14 Aug MGT195-HK1. BUSINESS POLICY AND STRATEGY (MGT195-HK1) > TAKE ASSESSMENT: MIDTER

MGT195-HK1. BUSINESS POLICY AND STRATEGY (MGT195-HK1) > TAKE ASSESSMENT: MIDTERM EXAM Question 1 1 points Save In the __________ stage of the industry life cycle, there are many segments, competition is very intense, and the emphasis on process design is high. Introduction Growth Maturity Decline Question 2 1 points Save One aspect of using a cost leadership strategy is that experience effects may lead to lower costs. Experience effects are achieved by: Hiring more experienced personnel Repeating a process until a task becomes easier Spreading out a given expense or investment over a greater volume Competing in an industry a long time Question 3 1 points Save In the __________ stage of the industry life cycle, the emphasis on product design is very high, the intensity of competition is low, and the market growth rate is low. Introduction Growth Maturity Decline Question 4 1 points Save One of the reasons the Internet is eroding sustainable competitive advantages is: Incumbent firms are entering market segments that they previously considered to be too small Nearly all competitors will have greater access to tools for managing costs making it hard for any one to achieve an advantage Differentiators have been able to preserve the unique advantages that have always been the hallmark of their success Firms are ignoring opportunities to offer high-end services in niche markets Question 5 1 points Save The text discusses three approaches to combining overall cost leadership and differentiation competitive advantages. These are the following except: Automated and flexible manufacturing systems Exploiting the profit pool concept for competitive advantage Coordinating the “extended” value chain by way of information technology Deriving benefits from highly focused and high technology markets Question 6 1 points Save A differentiation strategy enables a business to address the five competitive forces by: Lessening competitive rivalry by distinguishing itself Having brand-loyal customers become more sensitive to prices Increasing economies of scale Serving a broader market segment Question 7 1 points Save During the decline stage of the product life cycle, a harvesting strategy means that a firm keeps a product going without significantly reducing marketing support, technological development or other investments, while hoping that competitors will exit the market. TrueFalse Question 8 1 points Save Research has consistently shown that firms that achieve both cost leadership and differentiation advantages tend to perform: At about the same level as firms that achieve either cost or differentiation advantages About the same as firms that are “stuck-in-the-middle.” Lower than firms that achieve differentiation advantages but higher than firms that achieve cost advantages Higher than firms that achieve either a cost or a differentiation advantage Question 9 1 points Save One potential pitfall of a differentiation strategy is that a brand’s identification in the marketplace may become diluted through excessive product line extensions. TrueFalse Question 10 1 points Save The primary aim of strategic management at the business level is: Maximizing risk-return tradeoffs through diversification Achieving a low cost position Maximizing differentiation of products and/or services Achieving competitive advantage(s) Question 11 1 points Save An important advantage of first movers or “pioneers” in a market is that they may establish brand recognition that may later serve as an important switching cost. TrueFalse Question 12 1 points Save A firm following a focus strategy: Must focus on governmental regulations Must focus on a market segment or group of segments Must focus on the rising cost of inputs Must avoid entering international markets Question 13 1 points Save Piecemeal productivity improvements during a turnaround typically does not involve: Business process reengineering Increased capacity utilization Benchmarking Expansion of a firm’s product market scope Question 14 1 points Save During the growth stage of the market life cycle, customers are very likely to establish brand loyalty. TrueFalse Question 15 1 points Save One way the Internet and digital technologies are creating opportunities for firms with differentiation strategies is by enabling mass customization. TrueFalse Question 16 1 points Save Research shows that the following are all strategies used by firms engaged in successful turnarounds except: Asset and cost surgery Selective product and market pruning Global expansion Piecemeal productivity improvements Question 17 1 points Save To generate above average returns, a firm following an overall cost leadership position should not be concerned with attaining parity or proximity on the basis of differentiation relative to its peers. TrueFalse Question 18 1 points Save According to the text, intellectual capital is the difference between the market value and the book value of a firm. Intellectual capital can be increased by: Increasing retention of below average workers Attracting and retaining knowledgeable workers Decreasing labor costs Increasing the turnover of employees Question 19 1 points Save In most effective evaluation and reward systems employees only receive evaluation and feedback from their immediate supervisor. TrueFalse Question 20 1 points Save Attracting and retaining human capital is a challenge for many firms today. Firms experiencing high turnover should: Focus on increased recruiting Decrease money spent on human capital Make their work environment less stimulating Adopt effective retention strategies Question 21 1 points Save Technical skills are a necessary and sufficient condition for hiring an employee. TrueFalse Question 22 1 points Save Human capital and social capital are vital for superior firm performance. If a firm has strong human capital, the firm may exploit this by building social capital. This can be accomplished through: Requiring workers to work independently of each other Decreasing the interaction of departments within the firm Encouraging the sharing of ideas between employees in the firm Structuring the firm with rigid departmental and employee divisions Question 23 1 points Save The makeup of goods and services in the Gross Domestic Products of developed countries has changed over the last decade. More than 50% of the value of GDP of developed countries is based on: Clothing and apparel Capital accumulation Financial management Knowledge Question 24 1 points Save Among the downsides of social capital is/are: High social capital may breed “groupthink,” i.e., a tendency not to question shared beliefs Socialization processes whereby individuals are socialized into the norms and values of the organization may become expensive Individuals may become less willing to collaborate on joint projects A and B Question 25 1 points Save Maintaining a competitive workforce is very challenging in today’s economy. The role of evaluating human capital, in recent years, has: Increased Decreased Become less important Remained the same Question 26 1 points Save Generally, employees are most likely to stay with an organization if: The employer provides high salaries to technology professionals The organization’s mission and values align with the employee’s mission and values The firm is in a high tech industry The mission and values of the organization change often Question 27 1 points Save 360-degree evaluation systems are not useful due to the need to integrate large amounts of feedback. TrueFalse Question 28 1 points Save In an effort to capture key employees from competitors, firms may attract the symbolic leader of a group within a competing firm and hope others will follow. This has been termed: The “Columbus effect.” The “Pied Piper effect.” Strategically competitive hiring Knowledge integration Question 29 1 points Save As the competitive environment changes, strategic management must focus on different aspects of the organization. Recently, strategic management has moved from focusing on: Intangible resources to tangible resources Tangible resources to intangible resources Working capital to fixed capital Fixed capital to working capital Question 30 1 points Save The management of intellectual property involves all of the following except: Patents Contracts with confidentiality and noncompete clauses Converting explicit knowledge to tacit knowledge Copyrights and trademarks Question 31 1 points Save Explicit knowledge is generally known to everyone in the firm and is not a critical concern of management. TrueFalse Question 32 1 points Save In the knowledge economy, if a large portion of a firm’s value is in intellectual and human assets, the difference between the company’s market value and book value should ___________ a company with mostly physical and financial assets. Be equal to Be smaller than Be larger than Not be correlated with Question 33 1 points Save Companies have found that referrals from their own employees are generally an ineffective approach to recruiting top talent. TrueFalse Question 34 1 points Save In today’s economy, reliance on the three traditional financial statements: income statement, balance sheet, and statement of cash flow, has increased. TrueFalse Question 35 1 points Save There is generally a weak relationship between equity markets (e.g., New York Stock Exchange) and economic indicators. TrueFalse Question 36 1 points Save Environmental forecasting involves developing plausible projections about the ________ of environmental change. Direction Scope Speed All of the above Question 37 1 points Save Competitor Intelligence gathering is no different than spying. TrueFalse Question 38 1 points Save The most intense rivalry results from: Numerous equally balanced competitors, slow industry growth, high fixed or storage costs Few competitors, slow industry growth, lack of differentiation, high fixed or storage costs Numerous equally balanced competitors, manufacturing capacity increases only in large increments, low exit barriers A high level of differentiation Question 39 1 points Save The threat of new entrants is high when there are: Low economies of scale High capital requirements High switching costs High differentiation among competitors’ products and services Question 40 1 points Save Strategic groups consist of: A group of top executives who make strategies for a company A group of firms within an industry that follow similar strategies A group of executives drawn from different companies within an industry that makes decisions on industry standards A group of firms within an industry that decide to collude rather than compete with each other so that they can increase their profits Question 41 1 points Save The strategic groups in the world-wide automobile industry have been very stable and unchanging in recent years. TrueFalse Question 42 1 points Save The aging of the population, changes in ethnic composition, and effects of the baby boom are: Macroeconomic changes Demographic changes Global changes Sociocultural changes Question 43 1 points Save Interest rate increases have a __________ impact on the residential home construction industry and a __________ effect on industries that produce consumer necessities such as prescription drugs or basic grocery items. Positive; negligible Negative; negligible Negative; positive Positive; negative Question 44 1 points Save Firms would be most likely to face intense rivalry with competitors when they: Are in a high growth industry with low fixed costs Are in a protected market Have high fixed costs, in a slow growth industry with high exit barriers Have low exit barriers for easy transition to another industry Question 45 1 points Save An end user’s switching costs are potentially much higher because of the Internet. TrueFalse Question 46 1 points Save Increasingly larger numbers of women entering the work force since the early 1970s is an example of: Demographic changes Political and legal environmental changes Sociocultural changes Technological developments Question 47 1 points Save Porter’s Five Forces model helps to determine both the nature of competition in an industry and the industry’s profit potential. TrueFalse Question 48 1 points Save Threat of substitute products comes from: Other companies in the same industry Foreign companies which can use cheap labor in their countries Firms in other industries that produce products or services that satisfy the same customer need All of the above Question 49 1 points Save The Internet and digital technologies suppress the bargaining power of buyers by providing them with more information to make buying decisions. TrueFalse Question 50 1 points Save The more attractive the price/performance ratio of substitute products, the more tightly it constrains an industry’s ability to charge high prices. TrueFalse Question 51 1 points Save Fortune Brands states they will “cut corporate costs by $30 million a year.” This is an example of a: Nonfinancial strategic objective Financial strategic objective Vision statement Mission statement Question 52 1 points Save Decisions by Boards of Directors are always consistent with shareholder interests. TrueFalse Question 53 1 points Save The three primary participants in corporate governance are: (1) the shareholders; (2) management (led by the chief executive officer); and, (3) employees. TrueFalse Question 54 1 points Save According to the text, a mission statement is an overarching statement that is massively inspiring, long-term, and only discusses the purpose of the company. TrueFalse Question 55 1 points Save Strategy formulation and implementation is a challenging on-going process. To be effective, it should involve: The CEO and the board of directors The board of directors, CEO, and CFO Line and staff managers All of the above Question 56 1 points Save The four key attributes of strategic management include the idea that: Strategy must be directed toward overall organizational goals and objectives Strategy must be focused on long-term objectives Strategy must be focused on one specific area of an organization Strategy must focus on competitor strengths Question 57 1 points Save “We want to be the top-ranked supplier by our customers.” (PPG) This is an example of a: Nonfinancial strategic objective Financial strategic objective Vision statement Mission statement Question 58 1 points Save Organizational goals and objectives should be vague in order to allow for changes in strategy. TrueFalse Question 59 1 points Save Strategic objectives are more specific than vision statements. TrueFalse Question 60 1 points Save Members of Boards of Directors are: Appointed by the Securities and Exchange Commission Elected by the shareholders as their representatives Elected by the public Only allowed to serve one term of four years Question 61 1 points Save According to Michael Porter, management innovations such as total quality, benchmarking, and business process reengineering cannot lead to sustainable competitive advantage because: Companies that have implemented these techniques have lost money There is no proof that these techniques work They cost too much money and effort to implement Every company is trying to implement them and hence it does not make a company different from others Question 62 1 points Save Peter Senge, of M.I.T., recognized three types of leaders. __________ are individuals that, although having little positional power and formal authority, generate their power through the conviction and clarity of their ideas. Local line leaders Executive leaders Internal networkers Shop floor leaders Question 63 1 points Save In large organizations, conflicts can arise between functional areas. In order to resolve these conflicts, strategic objectives: Put financial objectives above human considerations Align departments toward departmental goals Help resolve conflicts through their common purpose Cause debate and increase conflict Question 64 1 points Save According to the text, formulating strategy includes taking into consideration strategy at the business, international, and corporate levels. In addition managers must formulate effective entrepreneurial initiatives. TrueFalse Question 65 1 points Save A mission statement encompasses both the purpose of the company as well as the basis of competition and competitive advantage. TrueFalse Question 66 1 points Save Social responsibility is the idea that organizations are not only accountable to stockholders but also to the community-at-large. TrueFalse Question 67 1 points Save The two principal means by which firms achieve synergy through market power are: pooled negotiating power and corporate parenting. TrueFalse Question 68 1 points Save Whenever an organization diversifies, it represents investing a stockholder’s funds in a way in which the individual investor is unable. TrueFalse Question 69 1 points Save Antitakeover tactics include all of the following except: Greenmail Golden parachutes Golden handcuffs Poison pills Question 70 1 points Save One of the risks of vertical integration is that there may be problems associated with unbalanced capacities or unfilled demands along a firm’s value chain. TrueFalse Question 71 1 points Save An antitakeover tactic called (a) __________ is when a firm offers to buy shares of their stock from a company (or individual) planning to acquire their firm at a higher price than the unfriendly company paid for it. Golden parachute Greenmail Poison pill Scorched earth Question 72 1 points Save When management uses common production facilities or purchasing procedures to distribute different but related products, they are: Building on core competencies Sharing activities Achieving process gains Using portfolio analysis Question 73 1 points Save Sharing core competencies is one of the primary potential advantages of diversification. In order for diversification to be most successful, it is important that: The similarity required for sharing core competencies must be in the value chain, not in the product The products use similar distribution channels The target market is the same, even if the products are very different The methods of production are the same Question 74 1 points Save Among the disadvantages of acquisitions are the expensive premiums that are frequently paid to acquire a business. TrueFalse Question 75 1 points Save The potential advantages of strategic alliances and joint ventures include entering new markets as well as developing and diffusing new technologies. TrueFalse Question 76 1 points Save Sharing activities across business units can provide two primary benefits: cost savings and revenue enhancements. TrueFalse Question 77 1 points Save A publishing company that purchases a chain of bookstores to sell its books is an example of unrelated diversification. TrueFalse Question 78 1 points Save Restructuring requires the corporate office to find either poorly performing firms with unrealized potential or firms in industries on the threshold of significant, positive change. TrueFalse Question 79 1 points Save __________ is when a firm’s corporate office helps subsidiaries make wise choices in their own acquisitions, divestures, and new ventures. Parenting Restructuring Leveraging core competencies Increasing market power Question 80 1 points Save Market power refers to cost savings from leveraging core competencies or sharing activities among the businesses in a corporation. TrueFalse Question 81 1 points Save It may be advantageous to vertically integrate when: Lower transaction costs and improved coordination are vital and achievable through vertical integration The minimum efficient scales of two corporations are different Flexibility is reduced, providing a more stationary position in the competitive environment Various segregated specializations will be combined Question 82 1 points Save Vertical integration is attractive when market transaction costs are higher than internal administrative costs. TrueFalse Question 83 1 points Save A company offering local telecommunications service combines resources with an international company that manufactures digital switching equipment to research a new type of telecommunications technology. This is an example of: Joint diversification Strategic alliance Divestment Global integration Question 84 1 points Save Value chain analysis can only be applied to manufacturing operations. TrueFalse Question 85 1 points Save Human resource management consists of activities involved in the recruiting, hiring, training, development, and compensation of all types of personnel. It: Supports only individual primary activities Supports only individual support activities Supports both individual primary and support activities and the entire value chain Supports mostly support activities but does have some impact on primary activities Question 86 1 points Save Products and services that are difficult to imitate help firms sustain their profitability. TrueFalse Question 87 1 points Save A variety of firm resources include interpersonal relations among managers in the firm, its culture, and its reputation with its suppliers and customers. Such competitive advantages are based upon: Social complexity Path dependency Physical uniqueness Tangible resources Question 88 1 points Save An important implication of the “balanced scorecard” approach is that: Managers need to recognize tradeoffs in stakeholder demands and realize that such demands represent a “zero-sum” game in which one stakeholder will gain only at another’s loss The key emphasis on customer satisfaction and financial goals are only a means to that end Managers should not look at their job as primarily balancing stakeholder demands; increasing satisfaction among multiple stakeholders can be achieved simultaneously Gains in financial performance and customer satisfaction must often come at a cost of employee satisfaction Question 89 1 points Save Information systems can create advantages that deter entry by competitors into an industry. TrueFalse Question 90 1 points Save Business models can be defined as methods companies use to create value and earn profits in a competitive environment. TrueFalse Question 91 1 points Save Inbound logistics include: Machining and packaging Warehousing and inventory control Repair and parts supply Promotion and packaging Question 92 1 points Save Value chain analysis assumes that a firm’s basic economic purpose is to create value and it is a useful framework for analyzing a firm’s strengths and weaknesses. TrueFalse Question 93 1 points Save Four Internet-based activities that are enhancing firms’ capabilities to use the Internet to add value include: Outsourcing, problem-solving, bill-paying, and delivery Evaluating, bill-paying, customizing, and returning Search, rescue, repair, return Search, evaluation, problem-solving, and transaction Question 94 1 points Save Which of the following is a support activity? Inbound logistics Operations Technology development Customer service Question 95 1 points Save A commission-based business model, when applied to the Internet, is similar to the broadcast television model in which viewers watch shows produced with revenues from commission fees. TrueFalse Question 96 1 points Save Which of the following lists consists of support activities? Human resource management, technology development, customer service, and procurement Human resource management, customer service, marketing and sales, and operations Human resource management, information systems, procurement, and firm infrastructure Customer service, information systems, technology development, and procurement Question 97 1 points Save How should managers assess changes in their firm’s competitive position in their industries during a period of unusual economic growth? Compare the firm’s financial ratios with ratios of firms in other strategic groups in the industry Compare the firm’s financial ratios over the most recent one-year period Compare the financial ratios of all firms in the country’s industrysome of whom serve very diverse market segments and have specialized accordingly Compare the financial ratios of firms in the company’s strategic group Question 98 1 points Save Performing a value chain analysis provides a complete assessment of the firm’s strengths and weaknesses. TrueFalse Question 99 1 points Save Customer service would include: Product promotion Product distribution Parts supply Procurement of critical supplies Question 100 1 points Save The three key types of resources that are central to the resource-based view of the firm are: Tangible resources, intangible resources, and organizational structure Culture, tangible resources, intangible resources Tangible resources, intangible resources, and organizational capabilities Tangible resources, intangible resources, and top management MGT195-HK1. BUSINESS POLICY AND STRATEGY (MGT195-HK1) > TAKE ASSESSMENT: MIDTERM EXAM Question 1 1 points Save In the __________ stage of the industry life cycle, there are many segments, competition is very intense, and the emphasis on process design is high. Introduction Growth Maturity Decline Question 2 1 points Save One aspect of using a cost leadership strategy is that experience effects may lead to lower costs. Experience effects are achieved by: Hiring more experienced personnel Repeating a process until a task becomes easier Spreading out a given expense or investment over a greater volume Competing in an industry a long time Question 3 1 points Save In the __________ stage of the industry life cycle, the emphasis on product design is very high, the intensity of competition is low, and the market growth rate is low. Introduction Growth Maturity Decline Question 4 1 points Save One of the reasons the Internet is eroding sustainable competitive advantages is: Incumbent firms are entering market segments that they previously considered to be too small Nearly all competitors will have greater access to tools for managing costs making it hard for any one to achieve an advantage Differentiators have been able to preserve the unique advantages that have always been the hallmark of their success Firms are ignoring opportunities to offer high-end services in niche markets Question 5 1 points Save The text discusses three approaches to combining overall cost leadership and differentiation competitive advantages. These are the following except: Automated and flexible manufacturing systems Exploiting the profit pool concept for competitive advantage Coordinating the “extended” value chain by way of information technology Deriving benefits from highly focused and high technology markets Question 6 1 points Save A differentiation strategy enables a business to address the five competitive forces by: Lessening competitive rivalry by distinguishing itself Having brand-loyal customers become more sensitive to prices Increasing economies of scale Serving a broader market segment Question 7 1 points Save During the decline stage of the product life cycle, a harvesting strategy means that a firm keeps a product going without significantly reducing marketing support, technological development or other investments, while hoping that competitors will exit the market. TrueFalse Question 8 1 points Save Research has consistently shown that firms that achieve both cost leadership and differentiation advantages tend to perform: At about the same level as firms that achieve either cost or differentiation advantages About the same as firms that are “stuck-in-the-middle.” Lower than firms that achieve differentiation advantages but higher than firms that achieve cost advantages Higher than firms that achieve either a cost or a differentiation advantage Question 9 1 points Save One potential pitfall of a differentiation strategy is that a brand’s identification in the marketplace may become diluted through excessive product line extensions. TrueFalse Question 10 1 points Save The primary aim of strategic management at the business level is: Maximizing risk-return tradeoffs through diversification Achieving a low cost position Maximizing differentiation of products and/or services Achieving competitive advantage(s) Question 11 1 points Save An important advantage of first movers or “pioneers” in a market is that they may establish brand recognition that may later serve as an important switching cost. TrueFalse Question 12 1 points Save A firm following a focus strategy: Must focus on governmental regulations Must focus on a market segment or group of segments Must focus on the rising cost of inputs Must avoid entering international markets Question 13 1 points Save Piecemeal productivity improvements during a turnaround typically does not involve: Business process reengineering Increased capacity utilization Benchmarking Expansion of a firm’s product market scope Question 14 1 points Save During the growth stage of the market life cycle, customers are very likely to establish brand loyalty. TrueFalse Question 15 1 points Save One way the Internet and digital technologies are creating opportunities for firms with differentiation strategies is by enabling mass customization. TrueFalse Question 16 1 points Save Research shows that the following are all strategies used by firms engaged in successful turnarounds except: Asset and cost surgery Selective product and market pruning Global expansion Piecemeal productivity improvements Question 17 1 points Save To generate above average returns, a firm following an overall cost leadership position should not be concerned with attaining parity or proximity on the basis of differentiation relative to its peers. TrueFalse Question 18 1 points Save According to the text, intellectual capital is the difference between the market value and the book value of a firm. Intellectual capital can be increased by: Increasing retention of below average workers Attracting and retaining knowledgeable workers Decreasing labor costs Increasing the turnover of employees Question 19 1 points Save In most effective evaluation and reward systems employees only receive evaluation and feedback from their immediate supervisor. TrueFalse Question 20 1 points Save Attracting and retaining human capital is a challenge for many firms today. Firms experiencing high turnover should: Focus on increased recruiting Decrease money spent on human capital Make their work environment less stimulating Adopt effective retention strategies Question 21 1 points Save Technical skills are a necessary and sufficient condition for hiring an employee. TrueFalse Question 22 1 points Save Human capital and social capital are vital for superior firm performance. If a firm has strong human capital, the firm may exploit this by building social capital. This can be accomplished through: Requiring workers to work independently of each other Decreasing the interaction of departments within the firm Encouraging the sharing of ideas between employees in the firm Structuring the firm with rigid departmental and employee divisions Question 23 1 points Save The makeup of goods and services in the Gross Domestic Products of developed countries has changed over the last decade. More than 50% of the value of GDP of developed countries is based on: Clothing and apparel Capital accumulation Financial management Knowledge Question 24 1 points Save Among the downsides of social capital is/are: High social capital may breed “groupthink,” i.e., a tendency not to question shared beliefs Socialization processes whereby individuals are socialized into the norms and values of the organization may become expensive Individuals may become less willing to collaborate on joint projects A and B Question 25 1 points Save Maintaining a competitive workforce is very challenging in today’s economy. The role of evaluating human capital, in recent years, has: Increased Decreased Become less important Remained the same Question 26 1 points Save Generally, employees are most likely to stay with an organization if: The employer provides high salaries to technology professionals The organization’s mission and values align with the employee’s mission and values The firm is in a high tech industry The mission and values of the organization change often Question 27 1 points Save 360-degree evaluation systems are not useful due to the need to integrate large amounts of feedback. TrueFalse Question 28 1 points Save In an effort to capture key employees from competitors, firms may attract the symbolic leader of a group within a competing firm and hope others will follow. This has been termed: The “Columbus effect.” The “Pied Piper effect.” Strategically competitive hiring Knowledge integration Question 29 1 points Save As the competitive environment changes, strategic management must focus on different aspects of the organization. Recently, strategic management has moved from focusing on: Intangible resources to tangible resources Tangible resources to intangible resources Working capital to fixed capital Fixed capital to working capital Question 30 1 points Save The management of intellectual property involves all of the following except: Patents Contracts with confidentiality and noncompete clauses Converting explicit knowledge to tacit knowledge Copyrights and trademarks Question 31 1 points Save Explicit knowledge is generally known to everyone in the firm and is not a critical concern of management. TrueFalse Question 32 1 points Save In the knowledge economy, if a large portion of a firm’s value is in intellectual and human assets, the difference between the company’s market value and book value should ___________ a company with mostly physical and financial assets. Be equal to Be smaller than Be larger than Not be correlated with Question 33 1 points Save Companies have found that referrals from their own employees are generally an ineffective approach to recruiting top talent. TrueFalse Question 34 1 points Save In today’s economy, reliance on the three traditional financial statements: income statement, balance sheet, and statement of cash flow, has increased. TrueFalse Question 35 1 points Save There is generally a weak relationship between equity markets (e.g., New York Stock Exchange) and economic indicators. TrueFalse Question 36 1 points Save Environmental forecasting involves developing plausible projections about the ________ of environmental change. Direction Scope Speed All of the above Question 37 1 points Save Competitor Intelligence gathering is no different than spying. TrueFalse Question 38 1 points Save The most intense rivalry results from: Numerous equally balanced competitors, slow industry growth, high fixed or storage costs Few competitors, slow industry growth, lack of differentiation, high fixed or storage costs Numerous equally balanced competitors, manufacturing capacity increases only in large increments, low exit barriers A high level of differentiation Question 39 1 points Save The threat of new entrants is high when there are: Low economies of scale High capital requirements High switching costs High differentiation among competitors’ products and services Question 40 1 points Save Strategic groups consist of: A group of top executives who make strategies for a company A group of firms within an industry that follow similar strategies A group of executives drawn from different companies within an industry that makes decisions on industry standards A group of firms within an industry that decide to collude rather than compete with each other so that they can increase their profits Question 41 1 points Save The strategic groups in the world-wide automobile industry have been very stable and unchanging in recent years. TrueFalse Question 42 1 points Save The aging of the population, changes in ethnic composition, and effects of the baby boom are: Macroeconomic changes Demographic changes Global changes Sociocultural changes Question 43 1 points Save Interest rate increases have a __________ impact on the residential home construction industry and a __________ effect on industries that produce consumer necessities such as prescription drugs or basic grocery items. Positive; negligible Negative; negligible Negative; positive Positive; negative Question 44 1 points Save Firms would be most likely to face intense rivalry with competitors when they: Are in a high growth industry with low fixed costs Are in a protected market Have high fixed costs, in a slow growth industry with high exit barriers Have low exit barriers for easy transition to another industry Question 45 1 points Save An end user’s switching costs are potentially much higher because of the Internet. TrueFalse Question 46 1 points Save Increasingly larger numbers of women entering the work force since the early 1970s is an example of: Demographic changes Political and legal environmental changes Sociocultural changes Technological developments Question 47 1 points Save Porter’s Five Forces model helps to determine both the nature of competition in an industry and the industry’s profit potential. TrueFalse Question 48 1 points Save Threat of substitute products comes from: Other companies in the same industry Foreign companies which can use cheap labor in their countries Firms in other industries that produce products or services that satisfy the same customer need All of the above Question 49 1 points Save The Internet and digital technologies suppress the bargaining power of buyers by providing them with more information to make buying decisions. TrueFalse Question 50 1 points Save The more attractive the price/performance ratio of substitute products, the more tightly it constrains an industry’s ability to charge high prices. TrueFalse Question 51 1 points Save Fortune Brands states they will “cut corporate costs by $30 million a year.” This is an example of a: Nonfinancial strategic objective Financial strategic objective Vision statement Mission statement Question 52 1 points Save Decisions by Boards of Directors are always consistent with shareholder interests. TrueFalse Question 53 1 points Save The three primary participants in corporate governance are: (1) the shareholders; (2) management (led by the chief executive officer); and, (3) employees. TrueFalse Question 54 1 points Save According to the text, a mission statement is an overarching statement that is massively inspiring, long-term, and only discusses the purpose of the company. TrueFalse Question 55 1 points Save Strategy formulation and implementation is a challenging on-going process. To be effective, it should involve: The CEO and the board of directors The board of directors, CEO, and CFO Line and staff managers All of the above Question 56 1 points Save The four key attributes of strategic management include the idea that: Strategy must be directed toward overall organizational goals and objectives Strategy must be focused on long-term objectives Strategy must be focused on one specific area of an organization Strategy must focus on competitor strengths Question 57 1 points Save “We want to be the top-ranked supplier by our customers.” (PPG) This is an example of a: Nonfinancial strategic objective Financial strategic objective Vision statement Mission statement Question 58 1 points Save Organizational goals and objectives should be vague in order to allow for changes in strategy. TrueFalse Question 59 1 points Save Strategic objectives are more specific than vision statements. TrueFalse Question 60 1 points Save Members of Boards of Directors are: Appointed by the Securities and Exchange Commission Elected by the shareholders as their representatives Elected by the public Only allowed to serve one term of four years Question 61 1 points Save According to Michael Porter, management innovations such as total quality, benchmarking, and business process reengineering cannot lead to sustainable competitive advantage because: Companies that have implemented these techniques have lost money There is no proof that these techniques work They cost too much money and effort to implement Every company is trying to implement them and hence it does not make a company different from others Question 62 1 points Save Peter Senge, of M.I.T., recognized three types of leaders. __________ are individuals that, although having little positional power and formal authority, generate their power through the conviction and clarity of their ideas. Local line leaders Executive leaders Internal networkers Shop floor leaders Question 63 1 points Save In large organizations, conflicts can arise between functional areas. In order to resolve these conflicts, strategic objectives: Put financial objectives above human considerations Align departments toward departmental goals Help resolve conflicts through their common purpose Cause debate and increase conflict Question 64 1 points Save According to the text, formulating strategy includes taking into consideration strategy at the business, international, and corporate levels. In addition managers must formulate effective entrepreneurial initiatives. TrueFalse Question 65 1 points Save A mission statement encompasses both the purpose of the company as well as the basis of competition and competitive advantage. TrueFalse Question 66 1 points Save Social responsibility is the idea that organizations are not only accountable to stockholders but also to the community-at-large. TrueFalse Question 67 1 points Save The two principal means by which firms achieve synergy through market power are: pooled negotiating power and corporate parenting. TrueFalse Question 68 1 points Save Whenever an organization diversifies, it represents investing a stockholder’s funds in a way in which the individual investor is unable. TrueFalse Question 69 1 points Save Antitakeover tactics include all of the following except: Greenmail Golden parachutes Golden handcuffs Poison pills Question 70 1 points Save One of the risks of vertical integration is that there may be problems associated with unbalanced capacities or unfilled demands along a firm’s value chain. TrueFalse Question 71 1 points Save An antitakeover tactic called (a) __________ is when a firm offers to buy shares of their stock from a company (or individual) planning to acquire their firm at a higher price than the unfriendly company paid for it. Golden parachute Greenmail Poison pill Scorched earth Question 72 1 points Save When management uses common production facilities or purchasing procedures to distribute different but related products, they are: Building on core competencies Sharing activities Achieving process gains Using portfolio analysis Question 73 1 points Save Sharing core competencies is one of the primary potential advantages of diversification. In order for diversification to be most successful, it is important that: The similarity required for sharing core competencies must be in the value chain, not in the product The products use similar distribution channels The target market is the same, even if the products are very different The methods of production are the same Question 74 1 points Save Among the disadvantages of acquisitions are the expensive premiums that are frequently paid to acquire a business. TrueFalse Question 75 1 points Save The potential advantages of strategic alliances and joint ventures include entering new markets as well as developing and diffusing new technologies. TrueFalse Question 76 1 points Save Sharing activities across business units can provide two primary benefits: cost savings and revenue enhancements. TrueFalse Question 77 1 points Save A publishing company that purchases a chain of bookstores to sell its books is an example of unrelated diversification. TrueFalse Question 78 1 points Save Restructuring requires the corporate office to find either poorly performing firms with unrealized potential or firms in industries on the threshold of significant, positive change. TrueFalse Question 79 1 points Save __________ is when a firm’s corporate office helps subsidiaries make wise choices in their own acquisitions, divestures, and new ventures. Parenting Restructuring Leveraging core competencies Increasing market power Question 80 1 points Save Market power refers to cost savings from leveraging core competencies or sharing activities among the businesses in a corporation. TrueFalse Question 81 1 points Save It may be advantageous to vertically integrate when: Lower transaction costs and improved coordination are vital and achievable through vertical integration The minimum efficient scales of two corporations are different Flexibility is reduced, providing a more stationary position in the competitive environment Various segregated specializations will be combined Question 82 1 points Save Vertical integration is attractive when market transaction costs are higher than internal administrative costs. TrueFalse Question 83 1 points Save A company offering local telecommunications service combines resources with an international company that manufactures digital switching equipment to research a new type of telecommunications technology. This is an example of: Joint diversification Strategic alliance Divestment Global integration Question 84 1 points Save Value chain analysis can only be applied to manufacturing operations. TrueFalse Question 85 1 points Save Human resource management consists of activities involved in the recruiting, hiring, training, development, and compensation of all types of personnel. It: Supports only individual primary activities Supports only individual support activities Supports both individual primary and support activities and the entire value chain Supports mostly support activities but does have some impact on primary activities Question 86 1 points Save Products and services that are difficult to imitate help firms sustain their profitability. TrueFalse Question 87 1 points Save A variety of firm resources include interpersonal relations among managers in the firm, its culture, and its reputation with its suppliers and customers. Such competitive advantages are based upon: Social complexity Path dependency Physical uniqueness Tangible resources Question 88 1 points Save An important implication of the “balanced scorecard” approach is that: Managers need to recognize tradeoffs in stakeholder demands and realize that such demands represent a “zero-sum” game in which one stakeholder will gain only at another’s loss The key emphasis on customer satisfaction and financial goals are only a means to that end Managers should not look at their job as primarily balancing stakeholder demands; increasing satisfaction among multiple stakeholders can be achieved simultaneously Gains in financial performance and customer satisfaction must often come at a cost of employee satisfaction Question 89 1 points Save Information systems can create advantages that deter entry by competitors into an industry. TrueFalse Question 90 1 points Save Business models can be defined as methods companies use to create value and earn profits in a competitive environment. TrueFalse Question 91 1 points Save Inbound logistics include: Machining and packaging Warehousing and inventory control Repair and parts supply Promotion and packaging Question 92 1 points Save Value chain analysis assumes that a firm’s basic economic purpose is to create value and it is a useful framework for analyzing a firm’s strengths and weaknesses. TrueFalse Question 93 1 points Save Four Internet-based activities that are enhancing firms’ capabilities to use the Internet to add value include: Outsourcing, problem-solving, bill-paying, and delivery Evaluating, bill-paying, customizing, and returning Search, rescue, repair, return Search, evaluation, problem-solving, and transaction Question 94 1 points Save Which of the following is a support activity? Inbound logistics Operations Technology development Customer service Question 95 1 points Save A commission-based business model, when applied to the Internet, is similar to the broadcast television model in which viewers watch shows produced with revenues from commission fees. TrueFalse Question 96 1 points Save Which of the following lists consists of support activities? Human resource management, technology development, customer service, and procurement Human resource management, customer service, marketing and sales, and operations Human resource management, information systems, procurement, and firm infrastructure Customer service, information systems, technology development, and procurement Question 97 1 points Save How should managers assess changes in their firm’s competitive position in their industries during a period of unusual economic growth? Compare the firm’s financial ratios with ratios of firms in other strategic groups in the industry Compare the firm’s financial ratios over the most recent one-year period Compare the financial ratios of all firms in the country’s industrysome of whom serve very diverse market segments and have specialized accordingly Compare the financial ratios of firms in the company’s strategic group Question 98 1 points Save Performing a value chain analysis provides a complete assessment of the firm’s strengths and weaknesses. TrueFalse Question 99 1 points Save Customer service would include: Product promotion Product distribution Parts supply Procurement of critical supplies Question 100 1 points Save The three key types of resources that are central to the resource-based view of the firm are: Tangible resources, intangible resources, and organizational structure Culture, tangible resources, intangible resources Tangible resources, intangible resources, and organizational capabilities Tangible resources, intangible resources, and top management

Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.