A(n) _____ is a competitive countermove, prompted by a rival's attack, to defend or improve a company's market share or profit.
answer
Response.
question
Ziff Corp. was a leading electronics firm for about three decades. As the competition changed, its product innovation stopped. The managers at Ziff Corp. are well aware of the strategies that lead to their company's success and they continue to follow the old strategies. This scenario is an example of _____.
answer
Competitive inertia.
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Which of the following statements is true of a portfolio strategy?
answer
It guides the strategic decisions of corporations that compete in a variety of businesses.
question
Organizations can achieve a competitive advantage by using their resources to _____.
answer
Provide greater value for customers than competitors can.
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Which of the following conditions must be met if a firm's resources are to be used to achieve a sustainable competitive advantage?
answer
The resources must be valuable, rare, imperfectly imitable, and nonsubstitutable.
question
Which of the following best defines a distinctive competence?
answer
It is what a company can make, do, or perform better than its competitors.
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A competitive advantage becomes a sustainable competitive advantage when:
answer
Other companies cannot duplicate the value a firm is providing to customers.
question
ZeCola is a beverage manufacturer. It presents WYB, a zero-calorie drink to compete with We Fresh's Shire, a low-calorie drink. When WYB is released in the market, We Fresh cuts down the price on Shire to match WYB's price. This scenario is an example of a(n) _____.
answer
Attack.
question
In the context of portfolio strategy, _____ is the purchase of a company by another company.
answer
Acquisition.
question
_____ largely affects response capability, that is, how quickly and forcefully a company can respond to an attack.
answer
Resource similarity.
question
In the context of adaptive strategies, which of the following best describes prospectors?
answer
They seek fast growth by searching for new market opportunities, encouraging risk taking, and being the first to bring innovative new products to market.
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Which of the following is the last step of a strategy-making process?
answer
Choosing strategic alternatives.
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_____ is a measure of the intensity of competitive behavior among companies in an industry.
answer
Character of the rivalry.
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Which of the following best defines strategic dissonance?
answer
It is a discrepancy between a company's intended strategy and the strategic actions taken by managers while implementing that strategy.
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Which of the following best defines cash cows?
answer
They are the companies that have a large share of a slow-growing market.
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Which of the following is the first step of a strategy-making process?
answer
Assessing the need for strategic change.
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Which of the following can help managers to improve the speed and accuracy with which they determine the need for strategic change?
answer
Looking for signs of strategic dissonance.
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_____ affects the likelihood of an attack or a response to an attack.
answer
Market commonality.
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Which of the following best defines cost leadership?
answer
It is the positioning strategy of producing a product or service of acceptable quality at consistently lower production costs than competitors can so that a firm can offer the product or service at the lowest price in the industry.
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Which of the following best defines competitive inertia?
answer
It is a reluctance to change strategies or competitive practices that have been successful in the past.
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Which of the following statements is true of direct competition?
answer
It is determined by two factors: market commonality and resource.
question
The BCG matrix starts by recommending that while the substantial cash flows from cash cows last, they should be reinvested in stars to:
answer
Help them grow even faster and obtain even more market share.
question
Which of the following best defines a SWOT analysis?
answer
It is an assessment of both the internal and external environment of an organization.
question
Bob's Assembly is a hardware manufacturer. It specializes in builders' hardware for doors, cabinets, windows, and bathrooms. Bob's Assembly products are cheaper and 95% more durable than its competitors' products. This scenario is an example of _____ as Bob's Assembly performs better than its competitors.
answer
Distinctive competence.
question
_____ is a competitive advantage that other companies have tried unsuccessfully to duplicate and have, for the moment, stopped trying to duplicate.
answer
Sustainable competitive advantage.
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