Q&A Hero

Q: A process is said to be ________ when events early in the evolution of a process have significant effects on subsequent events. A) causally ambiguous B) path dependent C) socially complex D) path independent

Q: (p. 36) Which group of strategic managers is responsible for overseeing the creation and accomplishment of the company mission? A. Front-line supervisors B. Middle-managers C. Board of directors D. Employees

Q: If there is a conflict between the resources a firm controls and that firm's organization, ________ should be changed. A) the resources B) both C) nothing D) the organization

Q: (p. 36) The strategic decision makers in the firm are responsible for: A. The firm's mission B. Rewards C. Plant efficiency D. Daily operations

Q: Which of the following statements regarding competitive parity and competitive advantage is accurate? A) Some firms develop valuable, rare, and costly-to-imitate resource and capabilities in being efficient second moversthat is, imitating and improving on the product and technological innovations of other firms. B) Firms that benchmark their performance against the performance of successful competitors can expect to develop at least a temporary competitive advantage. C) Firms must be first movers to gain competitive advantages. D) Even if all a firm does is create value in the same way as its competitors, the firm can expect to earn at least a temporary competitive advantage.

Q: (p. 34) _______ is often a single sentence, designed to be memorable. A. Mission statement B. Agency theory C. Adverse selection D. Vision statement

Q: Which of the following statements regarding the resource-based view is accurate? A) Competitively valuable resources and capabilities are controlled only by a firm's general managers. B) Only lower level employees need to accept the responsibility of creating, nurturing and exploiting resources and capabilities that can generate competitive advantages for a firm. C) Employees should define their jobs in functional terms instead of in competitive and economic terms. D) Competitive advantage is too important to remain the sole property of senior management.

Q: (p. 34) _______ presents the firms strategic intent. A. Mission statement B. Agency theory C. Adverse selection D. Vision statement

Q: The specific actions a firm takes to implement its strategies are known as A) competitive advantages. B) objectives. C) goals. D) tactics.

Q: (p. 34) _______ represents a statement that is sometimes developed to express the aspirations of the executive leadership. A. Mission statement B. Agency theory C. Adverse selection D. Vision statement

Q: Tacit cooperation is only a viable strategy when A) an industry is perfectly competitive. B) an industry is heterogeneous with respect to the products it sells and their cost structure. C) there is a strong market share leader in the industry. D) there are low entry barriers in the industry.

Q: (p. 34) _______ represents a statement that presents a firm's strategic intent designed to focus the energies and resources of the company on achieving a desirable future. A. Mission statement B. Agency theory C. Adverse selection D. Vision statement

Q: When tacit cooperation has the effect of reducing supply and increasing prices, it is known as A) monopolistic competition. B) explicit collusion. C) competitive parity. D) tacit collusion.

Q: (p. 34) Mission statement expresses an answer to which of these questions? A. How do we compete in this industry? B. What business are we in? C. Who are our competitors? D. How do we meet the regulatory requirements?

Q: Any actions a firm takes that have the effect of reducing the level of rivalry in an industry that also do not require firms in an industry to directly communicate or negotiate with each other can be thought of as A) tacit cooperation. B) tacit collusion. C) explicit collusion. D) competitive parity.

Q: (p. 34) Where as ______ expresses an answer to the question "What business are we in?" a company ____ is developed to express the aspirations of the executive leadership. A. Mission statement; vision statement B. Economic goals; self concept C. Vision statement; mission statement D. Self-concept; economic goals

Q: If Delta Airlines were to significantly change its fare structure and flight schedule to enhance its competitive position in response to aggressive price cutting by Southwest Airlines, this would be an example of A) explicit collusion. B) tacit collusion. C) competitive dynamics. D) a harvest strategy.

Q: (p. 34) Which of these is one of Demming's well-known points on quality? A. Create dependence on mass inspections to achieve quality B. Award business on the measure of price tag C. Breakdown barriers between departments D. Corporate transformation should be the responsibility of top management

Q: Resources and capabilities that are valuable, rare, and costly to imitate are best described as A) distinctive competencies. B) entry barriers. C) complementary resources and capabilities. D) sustainable distinctive competencies.

Q: (p. 34) All of these are Demming's well known points on quality EXCEPT: A. Drive out fear B. Create slogans, exhortations and numerical targets C. Institute a rigorous program of education and self-improvement D. Create constancy of purpose

Q: If a resource or capability is valuable and rare but not costly to imitate, exploiting this resource will generate a(n) A) sustained competitive advantage. B) perfectly competitive environment. C) temporary competitive advantage. D) environment characterized by competitive parity.

Q: (p. 34) Which two U.S. management experts fostered a worldwide emphasis on quality in manufacturing? A. Bill Gates and John Allison B. Gary Forsee and Mr. Penney C. Bill Gates and E. Demming D. W. Edwards Demming and J. M. Juran

Q: Resources that generate a temporary competitive advantage are A) valuable, rare and costly to imitate. B) valuable but neither rare nor costly to imitate. C) valuable and either rare or costly to imitate. D) valuable and rare but not costly to imitate.

Q: (p. 33) "The customer is our top priority" is a A. Mission statement B. Concern for quality C. Slogan D. Vision statement

Q: Resources that are valuable but not rare can be categorized as A) organizational weaknesses. B) distinctive competencies. C) organizational strengths. D) complementary resources and capabilities.

Q: (p. 33) Three issues have become prominent in the strategic planning for organizations and are increasingly becoming integral parts in the development and revisions of mission statements. These are: A. Self-concept, customers and markets B. Customers, quality and vision statement C. Markets, quality and concern for employees D. Concern for employees, suppliers and customers

Q: Southwest Airlines' strong internal culture that helps ensure that employees act in ways consistent with the company's strategy is an example of a(n) A) informal management control. B) formal management control. C) compensation policy. D) formal reporting structure.

Q: Which of the following is an example of formal management controls? A) A firm's culture B) The willingness of employees to monitor each other C) Budgeting and reporting activities D) Managerial motivation

Q: (p. 33) Which of these is NOT a newest trend in mission components? A. Concern for suppliers and distributors B. Sensitivity to customer wants C. Concern for quality D. Statements of company vision

Q: The range of formal and informal mechanisms to ensure that managers are behaving in ways consistent with a firm's strategies are referred to as A) formal reporting structures. B) organizational charts. C) compensation policies. D) management control systems.

Q: (p. 33) Which of these is the newest trend in mission components? A. Sensitivity to customer wants B. Concern for suppliers and distributors C. Inclusion of both positive and negative aspects of public image D. Aligning the firm's self-concept to that of competitor's

Q: (p. 31) Trading Tools performs an extensive evaluation of its competitive strengths and weaknesses. This effort is directed towards determining its A. Vision B. Economic goals C. Public image D. Self-concept

Q: Which of the following statements regarding patents is accurate? A) Patents always increase the costs of imitation. B) Patents may decrease, rather than increase, the costs of imitation. C) Patents always decrease the costs of imitation. D) Patents have no impact on the costs of imitation.

Q: According to the research in strategic human resources management, A) firms that are able to use human resource practices to develop socially complex human and organizational resources are able to gain competitive advantage over firms that do not engage in these practices. B) firms that are able to use human resource practices to develop socially simplistic human and organizational resources are able to gain competitive advantage over firms that do not engage in these practices. C) firms that are able to use human resource practices to develop socially complex human and organizational resources gain little advantage over firms that do not engage in these practices. D) firms that are able to use human resource practices to develop socially complex human and organizational resources are at a competitive disadvantage when compared to firms that do not engage in these practices.

Q: (p. 31) The essence of the company self-concept is the idea that A. The firm's public image is positive B. The firm must know itself C. The firm must know the industry D. The firm's economic goals must be aligned with the industry's top competitor

Q: Resources and capabilities, such as relations among managers and a firm's culture, that may be costly to imitate because they are beyond the ability of firms to systematically manage and influence are referred to as A) socially complex. B) casually ambiguous. C) path dependent. D) the result of unique historical conditions.

Q: (p. 31) Much behavior in firms is _______ based. A. organizationally B. competitively C. individually D. community

Q: (p. 31) A major determinant of a firm's success is the extent to which it can relate functionally to the external environment. To accomplish this the firm must have: A. Infinite sources of capital for expansion B. A realistic self-concept C. Specific objectives and job descriptions D. Community involvement

Q: If a firm's resources and capabilities are costly to imitate because imitating firms may not understand the relationship between the resources and capabilities controlled by a firm and that firm's competitive advantage, this competitive advantage is said to be protected from imitation by A) path dependence. B) casual ambiguity. C) unique historical conditions. D) social complexity.

Q: (p. 31) The idea that the firm must know itself is the essence of the company A. Self-concept B. Objective C. Goal D. Strategy

Q: Firms that possess and exploit costly-to-imitate, rare and valuable resources in choosing and implementing their strategies may enjoy a period of A) temporary competitive advantage. B) competitive disadvantage. C) competitive parity. D) sustained competitive advantage.

Q: (p. 27) Firms ____ address the question of their public image in an intermittent fashion. A. seldom B. always C. frequently D. unanimously

Q: If firms that do not possess resource or capabilities face a cost disadvantage in obtaining these resources or capabilities compared to the firms that already possess them, these resources and capabilities are termed A) rare. B) valuable. C) imperfectly imitable. D) perfectly imitable.

Q: (p. 30) Which of the following statements about public image is FALSE? A. Negative public image often prompts firms to reemphasize the beneficial aspects of their mission B. The image the company seeks to project should be reflected in its mission C. Firms always address the question of their public image in an intermittent fashion D. Concern for public image is an important components of a firm's mission

Q: In general, as long as the number of firms that possess a particular valuable resource or capability is less than the number of firms needed to generate perfect competition dynamics in an industry, that resource or capability can be considered ________ and a potential source of competitive advantage. A) valuable B) rare C) inimitable D) un-substitutable

Q: (p. 29) Mission statements should reflect the ____ expectations. A. publics B. managers C. stockholders D. Board of Directors

Q: (p. 29) The image the company seeks to project is reflected in the firm's: A. Profile B. Tactics C. Mission D. Strategic options

Q: Which of the following is not one of the six distinct activities in McKinsey and Company's value chain model? A) Technology development B) Product design C) Manufacturing D) Inbound logistics

Q: (p. 28) Given that managers implicitly accept a general, unwritten, yet pervasive code of behavior that govern business actions, the _____ vary little from one firm to another. A. Philosophies B. Visions C. Missions D. Self-concepts

Q: Most firms have a resource base that is composed primarily of resources and capabilities that are A) valuable but not rare. B) neither valuable nor rare. C) valuable and rare. D) rare but not valuable.

Q: (p. 28) Which of these often reads more like public relations handouts than the commitment to values they are meant to be? A. Firm's economic goals B. Company's self-concept C. Statement of company philosophy D. Firm's core competencies and competitive advantage statement

Q: ESPN's development of an extensive offering of X-Games coverage that is unmatched by any other sports outlet is an example of which element of the VRIO framework? A) Organization B) Imitability C) Value D) Rarity

Q: In Porter's value chain model, which of the following activities would be considered a primary activity? A) Technology development B) Human resource management C) Inbound logistics D) Product development

Q: (p. 27) The statement which usually accompanies the mission statement and expresses the firm's basic beliefs, values and aspirations is known as: A. Grand strategy B. The company's statement of philosophy C. The company profile D. Long-term objectives

Q: If in the process of maximizing its performance, a firm engages in activities that pollute the environment, the impact of that pollution is a(n) A) capability. B) externality. C) competitive advantage. D) weakness.

Q: (p. 27) Most _____ are so platitudinous that they read more like public relations handouts. A. Philosophies B. Mission statements C. Goals D. Vision statements

Q: What is a harvest strategy?

Q: (p. 27) _____ vary little from one firm to another. A. Philosophies B. Mission statements C. Goals D. Vision statements

Q: What are customer-switching costs?

Q: (p. 27) The company's philosophy is sometimes also called the: A. Company creed B. Corporate profile C. Corporate motto D. Corporate symbol

Q: Identify and clearly distinguish between the four strategic options available to firms in a declining industry.

Q: (p. 26) In a dynamic business environment, ______ is essential. A. Status quo B. Compromising ethics in decision making C. Proactive change D. Adverse selection

Q: (p. 26) Growth means change, and _____ change is required in a _____ business environment. A. proactive, dynamic B. reactive, dynamic C. proactive, stable D. reactive, uncertain

Q: Identify the four generic industry structures and the specific strategic opportunities in each of these industries.

Q: (p. 26) Growth means: A. Change B. Stability C. Effectiveness D. Efficiency

Q: Describe the difference between a competitor and a complementor and identify the role complementors play in an industry.

Q: (p. 26) Basing decisions on a short-term concern for profitability would lead to A. A reduced market share B. A strategic myopia C. A competitive warfare D. A governmental lawsuit

Q: Discuss the difference between a company's rivals and its substitutes and discuss the role substitutes play in an industry.

Q: (p. 26) A firms _____ is tied inextricably to its survival and profitability. A. growth B. prominence C. fame D. salability

Q: Identify the four types of competition, the attributes of each type and the expected performance under each.

Q: (p. 26) Generally, _____ is accepted as the clearest indication of a firm's ability to satisfy the principal desires of employees and stockholders. A. Profit over the long term B. Profit over the short term C. Return on assets D. The number of lawsuits brought against the firm

Q: Identify the five most common threats facing firms from their local competitive environment that are represented in the five forces framework, and discuss under what conditions firms in a specific industry are most likely to earn an above average profit and when they are to likely to earn a below average profit.

Q: (p. 26) A firm will be incapable of satisfying its stakeholders' claims, if it does NOT insure: A. Growth B. Survival C. Profitability D. Competitive dominance

Q: Identify and define the three elements of the S-C-P model.

Q: (p. 26) ______ is the mainstay goal of a business. A. Profitability B. Products C. Service D. Growth

Q: Identify the six interrelated elements that comprise a firm's general environment.

Q: (p. 26) Profitability is the ______ goal of a business. A. Mainstay B. Least important C. Non economic D. Subjective

Q: BidBuy is the world's leading online auction company. When BidBuy was founded ten years ago it was the first online auction company, and it has been the leader since it was founded. Although there are other firms in the industry, BidBuy controls over 75% of the market in the United States, and three additional firms control another 20% of the U.S. market. One of the aspects of BidBuy that keeps users from changing to other online auction companies is the large user base BidBuy has built and a feedback rating system that allows buyers and sellers to rate their satisfaction with each other following each transaction. This allows users to build a reputation for honesty and trustworthiness. Sellers with a high feedback rating tend to receive more bids on their auctions and a higher price for their goods. To help facilitate payment transfers between buyers and sellers following successful online auctions, companies such as DollarDog have been founded, and these companies have facilitated growth for BidBuy. Having attained a 75% market share in the U.S., BidBuy has begun expanding internationally, opening its own sites in some countries and purchasing incumbents in others. In its international expansion, BidBuy has allowed its individual companies to customize their offerings according to the needs and desires of the countries in which they operate and when these companies are successful, BidBuy works to transfer these successful capabilities throughout the firm.BidBuy has a ________ advantage.A) visionaryB) globalC) first-moverD) comparative

Q: (p. 26) When the survival goal is taken for granted, therefore neglected in strategic decision making, the firm's focus shifts to A. Long run B. Intermediate run C. Direction-less activities D. Short run

Q: (p. 26) Which of the following goals are taken for granted to such an extent that it is neglected as a principal criterion in strategic decision making? A. Maturity B. Ethics C. Survival D. Competitiveness