Competitive Strategy
Review Questions
Course Introduction
Competitive Strategy explores the principles and frameworks that organizations use to achieve and sustain a competitive advantage in dynamic markets. The course examines industry structure, positioning, differentiation, cost leadership, and the interplay between firms through case studies and analytical models. Students will learn to evaluate an organizations environment, anticipate competitor moves, and design effective strategies to outperform rivals. Emphasis is placed on both theoretical foundations and their practical application across diverse industries, preparing students to formulate and implement strategies that drive long-term success.
Recommended Textbook
Strategic Management Concepts and Cases Competitiveness 12th Edition by Michael
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13 Chapters
1670 Verified Questions
1670 Flashcards
Source URL: https://quizplus.com/study-set/245
Page 2
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) A company's ability to acquire knowledge is:
A) less important in the 21st century than in previous periods of business history.
B) an important source of competitive advantage in virtually all industries.
C) not considered an asset or resource for businesses.
D) only important in high technology industries.
Answer: B
Q2) A major assumption about the strategic management process is that it is:
A) inspired.
B) team-based.
C) rational.
D) inclusive.
Answer: C
Q3) Globalization has led to:
A) lower operational efficiency as firms must transport raw materials and finished goods farther.
B) increasing loyalty of customers for products made domestically.
C) declining returns from investment in research and development.
D) higher performance standards including quality and cost.
Answer: D
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) High-level maintenance on aircraft is performed by the manufacturer. This service after the sale means that in the aircraft industry:
A) customers are relatively weak because of the high switching costs created by frequent-flyer programs.
B) the industry is moving toward differentiation of services.
C) the competitive rivalry in the industry is severe.
D) the economic segment of the external environment has shifted, but airline strategies have not changed.
Answer: C
Q2) Golden Lotus, an exercise club targeting healthy individuals over 50, is located in a fast-growing city in the Southwest. Which of the following factors that may have an effect on the success of Golden Lotus is the most directly controllable by the company?
A) The sociocultural environment
B) The demographics of the environment
C) The economy of the local area
D) The power of the customers/buyers
Answer: D
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Page 4
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) Because firms combine tangible and intangible resources to create capabilities:
A) these capabilities are fragile and subject to sudden loss of value.
B) capabilities are often based on developing, carrying, and exchanging information and knowledge through the firm's human capital.
C) capabilities are easily transferred from one firm to another as employees change jobs.
D) these types of capabilities are considered primary activities in the value chain.
Answer: B
Q2) Any core competency has the potential to lose its value-creating ability.
A)True
B)False
Answer: True
Q3) Compared to tangible resources, intangible resources are ______ and ______.
A) less visible; more difficult to copy.
B) less visible; less difficult to copy.
C) more visible; more difficult to copy.
D) more visible; less difficult to copy.
Answer: A
Page 5
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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) Unlike a cost leadership and a differentiation strategy, both focus strategies are less dependent on the completion of various value chain and support activities to compete in a superior manner.
A)True
B)False
Q3) The book The Dyslexic Advantage appeals to a market of educators, people with dyslexia, their friends, family, and coworkers. This is customer segmentation by ______ factors.
A) demographic
B) socioeconomic
C) psychological
D) consumption
Q4) When a firm chooses a business-level strategy, it must answer the questions "Who? What? and How?" What are these questions and why are they important?
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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) A company in a ____ industry is LEAST likely to make heavy use of patents and copyrights.
A) slow-cycle
B) medium-cycle
C) standard-cycle
D) fast-cycle
Q2) Rapid-Built Homes specializes in low-cost prefabricated, modular homes that can be erected in a matter of days anywhere in the country. Rapid-Built focuses on entire subdivisions of homes developed by real estate speculators. ModernModular Homes (ModMod) specializes in modular homes designed by architects, which can be built anywhere in the country. The buyers usually build the home themselves from kits on their own lots. ModMod sells fewer than 100 house kits per year. ModMod is run by two professors of architecture as a sideline business. According to the "Framework of Competitive Analysis," we can say that Rapid-Built and ModMod
A) are direct mutually acknowledged competitors.
B) have high resource similarity.
C) have high market commonality.
D) are probably not engaged in intense competitive rivalry.
Q3) Define awareness, motivation, and ability in reference to competitive behavior.
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Page 7
Chapter 6: Corporate-Level Strategy
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140 Verified Questions
140 Flashcards
Source URL: https://quizplus.com/quiz/3855
Sample Questions
Q1) A company pursuing vertical integration can gain market power over its competitors through all of the following EXCEPT:
A) improved adjustment to technological changes.
B) savings on operations costs.
C) improved product quality.
D) avoidance of market costs.
Q2) Firms with both operational and corporate relatedness are favorites of investment analysts because the transparency and clarity of their financial statements clearly show the value-creation resulting from the combination of multiple businesses.
A)True
B)False
Q3) If the businesses in the corporate portfolio are not worth more under the management of the corporation than they would be under any other ownership, then the corporate-level strategy has failed.
A)True
B)False
Q4) Low firm performance is associated with increased diversification.
A)True
B)False
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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) During the recent financial crisis, M&A activity ______, whereas in 2011, M&A activity
A) declined; increased B) declined; declined
C) increased; increased D) increased; declined
Q2) Hostile acquisitions provide greater financial returns to the acquiring company as it is easier for managers to integrate the firms.
A)True
B)False
Q3) When a firm becomes highly diversified through acquisitions, managers often focus on financial controls rather than strategic controls.
A)True
B)False
Q4) Firms are more likely to enter a market through acquisition when high product loyalty is present in the industry.
A)True
B)False
Q5) What is restructuring and what are its common forms?
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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) Which of the following is NOT an incentive for firms to become multinational?
A) To gain access to consumers in emerging markets
B) To gain easier access to raw materials
C) To avoid high domestic taxation on corporate income
D) Opportunities to integrate operations on a global scale
Q2) In place of relatively stable and predictable domestic markets, firms across the globe find that they are competing in relatively unstable and unpredictable global markets.
A)True
B)False
Q3) U.S. cola companies entered the global market because of:
A) limited growth opportunities in their domestic market.
B) lower labor costs in the emerging markets.
C) economies of scale that offset research and development costs.
D) an increase in the return on investment from their U.S. bottling plants.
Q4) Italy has become the leader in the shoe industry because of related and supporting industries such as a well-established leather-processing industry that provides the leather needed to construct shoes and related products.
A)True
B)False
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) In managing cooperative strategies, research indicates that ____ can be a capability that is valuable, rare, imperfectly imitable, and often nonsubstitutable giving these firms a competitive advantage.
A) extensive capitalization
B) stability
C) trustworthiness
D) Internet competency
Q2) 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
Q3) One area in which joint ventures are effective is the transfer of tacit knowledge as illustrated in the Chevron/China National Petroleum joint venture.
A)True
B)False
Q4) Identify the competitive risks associated with 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) Amelia Smith is the sole owner of the successful restaurant chain, Amelia's Café. Ms. Smith has taken a no-interest loan from the company in order to build a luxurious seaside house for herself in Carmel, California. This constitutes a classic agency problem.
A)True
B)False
Q2) The New York Stock Exchange requires that the audit committee be:
A) available to comment to external analysts.
B) headed by outside directors.
C) liable for any illegal actions by the top management team.
D) made up of CPAs with auditing experience.
Q3) Ownership of many modern corporations is now concentrated in the hands of institutional investors rather than individual stockholders.
A)True
B)False
Q4) Large-block shareholders typically own at least 5 percent of a corporation's issued shares.
A)True
B)False
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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) 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.
Q2) Firms implementing the multidomestic strategy often attempt to isolate themselves from global competitive forces by establishing protected market positions or by competing in industry segments that are most affected by differences among local countries.
A)True
B)False
Q3) Toyota and its suppliers have a relationship in which Toyota encourages suppliers to modernize their facilities and provides them with technical and financial assistance to do so. It also promotes longer-term contracts with suppliers and enables engineers in the supplier companies to have better communication with Toyota. This is an example of a(n):
A) worldwide product divisional structure.
B) functional structure.
C) SBU multidivisional structure.
D) strategic network.
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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) The top management team is composed of the:
A) heterogeneous group of advisors selected by the CEO.
B) CEO and chairperson of the Board.
C) key individuals who are responsible for selecting and implementing a firm's strategy.
D) officers listed in a firm's annual report and the Board of Directors.
Q2) When the new CEO is from inside the firm and a heterogeneous top management team is in place, the strategy may not change, but innovation is likely to continue.
A)True
B)False
Q3) Which of the following is NOT a factor that determines the amount of a manager's decision discretion?
A) Characteristics of the manager
B) Characteristics of the organization
C) Cohesiveness of the Board of Directors
D) The external environmental
Q4) Transformational leadership is the most effective strategic leadership style.
A)True
B)False
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Chapter 13: Strategic Entrepreneurship
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109 Verified Questions
109 Flashcards
Source URL: https://quizplus.com/quiz/3862
Sample Questions
Q1) The new abrasive, Cubitron II, was developed through cooperative relationships among 3M business units. As such, Cubitron II is an example of:
A) the use of autonomous strategic behavior.
B) the use of induced strategic behavior.
C) development of novel innovations.
D) innovation through acquisitions.
Q2) Induced strategic behavior does not result in true innovation because it is a top-down process rather than a bottom-up process.
A)True
B)False
Q3) An entrepreneurial mind-set, cross-functional product development teams, and shared values/leadership are the three ways that firms implement internal innovations.
A)True
B)False
Q4) Entrepreneurship is the economic engine driving national economic growth in many nations.
A)True
B)False
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Page 15