Q. A sustained or sustainable competitive advantage requires that:
a. the value creating strategy be in a formulation stage.
b. competitors implement the strategy.
c. other companies not be able to duplicate the strategy.
d. average returns be earned by the company.
Q. The strategic management process is:
a. a set of activities that is guaranteed to prevent organizational failure.
b. a process concerned with a firm's resources, capabilities, and competencies, but not the conditions in its external environment.
c. a set of activities that to date have not been used successfully in the notfor-profit sector.
d. a dynamic process involving the full set of commitments, decisions, and actions related to the firm.
Q. Which of the following is NOT an assumption of the Industrial Organization, or I/O,model?
a. Organizational decision makers are rational and committed to acting in the firm's best interests.
b. Resources to implement strategies are not highly mobile across firms.
c. The external environment is assumed to impose pressures and constraints that determine the strategies that result in superior performance.
d. Firms in given industries, or given industry segments, are assumed to control similar strategically relevant resources.
Q. Which of the following is NOT an assumption of the resource-based model?
a. Each firm is a unique collection of resources and capabilities.
b. All firms possess the same strategically relevant resources.
c. Resources are not highly mobile across firms.
d. Firms acquire different resources and capabilities over time.
Q. In contrast to the industrial organization model, in a resource-based model, which of thefollowing factors would be considered a key to organizational success?
a. unique market niche.
b. weak competition.
c. economies of scale.
d. loyal employees.
Q. The resource-based model of the firm argues that:
a. all resources have the potential to be the basis of sustained competitive advantage.
b. resources are not a source of potential competitive advantage.
c. the key to competitive success is the structure of the industry in which the firm competes.
d. resources that are valuable, rare, costly to imitate, and non-substitutable form the basis of a firm's core competencies.
Q. Strategic mission:
a. is a statement of a firm's unique purpose and scope of operations.
b. is an internally-focused affirmation of the organization's societal and ethical goals.
c. does not limit the firm by specifying the industry in which the firm intends to compete.
d. is developed by a firm before the firm develops its strategic intent.
Q. The environment is composed of elements in the broader society that can influence an industry and the firms within it.
a. general
b. competitor
c. sociocultural
d. industry
Q. The environmental segments that comprise the general environment typically will NOTinclude:
a. demographic factors.
b. sociocultural factors.
c. substitute products or services.
d. technological factors.
Q. The economic environment refers to:
a. the nature and direction of the economy in which a firm competes or may compete.
b. the economic outlook of the world provided by the World Bank.
c. an analysis of how the environmental movement and world economy interact.
d. an analysis of how new environmental regulations will affect our economy.
Q. An industry is defined as:
a. a group of firms producing the same item.
b. firms producing items that sell through the same distribution channels.
c. firms that have the same seven-digit standard industrial code.
d. a group of firms producing products that are close substitutes.
Q. An integrated and coordinated set of commitments and actions designed to exploitcore competencies and gain a competitive advantage in a specific product market is a definition of:
a. business strategy.
b. core competencies.
c. sustained competitive advantage.
d. strategic mission.
Q. Business-level strategies are concerned specifically with:
a. creating differences between the firm's position and its rivals.
b. the industries in which the firm will compete.
c. how functional areas will be organized within the firm.
d. how a business with multiple physical locations will operate one of those locations.
Q. A cost leadership strategy provides goods or services with features that are:
a. acceptable to customers.
b. unique to the customer.
c. highly valued by the customer.
d. able to meet unique needs of the customer