Question 1

_____ is a competitive advantage that other companies have tried unsuccessfully to duplicate and have, for the moment, stopped trying to duplicate.

Accepted Answer

A)  Sustainable competitive advantage 
B)  Comparative advantage 
C)  Revealed competitive advantage 
D)  Core competency advantage 
A)  Sustainable competitive advantage 
B)  Comparative advantage 
C)  Revealed competitive advantage 
D)  Core competency advantage

Question 2

In the context of the BCG matrix, which of the following businesses would be classified as a question mark?

Accepted Answer

A)  PrimeSmart, a smartphone manufacturer that is the market leader in a rapidly growing industry 
B)  RainTech, an electronics company that is struggling for market share in a fast-growing industry 
C)  HappyTot, a children's toy company that has been earning steady profits in a slow-growing industry 
D)  RigsWheels, a tire manufacturer that has negligible market share in a slow-growing industry 
A)  PrimeSmart, a smartphone manufacturer that is the market leader in a rapidly growing industry 
B)  RainTech, an electronics company that is struggling for market share in a fast-growing industry 
C)  HappyTot, a children's toy company that has been earning steady profits in a slow-growing industry 
D)  RigsWheels, a tire manufacturer that has negligible market share in a slow-growing industry

Question 3

Which of the following statements is true of direct competition?

Accepted Answer

A)  It is determined by market commonality and resource similarity. 
B)  It encourages the production of perfectly imitable resources. 
C)  It uses cost leadership to produce a specialized product for limited customers. 
D)  It minimizes the effects of industry competition. 
A)  It is determined by market commonality and resource similarity. 
B)  It encourages the production of perfectly imitable resources. 
C)  It uses cost leadership to produce a specialized product for limited customers. 
D)  It minimizes the effects of industry competition.

Question 4

Sanfase, a technology company in Rockbourne, manufactures microprocessors for computers. Its product is a lot more powerful than its competitors. This scenario is an example of competitive inertia.

Accepted Answer

A) True 
 B)False

Question 5

In the context of direct competition, _____ is defined as the degree to which two companies have overlapping products, services, or customers in multiple markets.

Accepted Answer

A)  related product diversification 
B)  resource similarity 
C)  market inertia 
D)  market commonality 
A)  related product diversification 
B)  resource similarity 
C)  market inertia 
D)  market commonality

Question 6

Which of the following can help managers improve the speed and accuracy with which they determine the need for strategic change?

Accepted Answer

A)  Fostering competitive inertia 
B)  Promoting strategic alliances with leading firms 
C)  Looking for signs of strategic dissonance 
D)  Limiting design iterations 
A)  Fostering competitive inertia 
B)  Promoting strategic alliances with leading firms 
C)  Looking for signs of strategic dissonance 
D)  Limiting design iterations

Question 7

Brenden Industries has five strategic business units (SBUs)-petroleum extraction, groceries, jewelry, telecommunication, and oil clothing. The petroleum extraction unit is costing the company a huge amount of money. It has not earned any profit so far nor will it earn any profit in the future as the oil fields are diminishing and the company has a small share in this market. In the context of the BCG matrix, which of the following categories of SBUs best describes the petroleum extraction unit?

Accepted Answer

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

Question 8

_____ is creating or acquiring companies that share similar products, manufacturing, marketing, technology, or cultures.

Accepted Answer

A)  Product positioning 
B)  Retrenchment 
C)  Competitive inertia 
D)  Related diversification 
A)  Product positioning 
B)  Retrenchment 
C)  Competitive inertia 
D)  Related diversification

Question 9

In the context of Porter's five industry forces, the threat of new entrants can be defined as:

Accepted Answer

A)  a measure of the degree to which barriers to entry make it easy or difficult for new companies to get started in an industry. 
B)  a measure of the intensity of competitive behavior among companies in an industry. 
C)  a measure of the ease with which customers can find substitutes for an industry's products or services. 
D)  a measure of the influence that customers have on the firm's prices. 
A)  a measure of the degree to which barriers to entry make it easy or difficult for new companies to get started in an industry. 
B)  a measure of the intensity of competitive behavior among companies in an industry. 
C)  a measure of the ease with which customers can find substitutes for an industry's products or services. 
D)  a measure of the influence that customers have on the firm's prices.

Question 10

In the context of direct competition between firms _____ largely affects response capability, that is, how quickly and forcefully a company can respond to an attack.

Accepted Answer

A)  diversification 
B)  cost leadership 
C)  differentiation 
D)  resource similarity 
A)  diversification 
B)  cost leadership 
C)  differentiation 
D)  resource similarity

Question 11

FasterRides Inc. has introduced a new bike in the market. Majority of its profits come from the sale of bikes. The company is recognized worldwide for its ability to design and produce bikes with superior handling, smooth transmission, powerful brakes, and other premium features that its competitors are lacking. This ability to produce superior quality bikes is the company's _____.

Accepted Answer

A)  strategic reference point 
B)  strategic alternative 
C)  distinctive competence 
D)  competitive resonance 
A)  strategic reference point 
B)  strategic alternative 
C)  distinctive competence 
D)  competitive resonance

Question 12

Strategic reference points are the less visible, internal decision-making routines, problem-solving processes, and organizational cultures that determine how efficiently inputs can be turned into outputs.

Accepted Answer

A) True 
 B)False

Question 13

JoeChoe and SanPants are two popular clothing companies. Whenever JoeChoe launches a new range of clothing, SanPants also launches something similar, and vice versa. This ensures that neither company gets a massive lead over the other in terms of market share. Which of the following strategies is being used by JoeChoe and SanPants in this scenario?

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 14

In the context of the BCG matrix, which of the following businesses would be classified as a dog?

Accepted Answer

A)  Ultimo Phone, a smartphone manufacturer that is the market leader in a rapidly growing industry 
B)  Brain Cash, a finance company that is struggling for market share in a fast-growing industry 
C)  Cleep Sweep, a detergent company that has been earning steady profits in a slow-growing industry 
D)  Bigs Steel, a metal manufacturer that has negligible market share in a slow-growing industry 
A)  Ultimo Phone, a smartphone manufacturer that is the market leader in a rapidly growing industry 
B)  Brain Cash, a finance company that is struggling for market share in a fast-growing industry 
C)  Cleep Sweep, a detergent company that has been earning steady profits in a slow-growing industry 
D)  Bigs Steel, a metal manufacturer that has negligible market share in a slow-growing industry

Question 15

Prime Loader has three strategic business units (SBUs)-railway lines, banking, and coal mining. Because of a small market share, the company is not earning a profit in the banking sector, even though the banking sector is a fast-growing market. In the context of the BCG matrix, which of the following categories of SBUs best describes the banking unit?

Accepted Answer

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

_____ is a competitive advantage that other companies have tried unsuccessfully to duplicate and have, for the moment, stopped trying to duplicate.

In the context of the BCG matrix, which of the following businesses would be classified as a question mark?

Which of the following statements is true of direct competition?

Sanfase, a technology company in Rockbourne, manufactures microprocessors for computers. Its product is a lot more powerful than its competitors. This scenario is an example of competitive inertia.

In the context of direct competition, _____ is defined as the degree to which two companies have overlapping products, services, or customers in multiple markets.

Which of the following can help managers improve the speed and accuracy with which they determine the need for strategic change?

_____ is creating or acquiring companies that share similar products, manufacturing, marketing, technology, or cultures.

In the context of Porter's five industry forces, the threat of new entrants can be defined as:

In the context of direct competition between firms _____ largely affects response capability, that is, how quickly and forcefully a company can respond to an attack.

Strategic reference points are the less visible, internal decision-making routines, problem-solving processes, and organizational cultures that determine how efficiently inputs can be turned into outputs.

In the context of the BCG matrix, which of the following businesses would be classified as a dog?

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

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Exam 6: Organizational Strategy

_____ is a competitive advantage that other companies have tried unsuccessfully to duplicate and have, for the moment, stopped trying to duplicate.

In the context of the BCG matrix, which of the following businesses would be classified as a question mark?

Which of the following statements is true of direct competition?

Sanfase, a technology company in Rockbourne, manufactures microprocessors for computers. Its product is a lot more powerful than its competitors. This scenario is an example of competitive inertia.

In the context of direct competition, _____ is defined as the degree to which two companies have overlapping products, services, or customers in multiple markets.

Which of the following can help managers improve the speed and accuracy with which they determine the need for strategic change?

_____ is creating or acquiring companies that share similar products, manufacturing, marketing, technology, or cultures.

In the context of Porter's five industry forces, the threat of new entrants can be defined as:

In the context of direct competition between firms _____ largely affects response capability, that is, how quickly and forcefully a company can respond to an attack.

Strategic reference points are the less visible, internal decision-making routines, problem-solving processes, and organizational cultures that determine how efficiently inputs can be turned into outputs.

In the context of the BCG matrix, which of the following businesses would be classified as a dog?

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