33) The concept that advocates management's attempt to find a strategic fit between external opportunities and internal strengths

while working around external threats and internal weaknesses is called A) environmental analysis. B) position analysis. C) strategic evaluation. D) objective analysis. E) situational analysis. Answer: E Diff: 1 Page Ref: 176 Topic: Situational Analysis: SWOT Analysis 34) The particular capabilities and resources a firm possesses and the superior way in which they are used is called A) distinctive competencies. B) differentiating capabilities. C) situational proficiency. D) core competencies. E) distinctive characteristics. Answer: A Diff: 2 Page Ref: 176 Topic: Situational Analysis: SWOT Analysis

O.T.35) An acronym for the assessment of the external and internal environments of the business corporation in the process of strategy formulation/strategic planning is A) P. E) opportunity divided by threat. B) strength divided by opportunity. D) ambiguity in words and phrases.E. Answer: A Diff: 2 Page Ref: 176 Topic: Situational Analysis: SWOT Analysis 38) All of the following reflect criticisms of the SWOT analysis EXCEPT A) uses no weights to reflect priorities. B) M.I.B. D) S.O. Answer: B Diff: 1 Page Ref: 176 Topic: Situational Analysis: SWOT Analysis 37) The text authors note that the essence of strategy is A) opportunity divided by capacity. C) tautology. B) only requires a single level of analysis. D) threat divided by opportunity.T.U. C) S.B. Answer: C Diff: 3 Page Ref: 176 Topic: Situational Analysis: SWOT Analysis . C) threat divided by capacity. E) generation of lengthy lists. E) time. Answer: C Diff: 1 Page Ref: 176 Topic: Situational Analysis: SWOT Analysis 36) The T in SWOT represents A) tactic. C) provides a rational link to strategy implementation.W. E) R.O. B) threat. D) temporal.

C) list the most important EFAS and IFAS items. E) enter the weights for all of the internal factors. the first step is to A) enter the ratings of how the company's management is responding to each of the strategic factors. C) Wal-Mart. E) trigger points. C) strategy implementation. Answer: D Diff: 3 Page Ref: 179-180 Topic: Situational Analysis: SWOT Analysis AACSB: Analytic Skills . B) critical openings. B) calculate the weighted scores. Answer: C Diff: 3 Page Ref: 177 Topic: Situational Analysis: SWOT Analysis 40) A corporation's specific competitive role which is so well-suited to the firm's internal and external environment that other corporations are NOT likely to challenge or dislodge it. unique market opportunities that are available for only a particular time are called A) situational occasions. B) PepsiCo. D) strategic windows. D) Frank J. B) strategic fit C) common thread D) business screen E) implicit strategy Answer: A Diff: 2 Page Ref: 177 Topic: Situational Analysis: SWOT Analysis 41) According to the text. E) Disney. Zamboni & Company. A) propitious niche. D) indicate short-term for the duration.39) In the development of a SFAS matrix. Answer: D Diff: 2 Page Ref: 179 Topic: Situational Analysis: SWOT Analysis 42) One company that has successfully found a propitious niche is A) Coca-Cola.

" Answer: C Diff: 3 Page Ref: 183 Topic: Generating Alternative Strategies by Using a TOWS Matrix . D) TOWS Matrix. WT Strategies A) are generated by thinking of ways in which a company or business unit could use its strengths to take advantage of opportunities. E) are ways to get strategists to think "out of the box. B) EFAS Table." Answer: A Diff: 3 Page Ref: 183 Topic: Generating Alternative Strategies by Using a TOWS Matrix 45) In a TOWS Matrix. Answer: D Diff: 2 Page Ref: 182 Topic: Generating Alternative Strategies by Using a TOWS Matrix 44) In a TOWS Matrix. B) attempt to take advantage of opportunities by overcoming weaknesses. C) are basically defensive and primarily act to minimize weaknesses and avoid threats. E) are ways to get strategists to think "out of the box. SO Strategies A) are generated by thinking of ways in which a company or business unit could use its strengths to take advantage of opportunities. C) SFAS Table. E) are ways to get strategists to think "out of the box. E) Issues Priority Matrix. C) are basically defensive and primarily act to minimize weaknesses and avoid threats." Answer: D Diff: 3 Page Ref: 183 Topic: Generating Alternative Strategies by Using a TOWS Matrix 46) In a TOWS Matrix. D) consider a company's or unit's strengths as a way to avoid threats. B) attempt to take advantage of opportunities by overcoming weaknesses. D) consider a company's or unit's strengths as a way to avoid threats. B) attempt to take advantage of opportunities by overcoming weaknesses. C) are basically defensive and primarily act to minimize weaknesses and avoid threats. D) consider a company's or unit's strengths as a way to avoid threats. ST Strategies A) are generated by thinking of ways in which a company or business unit could use its strengths to take advantage of opportunities.43) The technique that illustrates how management can match the external opportunities and threats with its strengths and weaknesses to yield four sets of strategic alternatives is called a (an) A) IFAS Table.

B) functional and divisional strategy. the competitive strategy that reflects the ability of the corporation or its business unit to design.47) Business strategy focuses on A) ensuring that the company maintains the existing market share that it has historically enjoyed. Answer: C Diff: 3 Page Ref: 183 Topic: Business Strategies 49) Which of the following is NOT one of the questions that development of a competitive strategy should raise? 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? Answer: D Diff: 3 Page Ref: 183-185 Topic: Business Strategies AACSB: Analytic Skills 50) According to Porter. E) lower cost. E) divisional and competitive strategy. produce. D) diversification. C) competitive and cooperative strategy. and market a comparable product more efficiently than its competitors is called A) competitive scope. B) differentiation. Answer: B Diff: 2 Page Ref: 183 Topic: Business Strategies 48) Business strategy is composed of A) corporate and competitive strategy. C) concentration. D) corporate and cooperative strategy. D) preventing the competition from gaining a competitive edge by undermining their marketing plan. E) recovering the competitive lead by using all available resources that the company can provide. Answer: E Diff: 2 Page Ref: 185 . B) improving the competitive position of a corporation's products or services within the industry or market segment served. C) providing adequate shareholders' return on investment.

E) lower cost. B) differentiation. McDonald's and Alamo are all examples of companies following which of Porter's competitive strategies? A) differentiation B) cost leadership C) differentiation focus D) competitive advantage E) cost focus Answer: B Diff: 3 Page Ref: 186 Topic: Business Strategies AACSB: Analytic Skills . the competitive strategy that reflects the ability to provide unique and superior value to the buyer in terms of product quality. or after-sale service is called A) competitive scope.Topic: Business Strategies 51) What are the two generic competitive strategies that Porter promotes as the means for outperforming other corporations in a particular industry? A) competitive scope and differentiation B) diversification and concentration C) lower cost and competitive scope D) concentration and lower cost E) lower cost and differentiation Answer: E Diff: 1 Page Ref: 185 Topic: Business Strategies 52) According to Porter. E) lower cost. C) concentration. D) diversification. special features. Answer: B Diff: 2 Page Ref: 185 Topic: Business Strategies 53) According to Porter. D) diversification. the term that applies to the breadth of a company's or business unit's target market is called A) competitive scope. B) differentiation. Answer: A Diff: 2 Page Ref: 185 Topic: Business Strategies 54) Wal-Mart. C) concentration.

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avoids head-to-head competition with large pharmaceutical companies by developing orphan drugs to target diseases that affect fewer than 200.000 people. a small biotech firm. This is an example of which of Porter's generic strategies? A) differentiation B) cost leadership C) differentiation focus D) competitive advantage E) cost focus Answer: C Diff: 3 Page Ref: 187 Topic: Business Strategies AACSB: Analytic Skills . D) competitive scope and focused differentiation. Answer: C Diff: 2 Page Ref: 186 Topic: Business Strategies 56) Which of Porter's competitive strategies recommends that a company emphasize a particular buyer group or geographic market and attempts to seek a cost advantage in its targeted segment? A) differentiation B) cost leadership C) differentiation focus D) competitive advantage E) cost focus Answer: E Diff: 2 Page Ref: 187 Topic: Business Strategies 57) Patagonia uses sustainability in pursuing which of Porter's generic strategies? A) differentiation B) cost leadership C) differentiation focus D) competitive advantage E) cost focus Answer: A Diff: 2 Page Ref: 187 Topic: Business Strategies AACSB: Analytic Skills 58) Orphagenix. E) diversification and concentration. B) concentration and differentiation. C) cost focus and differentiation focus.55) When lower cost and differentiation strategies have a narrow focus on a market niche they are simply called A) cost leadership and differentiation.

C) Competitors can achieve viable imitations. the company is using the process of A) low-cost differentiation. B) The segment's differences from other segments narrow. D) The exit of focusers from the industry. E) price fixing. product line segment. D) basic differentiation.59) Which of Porter's competitive strategies concentrates on seeking differentiation in a particular buyer group. C) cost proximity. B) Achieving excessive success causing jealousy amongst competitors. Answer: C Diff: 3 Page Ref: 188 Topic: Business Strategies 61) Which of the following is NOT one of the risks of a cost leadership strategy? A) The technology that the organization has been using changes. B) cost leadership. E) Demand disappears for the product in the target segment. Answer: B Diff: 3 Page Ref: 188 Topic: Business Strategies 62) Which of the following is NOT one of the risks of the focus strategy? A) The target segment's structure erodes. or geographic market? A) differentiation B) cost leadership C) differentiation focus D) competitive advantage E) cost focus Answer: C Diff: 2 Page Ref: 187 Topic: Business Models 60) When a company following a differentiation strategy ensures that the higher price it charges for its higher quality is not priced too far above the price of the competition. E) Proximity in differentiation is lost. Answer: D Diff: 3 Page Ref: 188 Topic: Business Strategies . C) The advantages of a broad line increase. D) Cost focusers achieve even lower cost in niche market segments.

D) not goal directed. D) cost leadership strategies. known as a "bell and whistle" is an example of which of the eight dimensions of quality? A) performance B) features C) reliability D) durability E) aesthetics Answer: B Diff: 2 Page Ref: 189 Topic: Business Strategies AACSB: Analytic Skills . B) focus strategies. C) stuck in the middle. C) no strategies. Answer: C Diff: 1 Page Ref: 189 Topic: Business Strategies 64) Most entrepreneurial ventures follow A) differentiation strategies. a business unit in a competitive marketplace with no generic competitive strategy is A) achieving synergy.63) According to Porter. E) all of the above Answer: B Diff: 2 Page Ref: 189 Topic: Business Strategies 65) Which of the following is NOT one of the eight dimensions of quality? A) serviceability B) durability C) performance D) value E) features Answer: D Diff: 1 Page Ref: 189 Topic: Business Strategies 66) A car's cruise control. E) last in line. B) practicing innovative leadership.

Answer: D Diff: 3 Page Ref: 191 Topic: Business Strategies . C) attacking the strongholds of other firms. firms initially respond by A) raising entry barriers. E) focus strategy. Answer: B Diff: 2 Page Ref: 190 Topic: Business Strategies 70) As an industry becomes hypercompetitive. D) isolated industry.67) The focus strategies will likely predominate when many small and medium sized local companies compete for relatively small shares of the total market in a(n) A) united industry. D) differentiation strategy. Answer: C Diff: 2 Page Ref: 190 Topic: Business Strategies 69) A method developed in the mid-1990s as an efficient means to quickly consolidate a fragmented industry can be referred to as a(n) A) strategic plan. B) fragmented industry. B) fragmented industry. D) isolated industry. D) competing on cost and quality. C) consolidated industry. Answer: B Diff: 3 Page Ref: 190 Topic: Business Strategies 68) As an industry matures while overcoming fragmentation and becomes dominated by a small number of large companies. E) integrated industry. C) cost strategy. it tends to become a(n) A) united industry. E) integrated industry. B) moving into untapped markets. C) consolidated industry. E) working their way to a situation of perfect competition. B) strategic rollup.

B) move into untapped markets. motives. B) Drucker. E) work their way to a situation of perfect competition in which no one has any advantage and profits are minimal. C) any action by a company or business unit that provides a direct or indirect indication of its intentions. B) the first company to manufacture and sell a new product or service. E) the ability to adapt a product or delivery system more closely to buyers' needs. goals. Answer: A Diff: 1 Page Ref: 192 Topic: Business Strategies 74) Porter recommends that a division with tight cost control.71) The book Hypercompetition was written by A) Porter. D) compete on cost and quality. frequent detailed control reports. Answer: E Diff: 1 Page Ref: 191 Topic: Business Strategies 72) The last stage of a hypercompetitive industry is reached when the remaining large global competitors A) raise entry barriers. and quantitatively-based incentives is required for which of the following generic competitive strategies? A) focus B) differentiation C) overall cost leadership D) focus differentiation E) concentration Answer: C Diff: 3 Page Ref: 192 Topic: Business Strategies . C) attack the strongholds of other firms. D) policies which link formulation and implementation of the strategy. or internal situation. D) Maslow. Answer: E Diff: 2 Page Ref: 191 Topic: Business Strategies 73) A tactic is defined by the text as A) a specific operating plan specifying how a strategy is to be implemented in terms of when and where it is to be put into action. a well structured organization. E) D'Aveni. C) Mintzberg.

D) when a company implements a strategy. Answer: B Diff: 1 Page Ref: 193 Topic: Business Strategies 78) Which of the following is NOT an advantage of being a first mover? A) The company is able to establish a reputation as an industry leader.75) If it is to be successful. Answer: E Diff: 3 Page Ref: 193 Topic: Business Strategies AACSB: Reflective Thinking . Porter advises that a division possess strong marketing abilities. B) The company is able to move down the learning curve to assume the cost leader position. E) First movers may be able to keep R & D costs low by imitating the technological advances of others. D) Being first provides a company profit advantages for about ten years in consumer goods and about twelve years in industrial goods. E) why a company implements a strategy. D) power broker. a creative flair. B) first mover. E) ground breaker. for which one of the following generic competitive strategies? A) focus B) differentiation C) overall cost leadership D) vertical growth E) concentration Answer: B Diff: 3 Page Ref: 192 Topic: Business Strategies 76) Timing tactics answer the question A) who in the company implements strategy. B) where the strategy is implemented. strong capability in basic research and a corporate reputation for quality or technological leadership. C) A first mover can set the standard for all subsequent products in the industry. product engineering. Answer: D Diff: 1 Page Ref: 193 Topic: Business Strategies 77) The first company to manufacture and sell a new product or service is called a(n) A) opportunist. C) cost leader. C) what strategy is implemented.

they were using the offensive tactic known as a(n) A) flanking maneuver. B) frontal assault. C) encirclement. E) guerilla attack.79) Which offensive tactic utilizes a head-to-head approach with the firm's competitor by matching every category of competition from price to promotion to distribution channel? A) flanking maneuver B) bypass attack C) encirclement D) frontal assault E) guerilla warfare Answer: D Diff: 2 Page Ref: 193 Topic: Business Strategies 80) When Kimberly-Clark introduced Huggies disposable diapers against Procter & Gamble's market leading Pampers. D) bypass attack. Answer: B Diff: 3 Page Ref: 193 Topic: Business Strategies AACSB: Analytic Skills 81) Which tactic deals with where a company implements a strategy? A) a timing tactic B) a market location tactic C) collusion D) corporate strategy E) cooperative strategy Answer: B Diff: 1 Page Ref: 193 Topic: Business Strategies 82) Which offensive tactic advocates attacking a part of the market where the competitor is weak? A) flanking maneuver B) bypass attack C) encirclement D) frontal assault E) guerilla warfare Answer: A Diff: 2 Page Ref: 194 Topic: Business Strategies .

83) Which offensive tactic proposes an indirect approach against the established competitor such as changing the rules of the game? A) flanking maneuver B) bypass attack C) encirclement D) frontal assault E) guerilla warfare Answer: B Diff: 2 Page Ref: 194 Topic: Business Strategies 84) When Yamaha entered the market with a broader range of pianos. it was using which offensive tactic? A) flanking maneuver B) bypass attack C) encirclement D) frontal assault E) guerilla warfare Answer: C Diff: 3 Page Ref: 194 Topic: Business Strategies AACSB: Reflective Thinking 85) Which of the following is NOT an offensive tactic? A) frontal assault B) flanking maneuver C) guerilla warfare D) raising structural barriers E) encirclement Answer: D Diff: 2 Page Ref: 193-194 Topic: Business Strategies 86) Which offensive tactic have the microbreweries used against major brewers? A) flanking maneuver B) bypass attack C) encirclement D) frontal assault E) guerilla warfare Answer: E Diff: 3 Page Ref: 194 Topic: Business Strategies AACSB: Reflective Thinking . keyboards. and other musical instruments.

C) Defensive tactics lessen the intensity of an attack. E) raise buyer switching costs by offering training to users. D) Defensive tactics reduce short-term profitability to ensure long-term profitability. C) decrease scale economies. B) Defensive tactics divert attacks to less threatening avenues. E) all of the above Answer: E Diff: 2 Page Ref: 194 Topic: Business Strategies 88) Which defensive tactic is used by Coca Cola with their offering of unprofitable noncarbonated beverages to keep competitors off store shelves? A) guerilla warfare B) lower the inducement for attack C) encirclement D) raise structural barriers E) increase expected retaliation Answer: D Diff: 3 Page Ref: 194 Topic: Business Strategies AACSB: Reflective Thinking 89) Which defensive tactic was used by Southwest Airlines when deliberately keeping their prices low and constantly investing in cost-reducing measures? A) guerilla warfare B) lower the inducement for attack C) encirclement D) raise structural barriers E) increase expected retaliation Answer: B Diff: 3 Page Ref: 195 Topic: Business Strategies AACSB: Reflective Thinking 90) According to Porter. B) avoid suppliers that also serve competitors. Answer: C Diff: 2 Page Ref: 194-195 Topic: Business Strategies . strategies to raise structural barriers include all of the following EXCEPT A) tie up suppliers by obtaining exclusive contracts.87) Which of the following is true of defensive tactics? A) Defensive tactics aim to lower the probability of attack. D) block channel access by signing exclusive agreements.

D) strategic alliances and competitive. B) To reduce financial risk. Answer: C Diff: 1 Page Ref: 195 Topic: Business Strategies 92) Which of the following is NOT a reason companies or business units may form a strategic alliance? A) To obtain technological and/or manufacturing capabilities. C) To reduce political risk. E) holding company. Answer: D Diff: 2 Page Ref: 196-197 Topic: Business Strategies 93) 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 A) joint venture. E) competitive and collusive alliances. D) mutual service consortia. C) strategic alliances and collusion.91) The two general types of cooperative strategies are A) competitive and functional. D) To set prices in the industry. E) To learn new capabilities. B) licensing agreement. Answer: D Diff: 1 Page Ref: 197 Topic: Business Strategies 94) Which strategy has been used successfully by Yum! Brands to establish KFC and Pizza Hut restaurants across the globe? A) joint venture B) licensing arrangement C) strategic alliance D) marketing strategy E) value-chain partnership Answer: B Diff: 3 Page Ref: 198 Topic: Business Strategies AACSB: Reflective Thinking . B) collusion and competitive. C) value-chain partnership.

C) Agree on an exit strategy for when the partners' objectives are achieved. B) licensing agreement. D) mutual service consortia. C) value-chain partnership. D) Minimize conflicts among the partners by clarifying the objectives.95) The kind of strategic alliance in which a company forms a strong and close long-term relationship for mutual advantage with a key supplier or distributor is the A) joint venture. E) Identify likely partnering risks and deal with them when the alliance is formed. Answer: C Diff: 2 Page Ref: 198 Topic: Business Strategies 96) Which of the following is NOT considered a strategic alliance success factor? A) Have a clear strategic purpose. E) holding company. Answer: B Diff: 2 Page Ref: 199 Topic: Business Strategies . B) Operate with short term time horizon.

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