Competitive Strategy
Final Test Solutions
Course Introduction
Competitive Strategy examines how firms achieve and sustain competitive advantage in dynamic markets. The course explores key frameworks and analytical tools for industry analysis, competitor assessment, and internal resource evaluation, enabling students to identify and formulate effective strategies. Through case studies, simulations, and group projects, students will learn to anticipate competitive moves, understand market structures, and make strategic decisions that position organizations for long-term success. The curriculum integrates concepts such as game theory, value creation, strategic positioning, and innovation, preparing students to navigate complex competitive landscapes both domestically and globally.
Recommended Textbook
Strategic Management Concepts and Cases Competitiveness 12th Edition by
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13 Chapters
1670 Verified Questions
1670 Flashcards
Source URL: https://quizplus.com/study-set/245
Page 2
Michael A. Hitt
Chapter 1: Strategic Management and Strategic Competitiveness
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133 Verified Questions
133 Flashcards
Source URL: https://quizplus.com/quiz/3850
Sample Questions
Q1) ______ provides the firm with new and up-to-date skill sets, which allow it to adapt to its environment as it encounters changes.
A) Strategic flexibility
B) Continuous learning
C) Knowledge
D) The Internet Answer: B
Q2) A retail outlet can attempt several remedies to improve profitability to meet the expectations of its _______ stakeholders, including closing stores, changing the top management team, and seeking potential buyers.
A) product market
B) capital market
C) organizational
D) governmental Answer: B
Q3) Resources are considered rare when they have no structural equivalent.
A)True
B)False
Answer: False
Page 3
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Chapter 2: The External Environment: Opportunities,
Threats, Industry Competition, and Competitor Analysis
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138 Verified Questions
138 Flashcards
Source URL: https://quizplus.com/quiz/3851
Sample Questions
Q1) Applications developed for iPhones make the phone more valuable to iPhone users.
App developers are ______ to Apple.
A) suppliers
B) customers
C) competitors
D) complementors
Answer: D
Q2) The Obama administration sought to pursue policies that would:
A) remove the United States from NAFTA.
B) abolish antitrust laws.
C) increase the amount of work U.S. companies outsource to firms in other nations.
D) reduce the amount of work U.S. companies outsource to firms in other nations.
Answer: D
Q3) Eavesdropping by the NSA on average Americans is ethical because it is a governmental organization instead of a for-profit company.
A)True
B)False
Answer: False
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Chapter 3: The Internal Organization: Resources, Capabilities, Core Competencies, and Competitive Advantages
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133 Verified Questions
133 Flashcards
Source URL: https://quizplus.com/quiz/3852
Sample Questions
Q1) Capabilities that other firms cannot develop easily are classified as:
A) costly to imitate.
B) rare.
C) valuable.
D) nonsubstitutable.
Answer: A
Q2) The corporate research division of Siemens files, on average, 25 patents a day. The patents are a(n) ______ resource.
A) financial
B) organizational
C) physical
D) technological
Answer: D
Q3) One criterion for a resource or capability to be a source of competitive advantage is that it must allow the firm to perform a value-creating activity that competitors cannot perform.
A)True
B)False
Answer: True
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Chapter 4: Business-Level Strategy
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131 Verified Questions
131 Flashcards
Source URL: https://quizplus.com/quiz/3853
Sample Questions
Q1) Strategic fit among many activities (in an activity map) is fundamental to:
A) the development of core competencies for a firm.
B) the breadth of competitive scope for a firm.
C) sustainability of a firm's competitive advantage.
D) the integrity of the firm's value chain.
Q2) When implementing a focus strategy, the firm seeks to:
A) offer products that are both differentiated and low cost.
B) move into the global market.
C) target the typical customer in an industry.
D) serve the specialized needs of a market segment.
Q3) Changing consumer needs are illustrated by Starbucks' enabling consumers to have an experience and design their own drinks rather than just a cup of coffee.
A)True
B)False
Q4) TQM is most helpful to firms following the ____ business strategy.
A) cost leadership
B) integrated cost leadership/differentiation
C) focused cost leadership
D) focused differentiation
Q5) Describe the additional risks undertaken by firms pursuing a focus strategy.
Page 6
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Chapter 5: Competitive Rivalry and Competitive Dynamics
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107 Verified Questions
107 Flashcards
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Sample Questions
Q1) What are the advantages and disadvantages of being a first mover, second mover, and late mover?
Q2) A firm that is LEAST likely to launch competitive actions is one that has:
A) organizational slack.
B) advanced research and development.
C) recently improved the quality of its products.
D) large size.
Q3) Which of the following is an example of a strategic action?
A) A "two movies for the price of one" campaign by Redbox
B) Use of product coupons by a local grocer
C) Entry into the European market by Home Depot
D) Fare increases by Southwest Airlines
Q4) The more dependent a firm is on its market, the more aggressively it will defend it from another competitor.
A)True
B)False
Q5) Firms with high market commonality and highly similar resources are direct and mutually acknowledged competitors.
A)True
B)False
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Chapter 6: Corporate-Level Strategy
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140 Verified Questions
140 Flashcards
Source URL: https://quizplus.com/quiz/3855
Sample Questions
Q1) Vertical integration allows the firm to gain market power as the firm develops the ability to save on its operations, avoid market costs, improve product quality, and possibly protect its technology from rivals.
A)True
B)False
Q2) Which of the following resources are more likely to create value in the diversification process?
A) Plant and equipment
B) Tacit knowledge
C) Excess capacity
D) Financial resources
Q3) Vertical integration exists when a company produces its own inputs (forward integration) or owns its source of output distribution (backward integration).
A)True
B)False
Q4) Low firm performance is associated with increased diversification.
A)True
B)False
Q5) What are the managerial motives to diversify?
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Chapter 7: Merger and Acquisition Strategies
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131 Verified Questions
131 Flashcards
Source URL: https://quizplus.com/quiz/3856
Sample Questions
Q1) The intent of the owners in a whole-firm leveraged buyout may be to increase the efficiency of the bought-out firm and resell it in 5-8 years. This tends to make the managers of the bought-out firm high-risk takers, since they will probably not survive the resale and thus have little to lose.
A)True
B)False
Q2) Which of the following is NOT an attribute of a successful acquisition?
A) The acquiring firm has a large amount of financial slack.
B) The acquired and acquiring firms have complementary assets and/or resources.
C) Innovation and R&D investments continue as part of the firm's strategy.
D) Investments in advertising and image building are made quickly.
Q3) Downscoping represents a reduction in the number of a firm's employees and sometimes in the number of its operating units, but it may or may not represent a change in the composition of businesses in the corporation's portfolio.
A)True
B)False
Q4) Describe the seven problems in achieving a successful acquisition.
Q5) What are the differences between downscoping and downsizing and why are each used?
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Chapter 8: International Strategy
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129 Verified Questions
129 Flashcards
Source URL: https://quizplus.com/quiz/3857
Sample Questions
Q1) Disney suffered lawsuits in France at Disneyland Paris as a result of the lack of fit between its transferred personnel policies and the French employees charged to enact them. This is an example of:
A) the effects of regionalization.
B) the risks of a multi-domestic strategy.
C) the liability of foreignness.
D) the effect of demand conditions.
Q2) Which of the following is NOT a factor pressuring companies for local responsiveness?
A) Differences in employment laws
B) Customization due to cultural differences
C) Government pressure for firms to use local sources for procurement
D) Availability of low labor costs
Q3) Discuss the effect of international diversification on a firm's returns.
Q4) When the country risk is high, firms prefer to enter with a greenfield investment rather than a joint venture.
A)True
B)False
Q5) What are the three basic benefits of international strategies?
Q6) Identify and describe the major risks of international diversification.
Page 10
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Chapter 9: Cooperative Strategy
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123 Verified Questions
123 Flashcards
Source URL: https://quizplus.com/quiz/3858
Sample Questions
Q1) Fujitsu Siemens Computers is a legally independent company of which Fujitsu and Siemens each own 50 percent. This collaboration is an example of a ________, which is effective at transferring ________.
A) nonequity strategic alliance; explicit knowledge
B) joint venture; tacit knowledge
C) joint venture; explicit knowledge
D) equity strategic alliance; tacit knowledge
Q2) The risks of being accused of collusion are MOST likely under what type of alliance?
A) Equity-based vertical complementary alliance
B) Equity-based horizontal complementary alliance
C) Nonequity-based vertical complementary alliance
D) Nonequity-based horizontal complementary alliance
Q3) The alliance between BP Plc and OAO Rosneft to extract oil from Russia's Arctic Ocean was managed using contracts, i.e., the cost minimization approach.
A)True
B)False
Q4) Identify and define the different types of strategic alliances.
Q5) Identify the three types of corporate-level cooperative strategies.
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Chapter 10: Corporate Governance
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142 Verified Questions
142 Flashcards
Source URL: https://quizplus.com/quiz/3859
Sample Questions
Q1) Which of the following is NOT an internal governance mechanism?
A) The board of directors
B) Ownership concentration
C) Executive compensation
D) The market for corporate control
Q2) Complete the following: In small firms, managers often own a ____ percentage of the firm, which means there is ____ separation between ownership and managerial control.
A) small; small
B) small; large
C) large; small
D) large; large
Q3) A virtually exclusive reliance on financial controls may occur when outsider-dominated Boards exist. This may lead to all of the following EXCEPT:
A) high executive turnover.
B) increased diversification of the firm.
C) excessive management compensation.
D) reduction in R&D expenditure.
Q4) Describe the market for corporate control and its implications for organizations.
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Chapter 11: Organizational Structure and Controls
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136 Verified Questions
136 Flashcards
Source URL: https://quizplus.com/quiz/3860
Sample Questions
Q1) Typically, an organization using a simple structure would be:
A) large.
B) small.
C) of any size if the firm is privately held.
D) a family-owned-and-managed firm of any size.
Q2) The benefits of a simple structure include all of the following EXCEPT:
A) ease of coordination within the organization.
B) the lack of a need for sophisticated information systems.
C) active involvement by the owner-manager.
D) the ability of specialists to develop deep expertise.
Q3) The ______ structure is an organizational structure that combines both functional specialization and business product or project specialization.
A) functional
B) worldwide geographic area
C) network
D) matrix
Q4) Discuss the organizational structures used to implement corporate-level strategies.
Q5) Describe the organizational structures used to implement the three international strategies.
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Chapter 12: Strategic Leadership
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118 Verified Questions
118 Flashcards
Source URL: https://quizplus.com/quiz/3861
Sample Questions
Q1) As a strategic leader, what actions could you take to establish and emphasize ethical practices in your firm?
Q2) A CEO gains power from all of the following circumstances EXCEPT:
A) when many of the outside directors are appointed by the CEO.
B) when the CEO is also the chairman of the Board.
C) when tenure of the top management team is shorter than the tenure of the Board.
D) the fact that inside Board members report to the CEO.
Q3) The firm of Bergeron has existed for hundreds of years, having made exquisite clocks and watches. In its advertising it refers to clocks the firm made for such past royalty as Marie Antoinette and the Czars of Russia. Employees are constantly reminded of the firm's rich history and its long tradition of excellence of design and execution. Bergeron is motivating its employees through its:
A) core ideology.
B) envisioned future.
C) organizational culture.
D) business strategy.
Q4) What is organizational culture? What must strategic leaders do to develop and sustain an effective organizational culture?
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Page 14
Chapter 13: Strategic Entrepreneurship
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109 Verified Questions
109 Flashcards
Source URL: https://quizplus.com/quiz/3862
Sample Questions
Q1) Internal corporate venturing does NOT involve:
A) autonomous strategic behavior.
B) induced strategic behavior.
C) strategic alliances.
D) product champions.
Q2) Rosalie has become totally preoccupied by her idea for creating a business leasing horses to riders on the same principle as time-shares on condominiums. Rosalie is researching the legal, financial, and insurance aspects of her idea and is preparing a prospectus to take to banks to ask for a business loan. Rosalie's significant other is complaining that she "sleeps, eats, and drinks" this concept. Rosalie has the entrepreneurial characteristic of passion.
A)True
B)False
Q3) Discuss the benefits and risks of acquiring another firm to gain access to innovations.
Q4) Induced strategic behavior is a process that fosters product innovations that:
A) are likely to change a firm's strategic intent and mission.
B) will lead to greater financial returns.
C) are aligned closely with current strategy and structure.
D) will come to market in a short period of time.
Page 15
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