Bstrat Test Ch1

Front 1

According to chapter 1 opening case, borders did not

Back 1

earn above average returns
achieve strategic competitiveness
use the strategic management process
all of these

Front 2

a firm has achieved ____ when it successfully formulates and implements a value creating strategy

Back 2

strategic competitiveness

Front 3

a competitive advantage

Back 3

can be identified only if it has been unsuccessfully challenged by competitors

Front 4

above average returns are

Back 4

returns in excess of what an investor expects to earn from other investments with a similar level of risk

Front 5

the strategic management process is

Back 5

the full set of commitments, decisions, and actions required for the firm to achieve above average returns and strategic competitiveness

Front 6

the primary drivers of hyper competition are

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the emergence of a global economy and rapid technological change

Front 7

All of the following are characteristics of the global economy except

Back 7

the increases use of tariffs to protect industries

Front 8

essentially, the ____ has become one of the worlds largest markets with 700 million potential customers

Back 8

european union

Front 9

The chapter 1 strategic focus about huawei illustrates

Back 9

the challenge of the global economy where merging market companies are moving aggressively into international markets

Front 10

the economic interdependence among countries as reflected in the flow of goods, services, financial capital and knowledge across country borders is defined as

Back 10

globalization

Front 11

globalization has lead to

Back 11

higher product quality

Front 12

the " liability of forgiveness" is the

Back 12

overall risks of participating outside a firms domestic country when entering global competition

Front 13

even for companies capable of succeeding in global markets, it is critical that they

Back 13

remain committed to and strategically competitive in their domestic market

Front 14

the rate of technological diffusion is increasing. which of the following was the fastest in penetrating 25% of homes in the united states market

Back 14

internet

Front 15

new markets created by IPOds, PDAs and wifi are a result of

Back 15

disruptive technologies

Front 16

apples development of products such as the iPod and iPad is an example of

Back 16

disruptive technologies

Front 17

the ability to effectively and efficiently access and use information is

Back 17

an important source of competitive advantage in virtually all industries

Front 18

the CEO of ridgeway INC realizes that the company's survival depends on developing and acquiring knowledge. which of the following actions by the CEO would be most consistent with this need?

Back 18

planning extensive employee training and hiring educated and experienced employees

Front 19

knowledge is composed of all the following except

Back 19

insight

Front 20

which of the following statements about organizational knowledge is correct?

Back 20

knowledge is an intangible resource
the important of knowledge is increasing
the value of knowledge as a proportion of shareholder value is increasing
All of these are correct

Front 21

in order to cope with hyper competition, firms need to develop ___ through continuous learning

Back 21

strategic flexibility

Front 22

all of the following are assumptions of the industrial organization method except

Back 22

resources to implement strategies are firm specific and attached to firms over the long term

Front 23

the industrial organization model argues that

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the key factor in success is choosing the correct industry in which to compete

Front 24

which of the following statements is most consistent under the I/O view? performance of the firm is most directly attributable to

Back 24

the profitability of the industry the firm competes in

Front 25

firms use the five forces model to identify the ____ of the industry as measured by its____

Back 25

attractiveness, profitability

Front 26

Although Mcdonalds is competing in an unattractive industry, it has improved its performance by focusing on product innovations and by enhancing facilitates.. this improved performance is best explained by

Back 26

the resource based model

Front 27

An investor is considering in which of two start-up companies she should invest. The investor has faith in the industrial organizational model of above-average returns, and she is using its concepts to make her decision. Both start-up companies propose to manufacture health-focused foods with such characteristics as low salt, low sugar, high fiber, and no artificial additives. RexRich Foods has a business strategy of producing a differentiated product for which consumers will pay more. Green Pastures Foods is in the health-foods industry because of its internal culture and commitment to healthful lifestyles. Which firm will the investor feel is most consistent with the model of industrial organization?

Back 27

Rex rich foods

Front 28

research shows that approximately____percent of a firms profitability is explained by the industry in which it competes, whereas____ percent is explained by the firms characteristics and actions

Back 28

20,36

Front 29

All of the following are resources of an organization except

Back 29

weak competitors in the industry

Front 30

All of the following are assumptions of the resource based model except

Back 30

capabilities are highly mobile across firms

Front 31

___ is a capacity for a set of resources to perform a task or an activity in an integrative manner

Back 31

a capability

Front 32

when resources and capabilities serve as a source of competitive advantage for a firm, the firm has created a(n)

Back 32

core competence

Front 33

in the resource based model, which of the following factors would be considered a key to organizational success

Back 33

skilled employees

Front 34

To have the potential to become sources of competitive advantage, resources and capabilities must be non substitutable, valuable, ____ and _____

Back 34

rare, costly to imitate

Front 35

the resource based model of the firm argues that

Back 35

resources that are valuable, rare, costly to imitate, and non substitutable form the basis of a firms core competencies

Front 36

The resource based view of the firm

Back 36

emphasizes that it is difficult to develop and sustain a competitive advantage based on resources alone

Front 37

the goal of the organizations____ is to capture the hearts and minds of employees, challenge them, and give shape to its intended future

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vision

Front 38

the amandale academy of fine arts states in its brochure that "the academy intends to become the dominate institution in the nation teaching traditional aesthetic value in traditional artistic media targeting both traditional and non traditional students. " this pronouncement is most precisely a statement of organizational

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mission

Front 39

a firms mission

Back 39

is a statement of a firms business in which it inters to compete and the customer it inters to serve

Front 40

the final responsibility for forming the organizations mission lies with the

Back 40

CEO

Front 41

The development of a firms mission typically involves which of the following

Back 41

the CEO and top managers

Front 42

Organization stakeholders include

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employees

Front 43

the interest of an organization stakeholders often conflict, and the organization must prioritize its stakeholders if it cannot satisfy them all. The ____ is the most critical criterion in prioritizing stakeholders

Back 43

power of each stakeholder

Front 44

capital market stakeholders include

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shareholders, and bond holdres

Front 45

dissatisfied capital market stakeholders may

Back 45

sell their stock
tighten loan convenants
seek to increase their power
all of these

Front 46

green leaf property management has been earning below average return for the last three years. which of the following statements are true?

Back 46

greenleaf will noe be able to minimally satisfy all stakeholders

Front 47

Product market stakeholders include the firms customers, and the principal concern of this stakeholder group is

Back 47

obtaining reliable products at the lowest possible price

Front 48

Generally speaking, product market stakeholders are satisfied when

Back 48

a firms profit margin yields the lowest return to capital market stakeholders that is acceptable to them

Front 49

Before liquidating, circuit city took several actions to try to satisfy its____stakeholders

Back 49

Capital market

Front 50

The organizations role as a taxpayer is most important to ____as stakeholders

Back 50

Host communities

Front 51

Although it closed stores, changes the top management team, and sought potential new buyers, none of these actions resulted in outcome that allowed circuit city to meet the expectations of its____stakeholders

Back 51

capital market

Front 52

organizational stakeholders are usually satisfied when

Back 52

companies provide a dynamic, stimulating, and rewarding work environment

Front 53

Product market stakeholders include

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suppliers

Front 54

Refuge Nursing Homes, Inc., (RNH) has been highly profitable in the past 10 years, providing its investors returns in excess of direct competitors. RNH has a reputation for providing high-paying managerial and hourly-employee jobs. However, recent investigations have revealed that the nursing home residents have been provided substandard care, including non-nutritious and unappetizing meals, non-functional medical equipment, and inadequate patient-care staffing. Which statement best describes the situation?

Back 54

RNH has prioritized the demands of capital market stakeholders over the demands of product market stakeholders.

Front 55

A prominent national accounting firm runs television advertisements showing an accountant working alone late in the office on a client’s project, while clenching a long-stemmed rose in his teeth and grinning ecstatically. The message of the ad is that this firm’s accountants love their work. This ad seeks to convey a sense of the organization’s ____ to the viewers.

Back 55

culture

Front 56

The global economy, globalization, rapid technological change, and the increasing importance of knowledge are creating the need to

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delegate strategic responsibilities to employees "closer to the action"

Front 57

The strategic leader’s work is characterized by

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ambiguous decision situations which make effective decisions difficult to determine

Front 58

The profit pool is the

Back 58

total profits earned in an industry along all points in the value chain

Front 59

The steps for identifying the profit pools in an industry include of all of the following except:

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Defining the competitors in the pool.

Front 60

Analysis of the industry’s profit pool enables strategic managers to

Back 60

locate the most promising areas of an industry’s value chain.

Front 61

If McDonald’s were to map the profit pool in the quick-service restaurant industry, it would do all of the following EXCEPT

Back 61

Select the strategy to use where the largest profit pools are located.

Front 62

A major assumption about the strategic management process is that it is

Back 62

rational.

Front 63

A business-level strategy describes

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the firm’s actions to exploit its competitive advantage over rivals.

Front 64

In a diversified firm, corporate-level strategy is concerned with

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determining in which businesses to compete and how resources will be allocated between
businesses.

Front 65

PGG Mining is making a strategic decision whether to shut down a coal mine in Pennsylvania. It is important to consider that the decision

Back 65

has ethical implications for organizational stakeholders.

Front 66

It is well-known that the elected school board of a large city engages in unethical and illegal activities involving the awarding of major contracts. This behavior has existed for decades, even as the membership in the school board has changed over time. This behavior reflects

Back 66

the core values of the school board as an organization.