Reference no: EM132838904

Analyze the following statements as to their correctness in Strategic Business Analysis. Write "True" or "False" before the number.

1. Strategy is the linkage between a business and its current and future environment.

2. The domain of strategy is strategic competitiveness and above normal returns.

3. In shareholder approach, the firm is said to be a coalition of interest groups which seeks to balance their different objectives.

4. Domain of strategy concerns managerial decisions and actions which materially affect the success and survival of business enterprises.

5. The firm exists to maximize the wealth of its owners in an stakeholders approach.

6. Domain strategy involves the judgment necessary to strategically position a business and its resources so as to maximize long-term profits in the face of irreducible uncertainty and aggressive competition.

7. The determination of the long run goals and objectives of an enterprise, the adoption of courses of action and the allocation of resources necessary for carrying out these goals are domains of strategy.

8. Offering similar product at a lower price is a cost advantage source of competitive advantage.

9. Price premium from unique products leads to differentiation advantage

10. Differentiation is providing something unique that is valuable to the buyer beyond simply offering a low price.

11. The Industry Environment lies at the core of the Micro Environment.

12. The Micro Environment impacts the firm through its effect on the Industry Environment.

13. If we can forecast changes in industry structure we can predict likely impact on competition and profitability.

14. When the external environment is subject to rapid change, internal resources and capabilities offer a more secure basis for strategy than market focus.

15. Resources and capabilities are the primary sources of profitability.

16. Business Strategy is concerned with how a firm computes within a particular market.

17. Corporate Strategy is concerned with where a firm competes, i.e. the scope of its activities.

18. Growth strategies (esp. by acquisition), tend to destroy shareholder value.

19. The Cost of Entry Test requires that diversification must be directed towards attractive industries (or have the potential to become attractive).

20. The Attractiveness Test checks either the new unit must gain competitive advantage from its link with the company, or vice-versa. (i.e. some form of "synergy" must be present)

21. The Better-Off Test requires that the cost of entry must not capitalize all future profits.

22. Diversification firm can avoid transaction costs by operating internal capital and labor markets.

23. Key advantage of diversified firm over external markets is superior access to information.

24. Problems of operational relatedness include the fact that benefits in terms of economies of scope may be dwarfed by the administrative costs involved in their exploitation.

25. Strategic Relatedness are synergies from sharing resources across businesses (common distribution facilities, brands, joint R&D)

26. Operational Relatedness are synergies at the corporate level deriving from the ability to apply common management capabilities to different businesses.

27. Transaction cost theory explains not just the boundaries of firms, also the existence of firms.

28. A country has a relative efficiency advantage in those products that make intensive use of resources that are relatively abundant within the country.

29. Philippines relatively more efficient in the production of footwear, apparel, and assembled electronic products than in the production of chemicals and automobiles.

30. When exchange rates are well-behaved, comparative advantage becomes competitive advantage.

31. International competitive advantage is about companies not countries. The role of the national environment is providing a home base for the company.

32. Sustained competitive advantage depends upon dynamic factors, innovation and the upgrading of resources and capabilities

33. The critical role of the national environment is its impact upon the dynamics of innovation and upgrading.

34. Globalization has something to do with increasing interdependence between countries.

35. A strategy that recognizes and exploits linkages between countries is referred to as Globalization.

36. Requirements planning and management activities tend to span the duration of the project with planning input provided by other areas.

37. All work that a business analysis professional does is for a defined project.

38. Communication about the requirements in business analysis tends to span the duration of a project.

39. The business analysis principles tend to be compatible with small to large, simple to complex projects, and all types of methodologies.

40. Business analysis is a set of tasks, knowledge and techniques required to identify business needs and determine solutions to business problems.