Strategic Management Midterm

Total Flash Cards » 61
 
1. 

Factors such as BidBuy's feedback rating system that are valuable to the company's customers but which are not useful on other online auction sites are examples of

 

customer-switching costs

 
2. 

The ___ consists of broad trends in the context in which a firm operates that can have an impace on a firm's strategic choices.

 

general environment

 
3. 

Frequent price cutting by firms in an industry, frequent introduction of new products by firms in an industry and intense advertising campaings are indications of

 

high levels of rivalry

 
4. 

The most promosing opportunity for a firm in a declining industry is to

 

become a market leader in the pre-shakeout industry

 
5. 

The threat of suppliers in the hardwood furniture can best be described as

 

low because there are a large number of suppliers selling an undifferentiated product

 
6. 

Buyers tend to have less power when

 

the supplies they purchase are an insignificant portion of the costs of their final products

 
7. 

Firms that have either recently begun operations in an industry or that threaten to begin operations in an industry soon are considered to be ___ in the five forces framework.

 

new entrants

 
8. 

Rivalry tends to be high when

 

firms are unable to differentiate their products

 
9. 

Firms that engage in a long, systematic phased withdrawal from an industry, extracting as much value as possible during the withdrawal period, are following a(n) ____ strategy.

 

harvest

 
10. 

___ is/are the distribution of individuals in a society in terms of age, sex, marital status, income, ethnicity, and other personal attributes that may determine buying patterns.

 

Demographics

 
11. 

Industries in which a large number of small or medium-sized firms operate and no small set of firms has dominant market share or creates dominant technologies are called ____ industries.

 

fragmented

 
12. 

The threat of rivalry in the hardwood furniture industry can best be described as

 

high because of the numerous firms in the industry and the slow growth rate

 
13. 

Most firms have a resource base that is comprosed primarily of resources and capabilities that are

 

valuable but not rare

 
14. 

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 the perfect competition dynamics in an industry, that resource or capability can be considered ___ and a potential source of competitive advantage.

 

rare

 
15. 

LaserTech's new technology is an example of

 

physical resources.

 
16. 

Which of the following is an example of formal management controls?

 

Budgeting and reporting activities

 
17. 

Which of the following statements regarding competitive parity and competitive advantage is accurate?

 

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 technical innovations of other firms.

 
18. 

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

 

management control systems

 
19. 

Inputs whose quantity is fixed and whose demand does not respond to price increases are said to be

 

inelastic in supply

 
20. 

If LaserTech's new technological development were due to proprietary investments the company made when it was first founded twenty years ago, this would be an example of

 

path dependence.

 
21. 

LaserTech's new technology appears to be

 

valuable, rare and costly to imitate

 
22. 

Resources that generate a temporary competitive advantage are

 

valuable and rare but not costly to imitate

 
23. 

If firms that do not possess resource or capabilities face a cost disadvantage in obtaining these resources or capabilites compared to the firms that have already possess them, these resources and capabilities are termed

 

imperfectly imitable

 
24. 

In Porter's value chain model, which of the following activities would be considered a primary activity?

 

Inbound logistics

 
25. 

___ implies that for a given business activity, some firms may be more skilled in accomplishing this activity than other firms.

 

Resource heterogeneity

 
26. 

___ in the RGV are defined as the tangible and intangible assets that a firm controls that it can use to conceive of and implement its strategies.

 

Resources

 
27. 

The fact that it would be difficult and costly for firms to match Bates' capabilities in the tool industry indicates that these capabilities are

 

imperfectly imitable

 
28. 

Which of the following statements regarding patents is accurate?

 

Patents may decrease, rather than increase, the costs of imitation.

 
29. 

To the extent that a firm's resources and capabilities enhance a firm's competitive position by enabling a firm to exploit its opportunities or neutralize its threats, these resources and capabilities are valuable and are known as

 

sustainable competitive advantages.

 
30. 

When tacit cooperation has the effect of reducing supply and increasing prices, it is known as

 

tacit collusion

 
31. 

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)

 

externality

 
32. 

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)

 

informal management control.

 
33. 

It would be costly for competitors to duplicate Bates due to

 

.

 
34. 

According to the research in strategic human resources management,

 

firms that are able to use human resource practices to develop socially complex human and organizational resources are able to gain competitve advantage over firms that do not engage in these practices.

 
35. 

Firms that posess and exploit costly-to-imitate, rare and valuable resources in choosing and implementing their strategies may enjoy a period of

 

temporary competitive advantage

 
36. 

The inability of rivals to develop or acquire technology similar to that of LaserTech is an illustration of

 

.

 
37. 

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

 

causal ambiguity.

 
38. 

Firms implementing cost-leadership strategies will generally adopt a

 

functional organizational structure

 
39. 

Which of the following is less likely to be a rare source of cost advantage?

 

.

 
40. 

Sematech is pursuing which strategy?

 

.

 
41. 

In ___ structures, employees report to two or more people.

 

matrix

 
42. 

Given Sematech's business level strategy, which organizational structure is the most appropriate?

 

.

 
43. 

If Sematech were to continue seeking methods to maintain the company's cost-leadership position that would be costly to duplicate, which of the following is most likely to be a basis of cost leadership that would be costly to duplicate?

 

Securing differential access to low-cost productive inputs

 
44. 

___ focus(es) on the relationship between the volume of production and a given point in time and average unit costs, the ___ focus(es) on the relationship between cumulative production and average costs.

 

Economies of scale; learning curve

 
45. 

According to the "two-thrids rule," it would cost a firm ___ to build a plant with a capacity of 100,000 units.

 

100,000 raised to the 2/3 power

 
46. 

In order to create a cost advantage, the cost of acquiring low-cost productive inputs must be ___ the cost savings generated by these factors.

 

less than

 
47. 

The only person in a functional organization to have a multifunctional perspective is the

 

CEO.

 
48. 

The link between volume of production and the cost of building manufacturing operations is particularly important in industries characterized by

 

process manufacturing.

 
49. 

Actions that firms take to gain competitive advantage in a single market or industry are known as

 

business-level strategies.

 
50. 

Choices that firms make about the kinds of products and services they will sell that impact their relative cost position are known as

 

policy choices.

 
51. 

Learning-curve-cost advantages are

 

not restricted to manufacturing.

 
52. 

Which of the following statements regarding the learning curve and economies of scale is accurate?

 

Where diseconomies of scale are presumed to exist if a firm gets too large, there is no corresponding increase in costs in the learning-curve model as the cumulative volume of production grows.

 
53. 

Which of the following compensation policies is most likely to enhance a firm's ability to pursue a low-cost strategy?

 

Awarding employees bonuses that are equal to 50% of the total cost savings achieved based on employee suggestions and initiatives.

 
54. 

Cost-leadership and product-differentiation stratgeis are so widely recognized that they are often called

 

generic business strategies.

 
55. 

___ are any supplies used by a firm in conducting its business activities.

 

Productive inputs

 
56. 

___ are said to exist when the increase in firm size (measured in terms of volume of production) are associated with lower costs (measured in terms of average costs per unit of production).

 

Economies of scale

 
57. 

A firm that chooses a ___ focuses on gaining advantages by reducing its cost below all of its competitors.

 

cost-leadership business strategy

 
58. 

Coach's agreement with Lexus to produce automobiles with Coach leather interior is an example of

 

co-branding

 
59. 

A ___ structure exists when individuals in a firm have two or more bosses simultaneously.

 

matrix

 
60. 

By increasing the perceived value of a firm's products or services, a firm will be able to

 

charge a higher price than it would otherwise be able to do.

 
61. 

Last flashcard

 

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