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Question
The typical risks of a cost leadership strategy include:
a. the inability to balance high differentiation and low price.
b. production and distribution processes becoming obsolete.
c. excessive differentiation to the point where the customer base is too small.
d. loss of customer loyalty.
Answer
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Q:
A cost leadership strategy targets the industry's ____ customers.
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Valuable capabilities allow the firm to exploit strengths or neutralize weaknesses in the internal environment.
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The Renault Nissan alliance (Chapter 9 Mini Case) is an example of a _______ created to gain economies of scope by sharing resources and capabilities.
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Research in the airline industry suggests that tacit collusion reduces service quality and on-time performance.
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Q:
A global corporate-level strategy differs from a multi-domestic corporate-level strategy in that in a global strategy:
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Q:
A fundamental reason for a country's development of advanced and specialized factors of production is often its:
a. lack of basic resources.
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Q:
A large domestic market can provide the country's industries a chance at dominating the world market because:
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A multi-domestic corporate-level strategy has ____ need for global integration and ____ need for local market responsiveness.
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Q:
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The more heterogeneous and the larger the top management team, the easier it is to implement strategy effectively.
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When a new CEO is selected from outside the firm, a change of strategy is likely, especially if the top management team is homogenous and highly cohesive.
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Members with substantive expertise in the firm's core functions and businesses aid the effectiveness of the top management team.
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The most critical ability of a strategic leader is the ability to attract and then manage human capital.
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In the past, companies had a preference for insiders to fill top-level management positions because of the desire for continuity and a continuing commitment to the firm's current vision, mission, and chosen strategies.
a. True
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Transformational leadership is the most effective strategic leadership style.
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Q:
What is organizational culture? What must strategic leaders do to develop and sustain an effective organizational culture?
Q:
Define the three major dimensions of organizational structure: specialization, centralization, and formalization. How do these dimensions vary in organizations implementing the cost leadership, differentiation, and cost leadership/differentiation strategies?