BUSINESS j401Chapters 4_6// study guide - $14.99   Add to cart

Exam (elaborations)

BUSINESS j401Chapters 4_6// study guide

Chapters 4-6 Student: ___________________________________________________________________________ 1. The makeup of goods and services in the Gross Domestic Products of developed countries has changed over the last decade. More than 50 percent of the value of GDP of developed countries is based on A. clothing and apparel. B. capital accumulation. C. knowledge. D. financial management. 2. As the competitive environment changes, strategic management must focus on different aspects of the organization. Recently, strategic management has moved from focusing on tangible resources to A. fixed capital. B. working capital. C. investment capital. D. intangible resources. 3. Changes in our economy have forced firms to be ____________ concerned with protecting their knowledge workers, social capital, and intellectual capital. A. less B. more C. potentially D. not 4. In the knowledge economy, if a large portion of company value is in intellectual and human assets, the difference between the market value and book value of the company should ___________ a company with mostly physical and financial assets. A. be equal to B. not be correlated with C. be smaller than D. be larger than 5. 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 A. increasing retention of below average workers. B. attracting and retaining knowledgeable workers. C. decreasing labor costs. D. increasing the turnover of employees. 6. Which of the following firms would you expect to have the highest ratio of market value to book value? A. Apple B. General Motors C. Intel D. Nucor 7. Human capital includes A. the relationships between people. B. an improved product. C. the output from assembly line employees. D. capabilities, knowledge, and skills of an individual.8. Creativity and problem solving ability are considered to be part of _________ capital. A. physical B. human C. social D. emotional 9. The network of relationships that individuals have throughout the organization is known as A. human capital. B. social capital. C. intellectual capital. D. tacit knowledge. 10. Tacit knowledge A. is the same as explicit knowledge. B. can be accessed only with the consent of the employees. C. is found mostly at the lower levels of the organization. D. can be codified but not reproduced. 11. New knowledge involves the continual interaction between __________ and __________ knowledge. A. intellectual; pragmatic B. tacit; explicit C. theoretical; practical D. detailed; tacit 12. Two software engineers working together on a computer code share their _______ knowledge in order to create new knowledge. A. explicit B. theoretical C. tacit D. easily reproduced 13. Today, the loyalty of a knowledge worker to his or her employing firm has __________ compared to his or her loyalty to his or her profession and colleagues. A. increased B. remained the same C. decreased D. no correlation when 14. The text discusses three areas a firm must be concerned with in order to keep their best and brightest employees from leaving. These include all of the following except A. hiring/selecting. B. developing. C. sorting/absorbing. D. retaining. 15. Managing a knowledge intensive workforce is very challenging. The best way for a firm to manage its workforce is to A. retain knowledge workers. B. balance efforts in the attraction, selection, and retention of top talent. C. attract the brightest employees. D. ensure that it pays higher salaries than its rivals. 16. Firms must compete for top talent. In attracting and selecting employees, firms must strive to select the best fit for both the employee and the firm. In an effort to reduce wasted time and effort in interviewing too many candidates while assuring a good candidate pool, a firm should A. run employment ads in the newspaper. B. use a pre-interview quiz. C. only let lower level employees interview job candidates. D. refrain from hiring by referrals from present employees.17. Many companies use referrals by current employees as a source for new hiring and even monetarily reward them because A. it is less expensive than the fees paid to headhunters. B. current employees normally are careful in recommending someone due to their personal credibility. C. it is a good test of employee loyalty. D. current employees are careful in their recommendations; it is less expensive than the fees paid to headhunters. 18. QFQ, Incorporated desires to have the most qualified people in every position throughout its organization. This is an example of a concern for A. decreasing labor intensive training. B. developing social networks. C. leveraging organizational structure. D. developing human capital. 19. Developing human capital is essential to maintaining a competitive advantage in the current knowledge economy. Efforts and initiatives to develop human capital should be directed A. at top managers. B. at human resource departments. C. throughout the firm at all levels. D. at the employees themselves. 20. Maintaining a competitive workforce is very challenging in the current economy. The role of evaluating human capital, in recent years, has A. remained the same. B. increased. C. become less important. D. decreased. 21. In a 360-degree evaluation and feedback system, which of these does not rate the skills and performance of an individual? A. superiors B. family C. direct reports D. colleagues 22. Attracting and retaining human capital is a challenge for many firms today. Firms experiencing high turnover should A. focus on increased recruiting. B. decrease money spent on human capital. C. adopt effective retention strategies. D. make their work environment less stimulating. 23. In order to take advantage of investment in human capital, a firm should A. rotate workers through functions in the company as quickly as possible. B. keep employees in the same position forever. C. refrain from training individual employees. D. establish practices that will enhance employee retention. 24. The least effective way to retain human capital is to A. encourage employee identification with organizational mission and goals. B. provide employees with a challenging and stimulating work environment. C. require employees to sign agreements that prevent them from working for competitors in the future. D. provide employees with financial and nonfinancial rewards and incentives.25. 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 by A. requiring workers to work independently of each other. B. decreasing the interaction of departments within the firm. C. structuring the firm with rigid departmental and employee divisions. D. encouraging the sharing of ideas between employees in the firm. 26. 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 A. the Columbus effect. B. knowledge integration. C. the Pied Piper effect. D. strategically competitive hiring. 27. What is a major reason for Nokia to lose its competitive edge in the cell phone business? A. The team consisted of scientists from around the world. B. The team consisted of only Finnish scientists. C. All of the work required diverse skill sets. D. Each scientist worked alone, separate from colleagues. 28. Social capital is a source of strength to many firms. Firms leverage their social capital in an effort to create competitive advantages. The social capital of a firm is based on the A. individual abilities of employees. B. allocation of the financial resources of the firm. C. knowledge of an individual. D. relationships among the employees of the firm. 29. Another example of social relationships causing human capital mobility is the _______ of talent from an organization to form __________. A. stability; bail-outs B. emigration; bail-outs C. relocation; new business units D. emigration; start-up ventures 30. Professionals frequently leave Microsoft en masse to form venture capital and technology start-ups, called Baby Bills, built around teams of software developers. This is an example of ____________ causing human capital mobility. A. formal relationships B. social relationships C. tacit knowledge D. intellectual capital 31. According to the resource-based view of the firm, competitive advantages are ______ for competitors to copy, if they are based on unique bundles of resources. A. easier B. faster C. harder D. more reliable 32. If employees are working effectively in teams and sharing their knowledge and learning from each other, they will be ________ to add value to the firm and they also will be ________ to leave the organization, because of the loyalties and social ties that they develop over time. A. more likely; more likely B. less likely; more likely C. less likely; less likely D. more likely; less likely33. Knowledge-based resources tend to be more ______ in nature and therefore they are ________ difficult to protect against loss (i.e., the individual quitting the organization) than other types of capital, such as equipment, machinery, and land. A. explicit; less B. explicitly; more C. tacit; less D. tacit; more 34. Knowledge workers often exhibit __________ loyalties to their colleagues and their profession relative to their employing organization. A. fewer B. less favorable C. no D. greater 35. The __________, __________, and __________ talent is a necessary but not sufficient condition for creating competitive advantages. A. attraction; laissez-faire; retention of B. observance; laissez-faire; regard for C. attraction; development; retention of D. observance; development; hands-off approach to 36. Tying knowledge workers to a firm is part of the objective of the development of A. intellectual capital. B. explicit knowledge. C. social capital. D. human capital. 37. Social network analysis is helpful because the configuration of the group member social ties within and outside the group affects the extent to which members connect to individuals who do all of the following except A. convey needed resources. B. have the opportunity to exchange information and support. C. ensure that everyone has the same perspective on strategic and operational issues. D. have the motivation to treat each other in positive ways. 38. In social network analysis, the importance of ties connecting heterogeneous people that help to ensure a wide range of diversity in information and perspective is known as A. closure. B. social supports. C. redundancy. D. bridging relationships. 39. In social network analysis, groups can become too insular and fail to share what they have learned with people outside the group. This is a result of A. closure. B. intellect. C. bridging relationships. D. diverse knowledge. 40. Advantages of effective social networks for career success include all of the following except A. access to private information. B. greater redundancy in knowledge sources. C. access to diverse skill sets. D. greater power.41. Social capital has downsides. Which of the following is a downside? A. High social capital may breed groupthink. B. Socialization processes are inexpensive. C. Individuals may be more willing to collaborate on joint projects. D. Management commitment is easy to obtain. 42. Social capital has many potential benefits; however, according to the text, social capital A. is always beneficial to a firm. B. may or may not be beneficial to a firm. C. usually restricts the productivity of employees. D. always hurts firm performance. 43. Which of the following reasons explains why painter Vincent van Gogh died penniless, while painter Pablo Picasso left a 740 million USD estate upon his death? A. Van Gogh had a wider range of social connections. B. Picasso had a wider range of social connections and bridging relationships. C. Picasso was a solitary node with few connections. D. Van Gogh was a hub who embedded himself in a vast network that stretched across various social lines. 44. A recent study of over 300 companies explored how management teams can understand and capitalize on the formal and informal social networks of their employees. Six common types of managers who get stuck in three types of network traps were identified. Which of the following is not one of these network traps? A. the wrong structure B. the wrong relationships C. the wrong behavior D. the wrong business 45. By using the ___________ lever, leaders can build nimble interpersonal networks across the company so that employees are better able to collaborate. A. unification B. people C. network D. social 46. With the _________ lever, the emphasis is on getting the right people to collaborate on the right projects. A. network B. unification C. social D. people 47. Effective leaders can choose a mix of three levers. When motivation is the problem, they can use the ___________ lever, wherein they craft compelling common goals, articulate a strong value of crosscompany teamwork, and encourage collaboration in order to send strong signals to lift individual sights beyond their narrow interests toward a common goal. A. T-shaped management B. people C. network D. unification 48. The use of information technology (e.g., email) has increased in recent years in many organizations. This has helped to ____________. A. make more effective use of time in every situation B. communicate information efficiently C. restrict social network growth D. create smaller social networks49. London-based International Power increased firm efficiency by using all but which of the following? A. forwarding email messages only when strictly necessary B. limiting the email message recipient list C. using the telephone D. eliminating email communication 50. Top executives can use email effectively for all of the following except A. updates on company strategy. B. executive perspectives on key issues. C. overview of the executive work for the month. D. updates on corporate intelligence. 51. The use of sophisticated information sharing platforms has increased in recent years in many organizations. This has helped to A. facilitate internal and external collaboration. B. keep employees satisfied with social networks. C. override the need for email. D. increase paperwork. 52. The Cisco Integrated Workforce Experience (IWE) platform is a social business platform designed to facilitate __________ and __________ collaboration and decentralize decision making. A. internal; network-side B. external; personal C. external; individual D. internal; external 53. The Cisco Integrated Workforce Experience (IWE) platform makes recommendations based on all of the following except A. what you are doing. B. the role you are in. C. the choices of people like you. D. competitor choices. 54. To increase productivity, several key lessons were learned by top management at London-based International Power concerning email. Which is not in that list of lessons? A. Executives need to be taught to be more deliberate in their use of email. B. Executives need to set goals for reducing the number of messages sent. C. Executives need to provide weekly feedback. D. Executives need to eliminate email completely. 55. Efficiency killers that London-based International Power identified in their communication using tools from lean manufacturing included A. overproduction and messages. B. underproduction and defects. C. underproduction and ineffective messages. D. overproduction and defects in messages. 56. The dangers of email include all of the following except A. spreading of rumors. B. almost costless. C. uncontrollable distribution. D. personal time waster. 57. Sharing knowledge and information throughout the organization can be a means of A. conserving products and services. B. continuing with outdated products. C. conserving resources. D. overusing email.58. Technology can be used to leverage __________ and _____________ within organizations as well as with customers and suppliers beyond their boundaries. A. human capital; intellectual capital B. human capital; knowledge C. knowledge; social capital D. communication; social capital 59. Technology can be used to leverage human capital and knowledge within organizations as well as with ____________ and __________ beyond their boundaries. A. employees; clients B. customers; employees C. customers; suppliers D. employees; suppliers 60. The creation of knowledge assets is typically characterized by A. high upfront costs and subsequent high variable costs. B. high fixed costs and high variable costs. C. high upfront costs and low variable costs. D. low upfront costs and high variable costs. 61. Mary Stinson was required to take over a project after the entire team left the company. She was able to reconstruct what the team had accomplished through reading emails exchanged by the members of the team. This is an example of A. inefficient use of information management. B. using explicit knowledge. C. using tacit knowledge. D. using replicated knowledge. 62. Characteristics of e-teams include all of the following except: A.E-team members either work in geographically separated workplaces or may work in the same space but at different times. B. E-teams may have members working in different spaces and time zones. C. Most of the interactions among members of e-teams occur through electronic communication channels. D. E-teams generally perform simple tasks. 63. There are multiple advantages of e-teams. Which of the following is not an advantage? A. E-teams are less restricted by the geographic constraints that are placed on face-to-face teams. B. E-teams can be more flexible in responding to unanticipated work challenges and opportunities. C. Process losses result from identification and combination activities. D. E-teams can be effective in generating social capital. 64. There are multiple challenges associated with making effective e-teams. Which of the following is not a challenge? A. Process losses result from identification and combination activities. B. E-teams can be effective in generating social capital. C. The physically dispersed team is susceptible to the risk factors that can create process loss. D. Some collective energy, time, and effort must be devoted to dealing with team inefficiencies. 65. The potential for __________ tends to be more prevalent in e-teams than in traditional teams because the geographic dispersion of members increases the complexity of establishing effective interaction and exchanges. A. team harmony B. trust C. profit losses D. profit gains66. In general, teams suffer process loss because of ____ cohesion, ___ trust among members, a lack of appropriate norms or standard operating procedures, or a lack of shared understanding among team members about their tasks. A. high; high B. low; high C. high; low D. low; low 67. Access Health, a call-in medical center, uses technology to capture and share knowledge. When someone calls the center, a registered nurse uses the company clinical decision architecture to assess the caller symptoms, rule out possible conditions, and recommend a home remedy, doctor visit, or trip to the emergency room. This is an example of using A. tacit knowledge. B. a knowledge asset. C. a non-codified asset. D. groupthink. 68. When an organization tries to improve cycle times in a manufacturing process, it finds far more value in problem solving shaped by the diverse experiences, perspectives, and learning of a tightly knit team than in a training manual alone. SAP uses these _________ flows to gain competitive advantage. A. knowledge stocks B. knowledge assessments C. knowledge D. tacit 69. SAP uses ____________ to leverage the expertise and involvement of its users in developing new knowledge and then transmitting it to the entire SAP user community. A. tacit knowledge B. crowdsourcing C. algorithms D. intellectual capital 70. Software algorithms are a form of _____________ that, once developed and paid for, can be reused many times at a very low cost. A. tacit asset B. intangible asset C. knowledge asset D. social asset 71. When a firm develops a knowledge asset, such as a process, pays for it and reuses it over and over at a very low cost, this adds ___________ for the firm. A. tacit knowledge B. little value C. a competitive advantage D. a recoverable loss 72. The management of intellectual property involves all of the following except A. copyrights and trademark. B. contracts with confidentiality and non-compete clauses. C. converting explicit knowledge to tacit knowledge. D. patents. 73. Dynamic capabilities include all of the following except A. learning and innovating. B. becoming more efficient in operational processes. C. the ability of an organization to challenge the conventional industry in its industry and market. D. continuously adopting new ways of serving the evolving needs of the market.74. Which of the following is not an example of an IP-related litigation? A. Apple and HTC sue each other based on patent infringement. B. Apple sues smartphone makers running Android, the Google mobile operating system. C. China is sued by U.S. manufacturers of video games. D. The United States sues to get access to physical plant assets in China. 75. Protecting company intellectual property can be difficult because employees become disgruntled and patents A. are expensive. B. cannot be protected. C. expire. D. roll over. 76. Intellectual property rights are __________ to define and protect than property rights for physical assets (e.g., plant, equipment, and land). A. easier B. more costly C. more difficult D. less difficult 77. IP is characterized by __________ development costs and very ______ marginal costs. A. insignificant; low B. expensive; high C. significant; low D. insignificant; high 78. Unlike ______ assets, intellectual property can be stolen by simply broadcasting it. A. intangible B. hidden C. physical D. expensive 79. Using an idea does not prevent others from simultaneously using it for their own benefit. Typically, this is impossible with __________ assets. A. intangible B. strong C. physical D. flimsy 80. Which of the following is an IP-heavy industry? A. automobile sales B. telecommunications C. contract manufacturing D. retailing 81. Which of the following is not a dynamic capability? A. the ability to sense and seize new opportunities B. the ability to generate new knowledge C. the ability to reconfigure existing assets D. the ability to submit to conventional industry and market wisdom 82. Dynamic capabilities include ______ development, alliances, and acquisitions. A. after-market B. product C. idea D. company83. The best protection for intellectual property in the long run is likely to be the development of A. new products. B. stronger patents. C. dynamic capabilities. D. international patents. 84. The primary aim of strategic management at the business level is A. maximizing risk-return tradeoffs through diversification. B. achieving competitive advantage. C. maximizing differentiation of products and/or services. D. achieving a low cost position. 85. Primary value chain activities that involve the effective layout of receiving dock operations (inbound logistics) and support value chain activities that include expertise in process engineering (technology development) characterize which generic strategy? A. differentiation B. differentiation focus C. stuck-in-the-middle D. overall cost leadership 86. A manufacturing business pursuing cost leadership is likely to A. focus on a narrow market segment. B. use advertising to build brand image. C. rely on experience effects to raise efficiency. D. put heavy emphasis on product engineering. 87. One aspect of using a cost leadership strategy is that experience effects may lead to lower costs. Experience effects are achieved by A. spreading out a given expense or investment over a greater volume. B. hiring more experienced personnel. C. repeating a process until a task becomes easier. D. competing in an industry for a long time. 88. With experience, unit costs of production decline as _________ increases in most industries. A. costs B. volume C. price D. output 89. Research has consistently shown that firms that achieve both cost leadership and differentiation advantages tend to perform A. at about the same level as firms that achieve either cost or differentiation advantages. B. higher than firms that achieve either a cost or a differentiation advantage. C. about the same as firms that are stuck-in-the-middle. D. lower than firms that achieve differentiation advantages but higher than firms that achieve cost advantages. 90. Global logistics firms such as DHL Supply Chain and Global Forwarding or C. H. Robinson Worldwide compete using an overall cost leadership strategy in primary activities such as A. effective layout of receiving dock operations. B. effective use of automated technology to reduce scrappage rates. C. minimize costs associated with employee turnover through effective policies. D. standardized accounting practices to minimize personnel required.91. Overhead costs associated with the number of layers of management in a firm are part of the _________ activities of the value chain. A. human resources management B. operations C. firm infrastructure D. marketing and sales 92. Renault has found a way to generate high profits on low-priced cards by using simple designs that incorporate components from older car designs and a no-discount retail policy. They are using a(n) ______________ strategy. A. differentiation B. overall cost leadership C. focus D. broad differentiation 93. Tesco is saving 3 million USD a year alone in landfill taxes by simply sending its used cooking oil and chicken fat to be used to generate bioenergy rather than putting it in a landfill. This is an example of an overall cost leadership strategy because it A. gives them competitive advantage by reducing energy costs. B. gives them competitive advantage by decreasing productivity. C. eliminates the need to compete based on its products. D. requires the customer to recognize its efforts. 94. A business that strives for a low-cost advantage must attain a(n) _______ cost advantage over rivals. A. relative B. evolutionary C. absolute D. potential 95. Southwest Airlines uses an overall cost leadership strategy. This could fail if it A. cannot maintain parity on differentiation dimensions requested by customers. B. maintains parity with competitors on low cost. C. exceeds customer expectations. D. increases its sales prices while maintaining competitor parity. 96. Convincing rivals not to enter a price war, protection from customer pressure to lower prices, and the ability to better withstand cost increases from suppliers characterize which type of competitive strategy? A. differentiation B. overall low-cost leadership C. differentiation focus D. cost leadership focus 97. An overall low-cost position enables a firm to achieve ______ returns despite strong competition. A. below average B. average C. no D. above average 98. An overall low-cost position protects a firm against rivalry from competitors, because _________ allow a firm to earn returns even if its competitors eroded their profits through intense rivalry. A. higher costs B. higher prices C. lower costs D. lower prices99. An overall ______ position enables a firm to achieve above-average returns because it protects firms against powerful buyers. A. differentiation B. low-cost C. focused D. high-cost 100.A low-cost position permits buyers to exert power to drive ____ prices only to the level of the next most efficient producer. A. up B. down C. increasing D. decreasing 101.A low-cost position provides _______ flexibility to cope with demands from powerful suppliers for input cost increases. A. less B. decreasing C. more D. no 102.The factors that lead to a low-cost position also provide a substantial ____ barriers position with respect to _______ products introduced by new and existing competitors. A. entry; substitute B. exit; primary C. product; substitute D. entry; primary 103.Which of the following is a risk (or potential pitfall) of cost leadership? A. Cost cutting may lead to the loss of desirable features. B. Attempts to stay ahead of the competition may lead to gold plating. C. Cost differences increase as the market matures. D. Producers are more able to withstand increases in supplier costs. 104.A firm can achieve differentiation through all of the following means except A. improving brand image. B. better customer service. C. offering lower prices to frequent customers. D. adding additional product features. 105.Support value chain activities that involve excellent applications engineering support (technology development) and facilities that promote a positive firm image (firm infrastructure) characterize which generic strategy? A. overall cost leadership B. differentiation focus C. differentiation D. stuck-in-the middle 106.High product differentiation is generally accompanied by A. higher market share. B. higher profit margins and lower costs. C. significant economies of scale. D. decreased emphasis on competition based on price.107.Which of the following is FALSE regarding how a differentiation strategy can help a firm to improve its competitive position relative to the Porter five forces model? A. Firms will enjoy high customer loyalty. B. By increasing firm margins, it avoids the need for a low cost position. C. It reduces buyer power because buyers lack comparable alternatives. D. Supplier power is increased, because suppliers will be able to charge higher prices for their inputs. 108.A differentiation strategy enables a business to address the five competitive forces by A. having brand-loyal customers become more sensitive to prices. B. increasing economies of scale. C. providing protection against rivalry. D. serving a broader market segment. 109.Which of the following is not a potential pitfall of a differentiation strategy? A. Uniqueness that is not valuable. B. The price premium is too high. C. All rivals share a common input or raw material. D. Perceptions of differentiation may vary between buyers and sellers. 110.Which statement regarding competitive advantages is true? A. With an overall cost leadership strategy, firms need not be concerned with parity on differentiation. B. In the long run, a business with one or more competitive advantages is probably destined to earn normal profits. C.If several competitors pursue similar differentiation tactics, they may all be perceived as equals in the mind of the consumer. D. Attaining multiple types of competitive advantage is a recipe for failure. 111.Porsche has enhanced power over buyers because its strong reputation makes buyers more willing to pay a premium price. This ______ rivalry, since buyers become _____ price-sensitive. A. increases; more B. lessens; more C. lessens; less D. increases; less 112.A firm following a focus strategy must focus on A. governmental regulations. B. a market segment or group of segments. C. rising cost of inputs. D. avoiding entering international markets. 113.Which of the following is not a potential pitfall of a focus strategy? A. Erosion of cost advantages can arise within the narrow segment. B. Product/service offerings that are highly focused are subject to competition from new entrants. C. Focusers can become too focused to satisfy buyer needs. D. All rivals share a common input or raw material. 114.At one CVS drugstore, a four-pack of Energizer AA batteries was on sale at 2.99 USD compared with a Duracell four-pack at 4.59 USD. The Duracell market share dropped 2 percent in a recent two-year period, and its profits declined over 30 percent. Why did this happen? A. The price differential was too high. B. The market for batteries is saturated. C. The customer perceived the products to be different. D. There are valid alternatives for batteries.115.The text discusses three approaches to combining overall cost leadership and differentiation competitive advantages. Which of the following is not one of these three approaches? A. automated and flexible manufacturing systems B. deriving benefits from highly focused and high technology markets C. exploiting the profit pool concept for competitive advantage D. coordinating the extended value chain by way of information technology 116.A __________ can be defined as the total profits in an industry at all points along the industry value chain. A. profit maximizer B. revenue enhancer C. profit pool D. profit outsourcing 117.Which of the following is not a potential pitfall of an integrated overall low cost and differentiation strategy? A. Firms that target too large a market that causes unit costs to increase. B.Firms that underestimate the expenses associated with coordinating value-creating activities in the extended value chain. C. Firms that fail to attain both strategies may end up with neither and become stuck-in-the-middle. D. Firms that miscalculate sources of revenue and profit pools in the company industry. 118.Mass customization permits companies to manufacture unique products in relatively _________ quantities at ______ costs. A. large; higher B. large; lower C. small; higher D. small; lower 119.Anderson Windows lowered costs, enhanced quality and variety, and improved its response time to customers by A. creating a new paper-based catalog. B. creating an interactive computer version of its paper catalogs. C. creating an integrated computer system of catalogs, products, orders, and manufacturing. D. creating a manufacturing system for ordering parts. 120.A risk for a firm that tries to attain both cost and differentiation advantages is that it can be stuck in the middle. An example of this is supermarkets because their _____ structure is _____ than discount retailers and customers do not value their products and services as being high-end such as those offered by Whole Foods. A. cost; higher B. price; higher C. price; lower D. cost; lower 121.The Pepsi algorithm that permits it to lower out of stock inventory is a result of using A. purchasing patterns. B. data analytics. C. physical plant. D. flooding the market with ads. 122.Corporations increasingly collect and analyze data on their customers. This is known as A. profit analysis. B. big data. C. cost reduction. D. automated analysis.123.Many firms have achieved success by integrating activities throughout the extended value chain by using _______ to link their own value chain with the value chains of their customers and suppliers. A. customization B. information technology C. human resources D. competitive advantage 124.Outside the flight experience itself, airlines are generating revenue by charging fees for credit cards, frequent-flyer programs, and access to airport lounges. This serves to A. increase competition. B. expand the profit pool. C. provide better customer service. D. satisfy regulators. 125.By separating the value of the actual flight from the services associated with flying, airlines have greatly expanded the __________ associated with flying. A. costs B. services C. profit pool D. difficulties 126.Underestimating expenses associated with coordinating value-creating activities in the extended value chain can be a result of ______ integration of cost leadership and differentiation. A. good B. poor C. intentional D. structured 127.Which of the following is not a reason for the possible erosion of company competitive advantage? A. rapid change in technology B. globalization C. actions by rivals from within and outside of the industry D. company commitment to innovation 128.Atlas Door created competitive advantage by reducing the time to receive and process an order and through installing a just-in-time logistics operation. Which of the following is not a reason for their favorable position relative to the five forces of industry competition? A. The service was easily imitable. B. It created high entry barriers for new entrants. C. The integration of many company value-chain activities provided causal ambiguity and path dependency. D. It exerted power over its customers. 129.Dell lost its competitive advantage starting in 2007 because it A. did not deliver innovations to respond to changing market demand. B. developed a highly performant just-in-time delivery system. C. did not reward its employees. D. let suppliers have dominant power. 130.Company competitive advantages can be eroded by all of the following except A. rapid changes in technology. B. globalization. C. actions by rivals within the industry. D. actions by workers outside of the industry.131.Barnes and Noble lost its market share in book retailing to Amazon. It tried to regain market share by offering a similar electronic reader, the Nook, to the Amazon Kindle series. This demonstrates that Barnes and Noble lacked A. a short term strategy. B. a company-wide strategy. C. sustainable competitive advantage. D. good suppliers. 132.Atlas Door tightly controlled logistics so that it always shipped only fully complete orders to construction sites. In regards to the five forces model, which of the following is a reason this might give them competitive advantage? A. It helps to reduce the threat of new entrants. B. It created low entry barriers for new entrants. C. It created a high threat of substitution. D. It gave more power to buyers. 133.In evaluating the sustainability of the Atlas Door competitive advantages over the long run, it is important to evaluate the ability of rivals to A. easily imitate its strategy. B. communicate with its customers. C. consistently overprice their products. D. find new suppliers. 134.Atlas Door created competitive advantages in overall low cost and differentiation by creating ___________ among value-chain activities. A. substitutes B. advantages C. disadvantages D. linkages 135.Atlas Door relies on technologies that are rather well known and non-proprietary. This opens it up to the potential of A. imitation by rivals. B. customer abandonment. C. increased supplier power. D. government regulation. 136.Atlas Door could lose competitive advantage for all of the following reasons except A. Its technologies are non-proprietary. B. A rival could hire away its talents easily. C. A new rival with a strong resource base could undercut its prices. D. It has strong power over its distributors. 137.Rivals would find it difficult to challenge Atlas Door in the short run because of A. strong customer loyalty. B. low barriers to entry. C. high threat of substitution. D. low buyer switching costs. 138.Rivals would find it difficult to challenge Atlas Door in the short run because of A. weak customer loyalty. B. high barriers to entry. C. high threat of substitution. D. low buyer switching costs.139.Which of these statements regarding the industry life cycle is true? A. Partial power of the market life cycle is its ability to serve as a short-run forecasting device. B. Trends suggested by the market life cycle model are generally not reversible or repeatable. C. It points out the need to maintain a differentiation advantage and a low cost advantage. D.It has important implications for company generic strategies, functional areas, value-creating activities, and overall objectives. 140.Which of the following statements about the introduction stage of the market life cycle is true? A. It produces relatively large, positive cash flows. B. Strong brand recognition seldom serves as an important switching cost. C. Market share gains by pioneers are usually easily sustained for many years. D. Products offered by pioneers may be perceived as differentiated because they are new. 141.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. A. growth B. maturity C. introduction D. decline 142.The growth stage of the industry life cycle is characterized by A. in-kind competition (from the same type of product). B. premium pricing. C. a growing trend to compete on the basis of price. D. retaliation by competitors whose customers are stolen. 143.In the __________ stage of the industry life cycle, there are many segments, competition is very intense, and the emphasis on process design is high. A. growth B. introduction C. decline D. maturity 144.In a given market, key technology no longer has patent protection, experience is not an advantage, and there is a growing need to compete on price. What stage of its life cycle is the market in? A. introduction B. growth C. maturity D. decline 145.A market that mainly competes on the basis of price and has stagnant growth is characteristic of what life cycle stage? A. introduction B. growth C. maturity D. decline 146.As markets mature, A. costs continue to increase. B. application for patents increase. C. differentiation opportunities increase. D. there is increasing emphasis on efficiency. 147.The size of pricing and differentiation advantages between competitors decreases in which stage of the market life cycle? A. introduction B. growth C. maturity D. decline148.Which of the following is most often true of mature markets? A. Some competitors enjoy a significant operating advantage due to increasing experience effects. B. The market supports premium pricing, which attracts additional competitors. C. Advantages that cannot be duplicated by other competitors are difficult to achieve. D. The magnitude of pricing differences and product differentiation is larger than in the growth stage. 149.In the __________ stage of the industry life cycle, there are few segments, the emphasis on process design is low, and the major functional areas of concern are general management and finance. A. introduction B. growth C. decline D. maturity 150.The most likely time to pursue a harvest strategy is in a situation of A. high growth. B. strong competitive advantage. C. mergers and acquisitions. D. decline. 151.Research shows that which one of the following is not a strategy used by firms engaged in successful turnarounds? A. asset and cost surgery B. selective product and market pruning C. piecemeal productivity improvements D. global expansion 152.Piecemeal productivity improvements during a turnaround typically do not involve A. business process reengineering. B. increased capacity utilization. C. benchmarking. D. expansion of company product market scope. 153.Which of the following is not a reason for the successful turnaround HSN experienced by 2014 under CEO Mindy Grossman? A. engaging stakeholders in the discussion B. redesigning the employee lineup C. redesigning the company offerings D. making all best efforts to offer something for everyone 154.Proctor and Gamble announced that it would sell off or close down up to 100 of its brands. This is an example of which turnaround strategy used by successful companies? A. asset and cost surgery B. selective product and market pruning C. piecemeal productivity improvements D. global expansion 155.Outright sales or sale and leaseback free up considerable cash and improve returns. This is an example of which turnaround strategy used by successful companies? A. asset and cost surgery B. selective product and market pruning C. piecemeal productivity improvements D. global expansion156.Improving business processes by reengineering them, benchmarking specific activities against industry leaders, encouraging employee input to identify excess costs, increasing capacity utilization, and improving employee productivity lead to a significant overall gain. These are examples of which turnaround strategy used by successful companies? A. asset and cost surgery B. selective product and market pruning C. piecemeal productivity improvements D. global expansion 157.Most turnarounds require a firm to carefully analyze its relevant environments. The _______ analysis leads to identification of market segments or customer groups that may still find the product attractive. A. external B. internal C. global D. environmental 158.Most turnarounds require a firm to carefully analyze its relevant environments. ________ analysis results in actions aimed at reduced costs and higher efficiency. A. External B. Internal C. Global D. Environmental 159.The Cisco acquisition of Pure Digital Technologies, the parent of the Flip video camera, failed because A. Cisco had valuable competencies. B. the Flip division of Cisco was slow and less responsive to market pressures. C. consumers continued to purchase the camera. D. Cisco had good vision of the market. 160.Which of the following is not a reason for merger and acquisition failures? A. The acquiring company pays a premium for the common stock of the target company. B. Top executives act in their best interests rather than those of the shareholders. C. The acquired company assets are poorly integrated into the acquiring company business lines. D. The acquisition leads to value creation. 161.Corporate-level strategy focuses on A. gaining long-term revenue. B. gaining short-term profits. C. decreasing business locations. D. managing investment bankers and their interests. 162.An acquisition that results in ______________ indicates that expectations were not met. A. expansion B. divestiture C. cost savings D. increased sales 163.In 2012, Microsoft admitted to a major _________ mistake when it wrote off essentially the entire 6.2 billion USD it paid for a digital advertising firm, aQuantive, that it purchased in 2007. A. expansion B. divestiture C. cost savings D. acquisition164.If a multinational firm is unable to understand how the acquired company's assets would fit with their own lines of business, this can lead to A. expansion. B. divestiture. C. cost savings. D. acquisition. 165.If a multinational firm paid too high a premium for the common stock of the company, this can lead to A. expansion. B. cost savings. C. divestiture. D. acquisition. 166.If a multinational company's motive for the acquisition may have been to enhance executive powers and prestige rather than to improve shareholder return, this can lead to A. divestiture. B. cost savings. C. expansion. D. acquisition. 167.If a multinational firm fails to effectively integrate their acquisitions, this can result in A. cost savings. B. divestiture. C. expansion. D. further acquisition. 168.One of the reasons it is said that only the investment banker wins when a company is acquired is that they A. assure the newly acquired company will be successful. B. continue to work with the two companies involved. C. collect huge up-front fees regardless of the outcome afterwards. D. monitor the progress of both companies for long term growth. 169.Diversification initiatives include all of the following except A. mergers and acquisitions. B. strategic alliances. C. shareholder development. D. joint ventures. 170.Polaris, a manufacturer of snowmobiles, motorcycles, watercraft, and off-road vehicles, shares manufacturing operations across its businesses. It also has a corporate research and development facility and staff departments that support all of the Polaris operating divisions. This is an example of using A. related diversification to acquire market value by leveraging core competencies. B. related diversification to acquire economies of scope by sharing. C. unrelated diversification to acquire financial synergies through portfolio management. D.related diversification to acquire parenting, restructuring, and financial synergies through corporate restructuring and parenting. 171.Shaw Industries, a giant carpet manufacturer, increases its control over raw materials by producing much of its own polypropylene fiber, a key input to its manufacturing process. This is an example of using A. related diversification to acquire market power by pooling negotiating power. B. related diversification to acquire economies of scope by leveraging core competencies. C. related diversification to acquire economies of scope by integrating vertically in order to acquire market power. D. related diversification to acquire market power by integrating vertically.172.At Cooper Industries, there are few similarities in the products it makes or the industries in which it completes. The corporate office adds value through such activities as superb human resource practices and budgeting systems. This is an example of using A. related diversification to acquire economies of scope by leveraging pooled negotiating power. B. related diversification to acquire market power by leveraging core competencies. C. unrelated diversification to acquire financial synergies through portfolio management. D.unrelated diversification to acquire parenting, restructuring, and financial synergies through corporate restructuring and parenting. 173.Novartis, formerly Ciba-Geigy, uses portfolio management to improve many key activities, including resource allocation and reward and evaluation systems. This is an example of using A. related diversification to achieve value by leveraging pooled negotiating power to attain economies of scope. B. related diversification to acquire market power by leveraging pooled negotiating power. C. unrelated diversification to acquire financial synergies through portfolio management. D.related diversification to acquire parenting, restructuring, and financial synergies through corporate restructuring and parenting. 174.3M leverages its competencies in adhesives technologies to many industries, including automotive, construction, and telecommunications. This is an example of using A. related diversification to acquire economies of scope by leveraging pooled negotiating power. B. related diversification to acquire economies of scope by leveraging core competencies. C. unrelated diversification to financial synergies through portfolio management. D. unrelated diversification to parenting, restructuring, and financial synergies through restructuring and parenting. 175.Many leading high-tech firms such as Google, Apple, and Intel have dramatically enhanced their revenues, profits, and market values through a wide variety of diversification initiatives. Which of the following is not such an initiative? A. acquisitions B. strategic alliances C. stockholder enhancement D. joint ventures 176.Firms have several choices of diversification initiatives that can be used to create value. Which of the following is not one of them? A. using related diversification to acquire economies of scope leveraging pooled negotiating power B. using related diversification to acquire market power by leveraging core competencies C. using unrelated diversification to acquire financial synergies through portfolio management D . using related diversification to acquire parenting, restructuring, and financial synergies through corporate restructuring and parenting 177.ConAgra, a diversified food producer, increases its power over suppliers by centrally purchasing huge quantities of packaging materials for all of its food divisions. This is an example of using A. related diversification to acquire economies of scope by leveraging pooled negotiating power. B. related diversification to acquire market power by leveraging pooled negotiating power. C. unrelated diversification to acquire financial synergies through portfolio management. D.unrelated diversification to acquire parenting, restructuring, and financial synergies through restructuring and parenting. 178.Proctor and Gamble is a large multinational organization that has many business sharing distribution resources. Diversification strategies take advantage of the __________ that exist in their organization. A. costs B. employees C. synergies D. discontinuities179.Casio, a giant electronic products producer, synthesizes it abilities in miniaturization, microprocessor design, material science, and ultrathin precision castings to produce digital watches. It uses the same skills to produce card calculators, digital cameras, and other small electronics. These collective skills are known as A. core competencies. B. strategic resources. C. shared activities. D. economies of scope. 180.For a core competence to be a viable basis for the corporation strengthening a new business unit, there are three requirements. Which one of the following is not one of these requirements? A. The competence must help the business gain strength relative to its competition. B. The new business must be similar to existing businesses to benefit from a core competence. C. The new business must have an established large market share. D. The collection of competencies should be unique, so that they cannot be easily imitated. 181.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 A. products use similar distribution channels. B. similarity required for sharing core competencies must be in the value chain. C. target market is the same, even if the products are very different. D. methods of production are the same. 182.When management uses common production facilities or purchasing procedures to distribute different but related products, they are A. building on core competencies. B. achieving process gains. C. using portfolio analysis. D. sharing activities. 183.Shaw Industries, a giant carpet manufacturer, increases its control over raw materials by producing much of its own polypropylene fiber, a key input into its manufacturing process. This is an example of A. vertical integration. B. sharing activities. C. pooled negotiating power. D. leveraging core competencies. 184.The risks of vertical integration include all of the following except A. costs and expenses associated with increased overhead and capital expenditures. B. lack of control over valuable assets. C. problems associated with unbalanced capacities along the value chain. D. additional administrative costs associated with managing a more complex set of activities. 185.Unbalanced capacities that limit cost savings, difficulties in combining specializations, and reduced flexibility are disadvantages associated with A. strategic alliances. B. vertical integration. C. horizontal integration. D. divestiture. 186.A firm should consider vertical integration when A. the competitive situation is highly volatile. B. customer needs are evolving. C. the suppliers of raw materials to the firm are unable to maintain quality standards. D. the suppliers of the firm willingly cooperate with the firm.187.Transaction costs include all of the following costs except A. agency costs. B. negotiating costs. C. search costs. D. monitoring costs. 188.Vertical integration is attractive when A. internal administrative costs are higher than transaction costs. B. transaction costs and internal administrative costs are equal. C. transaction costs are higher than internal administrative costs. D. search costs are higher than monitoring costs. 189.Creating value within business units can happen when the corporate office helps subsidiaries make wise choices in their own acquisitions, divestures, and new ventures. This is known as A. parenting. B. restructuring. C. leveraging core competencies. D. increasing market power. 190.Creating value within business units can happen when a firm tries to find and acquire either poorly performing firms with unrealized potential or firms in industries on the threshold of significant, positive change. This action is known as A. restructuring. B. leveraging core competencies. C. parenting. D. sharing activities. 191.According to the text, corporate restructuring includes A. capital restructuring, asset restructuring, and technology restructuring. B. capital restructuring, asset restructuring, and management restructuring. C. management restructuring, financial restructuring, and procurement restructuring. D. global diversification, capital restructuring, and asset restructuring. 192.Portfolio management matrices are applied to what level of strategy? A. departmental level B. business level C. corporate level D. international level 193.When using a BCG matrix, a business that currently holds a large market share in a rapidly growing market and has minimal or negative cash flow would be known as a A. Star. B. Dog. C. Cash Cow. D. Question Mark. 194.In the BCG Matrix, a business that has a low market share in an industry characterized by high market growth is termed a A. Star. B. Cash Cow. C. Question Mark. D. Dog. 195.Portfolio management frameworks, such as the BCG matrix, share which of the following characteristics? A. Businesses are plotted on a 3-dimensional grid. B. Grid dimensions are based on external environments and internal capabilities-market positions. C. Position in the matrix suggests a need for sharing synergies. D. They are most helpful in helping businesses develop types of competitive advantage.196.A Cash Cow, in the BCG framework, refers to a business that has A. high market growth and relatively high market share. B. relatively low market share and low market growth. C. relatively low market share and high market growth. D. low market growth and relatively high market share. 197.In managing the corporate portfolio, the BCG matrix would suggest that A. Dogs should be invested in to increase market share and become Cash Cows. B. Stars are in low growth markets and can provide excess cash to fund other opportunities. C. Cash Cows require substantial cash outlays to maintain market share. D. Question Marks can represent future Stars if their market share is increased. 198.In the BCG Growth Share Matrix, the suggested strategy for Stars is to A. milk them to finance other businesses. B. invest large sums to gain a good market share. C. maintain position and after the market growth slows use the business to provide cash flow. D. not invest in them and to shift cash flow to other businesses. 199.The primary means by which a firm can diversify are __________, _________, and ________. A. mergers and acquisitions; differentiation; overall cost leadership B. mergers and acquisitions; joint ventures and strategic alliances; internal development C. joint ventures and strategic alliances; integration of value chain activities; acquiring human capital D. mergers and acquisitions; internal development; differentiation 200.The downsides or limitations of mergers and acquisitions include all of the following except: A. It is a slow means to enter new markets and acquire skills and competences. B. Difficulties exist in integrating the activities and resources of the acquired firm into on-going operations. C. There can be many cultural issues that can doom an otherwise promising acquisition. D. Premiums that are frequently paid to acquire a business are expensive. 201.Divesting of businesses can accomplish many different objectives, except A. enabling managers to focus their efforts more directly on the core businesses of the firm. B. providing the firm with more resources to spend on more attractive alternatives. C. raising cash to help fund existing businesses. D. dispersing manager focus. 202.IBM, Memorial Sloan Kettering, and Cedars-Sinai have a _________ whereby IBM receives expert medical knowledge that it uses to leverage its technological skills to develop new medical insights. A. joint diversification B. divestment C. strategic alliance D. global integration 203.Cooperative relationships such as __________ have potential advantages such as entering new markets, reducing manufacturing (or other) costs in the value chain, and developing and diffusing new technologies. A. franchises B. mergers C. acquisitions D. joint ventures and strategic alliances 204.Which of the following is not part of a good guideline list for managing strategic alliances? A. establishing a clear understanding between partners B. not shortchanging your partner C. relying primarily on a contract to make the joint venture work D. working hard to ensure a collaborative relationship between partners205.Which of the following statements regarding internal development as a means of diversification is false? A. Many companies use internal development to extend their product or service offers. B . An advantage of internal development is that it is generally faster than other means of diversification and firms can benefit from speed in developing new products and services. C. The firm is able to capture wealth created without having to share the wealth with alliance partners. D.Firms can often develop products or services at a lower cost, if they rely on their own resources instead of external funding. 206.Internal development may be time consuming and, therefore, firms may forfeit the benefits of speed that growth through __________ and __________ can provide. A. strategic alliances; joint ventures B. strategic alliances; mergers C. mergers; acquisitions D. mergers; joint ventures 207.Firms that choose to diversify through internal development must develop _________ that allow them to move __________ from initial opportunity recognition to market introduction. A. strategies; slowly B. capabilities; quickly C. capabilities; slowly D. strategies; quickly 208.Lionsgate (a Canadian-American entertainment company) and Alibaba (a Chinese e-commerce company) created _________ to open the Chinese market for the Lionsgate streaming shows and movies. Alibaba profits by getting access to content to increase demand for its own set-top media boxes. A. a joint venture B. a merger C. an acquisition D. a strategic alliance 209.According to Michael Porter, there is a tremendous allure to _________. It is the big play, the dramatic gesture. With one stroke of the pen you can add billions to size, get a front-page story, and create excitement in markets. A. strategic alliances and joint ventures B. internal development C. mergers and acquisitions D. differentiation strategies 210.The antitakeover tactic, _______, 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. A. golden parachute B. poison pill C. greenmail D. scorched earth 211.An antitakeover tactic in which existing shareholders have the option to buy additional shares of stock at a discount to the current market price is called ______. A. greenmail B. a golden parachute C. a poison pill D. scorched earth 212.The term golden parachute refers to A. a clause requiring that huge dividend payments be made upon takeover. B. pay given to executives fired because of a takeover. C. financial inducements offered by a threatened firm to stop a hostile suitor from acquiring it. D. managers of a firm in a hostile takeover approaching a third party about making the acquisition.213.Antitakeover tactics include all of the following except A. greenmail. B. poison pills. C. golden parachutes. D. golden handcuffs.

Preview 3 out of 27  pages

avatar-seller
grade_bender

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 450,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

$ 14.99
  • (0)
  Add to cart