Strat Manag Exam 2

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Primary value chain activities that involve the effective layout of receiving dock operations (inbound logistics) and support value chain activities that include expertise in process engineering (technology development) characterize what generic strategy?

Overall cost leadership

A manufacturing business pursuing cost leadership will likely

rely on experience effects to raise efficiency

A firm can achieve differentiation through all of the following means EXCEPT

Offering lower prices to frequent customers

All of the following are potential pitfalls of a differentiation strategy EXCEPT

All rivals share a common input or raw material

Which statement regarding competitive advantages is true?

If several competitors pursue similar differentiation tactics they may all be percieved as eqauls in the mind of the consumer

All of the following are potential pitfalls of a focus strategy EXCEPT

all rivals share a common input or material

Research has consistently shown that firms that achieve both cost leadership and differentiation advantages tend to perform

higher than firms that achieve either a cost or differentiation strategy

The text discusses three approaches to combining overall cost leadership and differentiation competitive advantages. These are the following EXCEPT

deriving benefits from highly focused and high technology markets

Piecemeal productivity improvements during a turnaround typically does NOT involve

expansion of a firms product or market scope

McKesson, a large distribution company, sells many product lines such as pharmaceuticals and liquor through its super warehouses. This is an example of

achieving economies of scope through related diversification

For a core competence to be a viable basis for the corporation strengthening a new business unit, there are three requirements. Which one of the following is not one of these requirements?

the new biz must have an established large market share

Sharing core competencies is one of the primary potential advantages of diversification. In order for diversification to be most successful, it is important that

similarity required for sharing core

The risks of vertical integration include all of the following EXCEPT

lack of control over variables

__________ is when a firm's corporate office helps subsidiaries make wise choices in their own acquisitions, divestures, and new ventures.


According to the text, corporate restructuring includes

capital asset & management restructuring

A company offering local telecommunications service combines resources with an international company that manufactures digital switching equipment to research a new type of telecommunications technology. This is an example of

strateg alliance

__________ may be time consuming and, therefore, firms may forfeit the benefits of speed that growth through __________ and __________ can provide.

Internal dev; mergers; aquisistions

The term "golden parachutes" refers to

pay given to executives fired because of a takeover

Research shows that the following are all strategies used by firms engaged in successful turnarounds EXCEPT

global expansion

In managing a firm's portfolio, the BCG matrix would suggest that

? can be future stars is market share increases

The reasons that explain why some governments make better use of the inflows from foreign investment and know-how than others include all of the following EXCEPT

high tariffs and taxes

Michael Porter's framework all of the following factors affect a nation's competitiveness EXCEPT

policies that protect

According to Michael Porter, firms that have experienced intense domestic competition are

...successfully complete abroad

Microsoft decided to establish a corporate research laboratory in Cambridge, England

to access the outstanding

The sale of Boeing's commercial aircraft and Microsoft's operating systems in many countries enable these companies to benefit from

economies of scale

Many U.S. multinational companies set up maquiladora operations south of the U.S.-Mexico border primarily

to take advantage of low cost of labor

Which of the following types of international firms are most likely to benefit from a global strategy as opposed to a multi-domestic strategy?

research in design and manufa

Elements of a multi-domestic strategy may facilitate the competitive advantage of cost leadership by

decreased shipping and transp costs

The difference between a franchise and licensing contract is that

franch contract is more specific and usually longer

__________ are most appropriate where a firm already has the appropriate knowledge and capabilities that it can leverage rather easily through multiple locations in many countries.

wholly owned subsid

Financing for entrepreneurial start-ups includes which of the following?

all of these

Which of the following sources of entrepreneurial financing are available to ventures that have already started to conduct business and generate sales?

all of these

Based on statistics reported in the text, which of the following statements is FALSE?

90% venture cap fail

Entrepreneurial firms that pursue a low-cost leadership strategy use which of the following to achieve lower costs?

all of these

When an industry is mature, a __________ strategy is considered to be one of the most effective approaches for a new entrant.


Which of the following questions should a firm ask itself before responding to a competitive attack?

all of these

Which of the below best describes the competitive tendencies of small firms?

small firms are more nimable

Which of the following is NOT one of the three characteristics of entrepreneurial leadership mentioned by the text?

clarifying job respons

"Doing more with less", by holding down costs or making more efficient use of resources is one of the ways entrepreneurs achieve success. This is an example of how entrepreneurs use

low cost leader

Which of the following is NOT a key element of a blue ocean strategy?

highlight incremintal

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