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Why is it important for firms in the same industry to choose distinct but different strategic positions?

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In strategic positioning, firms stake ou...

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Explain product-oriented vision statements with the help of an example.

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Student answers may vary.
A product-orie...

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Which of the following is an example of competitive parity?


A) A firm manufactures higher-quality wall clocks than its competitors.
B) A firm provides wall clocks that its consumers value more than other wall clocks.
C) A firm sells wall clocks at a lower price than its competitors.
D) A firm produces a similar number of wall clocks at a similar cost as its competitors.

E) All of the above
F) A) and B)

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________ is best described as a set of goal-directed actions a firm takes to gain and sustain superior performance relative to competitors.


A) Behavior modification
B) Strategy
C) Credo
D) Competency management

E) B) and C)
F) None of the above

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How is competitive advantage different from competitive parity?

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A firm that achieves superior performanc...

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Jake's Taxi Service is a new entrant to the taxi industry. It has achieved success by staking out a unique position in the industry. How did Jake's Taxi Service mostly likely achieve this position?


A) providing long-distance cab fares at a higher rate than competitors; servicing a larger area than competitors
B) providing long-distance cab fares at a lower rate than competitors; servicing a smaller area than competitors
C) providing long-distance cab fares at a higher rate than competitors; servicing the same area as competitors
D) providing long-distance cab fares at a lower rate than competitors; servicing the same area as competitors

E) B) and D)
F) B) and C)

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The pharmaceutical company Merck's new drug Vioxx was a blockbuster, generating revenues of $2.5 billion a year by 2002 and growing fast. When allegations that the drug caused heart attacks and strokes began to appear in the medical community, and that Merck had suppressed evidence about Vioxx's dangerous side effects from early clinical trials, Merck announced the voluntary withdrawal of Vioxx from the market. In this example, Merck provides an example of what can happen if a company deviates from its


A) voluntary responsibilities.
B) realized strategy.
C) core values.
D) strategic decisions.

E) B) and D)
F) All of the above

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What part of the AFI strategy framework does the question "How does the firm make money?" relate to?


A) strategic leadership and the strategy process
B) competitive advantage, firm performance, and business models
C) external analysis
D) internal analysis

E) A) and C)
F) None of the above

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The average cost of production for a bottle of vitamin water in the industry is $4 while its average price is $7. StoreAll Inc. manufactures the same product for $3 per bottle and sells it for $7 per bottle. Which of the following statements is most likely true of StoreAll Inc. in this scenario?


A) It has a competitive advantage in the industry.
B) It has a competitive disadvantage in the industry.
C) It has competitive parity with other firms in the industry.
D) It has formed a strategic alliance with other firms in the industry.

E) A) and C)
F) None of the above

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Comment on the statement "Customer-oriented visions do not define how a customer need will be met."

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It is important not to confuse customer-...

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As the strategic manager of CutRite Scissors, you are tasked with producing a strategy for introducing a new line of premium scissors. Your competitor produces a line of similar scissors at a cost of $1 and sells them for $12. Because your company has inferior production capabilities, your scissors will cost $3 each to produce. However, your handle is proven to be more comfortable than your competitors'. Assuming you are guaranteed to sell the same number of units as your competitor, which of the following strategies is most likely to achieve a competitive advantage?


A) Reduce the quality of materials used in CutRite scissors to bring unit costs down to $1, then sell the scissors for $12.
B) Continue to produce CutRite scissors for $3 but set the price at $10.
C) Offer a buy-one-get-one-free sale on CutRite scissors.
D) Market CutRite scissors as a higher-quality alternative and sell them for $15.

E) B) and D)
F) B) and C)

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Which of the following is an example of a business acting upon an organizational core value?


A) Pegasus Autos reduces engine emissions below federal guidelines to reduce pollution.
B) Pegasus Autos lowers its retail prices to gain an advantage over its closest competitor.
C) Pegasus Autos finances research for developing more powerful engines.
D) Pegasus Autos launches an ad campaign that promotes the company as being environmentally friendly.

E) B) and D)
F) None of the above

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A positive relationship between vision statements and firm performance is more likely to exist when


A) visions are product-oriented.
B) internal stakeholders are isolated from defining and revising the visions.
C) organizational structures are aligned with the firm's vision statement.
D) vision statements are equivalent to listening to the customers.

E) B) and C)
F) A) and B)

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Free Winds, Inc. is a company that manufactures a variety of generators that run on wind power. The company envisions that wind technology will replace all forms of exhaustible energy sources in the near future. Which of the following statements will make an accurate vision for Free Winds?


A) We make products that run on wind energy.
B) All nations around the globe should be able to provide energy produced by sustainable sources.
C) The company aims to make working fun and pleasurable for its employees.
D) We provide energy-efficient sources and services by investing in research and innovation.

E) All of the above
F) C) and D)

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Which of the following is an implication of all firms in an industry pursuing a low-cost position through application of competitive benchmarking?


A) No firm would face direct competition from others in the industry; hence, profit potential would be high.
B) Each firm would be catering to a different customer segment.
C) The firms would eventually have no resources to invest in product and process improvements.
D) Each firm would be in a better position to gain a competitive advantage.

E) All of the above
F) None of the above

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A vision describes in broad, inspirational terms what an organization hopes to accomplish in the future.

A) True
B) False

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Underperformance relative to other firms in the same industry or the industry average results in a(n) ________ for a firm.


A) sustainable competitive advantage
B) increased power distance
C) diseconomies of scope
D) competitive disadvantage

E) All of the above
F) A) and C)

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Which of the following provides an example of what AFI strategy framework is used for?


A) Using AFI, the Gasquet Motor Company was able to implement a strategy that produced high-quality cars more efficiently and thereby reduced costs.
B) Using AFI, the Chen Restaurant Group was able to improve employee benefits and thereby increase employee loyalty.
C) Using AFI, the Sanchez Clothing Company was able to implement a strategy that allowed them to give more money to charities and thereby gain good press.
D) Using AFI, the Richardson Tea Group was able to reduce the pollution it caused while processing tea and thereby receive an award.

E) All of the above
F) None of the above

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The three tasks of the AFI strategy framework are to Assemble a prototype, Find a buyer, and Incorporate feedback.

A) True
B) False

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Which of the following is an element of good strategy?


A) a summary of the firm's history within its industry
B) a guiding policy to address employee satisfaction
C) a set of coherent actions to implement the firm's guiding policy
D) an approach that underestimates the competition

E) None of the above
F) B) and C)

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Showing 61 - 80 of 100

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