Question 1

An offensive to yield good results can be short if:

Accepted Answer

A)   buyers respond immediately (to a dramatic cost-based price cut or imaginative ad campaign) .
B)   competition creates an appealing new product.
C)   the technology needs debugging.
D)   new production capacity needs to be installed.
E)   consumer acceptance of an innovative product takes time.F) All of the above
G) A) and C)

Question 2

Which of the following rivals make the best targets for an offensive attack?

Accepted Answer

A)   Firms with weaknesses in areas where the challenger is strong.
B)   Companies that are financially strong and possess favorable competitive market positioning.
C)   Large national firms with vast capabilities and intermittent trivial resource deficiencies.
D)   Strong and financially secure market leaders.
E)   Small local and regional firms with unrestrained capabilities.F) C) and D)
G) B) and D)

Question 3

The best strategic alliances:

Accepted Answer

A)   are highly selective,focusing on particular value chain activities and on obtaining a particular competitive benefit,thereby enabling the firm to build on its strengths and to learn.
B)   are those whose purpose is to create an industry key success factor.
C)   are those which help a company move quickly from one strategic group to another.
D)   involve joining forces in R&D to develop new technologies cheaper than a company could develop the technology on its own.
E)   aim at raising an industry's barriers to entry.F) A) and B)
G) A) and C)

Question 4

Being first to initiate a particular strategic move can have a high payoff in all of the following EXCEPT when:

Accepted Answer

A)   pioneering helps build up a firm's image and reputation and creates strong brand loyalty.
B)   buyers remain strongly loyal to pioneering firms because of incentives and switching costs barriers.
C)   there is a steep learning curve and when learning can be kept proprietary.
D)   moving first can constitute a preemptive strike,making imitation extra hard or unlikely.
E)   market uncertainties make it difficult to ascertain what will eventually succeed.F) C) and D)
G) B) and D)

Question 5

Backward vertical integration can produce:

Accepted Answer

A)   a full integration when activities remain the domain of key suppliers.
B)   a tapered integration if the firm consolidates all activities in-house.
C)   a differentiation-based competitive advantage when activities enhance the performance of the final product.
D)   a focused differentiation strategy when the market is broad and the product is a commodity.
E)   All of these.F) D) and E)
G) A) and D)

Question 6

Identify and briefly discuss two "best targets" for offensive attacks by companies.

Accepted Answer

The answer of Identify and briefly discuss two "best targets"...

Question 7

Bypassing regular wholesale/retail channels in favor of direct sales and Internet retailing can have appeal if:

Accepted Answer

A)   it reinforces the brand,enhances consumer satisfaction,and results in lower prices to end users.
B)   it can result in better coordination of the firm's direct sales activity to wholesalers and distributors
C)   it can establish a retail frontal attack while efficiently managing its backward (defensive) sales orientation.
D)   it combines the best of all sales channels and provides financial support to distribution allies.
E)   it creates a channel conflict,thereby providing competitive improvisation.F) D) and E)
G) C) and E)

Question 8

A good example of vertical integration is:

Accepted Answer

A)   a global public accounting firm acquiring a small local or regional public accounting firm.
B)   a large supermarket chain getting into convenience food stores.
C)   a crude oil refiner purchasing a firm engaged in drilling and exploring for oil.
D)   a hospital opening up a nursing home for the aged.
E)   a railroad company acquiring a trucking company specializing in long-haul freight.F) B) and D)
G) C) and D)

Question 9

Outsourcing the performance of value chain activities presently performed in-house to outside vendors and suppliers makes strategic sense EXCEPT when:

Accepted Answer

A)   an activity can be performed better or more cheaply by outside specialists.
B)   it allows a company to focus its entire energies on its core business,leverage its key resources,and do even better what it already does best.
C)   it restricts a company's ability to assemble diverse kinds of expertise speedily and efficiently.
D)   it reduces the company's risk exposure to changing technology and/or changing buyer preferences.
E)   All of these.F) C) and E)
G) A) and E)

Question 10

What does a company racing to stake out a strong position in an industry of the future need strategic alliances for?

Accepted Answer

The answer of What does a company racing to stake...

Question 11

Capturing the benefits of strategic alliances is not easy,but success generally is a function of six factors,except when:

Accepted Answer

A)   being sensitive to cultural differences.
B)   managing the learning process and allowing for emerging circumstances.
C)   picking a good partner with good chemistry.
D)   recognizing that the alliance must benefit both sides.
E)   ensuring the division of work is directly apportioned to appropriate skill sets.F) B) and D)
G) A) and B)

Question 12

The two big drivers of outsourcing are:

Accepted Answer

A)   an increased ability to cut R&D expenses and an increased ability to avoid the problems of strategic alliances.
B)   that outsiders can often perform certain activities better or more cheaply,and outsourcing allows a firm to focus its entire energies on those activities that are at the center of its expertise (its core competencies) .
C)   a desire to reduce the company's investment in fixed assets and the need to narrow the scope of the company's in-house competencies and competitive capabilities.
D)   the ability to avoid capital investments that accompany vertical integration and a desire to reduce the company's risk exposure to changing technology and/or changing buyer preferences.
E)   that a smaller in-house workforce and a low investment in intellectual capital will produce cost savings.F) A) and B)
G) B) and C)

Question 13

What are the merits of strategic alliances and collaborative partnerships for companies racing to seize opportunities in an industry of the future? Under what circumstances do they make sense? How do they contribute to competitive advantage?

Accepted Answer

The answer of What are the merits of strategic alliances...

Question 14

The principal offensive strategy options include all of the following EXCEPT:

Accepted Answer

A)   using a cost advantage to attack competitors on the basis of lower price or better product value.
B)   using hit-and-run or guerrilla warfare tactics to grab sales and market share from complacent or distracted rivals.
C)   launching a preemptive strike to secure an advantageous position that rivals are prevented or discouraged from duplicating.
D)   pursuing continuous product innovation to draw sales and market share away from less innovative rivals.
E)   initiating a market threat and counterattack simultaneously to effect a distraction.F) A) and D)
G) C) and D)

Question 15

A company that fails in managing their strategic alliance probably has not:

Accepted Answer

A)   incorporated contractual safeguards.
B)   made opportunities for learning a routine management process.
C)   created a system to manage alliances in a systematic fashion.
D)   established strong interpersonal relationships and established trust.
E)   All of these.F) A) and E)
G) A) and D)

Question 16

When firms are involved in a mix of in-house and outsourced activity in any given stage of the vertical chain,it is called:

Accepted Answer

A)   tapered integration.
B)   partial integration.
C)   full integration.
D)   forward integration.
E)   backward integration.F) All of the above
G) A) and E)

Question 17

Identify and explain at least two drawbacks to forming a strategic alliance.

Accepted Answer

The answer of Identify and explain at least two drawbacks...

Question 18

When challenging a struggling rival,it can:

Accepted Answer

A)   sap the rival's financial strength and competitive position.
B)   weaken the rival's resolve.
C)   accelerate the rival's exit from the market.
D)   threaten the rival's overall survival in the market.
E)   All of these.F) A) and B)
G) None of the above

Question 19

Identify and briefly explain what is meant by each of the following terms.
a)horizontal scope
b)vertical scope
c)scope of the firm

Accepted Answer

The answer of Identify and briefly explain what is meant...

Question 20

Which of the following is NOT a factor that makes an alliance "strategic" as opposed to just a convenient business arrangement?

Accepted Answer

A)   The alliance is critical to the company's achievement of an important objective.
B)   The alliance helps block a competitive threat.
C)   The alliance helps open up important new market opportunities.
D)   The alliance helps build,enhance,or sustain a core competence or competitive advantage.
E)   The alliance helps the company obtain additional financing on better credit terms.F) C) and D)
G) A) and B)

Exam 6: Strengthening a Companys Competitive Position: Strategic Moves, Timing, and Scope of Operations

Which of the following rivals make the best targets for an offensive attack?

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Identify and briefly discuss two "best targets" for offensive attacks by companies.

Correct AnswerverifiedShow Answer

Outsourcing the performance of value chain activities presently performed in-house to outside vendors and suppliers makes strategic sense EXCEPT when:

Correct AnswerverifiedShow Answer

Being first to initiate a particular strategic move can have a high payoff in all of the following EXCEPT when:

Correct AnswerverifiedShow Answer

The two big drivers of outsourcing are:

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The principal offensive strategy options include all of the following EXCEPT:

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Which of the following is NOT a factor that makes an alliance "strategic" as opposed to just a convenient business arrangement?

Correct AnswerverifiedShow Answer

When firms are involved in a mix of in-house and outsourced activity in any given stage of the vertical chain,it is called:

Correct AnswerverifiedShow Answer

Identify and explain at least two drawbacks to forming a strategic alliance.

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The best strategic alliances:

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An offensive to yield good results can be short if:

Correct AnswerverifiedShow Answer

Capturing the benefits of strategic alliances is not easy,but success generally is a function of six factors,except when:

Correct AnswerverifiedShow Answer

What are the merits of strategic alliances and collaborative partnerships for companies racing to seize opportunities in an industry of the future? Under what circumstances do they make sense? How do they contribute to competitive advantage?

Correct AnswerverifiedShow Answer

A company that fails in managing their strategic alliance probably has not:

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Backward vertical integration can produce:

Correct AnswerverifiedShow Answer

Identify and briefly explain what is meant by each of the following terms. a)horizontal scope b)vertical scope c)scope of the firm

Correct AnswerverifiedShow Answer

A good example of vertical integration is:

Correct AnswerverifiedShow Answer

When challenging a struggling rival,it can:

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What does a company racing to stake out a strong position in an industry of the future need strategic alliances for?

Correct AnswerverifiedShow Answer

Bypassing regular wholesale/retail channels in favor of direct sales and Internet retailing can have appeal if:

Correct AnswerverifiedShow Answer

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