The story in the video describes how the CEO of Japan Airlines, Haruka Nishimatsu, serves as an
example of:
A) The way a strategic leader creates a formal strategic plan.
B) Internal analysis of a company's assets and resources.
C) Several of the characteristics of a high performing strategic leader.
D) Establishing measurable goals for a company's success. - correct answer C
The decision to take less salary in a year when the company was less profitable and employees'
pay was cut is an example of Nishimatsu's:
A) illusion of control.
B) dialectic inquiry.
C) hubris.
D) commitment. - correct answer D
The employees believe that their CEO is approachable and "feel close to him." The CEO is
demonstrating:
A) Illusion of control.
B) Emotional intelligence.
C) Being well informed.
D) Reasoning by analogy. - correct answer B
Many of the things described in this video are leadership traits that strategic managers might
aspire to, but they might also lead a manager astray. Identify which of these cognitive biases
might come into play as a result of Nishimatsu's leadership style.
A) Availability error
B) Representativeness
C) Devil's advocacy
D) Escalating commitment - correct answer B
Nishimatsu's open-door policy, knocking down office walls, eating with employees in the
cafeteria and meeting with managers who have ideas is:
A) a process for developing the mission statement.
B) a means for executing scenario planning with his top leadership team.
,C) a process for implementing a SWOT analysis, focusing on threats present in the industry.
D) a way to decentralize planning or promote strategy as an emergent process within his
organization. - correct answer D
T/F Cost reductions gained through mass-producing a standardized output are a source of scale
economies. - correct answer T
T/F Deregulation of the mortgage industry is an example of how political and legal forces can
impact an industry. - correct answer T
T/F Government deregulation of telephone service lowered the barriers to entry and lowered
industry profit rates. - correct answer T
T/F Growing demand tends to reduce rivalry because all companies can sell more without
taking market share away from each other. - correct answer T
T/F In Porter's competitive forces framework, the stronger the five forces, the ability of
established companies to raise prices and earn greater profits becomes more limited. - correct
answer T
Market segments are distinct groups of customers within a market that can be distinguished
from each other based on their individual attributes and specific demands. - correct answer T
One of the defining characteristics of the mature stage of the industry life-cycle is that growth is
low or zero. - correct answer T
Opportunities arise when a company can take advantage of conditions in its environment to
formulate and implement strategies that allow it to become more profitable. - correct answer T
Rapid growth in demand enables companies to expand their revenues and profits without
taking market share away from competitors. - correct answer T
Starbucks and an independent local café are different in terms of their business techniques.
They both sell coffee, and therefore belong to the same strategic group. - correct answer F
Strong brand loyalty and high customer switching costs are low barriers to entering an industry.
- correct answer F
Successful innovation cannot transform the nature of industry competition. - correct answer F
Suppliers are most powerful when the products that they sell have many substitutes. - correct
answer F
The more commodity-like that an industry's product is, the lower the intensity of any price war
that may develop. - correct answer F
, The punctuated equilibrium view can be described as a freezing, but not unfreezing, process in
an industry's life-cycle. - correct answer F
The risk of entry by potential competitors is a function of the height of the barriers to entry. -
correct answer T
Threats arise when conditions in the external environment endanger the integrity and
profitability of a company's business. - correct answer T
To determine its opportunities and threats, a firm should focus on internal processes and
capabilities. - correct answer F
When buyers are in a weak bargaining position, companies in the industry must lower their
prices to increase profits. - correct answer F
When the value of the dollar is low compared to the value of other currencies, products made
in the United States are relatively inexpensive and products made overseas are relatively
expensive. - correct answer T
Airborne Express was established as Pacific Air Freight in Seattle, performing primarily as a(n):
A) Air Freight Shipper
B) Ground Shipper
C) Express Delivery Service
D) Airfreight forwarder - correct answer D
In 2003, Airborne Express held nine percent of the market for small package deliveries. Its two
main competitors were:
A) Federal Express and United Parcel Service
B) Federal Parcel Service and United Express
C) United Express and DHL
D) DHL and USPS - correct answer A
What distinctive competency did Airborne Express have that separated it from the others in the
industry?
A) Had a trucking fleet of over 5,000
B) Owned five airports around the country
C) Owned a commercial airline
D) Owned its own airport - correct answer D
example of:
A) The way a strategic leader creates a formal strategic plan.
B) Internal analysis of a company's assets and resources.
C) Several of the characteristics of a high performing strategic leader.
D) Establishing measurable goals for a company's success. - correct answer C
The decision to take less salary in a year when the company was less profitable and employees'
pay was cut is an example of Nishimatsu's:
A) illusion of control.
B) dialectic inquiry.
C) hubris.
D) commitment. - correct answer D
The employees believe that their CEO is approachable and "feel close to him." The CEO is
demonstrating:
A) Illusion of control.
B) Emotional intelligence.
C) Being well informed.
D) Reasoning by analogy. - correct answer B
Many of the things described in this video are leadership traits that strategic managers might
aspire to, but they might also lead a manager astray. Identify which of these cognitive biases
might come into play as a result of Nishimatsu's leadership style.
A) Availability error
B) Representativeness
C) Devil's advocacy
D) Escalating commitment - correct answer B
Nishimatsu's open-door policy, knocking down office walls, eating with employees in the
cafeteria and meeting with managers who have ideas is:
A) a process for developing the mission statement.
B) a means for executing scenario planning with his top leadership team.
,C) a process for implementing a SWOT analysis, focusing on threats present in the industry.
D) a way to decentralize planning or promote strategy as an emergent process within his
organization. - correct answer D
T/F Cost reductions gained through mass-producing a standardized output are a source of scale
economies. - correct answer T
T/F Deregulation of the mortgage industry is an example of how political and legal forces can
impact an industry. - correct answer T
T/F Government deregulation of telephone service lowered the barriers to entry and lowered
industry profit rates. - correct answer T
T/F Growing demand tends to reduce rivalry because all companies can sell more without
taking market share away from each other. - correct answer T
T/F In Porter's competitive forces framework, the stronger the five forces, the ability of
established companies to raise prices and earn greater profits becomes more limited. - correct
answer T
Market segments are distinct groups of customers within a market that can be distinguished
from each other based on their individual attributes and specific demands. - correct answer T
One of the defining characteristics of the mature stage of the industry life-cycle is that growth is
low or zero. - correct answer T
Opportunities arise when a company can take advantage of conditions in its environment to
formulate and implement strategies that allow it to become more profitable. - correct answer T
Rapid growth in demand enables companies to expand their revenues and profits without
taking market share away from competitors. - correct answer T
Starbucks and an independent local café are different in terms of their business techniques.
They both sell coffee, and therefore belong to the same strategic group. - correct answer F
Strong brand loyalty and high customer switching costs are low barriers to entering an industry.
- correct answer F
Successful innovation cannot transform the nature of industry competition. - correct answer F
Suppliers are most powerful when the products that they sell have many substitutes. - correct
answer F
The more commodity-like that an industry's product is, the lower the intensity of any price war
that may develop. - correct answer F
, The punctuated equilibrium view can be described as a freezing, but not unfreezing, process in
an industry's life-cycle. - correct answer F
The risk of entry by potential competitors is a function of the height of the barriers to entry. -
correct answer T
Threats arise when conditions in the external environment endanger the integrity and
profitability of a company's business. - correct answer T
To determine its opportunities and threats, a firm should focus on internal processes and
capabilities. - correct answer F
When buyers are in a weak bargaining position, companies in the industry must lower their
prices to increase profits. - correct answer F
When the value of the dollar is low compared to the value of other currencies, products made
in the United States are relatively inexpensive and products made overseas are relatively
expensive. - correct answer T
Airborne Express was established as Pacific Air Freight in Seattle, performing primarily as a(n):
A) Air Freight Shipper
B) Ground Shipper
C) Express Delivery Service
D) Airfreight forwarder - correct answer D
In 2003, Airborne Express held nine percent of the market for small package deliveries. Its two
main competitors were:
A) Federal Express and United Parcel Service
B) Federal Parcel Service and United Express
C) United Express and DHL
D) DHL and USPS - correct answer A
What distinctive competency did Airborne Express have that separated it from the others in the
industry?
A) Had a trucking fleet of over 5,000
B) Owned five airports around the country
C) Owned a commercial airline
D) Owned its own airport - correct answer D
