Check all that apply.)

 

A differentiation strategy can improve a company's position vis-a-vis Porter's forces due to which of the following? (Check all that apply.)

 

Which of the following statements about platform markets is true?

 

Focus strategies exploit ______.

 

The               cycle refers to the stages that typically occur over the life of an industry.

 

Companies can use combination strategies with technology to ______.

 

The introduction stage of the industry life cycle is characterized by which of the following characteristics? (Check all that apply.)

 

The ability of some firms to manufacture unique products in relatively small quantities at lower costs is due to advances in ______ technologies. (Check all that apply.)

 

The ______ stage is the second stage of the industry life cycle.

 

Which of the following are benefits when companies successfully integrate cost and differentiation advantages create an enviable position? (Check all that apply.)

 

Which of the following are characteristics of the industry life cycle's maturity stage? (Check all that apply.)

 

Which of the following is an example of a platform firm?

 

Name the stages of the industry life cycle in the correct order, with the first stage at the top.

 

Companies that use a ______ positioning strategy offer products with fewer product attributes and lower prices, in contrast to the industry tendency to continuously augment products as part of the product life cycle.

 

The ______ stage is the first stage of the industry life cycle.

 

Which of the following are characteristics of the decline stage of the industry life cycle? (Check all that apply.)

 

Which of the following are characteristics of the growth stage? (Check all that apply.)

 

The ______ stage is the third stage of the product life cycle.

 

Firms that sell products in a declining industry are often affected by which of the following competitor actions? (Check all that apply.)

 

Which of the following are goals of reverse positioning? (Check all that apply.)

 

Which of the following are strategies that are available in the decline phase? (Check all that apply.)

 

The ______ stage is the fourth stage of the industry life cycle and is characterized by falling sales and profits.

 

______ refers to keeping a product going without significantly reducing marketing support, technological development, or other investments, in the hope that competitors will eventually exit the market.

 

______ involves obtaining as much profit as possible and requires that costs be reduced quickly.

 

Which of the following are characteristics of products that are in the decline stage? (Check all that apply.)

 

______ involves dropping the product from a firm's portfolio.

 

Maintaining, harvesting, consolidating, and exiting are the four basic strategies available in the ______ phase.

 

A(n) ______ strategy involves reversing a decline in a company's performance and returning it to growth and profitability.

 

One reason a company would use a maintaining strategy for a declining stage product would be ______.

 

One reason for a company to use a harvesting strategy for a declining product is to ______.

 

______ is when firms in a turnaround situation discontinue product lines that are either only marginally profitable or are losing money and focus on a few core profitable areas.

 

Companies that exit markets need to be aware of ______.

 

A turnaround strategy is most likely to occur during which of the following industry stages? (Check all that apply.)

 

______ is when firms in a turnaround situation seek to eliminate costs and improve productivity through small gains that accumulate over a period of time.

 

JK Industries is a diversified company that has been in business for decades. Its healthcare division has been profitable, but its line of prestige beauty products has been losing money. JK decides to discontinue its line of prestige beauty products and focus its efforts on the healthcare lines that have been most promising. Which strategy is JK using?

 

Which of the following are examples of piecemeal productivity improvements? (Check all that apply.)

 

 

2.
The breadth of the target market refers to ______.
 
 
3.
Broad differentiation advantage
 
 
4.
A common pitfall of using a cost-leadership strategy is that ______.
 
 
6.
Companies that are not able to create a competitive advantage through both cost leadership and differentiation strategies ______. (Check all that apply.)
 
 
19.
Firms that compete using a focus strategy are said to focus on ______.
 
 
21.
A firm that follows a differentiation strategy for competitive advantage still needs to be mindful of maintaining cost ___________ relative to competitors by lowering costs in features that customers care less about.
 
 
25.
improving competitive position vis-a-vis the five forces
 
 
26.
An industry's ______ is the total profits at all points along its value chain.
 
 
27.
An industry's profit pool is the total profits at all points along its________ chain
 
 
28.
An industry's profit pool is the total profits at all points along its__________ chain.
 
 
30.
______ is a firm's achievement of similarity, or being "on par," with competitors with respect to low cost, differentiation, or other strategic product characteristics.
 
 
 
 
 
 
 
 
 
 
 

33.
Michael Porter presented three ______ strategies to achieve competitive advantage by overcoming the five forces.
 
 
41.
Potential pitfalls of an overall cost leadership strategy
 
 
 
 
 
 
 
 
 

47.
True or false: A firm experiences competitive parity with competing firms when they capture so much of its market share that it is left with no profits.
 
 
49.
Which of the following are Michael Porter's three generic strategies? (Check all that apply.)
 
 
50.
Which of the following are pitfalls of using a combination strategy? (Check all that apply.)
 
 
51.
Which of the following are pitfalls of using a focus strategy? (Check all that apply.)
 
 
52.
Which of the following are potential pitfalls of using a differentiation strategy? (Check all that apply.)
 
 
53.
Which of the following are potential pitfalls of using a focus strategy? (Check all that apply.)
 
 
54.
Which of the following are potential pitfalls of using an overall cost leadership strategy? (Check all that apply.)
 
 
55.
Which of the following are reasons a differentiation strategy may not succeed? (Check all that apply.)
 
 
56.
Which of the following are two challenges of the introduction stage of the industry life cycle? (Check all that apply.)
 
 
57.
Which of the following are two requirements for successfully introducing a new product? (Check all that apply.)
 
 
 
 
 
 
 
 
 

63.
Which of the following statements regarding maintaining cost parity are true? (Check all that apply.)
 
 
 

 

5.
A common pitfall of using a cost-leadership strategy is that ____________.
 
 
20.
An industry's _____________ is the total profits at all points along its value chain.
 
 
24.
___________________ is a firm's achievement of similarity, or being "on par" with competitors with respect to lower cost, differentiation, or other strategic product characteristics.
 
 
32.
Revenues grow during the growth stage due to which of the following?
 
 
36.
A ____________ strategy is a firms generic strategy based on appeal to a narrow market segment within an industry.
 
 
37.
True or False: Allowing a product to assume a new competitive position in its category is one of the goals of reverse positioning.
 
 
38.
True or False: Allowing a product to move into an entirely new category is one of the goals of reverse positioning.
 
 
39.
True or False: An erosion of cost advantages within the narrow segment as competitors copy the value-chain is a potential pitfall of using a focus strategy.
 
 
40.
True or False: A product or service that becomes too narrow to satisfy buyer needs is a potential pitfall of using a focus strategy.
 
 
41.
True or False: A product or service whose uniqueness is no longer considered valuable to the market is a potential pitfall of using a focus strategy.
 
 
42.
True or False: Companies may become too focused to satisfy buyer needs is a pitfall of using a focus strategy.
 
 
43.
True or False: Companies may erode their quality brand image if they sell other lines of products or services at lower prices and quality is a reason differentiation strategy may not succeed.
 
 
44.
True or False: Competition from new entrants due to low barriers to entry is a potential pitfall of using a focus strategy.
 
 
45.
True or False: Convincing previous consumers that a product is fully loaded with unique features is one of the goals of reverse positioning.
 
 
46.
True or False: Cost advantages for the focus segment may become eroded over time is a pitfall of using a focus strategy.
 
 
47.
True or False: Firms that employ focus strategies are more likely to become stuck in the middle are pitfalls of using a focus strategy.
 
 
48.
True or False: Moving a product from maturity backward into a growth position is one of the goals of reverse positioning.
 
 
49.
True or False: New competitors may enter lucrative niche markets.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

50.
True or False: Other companies may be able to imitate the differentiation of the product or service is a reason differentiation strategy may not succeed.
 
 
51.
True or False: Profit margins tend to be somewhat lower when companies use a differentation strategy is a reason differentiation strategy may not succeed.
 
 
52.
True or False: The products or services price is too high for the value customers receive is a reason differentiation strategy may not succeed.
 
 
53.
True or False, when regarding maintaining cost parity: A differentiator must distinguish itself from similar competitors to justify its prices.
 
 
54.
True or False, when regarding maintaining cost parity: Cost parity is unimportant to differentitoars, since they can always pass higher costs to customers.
 
 
55.
True or False, when regarding maintaining cost parity: Differentiators maintain cost parity by lowering costs in features that customers care less about.
 
 
56.
True or False, when regarding maintaining cost parity: Even differentiators cannot ignore cost.
 
 
58.
What are characteristics of the growth stage?
 
 
59.
What stage of the product life cycle includes competitors cutting their prices?
 
 
60.
What stage of the product life cycle includes declining products taking a large share of time and financial resources relative to their worth?
 
 
61.
What stage of the product life cycle involves changes in customer tastes or technology decreasing product demand?
 
 
63.
Which of the following are potential pitfalls of using a differentiation strategy?
 
 
64.
Which of the following are potential pitfalls of using an overall cost leadership strategy?
 
 
65.
Which of the following statements regarding combination strategies are correct?
 
 
 
 
 
 
 
 
 

 

1.
The ability of some firms to manufacture unique products in relatively small quantities at lower costs is due to advances in ______ technologies. (Check all that apply.)
 
 
2.
The breadth of the target market refers to ______.
 
 
3.
A common pitfall of using a cost-leadership strategy is that ______.
 
 
4.
Companies that are not able to create a competitive advantage through both cost leadership and differentiation strategies ______. (Check all that apply.)
 
 
6.
Companies that use differentiation strategies may use which of the following to differentiate their products or services?
 
 
7.
The _______ ________cycle refers to the stages that typically occur over the life of an industry.
 
 
8.
A differentiation strategy can improve a company's position vis-a-vis Porter's forces due to which of the following? (Check all that apply.)
 
 
9.
Firms that sell products in a declining industry are often affected by which of the following competitor actions? (Check all that apply.)
 
 
10.
Firms that use a differentiation strategy may be able to decrease buyer power _____________.
 
 
11.
Focus strategies exploit ______.
 
 
12.
An industry's profit pool is the total profits at all points along its________ chain
 
 
13.
The introduction stage of the industry life cycle is characterized by which of the following characteristics? (Check all that apply.)
 
 
14.
______ involves one firm acquiring at a reasonable price the best of the surviving firms in an industry.
 
 
15.
- ______ is a firm's achievement of similarity, or being "on par," with competitors with respect to low cost, differentiation, or other strategic product characteristics.
 
 
16.
__________ is to offer a product in a different category to create the perception that the product is altogether different.
 
 
21.
Research has found that companies that ______.
 
 
22.
Revenues increase during the ________ stage of the industry life cycle as new customers try the product and an ever-increasing number of satisfied customers make repeat purchases.
 
 
23.
Salvamoser Steel fabricates widgets. When the company first began production, it had high unit costs because it was trying to figure out the most efficient manufacturing method. After a few years, Salvamoser Steel had ironed out its production issues, and unit costs of production declined, even as cumulative output increased. This is known as ______.
 
 
24.
The ______ stage is the fourth stage of the industry life cycle and is characterized by falling sales and profits.
 
 
25.
A successful overall cost leadership strategy requires a tight set of interrelated tactics that include which of the following? (Check all that apply.)
 
 
26.
True or false: A firm experiences competitive parity with competing firms when they capture so much of its market share that it is left with no profits.
 
 
27.
True or false: One component of asset and cost surgery for a mature company is to outsource production when market prices are less than in-house production costs.
 
 
 
 
 
 
 
 
 
 
 
 
 

29.
Which of the following are characteristics of products that are in the decline stage? (Check all that apply.)
 
 
30.
Which of the following are characteristics of the decline stage of the industry life cycle? (Check all that apply.)
 
 
31.
Which of the following are characteristics of the growth stage? (Check all that apply.)
 
 
32.
Which of the following are characteristics of the industry life cycle's maturity stage? (Check all that apply.)
 
 
34.
Which of the following are goals of reverse positioning? (Check all that apply.)
 
 
35.
Which of the following are Michael Porter's three generic strategies? (Check all that apply.)
 
 
36.
Which of the following are pitfalls of using a focus strategy?
 
 
37.
Which of the following are potential pitfalls of using a differentiation strategy?
 
 
38.
Which of the following are reasons a differentiation strategy may not succeed? (Check all that apply)
 
 
39.
Which of the following are strategies that are available in the decline phase? (Check all that apply.)
 
 
40.
Which of the following are two challenges of the introduction stage of the industry life cycle? (Check all that apply.)
 
 
41.
Which of the following are ways an overall cost leadership strategy can improve a company's position vis-a-vis Porter's forces? (Check all that apply.)
 
 
 
 
 
 
 
 
 

42.
Which of the following are ways that a combination strategy can improve a company's position vis-a-vis Porter's forces? (Check all that apply.)
 
 
43.
Which of the following are ways that companies can combine overall cost leadership and differentiation? (Check all that apply.)
 
 
44.
Which of the following is a firm able to do when it successfully entered a new category with a breakaway product?
 
 
45.
Which of the following statements about platform markets is true?
 
 
46.
Which of the following statements regarding maintaining cost parity are true?
 
 
 

 

2.
According to value-chain analysis, a firm ______.
 
 
3.
Acts that might provoke competitors to react, such as new market entry or price cutting, is the component of competitive dynamic analysis known as ______.
 
 
4.
A(n) ______ culture is one in which change and renewal are a constant focus of attention.
 
 
5.
A(n) ______ new entry is a firm's entry into an industry with a radical new product or highly innovative service that changes the way business is conducted.
 
 
7.
The application of value-chain activities is easily applied to service organizations when one understands ______.
 
 
8.
______ are a nation's position in factors of production.
 
 
9.
______ are corporate new venture groups that support and nurture fledgling entrepreneurial ventures until they can thrive on their own as stand-alone businesses.
 
 
10.
______ are managers' actions to avoid losing wealth or power as a result of a hostile takeover.
 
 
11.
______ are private individuals who provide equity capital to new ventures.
 
 
12.
______ are the conditions in the nation governing how companies are created, organized, and managed as well as the nature of domestic rivalry.
 
 
13.
______ are the nature of home-market demand for the industry's product or service.
 
 
14.
The bargaining power of buyers depends on the ______.
 
 
15.
The benefits of strategic alliances and joint ventures include which of the following? (Check all that apply.)
 
 
16.
Business risk taking of an organization involves ______.
 
 
17.
A CEO can improve perceptual acuity by ______. (Check all that apply.)
 
 
18.
Collaborating on innovation projects with other companies is ______.
 
 
20.
Companies enter foreign market to access which of the following? (Check all that apply.)
 
 
22.
Companies that implement a related diversification strategy may benefit from which of the following? (Check all that apply.)
 
 
24.
Competitive advantage for global firms typically arises from which of the following characteristics? (Check all that apply.)
 
 
25.
A competitor that has been attacked has to decide which of the following? (Check all that apply.)
 
 
26.
Creators of new ventures should be particularly careful to evaluate both the ______ before entering a new market.
 
 
28.
Developments in computer software and hardware, nanotechnology, and R&D in exotic materials are examples of trends in which segment of the general environment?
 
 
29.
The effect on the business clothing and restaurant industries due to an increase of women in the workforce are examples of which segment of the general environment?
 
 
30.
Entrepreneurial leaders must possess the characteristics of ______.
 
 
31.
Entrepreneurial start-ups and small businesses ______.
 
 
32.
The ______ environment is composed of segments external to an industry that are usually beyond a firm's control, such as demographics and economic factors, that can affect a firm's strategy.
 
 
33.
Euromoney magazine's semiannual "Country Risk Rating" evaluates which of the following? (Check all that apply.)
 
 
34.
Examples of key elements of the global segment of the general environment include which of the following? (Check all that apply.)
 
 
 
 
 
 
 
 
 
 
 

35.
The extent of the threat of potential entrants into an industry depends on which of the following? (Check all that apply.)
 
 
37.
A firm's choice not to react to a rival's new competitive action is known as ______.
 
 
38.
A firm's core competencies include which of the following? (Check all that apply.)
 
 
39.
______ firms have at least 20% of their sales in each of the three major economic regions—North America, Europe, and Asia.
 
 
40.
Firms pursuing differentiation strategies might engage in ______, such as using a shared order-processing system.
 
 
41.
A firm's strategy of both cooperating and competing with rival firms is called ______.
 
 
43.
Firms use "Big Data" to accomplish which of the following goals?
 
 
44.
A firm that has a high concentration of its business in a particular industry is said to have high ______ dependence in that industry.
 
 
45.
Focusing a firm's innovation efforts to a strategic ___ limits the scope of the firm's efforts and helps avoid wasting resources on the project.
 
 
47.
A global strategy emphasizes ______. (Check all that apply.)
 
 
48.
______ groups are clusters of firms that share similar strategies.
 
 
49.
Guidelines for competing in a dynamic, innovative market in which a winning technology has not yet become dominant include which of the following? (Check all that apply.)
 
 
50.
Hobbies, past work experiences, suggestions by family and friends, technological developments and needs of customers are all sources of ______.
 
 
51.
In addition to preventing a hostile takeover, greenmail ______.
 
 
52.
Inbound logistics includes which of the following processes? (Check all that apply.)
 
 
53.
______ includes all activities associated with transforming inputs into the final product.
 
 
54.
Increases in household income due to more women entering the workforce in white collar jobs is likely to affect which two segments the most?
 
 
55.
Innovation by managers requires creative intelligence, which is driven by which of the following? (Check all that apply.)
 
 
 
 
 
 
 
 
 

56.
______ innovation involves efforts to create product designs and applications of technology to develop new products for end users.
 
 
57.
In responding to an attack by a larger company, a small firm may be limited to ______.
 
 
58.
The intense rivalry, involving actions and responses, among similar competitors that has the potential to alter a company's strategy is known as ______.
 
 
59.
Interest rate increases, currency exchange rates, and the Dow Jones are examples of factors to be considered in which segment of the general environment?
 
 
60.
Internal business perspective measures should focus on the ______ processes that have the greatest effect on customer satisfaction.
 
 
61.
The international entry strategy that requires the least investment of resources and has the least risk is ______.
 
 
64.
______ involves surveillance of a firm's external environment to predict environmental changes and detect changes already underway.
 
 
65.
A ______ is a business in which a multinational company owns 100% of the stock.
 
 
66.
______ is a characteristic of resources that is developed and/or accumulated through a unique series of events.
 
 
67.
______ is a contractual arrangement in which a company receives a royalty or fee in exchange for the right to its intellectual property or other aspects of its operation; the agreement usually covers a long period of time.
 
 
68.
______ is a contractual arrangement in which a company receives a royalty or fee in exchange for the right to use its trademark, patent, trade secret, or other valuable intellectual property.
 
 
69.
______ is a firm's awareness of its closest competitors and the kind of competitive actions they might be planning.
 
 
70.
_______ is a forward-looking perspective characteristic of a marketplace leader that has the foresight to seize opportunities in anticipation of future demand.
 
 
71.
The ______ is a framework for explaining why countries foster successful multinational corporations.
 
 
73.
______ is a method of evaluating a firm's performance using performance measures from four perspectives: customer, internal, innovation and learning, and financial.
 
 
74.
______ is an expansion or extension of the firm by integrating preceding or successive production processes.
 
 
75.
______ is an intense effort to outperform industry rivals characterized by a combative posture or an aggressive response aimed at improving position or overcoming a threat in a competitive marketplace.
 
 
76.
______ is an investment analysis tool that suggests a path that a company can follow to manage the uncertainty of launching a new venture.
 
 
77.
______ is a payment by a firm to a hostile party for the firm's stock at a premium, made when the firm's management feels that the hostile party is about to make a tender offer.
 
 
 
 
 
 
 
 
 

78.
______ is a problem with investment decisions in which managers "game the system" to have a project meet investment approval criteria, even though the investment may not enhance firm value.
 
 
79.
______ is/are a result of managers' actions to grow the size of their firms not to increase long-term profitability but to serve managerial self-interest.
 
 
80.
______ is associated with receiving, storing, and distributing product inputs.
 
 
81.
______ is a technique for measuring the performance of a firm according to its balance sheet, income statement, and market valuation.
 
 
82.
______ is entering a new business through investment in new facilities. It is often called corporate entrepreneurship and new venture development.
 
 
83.
______ is making decisions and taking action without certain knowledge of probable outcomes.
 
 
84.
______ is producing goods in one country to sell to residents of another country.
 
 
85.
______ is shifting a value-creating activity from a domestic location to a foreign location.
 
 
86.
______ is the creation of new value for a company through investments that create either new sources of competitive advantage or renewal of the value proposition?
 
 
88.
______ is the exit of a business from a company's portfolio.
 
 
89.
______ is the first source of resource inimitability due to being inherently difficult to copy.
 
 
90.
______ is the improvement in bargaining position relative to suppliers and customers.
 
 
91.
______ is the major factor that creates all viable opportunities that emerge in the business landscape.
 
 
92.
The ______ is the possibility that the profits of established firms in the industry may be eroded by new competitors.
 
 
93.
______ is the rise of market capitalism around the world.
 
 
94.
______ is the use of new knowledge to transform organizational processes or create commercially viable products and services.
 
 
95.
______ is using other firms to perform value-creating activities that were previously performed in-house.
 
 
96.
______ is when a firm enters a different business in which it can benefit from leveraging core competencies, sharing activities, or building market power.
 
 
98.
______ is when value-chain activities of two or more businesses are performed by only one of the businesses.
 
 
100.
The keys to successfully implementing overall cost leadership include ______. (Check all that apply.)
 
 
101.
A larger firm with "deep pockets" would likely respond to a competitor by doing which one of the following?
 
 
103.
Managers should understand how they can create win-win relationships with their suppliers and customers so that they can overcome ______.
 
 
104.
Many companies expand internationally in order to increase their market size so that they ______.
 
 
 
 
 
 
 
 
 
 

105.
Many firms first expand internationally ______.
 
 
106.
Michael Porter's five forces model is the most commonly used analytical tool for examining which of the following type of environment?
 
 
107.
Motivation for response and ______ should be evaluated before deciding how to respond to an attack by competitors.
 
 
109.
New venture managers in the process of evaluating the threats and industry conditions should use Porter's Five Forces model to consider which of the following? (Check all that apply.)
 
 
112.
A one-time cost that customers pay when changing vendors is known as ______.
 
 
113.
One way to increase negotiating power with suppliers is ______.
 
 
114.
Operations includes which of the following activities? (Check all that apply.)
 
 
115.
An overall cost leadership strategy requires new entrants to ______.
 
 
116.
Parenting advantage is the ______.
 
 
117.
The ______ perspective involves measures of firm performance that indicate how well a firm's internal processes, decisions, and actions are contributing to customer satisfaction.
 
 
118.
The ______ perspective provides a measure of firm performance that indicates how well firms are satisfying customer expectations.
 
 
119.
The primary goal in selecting the best means of diversification should be which vehicle will ______.
 
 
120.
The process of examining large data sets to uncover hidden patterns, market trends, and customer preferences is known as ______.
 
 
121.
The process of firms expanding their operations by entering new businesses is called ______.
 
 
122.
Procurement activities include the purchase of which of the following? (Check all that apply.)
 
 
123.
Product innovation tends to be more common during which stage of the industry life cycle?
 
 
124.
Ranked by the extent of investment and risk, from least to the most, what is the order of entry for international expansion?
 
 
125.
______ refers to a firm's strategic resources that reflect the collective learning in the organization.
 
 
126.
______ refers to firms' abilities to profit through restricting or controlling supply to a market or coordinating with other firms to reduce investment.
 
 
128.
______ refers to the function of purchasing inputs used in the firm's value chain.
 
 
 
 
 
 
 
 
 

130.
The resource-based view of the firm combines which of the following perspectives? (Check all that apply.)
 
 
131.
Resources are only rare when other companies ______.
 
 
132.
______ resources are organizational assets that include physical and financial assets and are relatively easy to identify.
 
 
133.
Resources that are valuable, rare, difficult to imitate, and do not have substitutes provide a firm with a ______.
 
 
134.
Resources that competitors can easily imitate generate ______.
 
 
135.
Resources that not many firms possess are known as ______ resources.
 
 
136.
Rivalry is particularly intense in nations with which of the following conditions? (Check all that apply.)
 
 
138.
The Sarbanes-Oxley Act of 2002 greatly increased the accountability of auditors, executives, and corporate lawyers. This law is an example of which segment of the general environment?
 
 
139.
The ______ segment of the general environment consists of changes in a market's characteristics such as age, race, ethnicity, and education.
 
 
140.
The ______ segment of the general environment consists of how a society creates and exercises power, including rules, laws, and taxation policies.
 
 
141.
The ______ segment of the general environment consists of influences from foreign countries, including market opportunities, foreign-based competition, and expanded capital markets.
 
 
142.
The ______ segment of the general environment consists of the characteristics of the economy, including national income and monetary conditions.
 
 
143.
The ______ segment of the general environment consists of the values, beliefs, and lifestyles of a society.
 
 
144.
The ______ segment of the general environment is concerned with innovation and state of knowledge in industrial arts, engineering, applied sciences, and pure science, and their interaction with society.
 
 
145.
Sharing activities can potentially provide which of the following two payoffs? (Check all that apply.)
 
 
146.
The six major entry barriers in Porter's five forces model include which of the following? (Check all that apply.)
 
 
147.
Small companies are especially suited to using a focus strategy because they ______.
 
 
 
 
 
 
 
 
 

148.
Spotting key trends requires a combination of which of the following? (Check all that apply.)
 
 
153.
The stakeholder view takes a(n) ______ approach than the financial ratio analysis in evaluating the firm.
 
 
154.
Start-ups that enter mature industries to create a niche market lend themselves to using a(n) ______ strategy.
 
 
155.
Strategic resources must meet four criteria in order for them to provide a firm with the potential for a ______ competitive advantage.
 
 
157.
______ strategy is a strategy based on a firms' differentiating their products and services to adapt to local markets.
 
 
158.
______ strategy is based on firms' centralization and control by the corporate office, with the primary emphasis on controlling costs. It is used in industries where the pressure for local adaptation is low, and the pressure for lowering costs is high.
 
 
159.
______ strategy is based on firms' optimizing the trade-offs associated with efficiency, local adaptation, and learning.
 
 
161.
The SWOT framework is popular with managers for several reasons, including which of the following?
 
 
162.
Tactical actions ______. (Check all that apply.)
 
 
163.
A technique for analyzing a basic list of internal and external conditions is called a ______ analysis.
 
 
164.
A transnational strategy is used in industries where the pressure for ______.
 
 
165.
True or false: Companies are often reluctant to invest time and other resources into activities with an unknown future.
 
 
166.
True or false: New value is only associated with start-up companies.
 
 
167.
True or false: Real options analysis is suitable for strategic decisions for investments that give a company the right, but not the obligation, to make subsequent investments.
 
 
168.
True or false: Small businesses create the majority of U.S. jobs.
 
 
169.
True or false: The Internet and digital technologies have lowered barriers to entry.
 
 
170.
True or false: The only thing a firm needs to achieve a sustainable competitive advantage is a resource that is difficult to imitate.
 
 
171.
True or false: The value-chain concept does not apply to service organizations.
 
 
 
 
 
 
 
 
 

172.
True or false: Trends in one segment of the general environment can have an effect on other segments.
 
 
174.
Two approaches to evaluate firm performance include which of the following? (Check all that apply.)
 
 
175.
The two opposing pressures that managers face when they decide to go overseas are pressure to ______.
 
 
176.
A type of competitive action that requires significant planning and resource allocation is called ______ actions.
 
 
177.
A venture's social capital consists of the firm's ______.
 
 
178.
The ______ view of the firm states that a firm's competitive advantages are due to its endowment of strategic resources that are valuable, rare, costly to imitate, and costly to substitute.
 
 
179.
Well-established incumbents may pose a threat to smaller new entries due to their ______.
 
 
180.
What can be concluded about companies that are successful globally?
 
 
181.
What is the purpose of real options analysis in entrepreneurship?
 
 
182.
What should senior management's primary motivation be for implementing a diversification strategy?
 
 
183.
When a company incorporates more processes toward the original source of raw materials, it is called ______ integration.
 
 
184.
When addressing the value-chain concept, it is important to focus on the interrelationship between the organization and its most important stakeholders, which are ______.
 
 
185.
When employees are essential to a firm's unique capabilities, they will earn higher wages and also have more ______.
 
 
186.
When local businesses, prior jobs, industry organizations, and other contacts support an entrepreneur's new venture it is called ______ capital.
 
 
187.
When managers attempt to shape a firm's strategy to serve their selfish interests rather than maximizing long-term shareholder value, they are guilty of ______.
 
 
188.
Which attributes must a resource have to provide a firm with a sustainable competitive advantage? (Check all that apply.)
 
 
189.
Which of the following are among Porter's five forces? (Check all that apply.)
 
 
190.
Which of the following are among the basic strategies that companies can use to compete in the global marketplace? (Check all that apply.)
 
 
191.
Which of the following are among the challenges to innovation? (Check all that apply.)
 
 
192.
Which of the following are among the five types of financial ratios that are used to analyze a firm's performance? (Check all that apply.)
 
 
 
 
 
 
 
 
 

193.
Which of the following are among the human resources management practices that help firms to capture value from innovation efforts? (Check all that apply.)
 
 
194.
Which of the following are antitakeover tactics that managers use? (Check all that apply.)
 
 
195.
Which of the following are benefits of vertical integration? (Check all that apply.)
 
 
197.
Which of the following are caveats of using industry analysis? (Check all that apply.)
 
 
198.
Which of the following are caveats of using industry analysis? (Check all that apply.)
 
 
199.
Which of the following are characteristics necessary for successful entrepreneurial leadership? (Check all that apply.)
 
 
200.
Which of the following are characteristics of a multidomestic strategy? (Check all that apply.)
 
 
205.
Which of the following are examples of factor endowments? (Check all that apply.)
 
 
206.
Which of the following are examples of physical uniqueness? (Check all that apply.)
 
 
 
 
 
 
 
 
 

207.
Which of the following are examples of staffing practices for innovation that are counterproductive? (Check all that apply.)
 
 
208.
Which of the following are examples of tangible resources? (Check all that apply.)
 
 
209.
Which of the following are examples of the risks of vertical integration? (Check all that apply.)
 
 
210.
Which of the following are factors of the diamond of national advantage? (Check all that apply.)
 
 
211.
Which of the following are guidelines for successfully competing in dynamic markets with high technology uncertainty? (Check all that apply.)
 
 
212.
Which of the following are included in the six segments of the general environment? (Check all that apply.)
 
 
213.
Which of the following are motivations for international expansion? (Check all that apply.)
 
 
214.
Which of the following are objectives that divesting a business can accomplish for the parent? (Check all that apply.)
 
 
215.
Which of the following are part of a firm's competitive environment? (Check all that apply.)
 
 
216.
Which of the following are potential benefits for new entrants to web-based businesses? (Check all that apply.)
 
 
217.
Which of the following are potential outcomes that may be realized by including customers' point of view in actual production? (Check all that apply.)
 
 
218.
Which of the following are potential pitfalls of real options analysis? (Check all that apply.)
 
 
219.
Which of the following are quadrants in the Boston Consulting Group's portfolio matrix? (Check all that apply.)
 
 
220.
Which of the following are reasons companies launch new competitive actions? (Check all that apply.)
 
 
 
 
 
 
 
 
 

221.
Which of the following are reasons managers should use Porter's five forces model? (Check all that apply.)
 
 
222.
Which of the following are reasons why competitors have difficulty imitating resources that were developed over time? (Check all that apply.)
 
 
223.
Which of the following are risks and challenges of using an international strategy? (Check all that apply.)
 
 
224.
Which of the following are strategic reasons for undertaking a corporate venture? (Check all that apply.)
 
 
226.
Which of the following are the aims of corporate entrepreneurship (CE)? (Check all that apply.)
 
 
227.
Which of the following are the key categories of customer concerns? (Check all that apply.)
 
 
228.
Which of the following are the main types of risk when expanding internationally? (Check all that apply.)
 
 
229.
Which of the following are the most important sources of financial resources for entrepreneurs? (Check all that apply.)
 
 
230.
Which of the following are the primary considerations when selecting a mode of foreign entry? (Check all that apply.)
 
 
231.
Which of the following are the two types of market power? (Check all that apply.)
 
 
232.
Which of the following are traits of a healthy ego? (Check all that apply.)
 
 
233.
Which of the following are true about engaging in internal development? (Check all that apply.)
 
 
234.
Which of the following are true about managing the pace of incremental innovation? (Check all that apply.)
 
 
235.
Which of the following are true about managing the pace of radical innovation? (Check all that apply.)
 
 
 
 
 
 
 
 
 

236.
Which of the following are ways a firm can achieve the benefits of diversification? (Check all that apply.)
 
 
237.
Which of the following are ways a firm can establish a wholly owned subsidiary? (Check all that apply.)
 
 
240.
Which of the following are ways that parent companies create value through their management expertise? (Check all that apply.)
 
 
241.
Which of the following are ways that resource inimitability (difficulty to imitate) is a key to value creation? (Check all that apply.)
 
 
242.
Which of the following are ways that synergy is created through the use of unrelated diversification? (Check all that apply.)
 
 
243.
Which of the following characterize globalization? (Check all that apply.)
 
 
244.
Which of the following describe risks and limitations of strategic alliances? (Check all that apply.)
 
 
245.
Which of the following describe strengths of using an international strategy? (Check all that apply.)
 
 
246.
Which of the following describe two limitations of using an international strategy? (Check all that apply.)
 
 
247.
Which of the following elements of the general environment is the easiest to understand and quantify?
 
 
248.
Which of the following factors must be present in order for an entrepreneurial venture to create new value? (Check all that apply.)
 
 
 
 
 
 
 
 
 

249.
Which of the following help to explain the extent to which employees and managers may be able to obtain a proportionately high level of generated profits? (Check all that apply.)
 
 
250.
Which of the following is an example of a CEO with perceptual acuity?
 
 
252.
Which of the following is an example of how managerial motives can erode value creation?
 
 
253.
Which of the following is one of the best-known portfolio management frameworks?
 
 
254.
Which of the following is the main reason most firms are regional and not global?
 
 
255.
Which of the following is the most common reason why the cycle of competitive actions and reactions gets started?
 
 
256.
Which of the following refers to a firm-specific view of innovation that defines how a firm can create new knowledge and learn from an innovation initiative even if the project fails?
 
 
257.
Which of the following refers to a willingness to act independently in order to carry forward an entrepreneurial vision or opportunity?
 
 
258.
Which of the following refers to a willingness to introduce novelty through experimentation and creative processes aimed at developing new products and services as well as new processes?
 
 
259.
Which of the following refers to the presence, absence, and quality in the nation of supplier industries and other related industries that supply services, support, or technology to firms in the industry value chain?
 
 
260.
Which of the following refers to the strategy-making practices that businesses use in identifying and launching new ventures consisting of autonomy, innovativeness, proactiveness, competitive aggressiveness, and risk taking?
 
 
261.
Which of the following statements about an entrepreneurial culture are true? (Check all that apply.)
 
 
262.
Which of the following statements about autonomy are correct? (Check all that apply.)
 
 
263.
Which of the following statements about business incubators are correct? (Check all that apply.)
 
 
 
 
 
 
 
 
 

264.
Which of the following statements about competitive aggressiveness are correct? (Check all that apply.)
 
 
265.
Which of the following statements about corporate venturing efforts are correct? (Check all that apply.)
 
 
266.
Which of the following statements about demand conditions are correct? (Check all that apply.)
 
 
267.
Which of the following statements about entrepreneurial orientation are correct? (Check all that apply.)
 
 
268.
Which of the following statements about growth for growth's sake are correct? (Check all that apply.)
 
 
269.
Which of the following statements about innovation are true? (Check all that apply.)
 
 
270.
Which of the following statements about innovativeness are correct? (Check all that apply.)
 
 
271.
Which of the following statements about managers being able to develop innovative products and services are correct? (Check all that apply.)
 
 
273.
Which of the following statements about proactiveness are correct? (Check all that apply.)
 
 
274.
Which of the following statements about related and supporting industries' role in creating a diamond of national advantage are correct? (Check all that apply.)
 
 
 
 
 
 
 
 
 

275.
Which of the following statements about shareholders and managers are true? (Check all that apply.)
 
 
276.
Which of the following statements about single-industry businesses and competitive reactions is true?
 
 
277.
Which of the following statements about the competitive environment are correct? (Check all that apply.)
 
 
278.
Which of the following statements about the major dangers that new entrants face are correct? (Check all that apply.)
 
 
279.
Which of the following statements about the types of financial resources for new business are true? (Check all that apply.)
 
 
280.
Which of the following statements about threat analysis are true? (Check all that apply.)
 
 
281.
Which of the following statements about using the balanced scorecard method of evaluating a firm's performance are true? (Check all that apply.)
 
 
282.
Which of the following statements are correct regarding strategic groups? (Check all that apply.)
 
 
283.
Which of the following statements regarding collaborating with innovation partners are correct? (Check all that apply.)
 
 
284.
Which of the following statements regarding financial resources are true? (Check all that apply.)
 
 
285.
Which of the following statements regarding pioneering new entries are correct? (Check all that apply.)
 
 
 
 
 
 
 
 
 

286.
Which of the following statements regarding the application of real options analysis to strategic decision making are true? (Check all that apply.)
 
 
287.
Which of the following statements regarding unrelated diversification are correct? (Check all that apply.)
 
 
288.
Which of the following threaten an industry by forcing down prices, bargaining for higher quality or more services, and playing competitors against each other?
 
 
289.
Which type of analysis views the organization as a sequential process of value-creating activities?
 
 
291.
While sharing activities may decrease costs, increase revenues, and enhance product differentiation, it sometimes can have an unintended negative effect, such as ______.