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Q:
(p. 243) Common resource, skills and organizational requirements to support an "overall cost leadership" generic strategy include all but:
A. Sustained access to capital
B. Subjective measurement and incentives instead of quantitative measures
C. Process engineering skills
D. Tight cost control
Q:
(p. 243) ______ type of innovations support a cost leadership strategy. A. disruptive
B. process
C. Product
D. breakthrough
Q:
(p. 243) Organizational requirements to support and sustain cost leadership are:
A. Subjective measurements and incentives
B. Tradition of closeness to key customers
C. Frequent, detained control reports
D. Some personnel skilled in sales and operations
Q:
(p. 243) Which of the following is NOT a skill or a resource that fosters cost leadership?
A. Strong downstream partners
B. Process engineering skills
C. Low-cost distribution system
D. Sustained capital investment and access to capital
Q:
(p. 244) Business success built on cost leadership requires the business to be able to provide its product or service at a cost _____ what its competitors can achieve. A. at
B. above
C. below
D. equal to
Q:
(p. 244) Which of these refers to business strategies that seek to establish long-term competitive advantages by emphasizing and perfecting value chain activities that can be achieved at costs substantially below what competitors are able to match on a sustained basis?
A. Differentiation strategies
B. Grand strategies
C. Low-cost strategies
D. Speed-based strategies
Q:
(p. 241) Which of the following are often referred to as generic strategies?
A. Cost leadership and differentiation
B. Market leadership and differentiation
C. Cost leadership and product pricing
D. Differentiation and value chain analysis
Q:
(p. 241) Businesses that create competitive advantages from one or both of cost and differentiation usually experience ______ profitability within their industry.
A. above-average
B. average C. below average
D. marginal
Q:
(p. 241) The two most prominent sources of competitive advantage for a business are:
A. Integration and coordination
B. Cost and differentiation
C. People and products
D. Products and services
Q:
Which one of the following is NOT a key risk associated with a cost leadership oriented business strategy? A. Many cost-saving activates are easily duplicated B. Cost differences seldom decline over time C. Exclusive cost leadership can become a trap D. Obsessive cost cutting can shrink other competitive advantages involving key product attributes
Q:
Explain the model of Grand Strategy Clusters.
Q:
Briefly describe the Grand Strategy Selection Matrix. What strategies are recommended in each quadrant? Explain.
Q:
What are the strategy choices in global industries?
Q:
What is a global industry? What are the unique strategy-shaping features of global industries?
Q:
Define fragmented industries. What ways businesses in this industry can pursue strategies? Explain.
Q:
Define declining industry. What strategic choices do the firms in this industry have? Explain.
Q:
Evaluate the strategic choices for businesses in mature industries.
Q:
What are the strategic choices in growing industries?
Q:
Define emerging industries. Describe the features of business strategies required for success in this industry.
Q:
Describe the different stages of industry evolution. Identify the key functional areas and strategy focus of each stage.
Q:
Speed-based competitive advantages can be creates around what types of activities? Explain.
Q:
What potential risks managers must take into account as they evaluate the differentiation based advantages?
Q:
Define differentiation. Evaluate a business's differentiation opportunities using skills, resources and organizational requirements.
Q:
What are the risks of a cost leadership strategy?
Q:
Evaluate a business's cost leadership opportunities using skills, resources and organizational requirements.
Q:
(p. 264) Which of these refers to acquisition of businesses that are related to the acquiring firm in terms of technology, markets or products?
A. Concentric diversification
B. Horizontal integration
C. Conglomerate diversification
D. Divestiture
Q:
(p. 264) Growth through the acquisition of one or more similar firms operating at the same stage of the production marketing chain refers to
A. Product development
B. Joint ventures
C. Conglomerate diversification
D. Horizontal acquisition
Q:
(p. 263) A strategy that seeks to reap the initially high profits associated with customer acceptance of new or greatly improved product refers to
A. Joint ventures
B. Horizontal integration
C. Innovation
D. Conglomerate diversification
Q:
(p. 262) Quadrant II of the Grand Strategy Cluster suggests which of these strategies?
A. Horizontal acquisition
B. Concentrated growth
C. Concentric diversification
D. Joint ventures
Q:
(p. 263) Which of these strategies are suggested by the first quadrant of the Grand Strategy Cluster?
A. Horizontal acquisition
B. Concentrated growth
C. Concentric diversification
D. Joint ventures
Q:
(p. 263) Selling present products to customers in related marketing areas by adding channels of distribution is called
A. Market development
B. Vertical acquisition
C. Turnaround strategy
D. Conglomerate diversification
Q:
(p. 262) Quadrant IV of the Grand Strategy Selection Matrix suggests which of these strategies?
A. Vertical acquisition
B. Turnaround
C. Product development
D. Horizontal acquisition
Q:
(p. 262) The most common approach in Quadrant III of the Grand Strategy Selection Matrix, when the basic idea underlying the matrix is the choice of an internal or external emphasis for growth or profitability is
A. Concentrated growth
B. Horizontal growth
C. Divestiture
D. Conglomerate diversification
Q:
(p. 263) The sale of a firm or a major component refers to
A. Retrenchment
B. Divestiture
C. Liquidation
D. Conglomerate diversification
Q:
(p. 263) ________ offers the best possibility for recouping the firm's investment.
A. Liquidation
B. Divestiture
C. Turnaround
D. Retrenchment
Q:
(p. 263) Which of these refers to cutting back on products, markets, operations because the firm's overall competitive and financial situation cannot support commitments needed to sustain or build its operations?
A. Conglomerate diversification
B. Concentrated growth
C. Retrenchment
D. Vertical integration
Q:
(p. 262) Acquiring or entering businesses unrelated to a firm's current technologies, markets or products is referred to as
A. Conglomerate diversification
B. Horizontal integration
C. Retrenchment
D. Vertical integration
Q:
(p. 262) Quadrant II of the Grand Strategy Selection Matrix suggests which of these strategies when the basic idea underlying the matrix is the choice of an internal or external emphasis for growth or profitability?
A. Horizontal integration
B. Conglomerate diversification
C. Market development
D. Retrenchment
Q:
(p. 262) Quadrant I of the Grand Strategy Selection Matrix suggests which of these strategies when the basic idea underlying the matrix is the choice of an internal or external emphasis for growth or profitability?
A. Horizontal integration
B. Conglomerate diversification
C. Market development
D. Retrenchment
Q:
(p. 262) Acquisition of firms that supply inputs such as raw materials is referred to as
A. Conglomerate diversification
B. Horizontal acquisition
C. Retrenchment
D. Vertical acquisition
Q:
(p. 260) Seeking out countries in which governmental restraints exclude or inhibit global competitors or allow concessions or both, that are advantages to localized firms refers to
A. Broad-line global competition
B. Protected niche strategy
C. National focus strategy
D. Global focus strategy
Q:
(p. 260) Targeting a particular segment of the industry for competition on a worldwide basis refers to
A. Broad-line global competition
B. Protected niche strategy
C. National focus strategy
D. Global focus strategy
Q:
(p. 260) Which of these is NOT a basic option that can/should be used to pursue global market coverage?
A. Licensing
B. Harvesting the business
C. Maintaining a domestic production base and exporting
D. Establishing foreign-based plants and distribution
Q:
(p. 260) ________ is targeting a particular segment of the industry for competition on a worldwide basis.
A. Licensing
B. National focus strategy
C. Global focus strategy
D. Protected niche strategy
Q:
(p. 260) Industries in which competition crosses national borders are called a(n) __________ industry.
A. Emerging
B. Growth
C. Global
D. Fragmented
Q:
(p. 259) Focus strategies in fragmented industries can be pursued through:
A. A wide range of services to a single market area
B. A narrow range of products
C. Handling broad types of orders from small to very large
D. Serving the customers at a national level
Q:
(p. 259) When a business introduces standardized, efficient, low-cost facilities at multiple locations it can be described as following which of these strategies?
A. "Formula" facilities
B. Specialization
C. Tightly managed decentralization
D. Harvesting the business
Q:
(p. 259) Businesses in fragmented industries can compete using all of these strategies EXCEPT
A. "Formula" facilities
B. Tightly managed decentralization
C. "Harvesting" the business
D. Specialization
Q:
(p. 259) A fragmented industry is one in which:
A. Foreign firms have almost equal market shares on domestic firms
B. No one firm has a significant market share
C. One firm strongly influences the industrys outcomes
D. Competitors have been beaten down by regulations
Q:
(p. 259) Firms in a declining industry should choose strategies that emphasize all but which one of the following themes?
A. Focus on growing segments
B. Emphasize price cutting and promotion investment to drive out weaker competitors
C. Emphasize product innovation and quality improvement
D. Emphasize production and distribution efficiency
Q:
(p. 258) __________ industries are those that make products or services for which demand is growing slower than demand in the economy as a whole.
A. Mature
B. Declining
C. Growth
D. Emerging
Q:
Differentiate between joint ventures and strategic alliances. Describe the comparative benefits of each type of strategy.
Q:
Describe some general motivations behind diversifying a firm.
Q:
What strategy is being used when the firm acquires other firms that supply it with inputs or are customers for its outputs? Describe the reasons for choosing this strategy.
Q:
What conditions favor the use of a concentrated growth strategy?
Q:
What is the premise behind the value disciplines proposed by Treacy and Wiersema? Identify all three and discuss each briefly.
Q:
How does low-cost leadership differ from a differentiation strategy and a focus strategy?
Q:
Describe the balanced scorecard as a framework to translate a strategy into operational terms. How does it achieve this?
Q:
What seven criteria should be used in preparing long-term objectives? What is the purpose of each?
Q:
To achieve long-term prosperity, strategic planners commonly establish long-term objectives in which seven areas? Describe each briefly.
Q:
(p. 234) A Japanese keiretsu:
A. Involves no more than 10 firms
B. Is joined around a trading company or bank
C. Does not minimize risks of competition
D. Is a licensing agreement
Q:
(p. 234) A chaebol:
A. Is like a keiretsu except financed through government banking groups
B. Is run by the owners
C. Is financed through stock or bond sources
D. Is found in Viet Nam
Q:
(p. 235) Strategic choice decision making leads to the selection of long-term objectives and grand strategies. This process is:
A. Sequential
B. Random
C. Simultaneous
D. Closed
Q:
(p. 234) Consortia are:
A. Licensing agreements that exchange equity positions
B. Joint ventures
C. Decreasing costs but not risks
D. Large interlocking relationships between businesses of an industry
Q:
(p. 233) Strategic alliances are distinguished from joint ventures because:
A. Joint ventures do not work in global situations
B. Joint ventures are synonymous with licensing agreements
C. Alliances never transfer property rights from U.S. licensors to foreign licensees for strategic alliance
D. There are no equity positions taken in strategic alliances
Q:
(p. 233) _______ is partnerships that exist for a defined period during which partners contribute their skills and expertise to a cooperative project.
A. Licensing agreements
B. Franchising agreements
C. Export agreements
D. Strategic alliances
Q:
(p. 230) Occasionally, two or more capable companies lack a necessary component for success in a particular competitive environment. The optimal strategy in such a case would be:
A. Concentric integration
B. Diversification
C. Conglomerate diversification
D. Joint venture
Q:
(p. 230) When companies lack a necessary component for success in a particular environment, they may participate in types of joint ventures which include:
A. Leasing
B. Strategic alliance
C. Joint ownership
D. Divestiture
Q:
(p. 229) Which kind of bankruptcy provides time and protection to the debtor firm?
Q:
(p. 227) More than 75 percent of financially desperate firms file for a:
A. Reorganization bankruptcy
B. Partial bankruptcy
C. Liquidation bankruptcy
Q:
(p. 227) Which of the following types of bankruptcies provides the firm with a conditional second chance?
A. Liquidation bankruptcy
B. Total bankruptcy
C. Organizational bankruptcy
D. Reorganization bankruptcy
Q:
(p. 227) When a firm agrees to a complete distribution of its assets to creditors, most of whom will receive a small fraction of the amount that they are owed, this form of bankruptcy is called a:
A. Reorganization bankruptcy
B. Liquidation bankruptcy
C. Partial bankruptcy
D. Organizational bankruptcy
Q:
(p. 226) Which is considered the least attractive grand strategy?
A. Joint venture
B. Liquidation
C. Concentrated growth
D. Divestiture
Q:
(p. 227) When a firm attempts to persuade its creditors to temporarily freeze their claims while it undertakes to reorganize and rebuild its operations more profitably, this form of bankruptcy is called:
A. Reorganization bankruptcy
B. Liquidation bankruptcy
C. Partial bankruptcy
D. Organizational bankruptcy
Q:
(p. 226) As a long-term strategy, this minimizes the loss to all stockholders of the firm:
A. Concentrated growth
B. Divestiture
C. Turnaround
D. Liquidation
Q:
(p. 224) The second phase of the turnaround process is called:
A. Recovery response
B. Turnaround
C. Retrenchment
D. Divestiture
Q:
(p. 226) If a business is sold for its tangible asset value, the strategy is one of:
A. Divestiture
B. Conglomeration
C. Liquidation
D. Diversification
Q:
(p. 224) The grand strategy that involves the sale of a business or major business component is called:
A. Divestiture
B. Integration
C. Diversification
D. Liquidation
Q:
(p. 226) When the grand strategy is liquidation, the business is:
A. Typically sold in parts
B. Sold as a going concern
C. Sold for "good will" value
D. Leased with the option to repurchase
Q:
(p. 222) Retrenchment is typically accomplished through:
A. Asset reduction
B. Profit reduction
C. Cost escalation
D. Revenue enhancement