Q&A Hero

Q: Identify and briefly describe the six steps involved in evaluating a diversified company's business lineup and diversification strategy.

Q: Identify and explain the meaning and strategic significance of each of the following terms: a) Related diversification b) Strategic fit c) Economies of scope d) Retrenching e) Unrelated diversification

Q: What is meant by the term "strategic fit"? What are the advantages of pursuing strategic fit in choosing which industries to diversify into?

Q: Carefully explain the difference between a strategy of related diversification and a strategy of unrelated diversification.

Q: Briefly discuss when it makes good strategic sense for a company to consider diversification.

Q: Conditions that may make corporate restructuring strategies appealing include A. an excessive debt burden with interest costs that eat deeply into profitability. B. a business lineup that consists of too many businesses competing in slow-growth, declining, or low-margin industries. C. a lineup containing too many competitively weak businesses. D. ill-chosen acquisitions that haven't lived up to expectations. E. All of these.

Q: Corporate restructuring strategies A. involve making radical changes in a diversified company's business lineup, divesting some businesses and acquiring new ones so as to put a new face on the company's business lineup. B. entail reducing the scope of diversification to a smaller number of businesses. C. entail selling off marginal businesses to free resources for redeployment to the remaining businesses. D. focus on crafting initiatives to restore a diversified company's money-losing businesses to profitability. E. focus on broadening the scope of diversification to include a larger number of businesses and boost the company's growth and profitability.

Q: Divestiture can be accomplished by A. selling a business outright. B. spinning the unwanted business off as a managerially and financially independent company by selling shares to the investing public via an initial public offering of stock. C. spinning the unwanted business off as a managerially and financially independent company by distributing shares in the new company to existing shareholders of the parent company. D. All of these. E. None of these; the best and quickest ways to divest a business are either to close it or else just walk away and give the keys to creditors.

Q: In which of the following instances is retrenching to a narrower diversification base not likely to be an attractive or advisable strategy for a diversified company? A. When a diversified company has businesses that are weakly positioned in their respective industries and are struggling to earn a decent return on investment B. When a diversified company has too many cash cows C. When one or more businesses are cash hogs with questionable long-term potential D. When businesses in once-attractive industries have badly deteriorated E. When a diversified company has businesses that have little or no strategic or resource fits with the "core" businesses that management wishes to concentrate on

Q: Retrenching to a narrower diversification base A. is usually the most attractive long-run strategy for a broadly diversified company confronted with recession, high interest rates, mounting competitive pressures in several of its businesses, and sluggish growth. B. is directed at improving long-term performance by building stronger positions in a smaller number of core businesses. C. is an attractive strategy option for revamping a diverse business lineup that lacks strong cross-business financial fit. D. is sometimes an attractive option for deepening a diversified company's technological expertise and supporting a faster rate of product innovation. E. is a strategy best reserved for companies in poor financial shape.

Q: A company that is already diversified may choose to broaden its business base by building positions in new related or unrelated businesses because A. it has resources or capabilities that are eminently transferable to other related or complementary businesses. B. the company's growth is sluggish and it needs the sales and profit boost that a new business can provide. C. management wants to lessen the company's vulnerability to seasonal or recessionary influences. D. unfavorable driving forces face the company's core business. E. All of these.

Q: The option of sticking with the current business lineup makes sense when A. the company's present businesses offer attractive growth opportunities and can be counted on to create economic value for shareholders. B. companies are seeking multinational diversification. C. corporate executives are excited about market opportunities. D. corporate executives are satisfied with current performance of each of their businesses and can use redirect capabilities and resources for expansion opportunities E. corporate executives want to divest some businesses and retrench to a narrower diversification base

Q: Once a company has diversified into a collection of related or unrelated businesses and concludes that some strategy adjustments are needed, which one of the following is not one of the main strategy options that a company can pursue? A. Stick closely with the existing business lineup B. Restructure the company's business lineup C. Craft new initiatives to build/enhance the company's reputation D. Divest some businesses and retrench to a narrower diversification base E. Broaden the diversification base

Q: The strategic options to improve a diversified company's overall performance do not include which of the following categories of actions? A. Broadening the company's business scope by making new acquisitions in new industries B. Increasing dividend payments to shareholders and/or repurchasing shares of the company's stock C. Restructuring the company's business lineup and putting a whole new face on the company's business makeup D. Sticking closely with the existing business lineup and pursuing opportunities these businesses present E. Divesting weak-performing businesses and retrenching to a narrower base of business operations

Q: Moves to improve a diversified company's overall performance include A. broadening the company's business scope by making new acquisitions in new industries. B. divesting weak-performing businesses and retrenching to a narrower base of business operations. C. restructuring the company's business lineup and putting a whole new face on the company's business makeup. D. sticking closely to the existing business lineup and pursuing the growth opportunities presented by these businesses. E. All of these.

Q: Which one of the following is not a reasonable option for deploying a diversified company's financial resources? A. Making acquisitions to establish positions in new businesses or to complement existing businesses B. Concentrating most of a company's financial resources in cash cow businesses and allocating little or no additional resources to cash hog businesses until they show enough strength to generate positive cash flows C. Funding long-range R&D ventures aimed at opening market opportunities in new or existing businesses D. Paying down existing debt, increasing dividends, or repurchasing shares of the company's stock E. Investing in ways to strengthen or grow existing businesses

Q: The options for allocating a diversified company's financial resources include A. making acquisitions to establish positions in new businesses or to complement existing businesses. B. investing in ways to strengthen or grow existing businesses. C. funding long-range R&D ventures aimed at opening market opportunities in new or existing businesses. D. paying off existing debt, increasing dividends, building cash reserves, or repurchasing shares of the company's stock. E. All of these.

Q: Management's ranking of business units and establishing a priority for resource allocation should A. utilize activity-based costing and benchmarking to determine the funding needs of each business unit. B. first consider the strength of funding proposals presented by managers of each division or business unit. C. give priority for funding to cash hog businesses. D. put business units with the brightest profit and growth prospects and solid strategic and resource fits at the top of the investment priority list. E. always make the company's business units with strong resource strengths and competitive capabilities the central focus of funding initiatives.

Q: Conclusions about what the priorities should be for allocating resources to the various businesses of a diversified company need to be based on such considerations as A. each business's profit and growth prospects. B. industry attractiveness and competitive strength of the various businesses. C. the degree of strategic fit and resource fit with other business units. D. each business's cash flow characteristics and return on capital invested. E. All of these.

Q: A diversified company's business units exhibit good resource fit when A. each business is a cash cow. B. a company has the resources to adequately support the requirements of its businesses as a group without spreading itself too thin and when individual businesses add to a company's overall strengths. C. each business is sufficiently profitable to generate an attractive return on invested capital. D. each business unit produces large internal cash flows over and above what is needed to build and maintain the business. E. the resource requirements of each business exactly match the company's available resources.

Q: Which one of the following is not part of the task of checking a diversified company's business lineup for adequate resource fit? A. Determining whether the excess cash flows generated by cash cow businesses are sufficient to cover the negative cash flows of its cash hog businesses B. Determining whether recently acquired businesses are acting to strengthen a company's resource base and competitive capabilities or whether they are causing its competitive and managerial resources to be stretched too thinly C. Determining whether business units offer opportunities to transfer skills or technology or intellectual capital from one business to another D. Determining whether the company has adequate financial strength to fund its different businesses and maintain a healthy credit rating E. Determining whether the corporate parent has or can develop sufficient resource strengths and competitive capabilities to be successful in each of the businesses it has diversified into

Q: A diversified company has a good financial fit when the excess cash generated by its A. cash cow businesses is sufficient to fund the needs of its cash hog businesses. B. cash cow businesses is sufficient to fund its needs to turn into potential young stars. C. self-supporting stars use their cash flow to fund cash cows. D. cash hog businesses is sufficient to fund the needs of its cash cow businesses. E. potential young stars is sufficient to help stars.

Q: The difference between a "cash cow" business and a "cash hog" business is that A. a cash cow business is making money whereas a cash hog business is losing money. B. a cash cow business generates enough profits to pay off long-term debt whereas a cash hog business does not. C. a cash cow business generates positive retained earnings whereas a cash hog business produces negative retained earnings. D. a cash cow business produces large internal cash flows over and above what is needed to build and maintain the business whereas the internal cash flows of a cash hog business are too small to fully fund its operating needs and capital requirements. E. a cash cow business generates very large increases in sales revenues whereas a cash hog business has declining sales revenues and chronic deficiencies of working capital.

Q: A "cash hog" type of business A. is one that is losing money and requires cash infusions from its corporate parent to continue operations. B. is one that generates cash flows that are too small to fully fund its operations and growth. C. generates negative cash flows from internal operations and thus requires cash infusions from its corporate parent to report a profit. D. is a business growing so rapidly that it does not have the funds to cover its short- and long-term debt obligations. E. is one that has more current liabilities than current assets and faces a liquidity crisis due to declining sales revenues and declining profitability.

Q: A "cash cow" type of business A. generates unusually high profits and returns on equity investment. B. is so profitable that it has no long-term debt. C. generates positive cash flows over and above its internal requirements, thus providing a corporate parent with cash flows that can be used for financing new acquisitions, investing in cash hog businesses, funding share buyback programs, and/or paying dividends. D. is a business with such a strong competitive advantage that it generates big profits, big returns on investment, and big cash surpluses after dividends are paid. E. has good strategic fit with a cash hog business.

Q: One important dimension of resource fit concerns the potential to generate internal cash flows sufficient to fund capital requirements of its business lineup, termed the firm's A. internal capital market. B. debt policy management. C. liquidity management. D. economic value added. E. All of these.

Q: List and discuss three strategy options for competing in emerging markets.

Q: Explain the importance of competing in emerging markets.

Q: Explain what circumstances make it necessary for a multinational company to concentrate internal processes in a few locations.

Q: Discuss in some detail the difference between a localized multidomestic strategy and a global strategy and give the pros and cons of each.

Q: What are the possible benefits and risks of using strategic alliances to try to enhance a company's ability to compete in foreign markets?

Q: Briefly discuss why a domestic company desirous of entering foreign markets might see attractive advantages in forming strategic alliances with foreign companies.

Q: Identify and briefly describe any three of the five strategic options for entering foreign markets.

Q: What are the primary country differences that shape strategy choices in international markets?

Q: Briefly identify the major reasons a company may choose to expand outside its domestic market.

Q: One of the most viable strategic options companies should consider in tailoring their strategy to fit circumstances of emerging country markets includes A. try to change the local market to better match the way the company does business elsewhere. B. be prepared to modify aspects of the company's business model to accommodate local circumstances. C. prepare to compete on the basis of low price. D. stay away from those emerging markets where it is impractical to modify the company's business model to accommodate local circumstances. E. All of these.

Q: The ability of a multinational or global competitor to shift production from country to country to take advantage of exchange rate fluctuations, energy costs, wage rates, or changes in tariffs is an example of A. a profit sanctuary. B. cross-border coordination. C. an international strategic alliance. D. cross-market subsidization. E. cross-market differences in cultural, demographic, and market conditions.

Q: Cross-border coordination contributes to a competitive advantage for a global competitor by A. allowing production to be shifted from country to country to take advantage of exchange rate fluctuations, energy costs, wage rates, or changes in tariffs and quotas. B. allowing knowledge gained in one location to be transferred to operations in other countries. C. shifting workloads from where they are unusually heavy to locations were personnel are underutilized. D. accelerating product development and enhancing innovation by globally linking and coordinating the scattered R&D departments of a multinational company. E. All of these.

Q: In which of the following circumstances is it not advantageous for a multinational competitor to concentrate its activities in a limited number of locations in order to build competitive advantage? A. When the costs of performing certain value chain activities are significantly lower in certain geographic locations than in others B. When a company has competitively superior patented technology that it can license to foreign partners C. When there is a steep learning or experience curve associated with performing an activity in a single location D. When certain locations have superior resources, allow better coordination of related activities, or offer other valuable advantages E. When there are significant scale economies in performing the activity

Q: To use location to build competitive advantage when competing in both domestic and foreign markets, a company must A. scatter its production plants across many different country markets so as to minimize the costs of shipping to its own distribution centers and/or to wholesalers/retail dealers. B. consider (1) whether to concentrate each activity it performs in a few select countries or to disperse performance of the activity to many nations and (2) in which countries to locate particular activities. C. concentrate buyer-related activities in a few well-chosen locations so as to maximize the capture of distribution-related scale economies. D. disperse both production and distribution activities across many nations in order to hedge against fluctuating exchange rates and lessen the risks of adverse political developments. E. avoid selling in countries where there are high trade barriers or where buyers purchase in small quantities.

Q: To use location to build competitive advantage, a company that operates multinationally or globally must A. employ either an export strategy or a franchising strategy. B. scatter its production plants across many countries in different parts of the world so as to minimize transportation costs. C. consider (1) whether to concentrate each activity it performs in a few select countries or disperse performance of the activity to many nations and (2) in which countries to locate particular activities. D. locate production plants in those countries having suppliers that can supply all the necessary raw materials and components so as to avoid inbound shipping costs. E. concentrate all of its value chain activities in a single countrythe one that has the best combination of low wage rates, low shipping costs, and low tax rates on profits.

Q: In expanding outside its domestic market, a company can gain competitive advantage by A. not pursuing costly efforts to build multiple profit sanctuaries. B. deliberately choosing not to compete in countries with high tariffs and high taxes (which then have to be passed along to buyers in the form of higher prices), thus keeping costs and prices lower than rivals. C. using an export strategy to circumvent the risks of adverse exchange rate fluctuations. D. using location to lower costs or help achieve greater product differentiation and it can use cross-border coordination in ways a domestic-only competitor cannot. E. employing a multidomestic strategy instead of a global strategy.

Q: The competitive strategy of a firm pursuing a "think global, act local" approach to strategy making A. entails little or no strategy coordination across countries. B. usually involves cross-subsidizing the prices in those markets where there are significant country-to-country differences in the product attributes that customers are most interested in. C. involves selling a mostly standardized product worldwide, but varying a company's use of distribution channels and marketing approaches to accommodate local market conditions. D. is essentially the same in all country markets where it competes but it may nonetheless give local managers room to make minor variations where necessary to better satisfy local buyers and to better match local market conditions. E. involves having strongly differentiated product versions for different countries and selling them under distinctly different brand names (one for each country or group of neighboring countries) so that there will be no doubt in customers' minds that the product is more local than global.

Q: The transnational approach of a firm using a "think global, act local" version of a global strategy entails A. producing and marketing a variety of product versions under the same brand name, with each different version being designed specifically to accommodate the needs and preferences of buyers in a particular country. B. little or no strategy coordination across countries. C. pursuing the same basic competitive strategy theme (low-cost, differentiation, best-cost, focused) in all countries where the firm does business but giving local managers some latitude to adjust product attributes to better satisfy local buyers and to adjust production, distribution, and marketing to be responsive to local market conditions. D. selling the company's products under a wide variety of brand names (often one brand for each country or group of neighboring countries) so that buyers in each country market will think they are buying a locally made brand. E. selling numerous product versions (each customized to buyer tastes in one or more countries and sometimes branded for each country) but opting to only sell direct to buyers at the company's website so as to bypass the costs of establishing networks of wholesale/retail dealers in each country market.

Q: A "think global, act global" approach to strategy making is preferable to a "think local, act local" approach when A. a big majority of the company's rivals are pursuing localized multidomestic strategies. B. country-to-country differences are small enough to be accommodated with the framework of a mostly uniform global strategy. C. plants need to be scattered across many countries to avoid high shipping costs. D. market growth rates vary considerably from country to country. E. host governments enact regulations requiring that products sold locally meet strict manufacturing specifications or performance standards.

Q: A "think global, act global" approach to crafting a global strategy involves A. pursuing the same basic competitive strategy theme (low-cost, differentiation, best-cost, focused) in all countries where the firm does business. B. selling much the same products under the same brand names everywhere and expanding into most, if not all, nations where there is significant buyer demand. C. integrating and coordinating the company's strategic moves worldwide. D. utilizing the same competitive capabilities, distribution channels, and marketing approaches worldwide. E. All of these.

Q: Two drawbacks of a "think local, act local" multidomestic strategy are A. that it is especially vulnerable to fluctuating exchange rates and that it can usually be defeated by companies employing cross-market subsidization tactics. B. excessive vulnerability to fluctuating exchange rates and having to craft a separate strategy for each country market in which the company competes. C. hindering a company's transfer of competencies and resources across country boundaries (since somewhat different competencies and capabilities are likely to be employed in different host countries) and not promoting the building of a single, unified competitive advantage in all country markets where a company competes. D. greater exposure to both increases in tariffs and restrictive trade barriers and added difficulty in accommodating the diverse trade restrictions and regulatory requirements of host governments. E. not being able to export products manufactured in one country to markets in other countries and being largely unsuitable for competing in the markets of emerging countries.

Q: The drawbacks of a localized multidomestic strategy include A. hindering the use of cross-market subsidization techniques and increasing company vulnerability to adverse shifts in currency exchange rates. B. making it very difficult to take into account significant country-to-country differences in distribution channels and marketing methods. C. making it difficult and costly to be responsive to country-to-country differences in customer needs, buying habits, cultural traditions, and market conditions. D. hindering transfer of a company's competencies and resources across country boundaries and hindering the pursuit of a single, uniform competitive advantage in all country markets where a company operates. E. being unsuitable for competing in the markets of emerging countries and posing added difficulty in building multiple profit sanctuaries.

Q: A "think local, act local" multidomestic strategy works particularly well when A. host governments enact regulations requiring that products sold locally meet strictly defined manufacturing specifications or performance standards. B. there are significant country-to-country differences in customer preferences and buying habits. C. diverse and complicated trade restrictions of host governments preclude the use of a uniform strategy from country to country. D. there are significant country-to-country differences in distribution channels and marketing methods. E. All of these.

Q: When a company operates in the markets of two or more different countries, its foremost strategic issue is A. whether to use strategic alliances to help defeat its rivals. B. whether to vary the company's competitive approach to fit specific market conditions and buyer preferences in each host country or whether to employ essentially the same strategy in all countries. C. whether to maintain a national (one-country) manufacturing base and export goods to the other countries. D. choosing which foreign companies to team up with via strategic alliances or joint ventures. E. whether to test the waters with an export strategy before committing to some other competitive approach.

Q: Which of the following is not one of the problems and risks of strategic alliances between domestic and foreign firms? A. Overcoming language and cultural barriers and the sometimes extensive managerial time required for trust-building, communication, and coordination B. The trouble allies can have reaching mutually agreeable ways to deal with key issues C. Becoming overly dependent on another company for essential expertise and competitive capabilities D. Making it harder to pursue a multidomestic strategy as compared to a global strategy E. Suspicions about whether allies are being forthright in exchanging information and expertise

Q: Which of the following is not a potential benefit of strategic alliances or other cooperative arrangements between foreign and domestic companies? A. Gaining wider access to attractive country markets B. Gaining better access to scale economies in production and/or marketing C. Filling competitively important gaps in technical expertise and/or knowledge of local markets D. Safeguarding the company's dependence, allowing for positive engagement once the purpose has been served and ensuring products of important technical standardization requirements are not developed E. Sharing distribution facilities and dealer networks, thus mutually strengthening access to buyers

Q: Which is not one of the four conditions that make an internal start-up strategy appealing? A. When creating an internal start-up is cheaper than making an acquisition B. When adding new production capacity will adversely impact the supply-demand balance in the local market C. Having the ability to gain good distribution access D. Having scale economies to compete against local rivals E. All of these

Q: Strategic alliances, joint ventures, and cooperative agreements between domestic and foreign firms are a potentially fruitful means for the partners to A. enter additional country markets. B. gain better access to scale economies in production and/or marketing. C. fill competitively important gaps in their technical expertise and/or knowledge of local markets. D. share distribution facilities and dealer networks, thus mutually strengthening their access to buyers. E. All of these.

Q: Acquisition of an existing firm rather than going de novo may be the least risky and cost-efficient means of overcoming entry barriers such as A. gaining access to local distribution networks, building supplier networks, and establishing working relationships with key government officials. B. moving directly to the task of transferring resources and personnel, integrating and redirecting activities into its own operation. C. putting its own strategy into place. D. accelerating efforts to build a strong market presence. E. All of these.

Q: Establishing a subsidiary in a foreign market to take advantage of all essential value chain activities requires a strategy that A. establishes a wholly owned subsidiary. B. acquires a foreign company. C. supports direct control over all aspects of operating in a foreign market. D. establishes a start-up operation. E. All of these.

Q: The advantages of using an export strategy to build a customer base in foreign markets include A. being able to minimize shipping costs, avoid tariffs, and curb the effects of fluctuating exchange rates. B. minimizing capital requirements and involvement in foreign markets. C. being cheaper and more cost effective than licensing and franchising. D. being cheaper and more cost effective than a multicountry strategy. E. facilitating the establishment of profit sanctuaries in foreign countries and being more suited to accommodating local buyer tastes than a global strategy.

Q: Which of the following are strategy options for entering foreign markets? A. Maintaining a national (one-country) production base and exporting goods to foreign markets. B. Establishing a subsidiary in a foreign market. C. Franchising and licensing strategies. D. Forming strategic alliances or joint ventures with foreign partners. E. All of these.

Q: The strategic options for expansion into foreign markets include A. employing a franchising strategy. B. maintaining a national (one-country) production base and exporting goods to foreign markets. C. licensing foreign firms to produce and distribute one's products. D. establishing a subsidiary in a foreign market. E. All of these.

Q: A country's business climate is not a function of the political and economic risk factors, such as: A. instability or weaknesses inherent with the national government. B. host-government hostility toward allowing foreign businesses market entry, often requiring local produced parts and components to be included in manufacturing, allowing for ease of funds transfers from the host country, and often requiring local ownership. C. stability of country's monetary system. D. lack of property rights protections and compliance with local environmental regulation. E. All of these.

Q: The advantages of manufacturing goods in a particular country A. are significantly impacted by where its production, distribution, and customer service activities are located. B. can be affected by differences in operating costs and profitability due to wage rate and worker productivity. C. can be affected by differences in energy costs, environmental regulations, tax rates, and inflation rates. D. can be influenced by cheaper access to essential natural resources. E. All of these.

Q: Competing in the markets of foreign countries entails dealing with such factors as A. fluctuating exchange rates, country-to-country variations in host-government restrictions and requirements, and variations in cultural, demographic, and market conditions. B. important country-to-country differences in consumer buying habits and buyer tastes and preferences. C. whether to customize the company's offerings in each different country market or whether to offer a mostly standardized product worldwide. D. the fact that product designs suitable for one country are sometimes inappropriate in another. E. All of these.

Q: The market size and market growth rates in the foreign market can be influenced negatively by A. population sizes, income levels and cultural influences, the current state of the infrastructure and distribution and retail networks available. B. the ability of management to tailor a strategy to take into consideration all the country difference. C. the large size of emerging markets such as China and India. D. competitive rivalry that is only moderate in some countries. E. All of these.

Q: Which one of the following is not a reason a company decides to enter foreign markets? A. To spread business risk across a wider geographic market base B. To capitalize on company competencies and capabilities C. To achieve lower costs and enhance the firm's competitiveness D. To build the profit sanctuaries necessary to wage guerrilla offensives against global challengers endeavoring to invade its home market E. To gain access to more buyers for the company's products/services

Q: Which of the following is not a typical reason for a company to expand into the markets of foreign countries? A. To gain access to new customers B. To strengthen its capability to employ offensive strategies, especially those that involve preemptive strikes C. To achieve lower costs and enhance the firm's competitiveness D. To capitalize on company competencies and capabilities E. To spread business risk across a wider geographic market base

Q: The reasons a company opts to expand outside its home market include A. gaining access to new customers for the company's products/services. B. spreading its business risk across a wider market base. C. achieving lower costs and enhancing the company's competitiveness. D. a desire to capitalize on its core competencies and capabilities. E. All of these.

Q: The reasons behind the accelerating pace of globalization include A. countries with previously planned economies are embracing market or mixed economies. B. information technology shrinks the importance of geographic distances. C. ambitious growth-minded countries race to build global share. D. lower barriers to international trade. E. All of these.

Q: List four reasons that strategic alliances and collaborative partnerships might fail to live up to each partner's expectations.

Q: What are the most common reasons companies enter into strategic alliances and collaborative partnerships?

Q: What are the merits of outsourcing the performance of certain value chain activities as opposed to performing them in-house? Under what circumstances does outsourcing make good strategic sense?

Q: What are the strategic disadvantages of a vertical integration strategy?

Q: Identify and briefly explain what is meant by each of the following terms: a. Outsourcing strategy b. Vertical integration strategy c. First-mover advantage d. First-mover disadvantage

Q: Under what sorts of circumstances are mergers with or acquisitions of other companies a better solution than entering into partnerships or alliances with these companies? How do mergers and/or acquisitions contribute to enhancing a company's position?

Q: Identify five objectives that a merger and acquisition strategy can achieve.

Q: In what sorts of circumstances is it strategically advantageous to be a fast follower or late mover as opposed to a first mover?

Q: What are the strategic advantages of being a first mover? What are the strategic advantages of being a follower or late mover?

Q: What is the purpose of defensive strategy? Give at least two examples of defensive moves.

Q: What is a blue ocean strategy and what is its appeal?

Q: Identify and briefly explain five types of offensive strategies.

Q: The Achilles' heel (or biggest danger/pitfall) of relying heavily on alliances and cooperative strategies is A. that partners will not divide profits from the alliance in an equitable manner. B. becoming dependent on other companies for essential expertise and capabilities. C. incurring excessive administrative expenses associated with engaging in collaborative efforts. D. having to compromise the company's own priorities and strategies in reaching agreements with partners. E. that strategic allies frequently become rivals in the marketplace.