Q&A Hero

Q: Management writers often use terms like silos, stovepipes, or chimneys to describe an organization in which autonomous business units operate with their own agendas and a minimum of horizontal interdependence.

Q: Which of the following refers to any method a firm uses to complete an exchange that does not require a customer to visit a store? A) kiosk merchandising B) nonstore retailing C) direct selling D) exchange retailing E) e-commerce

Q: Explain the reasons behind the failure of the visionary strategy of Volkswagen from becoming the number one automaker in the world.

Q: By the early 2000s, Sony's vaunted innovation and marketing machine was faltering due to the anticipated rapid consumer acceptance of flat-panel wide-screen TV sets.

Q: Why have department stores struggled to survive in the United States in recent years?

Q: What is hypercompetition? Briefly discuss conditions under which hypercompetition takes place.

Q: A CEO has to look at the entire global economy and then put the company's resources where they will capture the biggest market share of every region.

Q: What is the merchandise assortment of an airport bookstore that sells only a few books but a large variety of magazines?

Q: How do chance events play a role in shaping the competitive environment?

Q: Why might a retailer be interested in using the Census of Retail Trade, which classifies retailers according to the North American Industry Classification System (NAICS) codes?

Q: A single correct organizational structure exists for global marketing.

Q: The nature of firm strategy, structure, and rivalry is the final determinant of a nation's diamond. What does this statement refer to? How does domestic rivalry differ from foreign rivalry? Please explain in detail.

Q: Compare and contrast the four types of discount stores.

Q: As markets globalize, and as Japan opens its own market to more competition from overseas, more Japanese companies are likely to stick to the traditional organization patterns.

Q: What are demand conditions? Why is the nature of home demand conditions for the firm's or industry's products and services important?

Q: A key issue in global organization is when to achieve balance between autonomy and integration.

Q: Compare and contrast specialty stores and convenience stores.

Q: What does the phrase factor condition refer to? How can these factors be inherited or created? Describe Porter's categories of factor conditions.

Q: The key to successful matrix management is ensuring that managers are able to: A) adopt a matrix design. B) adhere to matrix structure. C) maintain technical systems. D) resolve conflicts and achieve integration. E) preserve existing organizational culture.

Q: What is meant by merchandise breadth and depth? Give an example of a store for each of the following: narrow assortment, broad assortment, shallow assortment, and deep assortment.

Q: Describe how competitive advantage can be created via strategic intent, giving examples of successful approaches of competitors.

Q: Which global company has dissolved its matrix structure in order to achieve "greater speed and efficiency by further focusing and flattening the organization"? A) Whirlpool B) Levi Strauss C) Pearson PLC D) ABB E) Gillette

Q: When a gift shop decided to begin selling Blue Ridge pottery, it was modifying its merchandise mix.

Q: In addition to the five forces model of industry competition, Michael Porter has developed a framework of so-called generic business strategies. Explain these generic strategies, describing their aims and application.

Q: Having established that the matrix organizational structure is appropriate, management can expect to integrate the following competency on a worldwide basis: A) geographic knowledge. B) product knowledge and know-how. C) functional competence in finance, production and marketing. D) knowledge of customer or industry and its needs. E) All of the above are competencies.

Q: Department stores carry a narrow range of products with deep assortments within those lines.

Q: There have been considerable changes that have taken effect since Porter presented his theories. One such impact is due to the tremendous technological advancement. In light of these changes, examine what potential impact technology has on some of his theories.

Q: Which form of organization design is capable of integrating geographic knowledge, product knowledge, functional competencies, and customer knowledge? A) matrix structure B) international division structure C) geographic structure D) worldwide product division structure E) regional management center

Q: Off-price retailers obtain surplus merchandise from manufacturers and offer brand-name, fashion-orientated goods at low prices.

Q: Michael E. Porter, a leading theorist of competitive strategy, developed a five forces model to explain competition in an industry. List these forces and describe the impact of the threat of new entrants.

Q: Boeing has reorganized its commercial transport design and manufacturing engineers from functional lines into a matrix organization. This new design is expected to have all of the following benefits except: A) lower costs and quick updates. B) facilitate problem solving. C) unite engineering and manufacturing processes. D) provide customer contacts. E) enhance product consistency.

Q: In limited-service retail operations, such as specialty stores and first-class department stores, salespeople assist customers in every phase of the shopping process.

Q: The visionary strategy of the Chief Executive Officer of Volkswagen which included switching the German plants entirely to the new model, failed due to all but one of the following reasons: A) resistance on the part of German unions. B) confusion among American dealers about where it was made. C) investment of billions of dollars in Skoda autoworks in Czechoslovakia. D) investment in SEAT in Spain. E) continued demand for Beetle model in the United States.

Q: The organization design in which an employee reports to both a country manager and a functional manager is a(n): A) matrix structure. B) international division structure. C) geographic structure. D) worldwide product division structure. E) regional management center.

Q: Retailers like Sam's Club that promise bottom-dollar prices are often self-service operations.

Q: According to the hypercompetition model of competitive advantage, which of the following allows the firm to create an entirely new product or market? A) know-how advantage B) timing advantage C) outflanking D) switching costs E) countermoves

Q: Under the geographical and product division structures, for the company with French origins, France is: A) the headquarter country market. B) simply another geographic market. C) a special unit of the European market. D) a divisional market in Europe. E) a product market in European Union.

Q: ShopWell, a large supermarket chain, wants to offer a wider variety of fresh ready-to-go meals for its customers. ShopWell has contracted with The Great Wall, a Chinese restaurant, and Salad Heaven, a health food restaurant, to set up small take-out areas within the supermarket. This arrangement is an example of ________. A) convenience stores B) leased departments C) specialty stores D) hypermarkets E) off-price retailing

Q: Which of the following is not one of the four arenas in which dynamic strategic interactions are played out in hypercompetitive industries? A) cost/quality B) timing and know-how C) entry barriers D) deep pockets E) buyer and supplier power

Q: One of the potential drawbacks of a regional management center is that: A) pan-regional coordination efforts can suffer. B) the cost can be prohibitive. C) the company may lose its "insider" advantage. D) regional management may take a one-sided approach when implementing corporate objectives. E) there is a lack of coordinated decision making.

Q: GameStop sells video games and systems, offering a narrow product line with a deep assortment within that line. GameStop is a(n) ________. A) department store B) convenience store C) specialty store D) general merchandise discount store E) off-price retailer

Q: The country with the highest number of companies with Global Competitive Advantage is: A) the United Kingdom. B) the United States. C) Japan. D) France. E) Germany.

Q: When an organization assigns regional or worldwide product responsibility to its product divisions, there are several advantages except: A) manufacturing standardization can occur. B) products can be tailored to local market needs. C) can result in significant economies. D) can result in saving development costs. E) can help in integrating operations.

Q: Stop-N-Go and Circle K"small stores that serve consumers willing to pay a higher price for the ease of buying staples close to home"are ________. A) specialty stores B) convenience stores C) supermarkets D) hypermarkets E) off-price retailers

Q: According to strategy expert Richard D'Aveni, the actions taken by Swatch in the global watch industry illustrate hypercompetitive dynamic maneuvering in which arena? A) cost/quality B) timing and know-how C) entry barriers D) deep pockets E) Olympics

Q: The advantages that a regional management center can offer include all of the following except: A) pan-regional decision making. B) coordinated regional planning. C) considerable cost saving. D) coordinated control. E) coordinated decision making.

Q: In the global watch industry, the success of the Swatch brand resulted in a manufacturing renaissance for Switzerland. In the strategic framework known as hypercompetition, Swatch's success is an example of interactions in which arena? A) cost/quality B) timing and know how C) entry barriers D) deep pockets E) sporting events

Q: Several years ago, the Paradise Surf Shop was the only surf-gear store catering to women. It carried everything the serious female surfer needed to ride the waves. In terms of its merchandise assortment, it had a ________ assortment. A) shallow and deep B) narrow and deep C) shallow and broad D) broad and deep E) shallow and narrow

Q: A company with headquarters in Europe and operational units in Canada, the United States, and Mexico would be well advised to consider establishing a(n): A) matrix structure. B) international division structure. C) geographic structure. D) worldwide product division structure. E) regional management center.

Q: The characteristics of home demand for a firm's products or services include all but one of the following: A) the composition of home demand. B) the size of the home demand. C) pattern of the growth of the home demand. D) means by which the home demand pushes or pulls foreign markets. E) the size of the competitors share of the home demand.

Q: The Paper Moon sells gift wrapping paper, stationery, and greeting cards. It does not sell any other products. The number of different kinds of wrapping paper, stationery, and cards make up its ________. A) point-of-sale range B) merchandise diversity C) atmospherics D) merchandise assortment E) retail format

Q: A company with headquarters in the United States and operational units in the Netherlands, France, Italy, and Spain would be well advised to consider establishing a(n): A) matrix structure. B) international division structure. C) geographic structure. D) worldwide product division structure. E) regional management center.

Q: The ________ framework was developed by Professor Richard D'Aveni to describe a business environment in which no form of competitive advantage can be sustained for long because of escalating and accelerating competitive forces. A) five forces model B) generic strategies C) strategic intent D) hypercompetition E) factor conditions

Q: Hershey rolled out a new line of condensed-milk candies, named Yo-man, specifically targeting the premium candy segment in: A) India. B) Mexico. C) Japan. D) South Korea. E) China.

Q: A shoe department carries more than 55 different styles of white sandals. This is a description of the shoe department's ________. A) merchandise breadth B) retail diversity C) merchandise depth D) point-of-sale range E) service assortment

Q: Del Vecchio, the Italian entrepreneur's business principles include all but one of the following: A) "Made in Italy" is important. B) Must cut costs to keep production at home. C) Invest in automation. D) Hire qualified personnel. E) Invest in Robots, not workers.

Q: Which of the following does not contribute to the establishment of an international division? A) An organizational unit should be headed by a committed senior manager. B) Complexity of international operations to make its own decisions. C) Recognition of the need for internal specialists. D) A lack of desire by management to scan the globe for opportunities and threats. E) Assembling a staff that will take the responsibility to coordinate.

Q: Costco's surprise offerings of seconds, overstocks, and closeoutsoccasionally including diamondsis an example of how a retailer can differentiate itself through its ________. A) merchandise mix B) services mix C) destination retailing D) store atmosphere E) level of service

Q: Chance events play a role in shaping the competitive environment. Chance events are occurrences which include all but one of the following: A) major technological breakthroughs. B) wars and their aftermath. C) oil crisis. D) currency fluctuations. E) annual business meeting.

Q: As a company's initial international business involvement becomes too much for a single manager or export department to handle, the next step is typically to establish a(n): A) matrix structure. B) international division structure. C) geographic structure. D) worldwide product division structure. E) regional management center.

Q: Which of the following types of retail stores would likely offer the broadest assortment of merchandise and services? A) convenience stores B) factory outlet stores C) specialty stores D) box stores E) hypermarkets

Q: The rivalry between Dell, Hewlett-Packard, Gateway, Compaq, and Apple forces all the players to undertake all of the following except: A) develop new products. B) improve existing products. C) lower costs and prices. D) develop new technologies. E) change the rules of engagement.

Q: Sony's Blu-ray DVD format has gained widespread acceptance. Sony, Sharp, Panasonic, and other Japanese manufacturers are all experiencing ________ sales of traditional electronics products. A) increasing B) declining C) improving D) horizontal E) vertical

Q: Which type of store combines the characteristics of a warehouse store and a supermarket? A) freestanding store B) department store C) box store D) hypermarket E) factory outlet store

Q: According to Michael Porter's research on the competitive advantage of nations, Switzerland's large synthetic dye industry and the success of the Swiss pharmaceuticals can be explained in terms of: A) factor conditions. B) demand conditions. C) strategy, structure, and rivalry. D) related and supporting industries. E) formation of the European Union.

Q: Management experts often use terms like ________ to describe an organization in which autonomous business units operate with their own agendas and a minimum of horizontal interdependence. A) sprinklers B) fountains C) chimneys D) skyscrapers E) towers

Q: Which of the following statements about department stores is true? A) Department stores are more successful in America today than they have ever been. B) Department stores typically offer shallow and narrow assortments. C) Department stores are more popular in America than they are abroad. D) Department stores are typically self-service. E) Department stores were a dominant type of American retailer in the first half of the twentieth century.

Q: According to Michael Porter's research on the competitive advantage of nations, human, physical, knowledge, capital, and infrastructure resources are all components of a country's: A) factor conditions. B) demand conditions. C) strategy, structure, and rivalry. D) related and supporting industries. E) global conditions.

Q: Organizations vary in terms of the size and potential of targeted global markets and local management competence in different country markets. Considering different factors and facts related to the constellation of pressures, which of the following statements is not accurate? A) Conflicting pressures may arise from the need for product and technology. B) No two organizations pass through similar stages. C) No two organizations arrive at precisely the same organizational pattern. D) Some patterns are common among different organizations. E) Conflicting pressures may arise from the need for better organization.

Q: Which of the following stores is most likely to have a narrow assortment of merchandise? A) a supermarket B) a factory outlet store C) a department store D) a warehouse club E) a hypermarket

Q: In the 1950s, Sony licensed the technology for the transistor from Bell Labs and proceeded to become the world's leading manufacturer of portable radios. Which strategy was Sony using to gain competitive advantage? A) collaboration B) layers of advantage C) changing the rules D) loose bricks E) engagement

Q: Mitsubishi Heavy Industries Ltd. and other Japanese companies manufacture airplanes under license to U.S. firms and also work as subcontractors for aircraft parts and systems. This type of effort is known as: A) searching for loose bricks. B) collaborating. C) building of layers of advantage. D) changing the rules of engagement. E) innovating.

Q: Which global marketing expert recommends an organization design based on a "global superstructure" that views the world in terms of 30 regions? A) Paul Krugman B) Kenichi Ohmae C) Tom Peters D) Michael Porter E) Kazuo Inamori

Q: Taiwan's Acer prospered by following founder Stan Shih's strategy of approaching the world computer market from the periphery. By the time Acer was ready to target the United States in earnest, it was already the number one PC brand in key countries in Latin America, Southeast Asia, and the Middle East. This is an example of which component of competitive innovation? A) collaboration B) layers of advantage C) loose bricks D) generic E) supplier power

Q: Which of the following is NOT true about warehouse clubs? A) They are not full-service stores. B) They often charge their customers with a modest annual membership fee. C) They carry items in bulk. D) They are a form of discount store. E) They have not followed the pattern set forth by the wheel-of-retailing hypothesis.

Q: In today's dynamic global competitive environment, organizations need to develop new forms of: A) ethnocentrism and myopia. B) flexibility, efficiency, and responsiveness. C) export department structure. D) self-reference criterion. E) geographic structure.

Q: Customers of a ________ buy most of the store's products in larger-than-normal packages and quantities. A) warehouse club B) department store C) factory outlet store D) leased department store E) hypermarket

Q: The automobile industry has become fiercely competitive on a global basis. The initial success of foreign automakers in the United States was due to all of the following reasons except: A) reluctance of U.S. manufacturers to design high-quality cars. B) inability of U.S. manufacturers to manufacture high-quality cars. C) reluctance of U.S. manufacturers to make inexpensive small cars. D) bigger cars meant bigger profits for U.S. manufacturers. E) U.S. manufacturers did not realize drivers' preferences.

Q: In the fast changing, competitive environment, new global realities are emerging, which include all of the following needs except: A) to be cost effective. B) to be customer driven. C) to deliver best quality. D) to deliver quickly. E) to deliver success.

Q: When company management decides that it is unwilling to follow the "conventional wisdom" and instead finds a new way to gain competitive advantage, it might be said to be: A) searching for loose bricks. B) changing the rules of engagement. C) collaborating. D) building layers of advantage. E) innovating.