Question 1

The kind of strategic alliance in which there is a partnership of similar companies in similar industries who pool their resources to gain a benefit that is too expensive to develop alone is the

Accepted Answer

A)   joint venture.
B)   licensing agreement.
C)   value-chain partnership.
D)   mutual service consortia.
E)   holding company.F) A) and D)
G) A) and C)

Question 2

Walmart,as a discount retailer,is an example of a company following which of Porter's competitive strategies?

Accepted Answer

A)   differentiation
B)   cost leadership
C)   differentiation focus
D)   competitive advantage
E)   cost focusF) A) and E)
G) A) and C)

Question 3

Product engineering,creative flair,and strong cooperation from channels are commonly required skills and resources for which of Porter's generic strategies?

Accepted Answer

A)   cost leadership
B)   differentiation
C)   cost leadership focus
D)   differentiation focus
E)   collusionF) B) and E)
G) B) and D)

Question 4

An effective mission statement not only needs to be specific to that organization; it must enable a common thread to highlight and focus the energy of everyone in the organization in the direction that the top management team believes is best for the business.

Accepted Answer

A) True 
 B)False

Question 5

The "cell" chip created by IBM,Sony Electronics,and Toshiba was a result of pooling their resources in a

Accepted Answer

A)   joint venture.
B)   licensing arrangement.
C)   value-chain partnership.
D)   mutual service consortium.
E)   competitive advantage.F) A) and E)
G) A) and B)

Question 6

A value chain partnership is a loose alliance with several distributors for the short term.

Accepted Answer

A) True 
 B)False

Question 7

One skill required of the cost leadership strategy is a strong marketing ability.

Accepted Answer

A) True 
 B)False

Question 8

An acronym for the assessment of the external and internal environments of the business corporation in the process of strategy formulation/strategic planning is

Accepted Answer

A)   PET.
B)   MBO.
C)   SWOT.
D)   SBU.
E)   ROI.F) C) and D)
G) A) and B)

Question 9

When a company is concerned that the higher price it charges for its higher quality is too far above the price of the competition,the company is likely addressing a risk of following which competitive strategy?

Accepted Answer

A)   cost leadership
B)   focus
C)   stuck-in-the-middle
D)   differentiation
E)   competitive scopeF) C) and E)
G) B) and D)

Question 10

According to D'Aveni's book,Hypercompetition,which of the following statements is true?

Accepted Answer

A)   Except for a few stable industries, strategy initiatives do not provide sustainable competitive advantage.
B)   Hypercompetition is rare.
C)   It is enough to gain competitive advantage by being the lowest cost competitor.
D)   The theory of hypercompetition is not supported by any research.
E)   The American home appliance industry was immune to hypercompetition.F) A) and C)
G) B) and D)

Question 11

An example of a company following a cost focus strategy is Potlach Corporation,which makes house brands of toilet paper for Safeway and other grocery store chains.

Accepted Answer

A) True 
 B)False

Question 12

Discuss the types of alliances that businesses can engage in?

Accepted Answer

The types of alliances that businesses c...

Question 13

Which of the following is not cited as one of the questions that development of a competitive strategy should raise?

Accepted Answer

A)   Should we compete on the basis of lower cost?
B)   Should we compete head-to-head with major competitors?
C)   Should we differentiate our products or services on some basis other than cost?
D)   Should we compete by garnering political support of influential leaders?
E)   Should we compete in a niche market that we can satisfy which is superior to that of the competition?F) D) and E)
G) A) and B)

Question 14

If it is to be successful,Porter advises that a division possess strong marketing abilities,product engineering,a creative flair,strong capability in basic research and a corporate reputation for quality or technological leadership,for which one of the following generic competitive strategies?

Accepted Answer

A)   focus
B)   differentiation
C)   overall cost leadership
D)   vertical growth
E)   concentrationF) C) and D)
G) All of the above

Question 15

All of the following reflect criticisms of the SWOT analysis EXCEPT

Accepted Answer

A)   it is simply the opinions of those filling out the boxes.
B)   virtually everything that is a strength is also a weakness.
C)   it provides a rational link to strategy implementation.
D)   virtually everything that is an opportunity is also a threat.
E)   there is no tie to the view from the customer.F) A) and B)
G) None of the above

Question 16

Business strategy is composed of

Accepted Answer

A)   corporate and competitive strategy.
B)   functional and divisional strategy.
C)   competitive and cooperative strategy.
D)   corporate and cooperative strategy.
E)   divisional and competitive strategy.F) A) and E)
G) All of the above

Question 17

Those companies using cooperative strategies are generally not able to gain a competitive advantage.

Accepted Answer

A) True 
 B)False

Question 18

SO strategies attempt to take advantage of opportunities by overcoming weaknesses.

Accepted Answer

A) True 
 B)False

Question 19

The first firm through a strategic window can occupy an extremely favorable niche and discourage competition (if the firm has the required internal strengths).

Accepted Answer

A) True 
 B)False

Question 20

In the development of an SFAS matrix,the first step is to

Accepted Answer

A)   enter the ratings of how the company's management is responding to each of the strategic factors.
B)   calculate the weighted scores.
C)   list the most important EFAS and IFAS items.
D)   indicate short-term goals for the duration.
E)   enter the weights for all of the internal factors.F) B) and D)
G) A) and E)

Exam 6: Strategy Formulation: Business Strategy

When a company is concerned that the higher price it charges for its higher quality is too far above the price of the competition,the company is likely addressing a risk of following which competitive strategy?

Correct AnswerverifiedShow Answer

The kind of strategic alliance in which there is a partnership of similar companies in similar industries who pool their resources to gain a benefit that is too expensive to develop alone is the

Correct AnswerverifiedShow Answer

Walmart,as a discount retailer,is an example of a company following which of Porter's competitive strategies?

Correct AnswerverifiedShow Answer

A value chain partnership is a loose alliance with several distributors for the short term.

Correct AnswerverifiedShow Answer

If it is to be successful,Porter advises that a division possess strong marketing abilities,product engineering,a creative flair,strong capability in basic research and a corporate reputation for quality or technological leadership,for which one of the following generic competitive strategies?

Correct AnswerverifiedShow Answer

One skill required of the cost leadership strategy is a strong marketing ability.

Correct AnswerverifiedShow Answer

An effective mission statement not only needs to be specific to that organization; it must enable a common thread to highlight and focus the energy of everyone in the organization in the direction that the top management team believes is best for the business.

Correct AnswerverifiedShow Answer

The first firm through a strategic window can occupy an extremely favorable niche and discourage competition (if the firm has the required internal strengths).

Correct AnswerverifiedShow Answer

According to D'Aveni's book,Hypercompetition,which of the following statements is true?

Correct AnswerverifiedShow Answer

Which of the following is not cited as one of the questions that development of a competitive strategy should raise?

Correct AnswerverifiedShow Answer

An acronym for the assessment of the external and internal environments of the business corporation in the process of strategy formulation/strategic planning is

Correct AnswerverifiedShow Answer

Discuss the types of alliances that businesses can engage in?

Correct AnswerverifiedThe types of alliances that businesses c...View AnswerShow Answer

All of the following reflect criticisms of the SWOT analysis EXCEPT

Correct AnswerverifiedShow Answer

An example of a company following a cost focus strategy is Potlach Corporation,which makes house brands of toilet paper for Safeway and other grocery store chains.

Correct AnswerverifiedShow Answer

Product engineering,creative flair,and strong cooperation from channels are commonly required skills and resources for which of Porter's generic strategies?

Correct AnswerverifiedShow Answer

Business strategy is composed of

Correct AnswerverifiedShow Answer

Those companies using cooperative strategies are generally not able to gain a competitive advantage.

Correct AnswerverifiedShow Answer

SO strategies attempt to take advantage of opportunities by overcoming weaknesses.

Correct AnswerverifiedShow Answer

The "cell" chip created by IBM,Sony Electronics,and Toshiba was a result of pooling their resources in a

Correct AnswerverifiedShow Answer

In the development of an SFAS matrix,the first step is to

Correct AnswerverifiedShow Answer

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The types of alliances that businesses c...
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