STRATEGIC MANAGEMENT EXAM Q’S
AND A’S CHAPTER 1- 4
All of the following are characteristic of the global economy EXCEPT - answer- the
increased use of tariffs to protect industries
The global economy, globalization, rapid technological change, and the increasing
importance of knowledge are creating the need to - answer- delegate strategic
responsibilities to employees "closer to the action."
When resources and capabilities serve as a source of competitive advantage for a
firm, the firm has created a(n) - answer- core competence.
The I/O model is grounded in - answer- economics
A ______ is an integrated and coordinated set of commitments and actions designed
to exploit core competencies and gain a competitive advantage. - answer- strategy
New markets created by iPods, PDAs, and Wi-Fi are a result of - answer- disruptive
technologies
If Southwest Airlines is considering the consequences of videoconferencing on
business travel, it is in the profit pool analysis step known as - answer- defining the
pool's boundaries
Analysis of the industry's profit pool enables strategic managers to - answer- locate
the most promising areas of an industry's value chain.
Product market stakeholders include - answer- suppliers
A firm's mission - answer- is a statement of a firm's business in which it intends to
compete and the customers it intends to serve.
It is important to emphasize that, primarily because they are related to how a firm
interacts with its stakeholders, almost all strategic management process decisions
have - answer- ethical dimensions
Strategic leaders, ______, often work long hours, and their work is filled with
ambiguous decision situations. - answer- regardless of their location in the
organization
The primary drivers of hypercompetition are - answer- the emergence of a global
economy and rapid technological change.
______ innovation is a term used to describe how rapidly and consistently new,
information-intensive technologies replace older ones. - answer- perpetual
, Firms use the five forces model to identify the ______ of the industry as measured
by its - answer- attractiveness; profitability
Firms use both the ______ and ______ models. In fact, these models complement
each other in that one focuses outside the firm while the other focuses inside the
firm. - answer- I/O; resource-based
Buyers are powerful when - answer- switching costs are low
An analysis of society's attitudes and values would be conducted when studying the
______ segment of the general environment. - answer- sociocultural
The U.S. Hispanic market is the third-largest "Latin American" economy behind
Brazil and Mexico. This impacts the ______ aspect of demographic segment
analysis. - answer- ethnic mix
Media content has moved from paper, tape, and film to a digital world based on
Internet technology. From the perspective of the five forces model, which force is
most relevant here? - answer- substitutes
Understanding how new knowledge can develop new products, processes, or
materials is a result of analyzing the ______ segment of the general environment. -
answer- technological
As customers come to believe that a firm's product is unique, this allows the firm to -
answer- obtain loyal customers
A certain marble quarry provides a unique type of marble that is richly colored and
strikingly veined. It has been used for churches and public buildings throughout the
world. The architect of a new headquarters for a prestigious Fortune 500 firm has
specified the use of this marble, and this marble only, for this project. Which of the
following statements is most likely to be true? - answer- The cost of the marble will
be expensive because of the bargaining power of the supplier.
The observation that China, despite a 37 percent surge in car sales in 2010, is
expected to reach production overcapacity by 2015 and have a glut of extra cars, is
an aspect of the ______ segment of the general environment. - answer- global
DWK Foods has developed a line of cookies and candies sweetened exclusively with
organic honey. Although DWK is selling some of the products over the Internet, in
order to gain economies of scale the products must be sold in retail outlets. The
main barrier to entry DWK is likely to encounter here is - answer- access to
distribution channels
After Amazon lowered the price on Kindle e-readers, Sony eventually lowered the
price on its Reader. Sony needed to do this because - answer- it is in the same
strategic group
All of the following are forces that create high rivalry within an industry EXCEPT -
answer- fast industry growth
AND A’S CHAPTER 1- 4
All of the following are characteristic of the global economy EXCEPT - answer- the
increased use of tariffs to protect industries
The global economy, globalization, rapid technological change, and the increasing
importance of knowledge are creating the need to - answer- delegate strategic
responsibilities to employees "closer to the action."
When resources and capabilities serve as a source of competitive advantage for a
firm, the firm has created a(n) - answer- core competence.
The I/O model is grounded in - answer- economics
A ______ is an integrated and coordinated set of commitments and actions designed
to exploit core competencies and gain a competitive advantage. - answer- strategy
New markets created by iPods, PDAs, and Wi-Fi are a result of - answer- disruptive
technologies
If Southwest Airlines is considering the consequences of videoconferencing on
business travel, it is in the profit pool analysis step known as - answer- defining the
pool's boundaries
Analysis of the industry's profit pool enables strategic managers to - answer- locate
the most promising areas of an industry's value chain.
Product market stakeholders include - answer- suppliers
A firm's mission - answer- is a statement of a firm's business in which it intends to
compete and the customers it intends to serve.
It is important to emphasize that, primarily because they are related to how a firm
interacts with its stakeholders, almost all strategic management process decisions
have - answer- ethical dimensions
Strategic leaders, ______, often work long hours, and their work is filled with
ambiguous decision situations. - answer- regardless of their location in the
organization
The primary drivers of hypercompetition are - answer- the emergence of a global
economy and rapid technological change.
______ innovation is a term used to describe how rapidly and consistently new,
information-intensive technologies replace older ones. - answer- perpetual
, Firms use the five forces model to identify the ______ of the industry as measured
by its - answer- attractiveness; profitability
Firms use both the ______ and ______ models. In fact, these models complement
each other in that one focuses outside the firm while the other focuses inside the
firm. - answer- I/O; resource-based
Buyers are powerful when - answer- switching costs are low
An analysis of society's attitudes and values would be conducted when studying the
______ segment of the general environment. - answer- sociocultural
The U.S. Hispanic market is the third-largest "Latin American" economy behind
Brazil and Mexico. This impacts the ______ aspect of demographic segment
analysis. - answer- ethnic mix
Media content has moved from paper, tape, and film to a digital world based on
Internet technology. From the perspective of the five forces model, which force is
most relevant here? - answer- substitutes
Understanding how new knowledge can develop new products, processes, or
materials is a result of analyzing the ______ segment of the general environment. -
answer- technological
As customers come to believe that a firm's product is unique, this allows the firm to -
answer- obtain loyal customers
A certain marble quarry provides a unique type of marble that is richly colored and
strikingly veined. It has been used for churches and public buildings throughout the
world. The architect of a new headquarters for a prestigious Fortune 500 firm has
specified the use of this marble, and this marble only, for this project. Which of the
following statements is most likely to be true? - answer- The cost of the marble will
be expensive because of the bargaining power of the supplier.
The observation that China, despite a 37 percent surge in car sales in 2010, is
expected to reach production overcapacity by 2015 and have a glut of extra cars, is
an aspect of the ______ segment of the general environment. - answer- global
DWK Foods has developed a line of cookies and candies sweetened exclusively with
organic honey. Although DWK is selling some of the products over the Internet, in
order to gain economies of scale the products must be sold in retail outlets. The
main barrier to entry DWK is likely to encounter here is - answer- access to
distribution channels
After Amazon lowered the price on Kindle e-readers, Sony eventually lowered the
price on its Reader. Sony needed to do this because - answer- it is in the same
strategic group
All of the following are forces that create high rivalry within an industry EXCEPT -
answer- fast industry growth
