42. A firm has completed once it properly formulates and also implements a value-producing strategy.

You are watching: When the costs of supplies increase in an industry, the low-cost leader

a. strategic competitiveness

b. a permanently sustainable competitive benefit

c. substantial returns

d. legal and also honest core values

43. A competitive advantage

a. can be irreversible if the firm has properly imposed the strategic monitoring process.

b. involves reducing investors" hazard to near zero.

c. deserve to be determined only if it has actually been unproperly challenged by competitors.

d. exists as soon as contending firms are unable to discover investors.


44. Above-average returns are

a. better profits than the firm earned the previous year.

b. greater revenues than the sector averaged over the last 10 years.

c. profits in excess of what an investor expects to earn from a historic pattern of performance of the firm.

d. retransforms in excess of what an investor expects to earn from various other investments through a similar level of hazard.


d. retransforms in excess of what an investor expects to earn from other investments via a comparable level of hazard.

45. The strategic administration procedure is

a. a set of activities that will certainly ascertain a sustainable competitive advantage and also above-average retransforms for the firm.

b. a decision-making task concerned with a firm"s inner sources, capabilities, and also competencies, independent of the problems in its exterior environment.

c. a procedure directed by top-management through input from various other stakeholders that seeks to achieve above- average retransforms for investors with effective usage of the organization"s resources.

d. the full collection of commitments, decisions, and actions compelled for the firm to accomplish above-average retransforms and strategic competitiveness.


d. the complete collection of commitments, decisions, and also actions forced for the firm to accomplish above-average returns and strategic competitiveness.


108. A ______ is an incorporated and coordinated set of commitments and also actions designed to exploit core competencies and acquire a competitive benefit.

a. goal

b. strategy

c. tactic

d. mission


b. strategy

62. All of the complying with are presumptions of the industrial organization (I/O) version EXCEPT

a. organizational decision makers are rational and also committed to acting in the firm"s finest interests.

b. sources to implement tactics are firm-particular and also attached to firms over the permanent.

c. the external atmosphere is assumed to impose pressures and also constraints that determine the methods that lead to above-average retransforms.

d. firms in provided markets, or provided market segments, are assumed to regulate equivalent strategically appropriate sources.


b. resources to implement methods are firm-certain and also attached to firms over the permanent.

90. The industrial company (I/O) design suggests that

a. the key element in success is choosing the correct industry in which to compete.

b. the firm"s internal sources and capabilities represent the structure for advancement of a value-producing strategy.

c. the crucial to earning above-average retransforms is strategic flexibility.

d. the internal structure of the company should enhance the market in which it competes in order to earn above-average retransforms on investment.


a. the essential variable in success is choosing the correct market in which to compete.

64. Which of the adhering to statements is most consistent under the I/O view? Performance of the firm is a lot of straight attributable to

a. the power of the financial sector stakeholders.

b. the resources the firm possesses.

c. the profitcapability of the market in which the firm competes.

d. hypercompetition within the industry.
c. the profitability of the market in which the firm competes.

66. Although McDonald"s is completing in an unattractive market, it has enhanced its performance by concentrating on product innovations and by boosting existing framework. This improved performance is best defined by

a. globalization.

b. the resource-based model.

c. the I/O model.

d. hypercompetition.
b. the resource-based model.

69. All of the adhering to are sources of an organization EXCEPT

a. an hourly production employee"s capability to capture subtle high quality defects in products.

b. oil drilling legal rights in a promising region.

c. weak rivals in the market.

d. a charity"s endowment of $400 million.


c. weak rivals in the industry.

70. All of the complying with are assumptions of the resource-based design EXCEPT

a. each firm is a distinct repertoire of resources and also capabilities.

b. the industry"s structural features have actually little affect on a firm"s performance over time.

c. capabilities are very mobile throughout firms.

d. distinctions in resources and capabilities are the basis of competitive advantage.
c. capabilities are extremely mobile throughout firms.

71. is a capacity for a set of sources to perdevelop a job or an activity in an integrative manner.

a. A capability

b. A core competence

c. Sustainable competitive benefit

d. Organizational intelligence


a. A capability

72. When resources and also capabilities serve as a resource of competitive advantage for a firm, the firm has produced a(n)

a. strategic mission.

b. inspiring vision.

c. core competence.

d. sustainable market niche.
c. core competence.

. To have the potential to end up being sources of competitive benefit, sources and capabilities should be non- substitutable, helpful, , and

a. unique; easy to imitate.

b. straightforward to imitate; tough to implement.

c. rare; costly to imitate.

d. basic to implement; distinct.
c. rare; costly to imitate.

75. The resource-based version of the firm says that

a. all resources have the potential to be the basis of sustainable competitive advantage.

b. resources alone deserve to be a resource of sustainable competitive benefit.

c. the key to competitive success is the structure of the market in which the firm competes.

d. sources that are valuable, rare, costly to imitate, and also non-substitutable create the basis of a firm"s core competencies.


d. sources that are practical, rare, costly to imitate, and non-substitutable develop the basis of a firm"s core competencies.

76. The resource-based check out of the firm

a. emphasizes that it is tough to develop and sustain a competitive benefit based on resources alone.

b. argues that the market setting has actually a stronger affect on firms" ability to implement strategies

properly than does the contender environment.

c. calls for firms to focus on their homogeneous capabilities to contend against their rivals.

d. says that vision and also mission are very closely linked to sustainable competitive benefit.
a. emphasizes that it is difficult to build and also sustain a competitive advantage based on resources alone.

50. The goal of the organization"s is topoint the firm in the direction of wright here it would certainly choose to be in the years to come.

a. vision

b. mission

c. society

d. strategy


a. vision

78. The Princeton Alliance Church says in its website that "PAC exists to aid you live life to the fullest by learning God, emerging neighborhood and bringing hope." This pronouncement is the majority of exactly a statement of organizational

a. worths.

b. mission.

c. vision.

d. society.


c. vision.

A firm"s mission

a. is a statement of a firm"s service in which it intends to contend and the customers it inoften tends to serve.

b. is an internally focused affirmation of the organization"s financial, social, and also ethical objectives.

c. is mainly intended to emotionally inspire employees and also other stakeholders

. d. is occurred by a firm prior to the firm develops its vision.
a. is a statement of a firm"s service in which it intends to complete and also the customers it inoften tends to serve.

80. The final obligation for forming the organization"s mission lies with the

a. CEO.

b. top-monitoring team.

c. employees.

d. organization"s stakeholders.
a. CEO.

81. Who typically establishes a firm"s mission statement?

a. just the CEO

b. only top managers

c. the CEO and peak managers

d. the CEO, COO, and CFO only
c. the CEO and also optimal managers

82. Organizational stakeholders include

a. unions.

b. hold areas.

c. employees.

d. providers of capital.


c. employees.

83. The interests of an organization"s stakeholders frequently problem, and also the company must prioritize its stakeholders if it cannot satisfy them all. The is the most crucial criterion in prioritizing stakeholders.

a. power of each stakeholder

b. urgency of satisfying each stakeholder

c. vulnercapacity of business stakeholders

d. social worth of each stakeholder


a. power of each stakeholder

84. Capital sector stakeholders encompass

a. sector competitors.

b. shareholders.

c. employees.

d. federal government regulators.
b. shareholders.

85. Dissatisfied funding market stakeholders may

a. offer their stock.

b. tighten loan covenants.

c. seek to increase their power.

d. All of these options are correct.
d. All of these options are correct.

86. Greenleaf Property Management has actually been earning below-average retransforms for the last 3 years. Which of the adhering to statements are true?

a. Greenleaf will certainly be able to fulfill its multiple stakeholders easily as long as the stakeholders are committed to the strategic mission of the firm.

b. Greenleaf will be able to at leastern minimally meet the needs of each stakeholder.

c. Greenleaf will certainly need to prioritize the needs of its stakeholders based on the political affect each wields.

d. Greenleaf will certainly not have the ability to minimally satisfy all stakeholders.


d. Greenleaf will not have the ability to minimally accomplish all stakeholders.

87. Product sector stakeholders incorporate the firm"s customers, and also the principal problem of this stakeholder group is

a. maximizing the firm"s rerevolve on investment.

b. receiving the highest-top quality assets and services in the market.

c. obtaining reliable products at the lowest feasible price.

d. enhancing the profitcapacity of the firm.


c. obtaining dependable products at the lowest feasible price.

88. Generally speaking, product industry stakeholders are satisfied when

a. a firm"s profit margin returns the lowest go back to resources sector stakeholders that is acceptable to them.

b. a firm"s profit margin returns an above-average go back to its resources market stakeholders.

c. the interests of the firm"s organizational stakeholders have been maximized.

d. the interests of all stakeholders have gone to least minimally satisfied.
a. a firm"s profit margin returns the lowest go back to capital market stakeholders that is acceptable to them.

89. Before liquidating, Circuit City took numerous actions to attempt to meet its stakeholders.

a. funding market

b. product market

c. organizational

d. governmental
a. resources market

90. The Chambers of Commerce of cities and towns regularly implore citizens to buy from regional businesses. This is bereason the organization"s duty as a taxpayer is a lot of important to as stakeholders.

a. major suppliers of funding

b. shareholders

c. hold neighborhoods

d. unions
c. host communities

91. Although it closed stores, adjusted the height management team, and sought potential buyers, namong these actions led to outcomes that enabled Circuit City to satisfy the expectations of its stakeholders.

a. product sector

b. funding sector

c. organizational

d. governmental
b. resources market

34. Organizational stakeholders are typically satisfied as soon as

a. their rerevolve on investment has actually been maximized.

b. customers pay the highest sustainable price for the goods and also solutions they obtain.

c. providers carry out a dynamic, stimulating, and also rewarding job-related environment.

d. service providers are paying the highest prices to companies.
c. suppliers administer a dynamic, stimulating, and rewarding job-related atmosphere.

93. Product sector stakeholders encompass

a. carriers.

b. shareholders.

c. employees.

d. the firm"s chief executive officer.


a. companies.

44. The three parts of the external environment which impact a firm"s strategic actions are

a. economic, political, and legal.

b. basic, market, and competitor.

c. industry, company, and also product.


b. general, industry, and challenger.

45. The environment is created of dimensions in the wider society that can affect an industry and the firms within it.

a. general

b. competitor

c. sociocultural

d. industry
a. general

46. The ecological segments that make up the general environment typically will certainly NOT include

a. demographic determinants.

b. sociosocial factors.

c. substitute products or solutions.

d. technological factors.
c. substitute commodities or solutions.

47. Aardvark Corp. has three products. Two assets together make up two-thirds of profits and also constitute 50 percent of agency profits. Aardvark"s third product provides up one-third of sales. With profitability much above the industry average, this product is responsible for one-fifty percent of Aardvark"s profits. Which of the complying with statements about assessment of the basic environment is precise for Aardvark?

a. The firm have to monitor the basic environment for changes that might affect the revenue of all commodities.

b. The agency must monitor the general environment for transforms that might influence the profitcapacity of the many profitable products.

c. The company have to monitor the basic atmosphere for changes that can affect the profitcapability of all assets.

d. The agency have to monitor the general atmosphere for alters that can impact the revenue and also profitcapacity of all assets.


d. The firm should monitor the basic setting for changes that could affect the revenue and profitability of all products.

48. Which of the complying with is NOT an task provided in the exterior environmental evaluation process?

a. scanning

b. decrypting

c. monitoring

d. assessing
b. decrypting

49. Environmental scanning would be most crucial for which of the adhering to organizations?

a. a provider of hospice services for the terminally ill

b. a web design company catering to small businesses

c. a neighborhood sewage system and water utility

d. a manufacturer of household linens


b. a internet architecture company catering to small businesses

50. The usage of the Net by Netflix to collect information on customer choices is an instance of

a. assessing.

b. monitoring.

c. forecasting.

d. scanning.


d. scanning.

79. Which of the adhering to is NOT an entry barrier to an industry?

a. intended competitor retaliation

b. economic climates of scale

c. customer product loyalty

d. barobtaining power of suppliers
d. baracquiring power of suppliers

80. New entrants to an sector are even more most likely when

a. it is difficult to acquire accessibility to circulation channels.

b. economies of range in the sector are high.

c. product differentiation in the market is low.

d. resources needs in the market are high.


c. product differentiation in the sector is low.

81. Economies of scale describes the truth that as the

a. quantity of product produced in a given time period increases, the cost of production each unit boosts. b. quantity of product developed in a provided time period increases, the expense of manufacturing each unit remains

continuous.

c. quantity of product developed in a offered time duration increases, the cost of manufacturing each unit decreases.

d. amount of product developed in a offered time period decreases, the cost of manufacturing each unit

decreases.


c. amount of product produced in a offered time period increases, the price of manufacturing each unit decreases.

82. The huge amount of advertising by firms such as Procter & Gamble and Colgate-Palmolive is an instance of what type of barrier to entry?

a. accessibility to circulation channels

b. resources requirements

c. economies of scale

d. product differentiation
d. product differentiation

84. When consumers change phone organization companies they are generally required to preserve service with the provider for a stated time duration. This is an example of a

a. price to a producer to exadjust devices in a facility when brand-new innovations emerge. b. expense of transforming the firm"s strategic team.

c. one-time expense carriers incur once marketing to a various customer.

d. one-time price customers incur as soon as buying from a various supplier.


d. one-time cost customers incur once buying from a various supplier.

87. DWK Foods has occurred a line of cookies and also candies sweetened specifically via organic honey. Although DWK is marketing some of the products over the Web, in order to gain economic situations of scale the assets must be marketed in retail outallows. The major barrier to enattempt DWK is likely to enrespond to here is

a. federal government licensing and also permits.

b. access to distribution networks.

c. consumers" switching expenses.

d. price disbenefits independent of scale.
b. accessibility to circulation channels.

88. For a retail business dependent on drive-in customers, the major cost disadvantage independent of range would certainly be if

a. favorable places are not obtainable.

b. other rivals have actually proprietary product technology.

c. accessibility to raw materials is tough.

d. other competitors have federal government subsidies.


a. favorable locations are not accessible.

90. Suppliers are powerful when

a. satisfactory substitutes are obtainable.

b. they market a commodity product.

c. they market a credible threat of forward integration.

d. they are in a very broke up sector.


c. they sell a credible risk of forward integration.

3. The aircraft industry has lengthy been dominated by 2 huge aircraft manufacturers, Boeing and Airbus. The demand for major aircraft is low, and also Boeing and also Airbus aggressively compete for orders from airlines. What effect will these conditions have on the residential airline industry?

a. It will certainly make the airline market even more attrenergetic bereason of lessened supplier power.

b. It will make the airline industry less attrenergetic because of diminished supplier power.

c. It will certainly make the airline industry even more attractive because of increased supplier power.

d. It will certainly make the airline market even more attractive because of a new entrant.
a. It will certainly make the airline market even more attractive bereason of decreased supplier power.

5. Buyers are effective when

a. there is a threat of forward integration.

b. they purchase a tiny propercentage of the supplier"s output.

c. switching prices are low.

d. the buyers" market is fragmented.
c. switching prices are low.

96. The highest amount a firm have the right to charge for its assets is many straight influenced by

a. supposed retaliation from competitors.

b. the expense of substitute commodities.

c. variable prices of production.

d. customers" high switching expenses.


b. the expense of substitute assets.

97. The threat from substitutes is high when

a. switching costs are high.

b. the substitute product"s price is lower than the sector product"s price.

c. the top quality of the substitute product is lower than the quality of the industry"s product.

d. the substitute product stimulates new process developments within the sector.


b. the substitute product"s price is reduced than the sector product"s price.

98. Media content has relocated from paper, tape, and film to a digital civilization based upon Web modern technology. From the perspective of the five pressures version, which force is most relevant here?

a. buyers

b. substitutes

c. enattempt barriers

d. suppliers


b. substitutes

99. All of the complying with are forces that develop high rivalry within an industry EXCEPT

a. numerous or equally well balanced competitors.

b. high addressed prices.

c. quick sector expansion.

d. high storage costs.


c. quick market growth.

109. According to the five pressures model, an unattractive market would include all of the complying with characteristics

EXCEPT

a. low economic climates of range needed for new firms to enter.

b. low supplier power as a result of commodity inputs.

c. high risk of substitute commodities due to a big variety of low-expense choices.

d. high bargetting power of buyers because of low switching costs.


b. low supplier power due to commodity inputs.

110. The competition within each strategic team is

a. more intense than is the competition between strategic teams.

b. less intense than is the competition between strategic teams.

c. commonly exceptionally low.

d. an unrecognized element in the evaluation of competitive practices within a firm"s strategic group.


a. more intense than is the competition in between strategic teams.

56. The 3 conditions that characterize hard managerial decisions concerning sources, capabilities, and also core competencies are

a. intricacy, rarity, and also humale intellectual resources.

b. uncertainty, complexity, and intrabusiness problems.

c. imitability, intricacy, and interorganizational conflicts.

d. imitcapacity, comparability, and also humale intellectual resources.


b. uncertainty, intricacy, and intrabusiness problems.

62. The a lot of many of the following organizational qualities are

a. resources.

b. capacities.

c. capabilities.

d. core competencies.


a. resources.


63. Capabilities frequently come from

a. individual sources.

b. one distinct reresource.

c. several exceptional sources supplied individually.

d. combining sources.


d. combining resources.

64. All of the following are tangible sources EXCEPT

a. manufacturing equipment.

b. distribution centers.

c. a firm"s reputation.

d. formal reporting structures.


c. a firm"s reputation.

67. Contrasted to tangible resources, intangible sources are

a. of much less strategic worth to the firm.

b. much less likely to be the emphasis of strategic analysis.

c. a superior source of capabilities.

d. more most likely to be reflected on the firm"s balance sheet.


c. a exceptional resource of capabilities.

68. Compared to tangible sources, intangible sources are and also

a. much less visible; even more hard to copy.

b. much less visible; less hard to copy.

c. more visible; more difficult to copy.

d. even more visible; much less tough to copy.


a. much less visible; more difficult to copy.

72. Which of the adhering to is a true statement about capabilities?

a. Capabilities are regularly emerged in specific practical areas such as manufacturing, R&D, and also marketing.

b. Valuable capabilities are based virtually entirely on tangible sources.

c. Capabilities based upon human resources are even more vulnerable to obsolescence than other intangible capabilities because of the tendency for employee expertise to come to be outdated.

d. The connect in between firm financial performance and capabilities is dependent on whether the capabilities are based on tangible or intangible sources.


a. Capabilities are frequently emerged in specific practical areas such as manufacturing, R&D, and also marketing.

74. Because firms combine tangible and intangible resources to produce capabilities,

a. these capabilities are fragile and also subject to sudden loss of worth.

b. capabilities are regularly based upon emerging, transferring, and extransforming indevelopment and also understanding through the firm"s human funding.

c. capabilities are quickly moved from one firm to another as employees change tasks.

d. these types of capabilities are thought about primary activities in the worth chain.


b. capabilities are frequently based on emerging, moving, and also extransforming indevelopment and also knowledge via the firm"s huguy capital.

75. have the right to be perceived as the capacity to take activity.

a. Strategic assets

b. Person capital

c. Core competencies

d. Functional capabilities


c. Core competencies

76. is an example of a capcapacity that is based in the sensible area of distribution.

a. Effective use of logistics administration techniques

b. Effective regulate of inventories through point-of-purchase information collection

c. Effective business structure

d. Product and also design quality


a. Effective use of logistics management techniques

77. Capabilities

a. tend to be emerged with firm-wide interactions and reside in the firm overall.

b. tend to be concentrated in the assistance activities of the worth chain.

c. tend to be concentrated in the primary activities of the worth chain.

d. are regularly emerged in particular functional locations.


d. are frequently developed in specific practical locations.

79. Innovation, customer knowledge, brand-building, go-to-industry, and also range are tasks that P&G perdevelops well and also are examples of the company"s

a. tangible sources.

b. intangible sources.

c. core competencies.

d. capabilities.


c. core competencies.

81. From a customer"s allude of view, for an organization"s capcapacity to be a core competence it should be

a. inimitable and unique.

b. practical and also distinct.

c. inimitable and also nonsubstitutable.

d. handy and also nonsubstitutable.


b. helpful and also distinctive.

82. Valuable capabilities

a. enable the firm to manipulate methods in its outside atmosphere.

b. enable the firm to neutralize threats in its inner atmosphere.

c. enable the firm to exploit avenues or neutralize threats in its outside setting.

d. permit the firm to neutralize avenues in its internal environment.


c. allow the firm to exploit avenues or neutralize risks in its outside environment.

83. Capabilities that other firms cannot construct easily are classified as

a. costly to imitate.

b. rare.

c. useful.

d. nonsubstitutable.


a. costly to imitate.

86. In the airline industry, frequent-flyer programs, ticket kiosks, and also e-ticketing are all examples of capabilities that are yet no much longer

a. rare; valuable.

b. valuable; rare.

c. socially complex; rare.

d. valuable; causally ambiguous.


b. valuable; rare.

87. The capabilities used to create the sustainability/green campaigns at Walmart and also Tarobtain are to be however less likely

a. rare; useful.

b. valuable; rare.

c. socially complex; rare.

d. valuable; causally ambiguous.


b. valuable; rare.

88. Costly-to-imitate capabilities have the right to emerge for all of the adhering to factors EXCEPT

a. absence of scientific transference.

b. social complexity.

c. distinctive historic conditions.

d. causal ambiguity.


a. lack of clinical transference.

90. Southwest Airlines has a facility interpartnership between its society and staff that adds worth in methods that various other airlines cannot, such as jokes on flights or the collaboration in between gate personnel and pilots. These examples illustrate which of the adhering to criteria for sustainable competitive advantage?

a. valuable

b. rare

c. costly to imitate

d. nonsubstitutable


c. costly to imitate

92. Organizational culture is

a. amorphous and also changeable.

b. not quickly imitable.

c. so challenging to analyze that most firms should choose to neglect it.

d. frequently vulnerable in the face of alters in the exterior setting.


b. not easily imitable.

39. Business-level tactics information commitments and also actions taken to administer value to customers and get competitive advantage by exploiting core competencies in

a. the selection of sectors in which the firm will certainly complete.

b. particular product industries.

c. major value chain tasks.

d. particular geographic areas.


b. certain product markets.

64. A price leadership strategy gives items or services through features that are

a. acceptable.

b. unique.

c. substandard.

d. mediocre.


a. acceptable.

67. Research argues that having actually a competitive advantage in creates even more worth in the price management strategy

than it does in the differentiation strategy.

a. marketing and sales

b. technology development

c. logistics

d. human resource management


c. logistics

68. A river barge firm can market cheaper, although slower, per pound transportation of assets to suppliers once compared through transportation by air, truck, or rail. The river barge firm need to first tarobtain customers whose companies use

a. the included price leadership/differentiation strategy.

b. either of the focus methods.

c. the cost management strategy.

d. any of the tactics other than the focused differentiation strategy


c. the expense leadership strategy.

72. When the costs of supplies rise in an sector, the low-price leader

a. might continue competing via rivals on the basis of product functions.

b. will certainly lose customers as an outcome of price rises.

c. will be unable to absorb greater expenses bereason cost-leaders operate on extremely narrowhead profit margins.

d. may be the only firm able to pay the greater prices and also proceed to earn average or above-average retransforms.
d. might be the only firm able to pay the higher prices and also proceed to earn average or above-average returns.

74. The typical dangers of a cost leadership strategy include

a. the incapacity to balance high differentiation and low price.

b. manufacturing and distribution procedures coming to be obsolete.

c. excessive differentiation to the point wbelow the customer base is too little.

d. loss of customer loyalty.


b. production and also distribution procedures ending up being obsolete.

75. When a firm is able to produce nonstandardized (that is, distinctive) assets for customers who value identified attributes more than they worth low expense, the firm is effectively implementing

a. a differentiation strategy.

b. a cost management strategy.

c. an incorporated expense leadership/differentiation strategy.

d. a single-product strategy.


a. a differentiation strategy.

76. A firm successfully implementing a differentiation strategy would certainly expect

a. customers to be sensitive to price boosts.

b. to charge premium prices.

c. customers to perceive the product as conventional.

d. to have high levels of power over service providers.


b. to charge premium prices.

79. All of the adhering to are examples of distinguished assets EXCEPT

a. Mont Blanc pens.

b. Caterpillar"s heavy-duty earth-moving devices.

c. Great Value brand also at Walmart.

d. Prada fashion.


c. Great Value brand also at Walmart.

80. The use of a differentiation strategy would certainly be supposed to be LEAST effective in which of the adhering to markets?

a. commodity goods

b. movement pictures

c. famous music

d. creating instruments


a. commodity goods

81. All of the complying with are ways that a great or organization have the right to be distinguished EXCEPT

a. responsive customer organization.

b. perceived prestige and also status.

c. economies of range and also efficient operations.

d. engineering architecture and also performance.


c. economic situations of scale and also efficient operations.

82. The differentiation strategy can be efficient in managing the power of rivalry through existing rivals in an market because

a. customers will seek out the lowest-cost product.

b. customers of nondistinguished assets are sensitive to price increases.

c. customers are loyal to brands that are differentiated in coherent means.

d. the differentiation strategy benefits from rivalry bereason it forces the firm to innovate.
c. customers are loyal to brands that are identified in systematic ways.

84. Which of the complying with is NOT a value-creating activity associated with the differentiation strategy?

a. Developing plans to encertain reliable hiring and also retention to keep costs low and also implement training to ensure high employee efficiency.

b. Providing precise and timely distribution of items to customers.

c. Ensuring receipt of high top quality offers (raw materials and other goods).

d. Developing flexible systems that permit fast response to customers" altering requirements.


a. Developing plans to encertain effective hiring and also retention to keep prices low and implement training to ensure high employee efficiency.

88. The typical risks of a differentiation strategy perform NOT include which of the following?

a. Customers might discover the price differential in between the low-price product and also the distinguished product also large.

b. Customers" experience through other products may narrow customers" perception of the worth of a product"s differentiated features.

c. Counterfeit items are widely obtainable and also acceptable to customers.

d. Suppliers of raw products erode the firm"s profit margin through price boosts.


d. Suppliers of raw products erode the firm"s profit margin via price rises.

89. When implementing a emphasis strategy, the firm seeks to

a. sell assets that are both differentiated and also low price.

b. move right into the worldwide industry.

c. target the typical customer in an sector.

d. serve the specialized needs of a industry segment.


d. serve the specialized requirements of a market segment.


90. Ikea offers young customers a selection of residence furnishings featuring excellent style, function, and acceptable quality at low prices. Ikea is using which business-level strategy?

a. cost leadership

b. focused expense leadership

c. differentiation

d. focused differentiation


b. concentrated expense leadership

91. The focused differentiation strategy differs from the differentiation strategy in that

a. the focused differentiators have actually a wider competitive scope.

b. the value-producing tasks of concentrated differentiators are more constrained.

c. concentrated differentiators tarobtain a narrower customer industry.

d. there are fewer dangers with the concentrated differentiation strategy.


c. focused differentiators targain a narrower customer market.

98. Suppose one more firm uncovered a way to sell IKEA"s customers (young buyers interested in stylish furniture at low cost) extra sources of differentiation while charging the very same price or to provide the exact same business with the exact same sources of differentiation at a reduced price. What category of competitive threat to a focus strategy would certainly this be?

a. An industry-wide contender decides that the market segment offered by IKEA is worth entering.

b. Focutilizing on a more directly defined segment and "outfocusing" the focuser.

c. The demands of the customers in this narrow segment have actually end up being even more comparable to those of industry-wide competitors.

d. Experience can narrowhead customer"s perceptions of worth of the firm"s differentiated attributes.


b. Focusing on an extra directly characterized segment and also "outfocusing" the focuser.

99. Zara has pioneered "cheap chic" in clothing apparel. Zara uses current and also preferable fashion goods at fairly low prices. To implement the strategy, Zara provides advanced developers and also effective means of managing prices. These are all qualities of which service level strategy?

a. price leadership

b. differentiation

c. incorporated cost leadership/differentiation

d. stuck in the middle
c. included cost leadership/differentiation

100. Firms usage the incorporated expense leadership/differentiation strategy because

a. other firms have actually established unassailable market dominance through the other four techniques.

b. global industries enable for much wider competitive scope.

c. a lot of consumers desire to pay a low price for assets via rather very distinguished features.

d. one strategy is not enough for a lot of huge firms.
c. a lot of consumers desire to pay a low price for commodities through somewhat extremely identified attributes.

101. The integration of a expense leadership and also a differentiation strategy

a. is complicated because it boosts the number of value-chain activities and assistance features in which the firm have to end up being competent.

b. pressures a firm to adapt even more slowly to transforms in its setting.

c. enables the firm to prevent being "stuck in the middle."

d. needs such a huge customer base that it is most helpful for firms in the international marketlocation.


a. is complicated because it rises the number of value-chain tasks and assistance features in which the firm should come to be competent.

102. Target"s brand promise "Expect More. Pay Less" and also appeal to higher-income, fashion-aware discount shoppers illustprices the strategy.

a. cost leadership

b. differentiation

c. concentrated differentiation

d. incorporated cost leadership/differentiation


d. integrated price leadership/differentiation

103 J.C. Penney attempted the strategy . But it couldn"t out Walmart, nor could it Macy"s and Taracquire.

a. of incorporated cost leadership; price; complete with

b. of focused differentiation; cost; identify between

c. of cost leadership; cost; identify between

d. of focused price leadership; price; identify between


a. of included cost leadership; price; complete with

65. Corporate-level strategy is involved via and also how to manage these businesses.

a. whether the firm must invest in global or domestic businesses

b. what product industries and businesses the firm should be in

c. whether the portfolio of businesses should generate prompt above-average returns or should be troubled businesses which will create above-average returns only after restructuring

d. whether to incorporate backward or forward.


b. what product markets and also businesses the firm must be in

66.The ultimate test of the worth of a corporate-level strategy is whether the

a. corporation earns a great deal of money.

b. top management team is satisfied through the corporation"s performance.

c. businesses in the portfolio are worth more under the monitoring of the agency in question than they would certainly be under any type of various other ownership.

d. businesses in the portfolio rise the firm"s financial retransforms.


c. businesses in the portfolio are worth even more under the monitoring of the firm in question than they would certainly be under any kind of other ownership.

66.The ultimate test of the worth of a corporate-level strategy is whether the

a. corporation earns an excellent deal of money.

b. top monitoring team is satisfied through the corporation"s performance.

c. businesses in the portfolio are worth more under the management of the company in question than they would certainly be under any type of other ownership.

d. businesses in the portfolio rise the firm"s financial retransforms.
c. businesses in the portfolio are worth even more under the monitoring of the firm in question than they would certainly be under any type of various other ownership.

68. Wm. Wrigley Jr. Company kind of once made only chewing gum. When Wrigley bought Life Savers (a line of candy mints) and Altoids (a line of breath mints) from Kraft, chewing gum then made up much less than 95 percent of profits. Thus, Wrigley

a. was moving ameans from its standard single-company strategy toward a leading strategy.

b. was moving amethod from its standard leading strategy towards a associated linked strategy.

c. came to be a conglomerate because Life Savers and Altoids are unconnected businesses. d. most likely planned to restructure these suppliers and market them off.


a. was relocating ameans from its traditional single-service strategy towards a dominant strategy.

9. Normally a company is classified as a solitary company firm once earnings created by the leading service are better than percent.

a. 99

b. 95

c. 90

d. 70


b. 95

70. The even more sharing of sources and activities among businesses, the more is the relatedness of the diversification.

a. linked

b. constrained

c. integrated

d. intense
b. constrained

71. A firm that earns less than 70 percent of revenue from its leading organization and has actually straight relations between its businesses is engaging in diversification.

a. unrelated

b. associated constrained

c. connected linked

d. dominant business


b. related constrained

72. Revenues for United Parcel Service (UPS) come from the adhering to organization segments: 60 percent from UNITED STATE package shipment operations, 22 percent from worldwide package delivery, and also 18 percent from non-packaging operations. Which best explains the corpoprice level strategy of UPS?

a. single business

b. leading service

c. related constrained

d. associated linked


b. leading business

73. Which acquisition would certainly be considered the LEAST related?

a. A candy manufacturer purchases a chemical laboratory specializing in food flavorings.

b. A chain of garden centers acquires a landscape design firm.

c. A hospital acquires a irreversible treatment nursing house.

d. An uprange "white-tablecloth" restaurant chain acquires a travel company.


d. An upscale "white-tablecloth" restaurant chain acquires a take a trip agency.

74. The lowest level of diversification is the level.

a. single-business

b. leading business

c. connected constrained

d. unrelated


a. single-business

75. The primary distinction in between the associated constrained level of diversification and the connected attached level of diversification is

a. the percent of total business profitcapability that comes from the dominant business.

b. the level of resources and also tasks shared among the businesses.

c. whether the diversification is vertical or horizontal.

d. whether the diversification is value-creating or value-neutral.


b. the level of resources and also tasks shared among the businesses.

77. The Publicis Groupe supplies the digital technology from its digital company to improve the proclaiming products in its advertising group. This sharing of activities is characteristic of the diversification strategy.

a. connected constrained

b. associated linked

c. unrelated

d. dominant


a. related constrained

78. The term "conglomerates" refers to firms using the diversification strategy.

a. unrelated

b. connected constrained

c. connected linked

d. global


a. unrelated

79. Hutchiboy Whampoa Limited (HWL) has businesses in ports and also related services, teleinteractions, building and hotels, retail and also production, and also energy and infrastructure. HWL renders no initiatives to share activities or transfer core competencies among the businesses. HWL is following a strategy ofof diversification.

a. leading business

b. associated constrained

c. associated linked

d. unrelated


d. unrelated

80. Firms use corporate-level diversification strategies for all the adhering to reasons EXCEPT

a. value-creating.

b. value-neutral.

c. value-reducing.

d. value-diversifying.


d. value-diversifying.


86. The standard kinds of operational economic climates with which firms seek value from economic climates of scope are

a. synergies in between internal and external resources industries.

b. the leveraging of individual tangible resources.

c. the sharing of worth chain activities and also support features.

d. joint endeavors and also outsourcing.


c. the sharing of value chain activities and support attributes.

83. An office management firm has developed a device for successfully organizing small medical and dental practices both with proprietary software application and also with distinctive training programs for staff. It has actually recently gained a firm specializing in providing administration solutions for veterinary practices. The office monitoring firm is hoping to

a. attain economic situations of scope.

b. implement vertical integration.

c. accomplish financial economic climates through an unrelated acquisition.

d. obtain specialized talent from the veterinary monitoring company.


a. attain economies of scope.

87. Operational relatedness is created by of

a. sharing; core competencies.

b. sharing; activities.

c. transferring; core competencies.

d. transferring; tasks.


b. sharing; activities.

88. Procter & Gamble (P&G) has actually a file towel and also baby diaper service, both of which usage paper products. The firm"s paper manufacturing plant produces inputs for both businesses. P&G many most likely supplies thediversification strategy to create

a. connected constrained; operational relatedness.

b. connected linked; corpoprice relatedness.

c. associated constrained; corporate relatedness.

d. associated linked; operational relatedness.


a. associated constrained; operational relatedness.

89. Which of the adhering to is TRUE?

a. Conglomeprices no much longer exist in the UNITED STATE service scene, yet are common in emerging markets. b. Unconnected diversified firms look for to produce value with economic climates of scope.

c. The sharing of intangible sources, such as know-just how, between firms is a kind of operational sharing in related diversifications.

d. Related constrained firms share even more tangible sources and activities in between businesses than execute connected connected firms.


d. Related constrained firms share more tangible resources and also tasks between businesses than carry out associated attached firms.


91. A listed expert art academy has actually founded an "artists and friends" travel agency specializing in tours for

artists to scenic locales, using its faculty as traveling teachers. In enhancement, the art academy has actually purchased a framing firm to both make frames for academy art functions, but likewise to market museum-high quality framing solutions to the public. The art academy is engaging in diversification based on relatedness.

a. operational

b. corporate

c. intellectual

d. constrained


a. operational

82. Which of the following is a value-reducing factor for diversification?

a. enhancing the strategic competitiveness of the entire company

b. expanding the company portfolio in order to diversify managerial employment risk

c. getting sector power loved one to competitors

d. condeveloping to antitrust regulation


b. broadening the organization portfolio in order to diversify managerial employment risk

134. Managerial motives to look for diversification include a desire to

a. enhance their marketcapacity to various other firms.

b. effectively use corporate resources.

c. provide greater returns to corporate stakeholders.

d. boost their compensation.


d. increase their compensation.

129. Synergy exists when

a. price savings are realized with enhanced alareas of financial resources based on investments inside or outside the firm.

b. two devices develop value by making use of market power in their corresponding markets.

c. firms make use of constrained connected diversification to build an attractive portfolio of businesses.

d. the value produced by organization systems working together exceeds the worth the units create as soon as working independently.


d. the value developed by organization units functioning together exceeds the worth the units develop once working independently

101. Virgin Group properly transfers its marketing core competence across airlines, cosmetics, music, drinks, smart phones, health clubs, and also a number of various other businesses. Virgin adheres to a(n) diversification corporate strategy.

a. dominant-business

b. associated constrained

c. related linked

d. unrelated


c. related linked

102. The Mars acquisition of the Wrigley assets was component of its related constrained diversification and also added market share to the Mars/Wrigley integrated firm. It allowed Mars to acquire bereason it could sell its products above the market level or minimize its costs below the market level.

a. multipoint competition

b. online integration

c. industry power

d. vertical integration


c. industry power

123. Of the value-neutral incentives to diversify, all of the complying with are internal firm incentives EXCEPT

a. in its entirety firm hazard reduction.

b. uncertain future cash flows.

c. stricter interpretation of antitrust laws.

d. low performance.


c. stricter interpretation of antitrust regulations.

126. Certain regulatory alters (such as antitrust regulation and also tax laws) create incentives or disincentives for diversification that

a. develop value.

b. minimize worth.

c. are value-neutral.

d. are managerial motives to diversify.

See more: Jamestown: Why Did The Jamestown Settlement Almost Fail Ed In The Beginning


c. are value-neutral.

COMPANY


LEGAL & POLICIES


jiyuushikan.org PRODUCTS AND SERVICES


jiyuushikan.org NETWORK


CUSTOMER SERVICE


*
*