Reference no: EM132306273
1. Horizontal scope refers to the
a. extent to which a firm engages in the various activities from initial activities all the way to after-sales activities
b. extent to which strategic alliances and partnerships are used
c. decision to outsource or in source certain processes of a company
d. range of product and service segments that a firms services within its focal market
e. range of actives which the firm performs internally
2. Conditions that create first-mover advantages include all of following EXCEPT
a. a first-mover's customers face significant switching costs
b. pioneering helps build a firm's reputation and creates strong brand loyalty
c. property rights protections thwart imitation of the initial move
d. the costs of pioneering are high relative to the benefits accrued
e. an early lead enables the first mover to move down the learning curve ahead of rivals
3. The most frequently used approach to defending a company's present position involves actions
a. displaying a strong bias for swift, decisive, and overwhelming actions to overpower rivals
b. employing the element of surprise as opposed to doing what rivals expect and are prepared for
c. creating and deploying company resources in ways that cause rivals to struggle to defend themselves
d. focusing on building competitive advantage and then striving to convert in into a sustainable advantage
e. restricting a challenger's options for initiating a competitive attack
4. A late-mover advantage does NOT arise when
a. products of an innovator are simple, do not need a high customer understanding, and are easy to penetrate the market with
b. market uncertainties make it difficult to ascertain what will eventually succeed
c. pioneering helps build a firm's reputation with buyers and creates brand loyalty
d. rapid market evolution gives fast followers the opening to leapfrog a first mover's products with more attractive next-version products
e. property right protections in the form of patents, copyrights, and trademarks prevent the ready imitation of initial moves
5. Building positions in selection stages of the industry value chain is referred to as a
a. partial integration strategy
b. forward integration strategy
c. full integration strategy
d. backward integration strategy
e. tapered integration strategy
6. Backward integration involves performing industry value chain activities
a. previously performed by enterprises engaged in distribution and marketing
b. previously performed by enterprises engaged in the later stages of the industry value chain
c. previously performed by suppliers or other enterprises engaged in earlier stages of the industry value chain
d. closer to the end user
e. closer to the supplier
7. Which of the following is NOT one of the additional strategic choices a company must make once it has decided to employ a particular generic competitive strategy?
a. whether to go on the offensive and initiate aggressive strategic moves to improve the company's market position
b. whether to bolster the company's market position by merging with or acquiring another company in the same industry
c. whether to integrate backward or forward into more stages of the industry value chain system
d. whether to focus on providing services or products to a limited amount of customers in a market niche
8. The mix of performing an activity internally as well as outsourcing in any given stage of the vertical chain refers to which vertical integration strategy?
a. a backward integration strategy
b. a tapered integration strategy
c. a full integration strategy
d. a forward integration strategy
e. a partial integration strategy
9. All of the following are signals to would-be challengers that retaliation is likely EXCEPT
a. making an occasional strong counter-response to the moves of weak competitors to enhance the firm's image as a tough defender
b. publicly announcing management's commitment to maintaining the firm's present market share
c. creating collaborate relationships with other industry leaders to block new entrants
d. maintaining a war chest of cash and marketable securities
e. publicly committing the company to a policy of matching competitor's terms or prices
10. A firm can pursue vertical integration by all of the following EXCEPT
a. starting its own operations in other stages of the virtual activity chain
b. engaging in full integration, a partial integration, or a tapered integration
c. entering into a strategic alliance or joint venture
d. acquiring a company already performing the activities it wants to bring in-house
e. expanding its range of product and service segments within its product or service market
11. Which of the following is NOT one of the bug risks of outsourcing value chain activtites presently performed in-house?
a. a company's ability to lead the development of innovative new products may be weakened in the out sourcing process
b. a company may farm out the wrong types of activities and thereby hollow out its own capabilities
c. outside parties may not make investments specific to the needs of the outsourcing company's value chain
d. a company may be less flexible in accommodating shifting buyer preferences
e. the company loss of direct control may make it difficult to monitor and coordinate activities of outside suppliers
12. Which of the following is NOT a disadvantage of vertical integration?
a. decreased product quality
b. increased business risk
c. slowness to embrace technological advances
d. less flexibility in accommodating shifting buyer preferences
e. capacity matching problems
13. Strategic offensives should be based on
a. sizing up an organization's internal and external situation
b. satisfying employees and creating a stable work environment in order to increase long-term profits and reduce turnover
c. the creation of high profits and the reduction of costs
d. implementing and executing chosen strategy efficiently and effectively
e. those areas of strength where the company has its greatest competitive advantage over targeted rivals