This midterm study guide for Capstone 1 focuses on key management concepts including functional management roles, company mission formulation, SWOT analysis, strategy implementation, and competitive advantages. It assesses understanding vital for maintaining a firm's competitive edge.
Have a major impact on the company's performance relative to its competitors.
Have little or no effect on overall profitability.
Typically result in higher per-unit cost of production.
Result in significant industry structural changes
None of the above.
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Strategy formulation.
Strategy implementation.
How to effectively manage a company's strategy and create competitive advantage
Establishing effective contract processes.
Reducing a company's operating costs
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Growth
Shakeout
Maturity
Decline
All of the above
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Enables a company to maintain above-average projects for a number of years.
Cannot be maintained for more than three years.
Is seldom possible in today's highly competitive environment.
Typically arises out of unforeseen economic events.
A and D.
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Is normally the same in all industries.
Is characterized by different competitive conditions in different industries
Does not vary over time
Cannot be measured.
None of the above.
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Physical plant and equipment.
Technological know-how.
Skills at coordinating resources and putting them to productive use.
Reputation.
Resources.
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A byproduct of a company's cost reduction programs.
Not generally a viable goal for a company
Not the responsibility of a company's managers
The ultimate goal of profit-making companies
Not required to attract risk capital
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Uncertainty.
Planning equilibrium.
Bottom-up planning.
Strategic fit.
Cognitive bias.
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Board of directors
Division head
CFO
CEO
Controller
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Companies offering products or services that are close substitutes for each other.
Twenty or more companies offering products or services that are close substitutes for each other.
Companies.
Companies that offer dissimilar products or services.
Companies that offer products or services to dissimilar customers.
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Describe the technological processor.
Identify the customer segment served by the company.
Answer the question, "What is our business?"
Decide what the company will be like ten years from now.
Evaluate the company's most recent performance.
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Most scenarios are pessimistic.
Most scenarios are optimistic.
Some scenarios are optimistic and some scenarios are pessimistic.
Only worst-case outcomes should be considered.
Only best-case outcomes should be considered.
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Advantage endures for a long time.
Firm is able to spread the advantage to all of its business units.
Advantage is very large.
Advantage was gained at a low cost.
Managers who developed the advantage are still employed at the firm.
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Continuous advertising.
Patent protection of products.
Product innovation achieved through company research and development.
Emphasis on high product quality.
All of the above.
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Devising strategies for coping with a number of different possible future states of the world
Homing in on a single prediction of future demand conditions using an iterative planning process
Functional managers setting key corporate objectives
Using computers to build virtual worlds for top-level managers.
Making planning the exclusive domain of top-level managers
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Involves how a company selects its customers.
Creates value for its customers.
Achieves and sustains a high level of profitability.
Produces goods and services.
All of the above.
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$50.
$75.
$100
$150.
$225.
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Commitment.
Vision.
Astute use of power.
Emotional intelligence
Eloquence
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Are the tangible assets available to a company
Can be tangible or intangible.
Are harder for a company to copy than capabilities are.
Are the products of a company's control systems.
Refer to an organization's skills.
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Research and development
Human resources
Materials management
Marketing and sales
Company infrastructure
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Is simpler than the expert approach
Is vulnerable to the groupthink phenomenon
Results in unproductive conflict
Involves one group member being responsible for questioning the assumptions of a plan.
Results in a final plan that is a combination of a plan and a counterplan
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Fragmented industry
Consolidated industry
Oligopoly
Monopoly
Sector
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One of a series of companies that comprise an industry segment.
The producer of a series of products that are linked together.
A chain of activities for transforming inputs into outputs that customers value.
One of a series of economic functions.
All of the above.
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The result of a planned strategy
An unplanned response to unforeseen circumstances.
The product of careful top-down planning mechanisms.
The same as a realized strategy.
A group response to a problem area.
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Growth becomes negative.
Rivalry among established companies usually decreases.
Competitive pressures abate.
Excess capacity declines.
Demand continues to hold steady.
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Product design.
Production processes.
Service activities as well as manufacturing activities.
Intangible as well as physical products.
All of the above.
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Analyze the competitive environment.
Examine the organizational structure to see what changes may be required.
Analyze internal strengths.
Analyze internal weaknesses.
Select the corporate mission and major corporate goals.
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Possess a willingness to delegate and empower subordinates.
Control all facets of decision making.
Are confident in their ability to make sound decisions without consulting others
Assure uniformity of purpose through the exercise of power
Have the ability to be inconsistent when the situation requires inconsistency
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Its inability to access labor and materials.
The inferior quality of its products.
Its inability to match the innovation of the established firm.
Its inability to produce in sufficient volume to match the cost advantages of established producers.
Its inability to get buyers to switch to its product.
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Economic forces
Demographic forces
Embryonic forces
Political forces
Social forces
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Return on invested capital.
Net profit margin.
Share value.
Net sales.
Productivity.
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Designing the best organization structure, culture, and control systems to put a strategy into action.
Enumerating the number and kind of periodic reports that must be submitted by functional-level managers.
Analyzing the macroeconomic environment of the company
Answering the question, "What is our business?"
E) all of the above. all of the above.
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Define operational-level strategies.
Outline functional-level strategies and plans.
Oversee the development of strategies for the whole organization.
Develop business-level strategies
Oversee the development of business-level and functional-level strategies
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Interest rates
Inflation
Regulation
Currency exchange rates
Economic growth rate
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The supply industry is fragmented.
Switching costs are high.
The industry buys in large quantities.
Many substitutes are available.
Firms in the industry can threaten backward vertical integration.
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Customers within a market that can be different from each other on the basis of their distinct attributes and specific demands.
Companies that produce similar goods or services.
Customers within a market that purchase goods or services in similar quantities.
Customers within a market that have similar levels of profitability.
None of the above.
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Shifting industry boundaries.
The threat of new entrants.
Sectors.
Market segments.
Substitutes.
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Level of interest rates
Currency exchange rates
Inflation
Deflation
Rates of social change
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Industry.
Sector.
Game.
Segment.
Strategic group.
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Specialized assets
Benchmarking
Strategic commitments
Inertia
The Icarus paradox
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Benchmark a company's performance.
Force managers to think creatively rather than analytically.
Forecast future events.
Develop short-run goals.
Create, affirm, or fine-tune a company-specific business model.
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Taking actions at the functional, business, and corporate levels.
Comparing company performance with leading companies in the industry.
Analyzing the macroenvironment for any last-minute changes that may have occurred
Only activities at the corporate level.
All of the above
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A high-growth industry
An industry characterized by falling demand, high exit barriers, and excess productive capacity
An industry characterized by a commodity-type product, strong demand, and low exit barriers
A mature industry during an economic upturn
An industry characterized by tacit price agreements
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Turning corporate-level strategy into action
Defining Philip Morris's mission
Deciding how to compete in the foods industry
Supervising functional-level managers
Developing a business-level strategy
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Embryonic
Growth
Shakeout
Maturity
Decline
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Research and development
Human resources
Materials management
Production
Company infrastructure
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Government regulations
Inflation
Manufacturing technology
Aging of the population
Society's growing interest in exercise
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Inertia.
Prior strategic commitments.
Barriers to mobility.
Lack of resources.
Lack of capabilities.
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