Question 1

Which of the following best defines cost leadership?

Accepted Answer

A)  It is the positioning strategy of producing a product or service of acceptable quality at consistently lower production costs than competitors can so that a firm can offer the product or service at the lowest price in the industry. 
B)  It is the positioning strategy of providing a product or service that is sufficiently different from competitors' offerings that customers are willing to pay a premium price for it. 
C)  It is the positioning strategy to produce a specialized product or service for a limited, specially targeted group of customers in a particular geographic region or market segment. 
D)  It is the positioning strategy to grow brand performance by reacting to changes in the external environment after they occur instead of following a consistent adaptive strategy. 
A)  It is the positioning strategy of producing a product or service of acceptable quality at consistently lower production costs than competitors can so that a firm can offer the product or service at the lowest price in the industry. 
B)  It is the positioning strategy of providing a product or service that is sufficiently different from competitors' offerings that customers are willing to pay a premium price for it. 
C)  It is the positioning strategy to produce a specialized product or service for a limited, specially targeted group of customers in a particular geographic region or market segment. 
D)  It is the positioning strategy to grow brand performance by reacting to changes in the external environment after they occur instead of following a consistent adaptive strategy.

Question 2

Which of the following statements is true of a portfolio strategy?

Accepted Answer

A)  It is a corporate-level strategy with the purpose of reducing risk in the entire collection of stocks. 
B)  It emphasizes on improving the way in which the company sells the same products. 
C)  It measures the intensity of competitive behavior among companies in an industry. 
D)  It focuses on turning around very poor company performance by significant cost reductions. 
A)  It is a corporate-level strategy with the purpose of reducing risk in the entire collection of stocks. 
B)  It emphasizes on improving the way in which the company sells the same products. 
C)  It measures the intensity of competitive behavior among companies in an industry. 
D)  It focuses on turning around very poor company performance by significant cost reductions.

Question 3

Winston Corp. manufactures and sells toy cars. These toy cars are perfect imitational miniature versions of real cars. Inspired by the success of Winston Corp., Neil Danon, a plastic ware manufacturer in Orowella also started manufacturing toy cars. Which of the following adaptive strategies is used by Neil Danon?

Accepted Answer

A)  Defenders adaptive strategy 
B)  Prospectors adaptive strategy 
C)  Analyzers adaptive strategy 
D)  Reactors adaptive strategy 
A)  Defenders adaptive strategy 
B)  Prospectors adaptive strategy 
C)  Analyzers adaptive strategy 
D)  Reactors adaptive strategy

Question 4

Which of the following statements is true of analyzers?

Accepted Answer

A)  They are the first to bring innovative new products to market. 
B)  They do not follow a consistent strategy. 
C)  They are a blend of the defender and prospector strategies. 
D)  They react to changes in their external environment after they occur. 
A)  They are the first to bring innovative new products to market. 
B)  They do not follow a consistent strategy. 
C)  They are a blend of the defender and prospector strategies. 
D)  They react to changes in their external environment after they occur.

Question 5

In the context of adaptive strategies, which of the following is true of defenders?

Accepted Answer

A)  They aggressively hold their current strategic position by doing the best job they can to hold on to customers in a particular market segment. 
B)  They seek fast growth by searching for new market opportunities, encouraging risk taking, and being the first to bring innovative new products to market. 
C)  They try to simultaneously minimize risk and maximize profits by following or imitating the proven successes of prospectors. 
D)  They do not follow a consistent strategy and tend to react to changes in their external environment after they occur. 
A)  They aggressively hold their current strategic position by doing the best job they can to hold on to customers in a particular market segment. 
B)  They seek fast growth by searching for new market opportunities, encouraging risk taking, and being the first to bring innovative new products to market. 
C)  They try to simultaneously minimize risk and maximize profits by following or imitating the proven successes of prospectors. 
D)  They do not follow a consistent strategy and tend to react to changes in their external environment after they occur.

Question 6

Which of the following is the last step of a strategy-making process?

Accepted Answer

A)  Conducting situational analysis 
B)  Assessing the need for strategic change 
C)  Choosing strategic alternatives 
D)  Evaluating strategic alternatives 
A)  Conducting situational analysis 
B)  Assessing the need for strategic change 
C)  Choosing strategic alternatives 
D)  Evaluating strategic alternatives

Question 7

_____ is a measure of the intensity of competitive behavior among companies in an industry.

Accepted Answer

A)  Bargaining power of firms 
B)  Character of the rivalry 
C)  Threat of new entrants 
D)  Threat of substitute products 
A)  Bargaining power of firms 
B)  Character of the rivalry 
C)  Threat of new entrants 
D)  Threat of substitute products

Question 8

A competitive advantage becomes a sustainable competitive advantage when other companies start duplicating the value a firm is providing to customers.

Accepted Answer

A) True 
 B)False

Question 9

In the context of the Boston Consulting Group (BCG) matrix, unlike stars, question marks have:

Accepted Answer

A)  a small share of a fast-growing market. 
B)  a large share of a slow-growing market. 
C)  a small share of a slow-growing market. 
D)  a large share of a fast-growing market. 
A)  a small share of a fast-growing market. 
B)  a large share of a slow-growing market. 
C)  a small share of a slow-growing market. 
D)  a large share of a fast-growing market.

Question 10

Zinfizz is a beverage manufacturer. It presents WYB, a zero-calorie drink, to compete with MoodFresh's Shire, a low-calorie drink. When WYB is released in the market, MoodFresh cuts down the price on Shire to match WYB's price. Identify the strategic move that is most likely being implemented by MoodFresh in this scenario.

Accepted Answer

A)  Rejoinder 
B)  Attack 
C)  Recovery 
D)  Acquisition 
A)  Rejoinder 
B)  Attack 
C)  Recovery 
D)  Acquisition

Question 11

Which of the following conditions must be met if a firm's resources are to be used to achieve a sustainable competitive advantage?

Accepted Answer

A)  The resources must be low-cost and commutable. 
B)  The resources must be controlled by other competing firms. 
C)  The resources must be perfectly imitable. 
D)  The resources must be valuable, rare, and nonsubstitutable. 
A)  The resources must be low-cost and commutable. 
B)  The resources must be controlled by other competing firms. 
C)  The resources must be perfectly imitable. 
D)  The resources must be valuable, rare, and nonsubstitutable.

Question 12

Focus strategies typically work in saturated markets that competitors have large market shares or have complete monopoly in.

Accepted Answer

A) True 
 B)False

Question 13

The threat of new entrants is a measure of the degree to which barriers to entry make it easy or difficult for new companies to get started in an industry.

Accepted Answer

A) True 
 B)False

Question 14

In the context of adaptive strategies, which of the following is a difference between prospectors and analyzers?

Accepted Answer

A)  Unlike prospectors, analyzers are the blend of the defender and reactor strategies. 
B)  Unlike prospectors, analyzers seek fast growth by searching for new market opportunities. 
C)  Unlike prospectors, analyzers encourage risk taking. 
D)  Unlike prospectors, analyzers are rarely first to market with new products or services. 
A)  Unlike prospectors, analyzers are the blend of the defender and reactor strategies. 
B)  Unlike prospectors, analyzers seek fast growth by searching for new market opportunities. 
C)  Unlike prospectors, analyzers encourage risk taking. 
D)  Unlike prospectors, analyzers are rarely first to market with new products or services.

Question 15

TinkTV, PopoNet, and Kreti Broadcast are merging together to form a large television network called Tale Broadcast. This was done in an attempt to increase profitability by combining the customers and services owned by the three companies. Which of the following grand strategies does the given scenario best exemplify?

Accepted Answer

A)  The stability strategy 
B)  The retrenchment strategy 
C)  The growth strategy 
D)  The acquisition strategy 
A)  The stability strategy 
B)  The retrenchment strategy 
C)  The growth strategy 
D)  The acquisition strategy

Question 16

SkyScape, a company that manufactures computer processors, launched a new product called ChipOne. This launch was a countermove against another product launched by GreenChip, SkyScape's competitor. Which of the following strategies was used by SkyScape to defend its market share?

Accepted Answer

A)  A response strategy 
B)  An amalgamation strategy 
C)  A recovery strategy 
D)  An acquisition strategy 
A)  A response strategy 
B)  An amalgamation strategy 
C)  A recovery strategy 
D)  An acquisition strategy

Question 17

Brickwall Builders is a real estate builder and developer. It specializes in building premium villas, office spaces, warehouses, and retail stores. Buildings of Brickwall Builders are economical, have a high resale value, and are available at very low down payment when compared to its competitors' buildings. This scenario illustrates the concept of _____.

Accepted Answer

A)  core capability 
B)  distinctive competence 
C)  competitive inertia 
D)  strategic dissonance 
A)  core capability 
B)  distinctive competence 
C)  competitive inertia 
D)  strategic dissonance

Question 18

Break Technologies has five strategic business units (SBUs)-computers, refrigerators, washing machines, air conditioners, and televisions. Its computers unit is quite profitable in spite of operating in a slow-growing market, and it is profitable enough to provide funds for the operation of the other business units as well. In the context of the BCG matrix, which of the following categories of SBUs best describes the computers unit?

Accepted Answer

A)  Stars 
B)  Cash cows 
C)  Question marks 
D)  Dogs 
A)  Stars 
B)  Cash cows 
C)  Question marks 
D)  Dogs

Question 19

_____ are companies using an adaptive strategy that seeks to minimize risk and maximize profits by following or imitating the proven successes of companies that seek fast growth by searching for new market opportunities, encouraging risk taking, and being the first to bring innovative new products to market.

Accepted Answer

A)  Defenders 
B)  Analyzers 
C)  Prospectors 
D)  Reactors 
A)  Defenders 
B)  Analyzers 
C)  Prospectors 
D)  Reactors

Question 20

In the context of portfolio strategy, _____ is the purchase of a company by another company.

Accepted Answer

A)  divestiture 
B)  demerger 
C)  acquisition 
D)  restructuring 
A)  divestiture 
B)  demerger 
C)  acquisition 
D)  restructuring

Which of the following best defines cost leadership?

Which of the following statements is true of a portfolio strategy?

Which of the following statements is true of analyzers?

In the context of adaptive strategies, which of the following is true of defenders?

Which of the following is the last step of a strategy-making process?

_____ is a measure of the intensity of competitive behavior among companies in an industry.

A competitive advantage becomes a sustainable competitive advantage when other companies start duplicating the value a firm is providing to customers.

In the context of the Boston Consulting Group (BCG) matrix, unlike stars, question marks have:

Which of the following conditions must be met if a firm's resources are to be used to achieve a sustainable competitive advantage?

Focus strategies typically work in saturated markets that competitors have large market shares or have complete monopoly in.

The threat of new entrants is a measure of the degree to which barriers to entry make it easy or difficult for new companies to get started in an industry.

In the context of adaptive strategies, which of the following is a difference between prospectors and analyzers?

SkyScape, a company that manufactures computer processors, launched a new product called ChipOne. This launch was a countermove against another product launched by GreenChip, SkyScape's competitor. Which of the following strategies was used by SkyScape to defend its market share?

In the context of portfolio strategy, _____ is the purchase of a company by another company.

Management

The History of Management

Organizational Environments and Cultures

Ethics and Social Responsibility

Planning and Decision Making

Innovation and Change

Global Management

Designing Adaptive Organizations

Managing Teams

Managing Human Resource Systems

Managing Individuals and a Diverse Workforce

Motivation

Leadership

Managing Communication

Control

Managing Information

Managing Service and Manufacturing Operations

Filters

Exam 6: Organizational Strategy

Which of the following best defines cost leadership?

Which of the following statements is true of a portfolio strategy?

Which of the following statements is true of analyzers?

In the context of adaptive strategies, which of the following is true of defenders?

Which of the following is the last step of a strategy-making process?

_____ is a measure of the intensity of competitive behavior among companies in an industry.

A competitive advantage becomes a sustainable competitive advantage when other companies start duplicating the value a firm is providing to customers.

In the context of the Boston Consulting Group (BCG) matrix, unlike stars, question marks have:

Which of the following conditions must be met if a firm's resources are to be used to achieve a sustainable competitive advantage?

Focus strategies typically work in saturated markets that competitors have large market shares or have complete monopoly in.

The threat of new entrants is a measure of the degree to which barriers to entry make it easy or difficult for new companies to get started in an industry.

In the context of adaptive strategies, which of the following is a difference between prospectors and analyzers?

SkyScape, a company that manufactures computer processors, launched a new product called ChipOne. This launch was a countermove against another product launched by GreenChip, SkyScape's competitor. Which of the following strategies was used by SkyScape to defend its market share?

In the context of portfolio strategy, _____ is the purchase of a company by another company.

Management

The History of Management

Organizational Environments and Cultures

Ethics and Social Responsibility

Planning and Decision Making

Innovation and Change

Global Management

Designing Adaptive Organizations

Managing Teams

Managing Human Resource Systems

Managing Individuals and a Diverse Workforce

Motivation

Leadership

Managing Communication

Control

Managing Information

Managing Service and Manufacturing Operations

Filters