MAN4720 Exam One Review

Which of the following is a new competitive dimension that is affecting competition in multiple industries throughout the world?

Digitialization

Which of the following is one in which goods, services, people, skills, and ideas move freely across geographic borders? 

Global Economy

Which of the following increases the range of opportunities for companies competing in the current competitive landscape?

Globalization

“Liability of foreignness” describes what?

the risks of competing outside a firm's domestic markets

Which of the following are the three categories of technology-related trends and conditions affecting today’s firms

technology diffusion and disruptive technologies, the information age, and increasing knowledge intensity

What term is used to describe how rapidly and consistently new, information-intensive technologies replace older ones?

Perpetual innovation

What does one call the technologies that destroy the value of an existing technology and create new markets

Disruptive technologies

Knowledge is which of the following?

the basis of technology and its application

Strategic flexibility is which of the following

ability to respond to various demands and opportunities in a dynamic and uncertain competitive environment.

Which of the following explains the external environment’s dominant influence on the choice of strategy and the actions associated with it

I/O Model of Above Average Returns

Which of the following are inputs into a firm’s production process, such as capital equipment, the skills of individual employees, patents, finances, and talented managers

Resources

Which of the following is the capabilities that serve as a source of competitive advantage for a firm over its rivals

Core competencies

According to the resource-based model, differences in firms’ performances across time are due primarily to what

The unique resources and capabilities that each firm possesses

When are a firm's resources considered valuable

Enable the firm to exploit opportunities or neutralize threats in its external environment

Which of the following is NOT a trait of resources

The traits are: valuable, rare, costly to imitate, and non-substitutable

Which of the following informs stakeholders of what the firm is, what it seeks to accomplish, and who it seeks to serve

Mission and Vision statements

Normally, who is responsible for working with others to form the firm’s vision

CEO

Which of the following is vital part of the firm’s discussions to decide what it wants to become as well as who it intends to serve and how it desires to serve those individuals and groups.

Vision

Who are the individuals, groups, and organizations that can affect the firm’s vision and mission, are affected by the strategic outcomes achieved, and have enforceable claims on the firm’s performance

Stakeholders

Which of the following is comprised of the firm’s primary customers, suppliers, host communities, and unions representing the workforce

Product Market Stakeholders

Which of the following is a rational approach firms use to achieve strategic competitiveness and earn above-average returns

Strategic management process

On the basis of the new information, firms take actions in hopes of buffering themselves from any negative environmental effects and to pursue opportunities to better serve their stakeholders’ needs.  Which of the following constitute those actions

Strategies

The following segments, demographic, economic, political/legal, sociocultural, technological, global, and sustainable physical make up which of the following

General Environment

 Which of the following is the set of factors that directly influences a firm and its competitive actions and responses: the threat of new entrants, the power of suppliers, the power of buyers, the threat of product substitutes, and the intensity of rivalry among competing firms?

The industry environment

One of the following focuses on the factors and conditions influencing an industry’s profitability potential, which is it?

Five Forces Model

To cope with often ambiguous and incomplete environmental data and to increase understanding of the general environment, firms complete an external environmental analysis. This analysis has four parts, which of the following is not one of those parts?

The four parts of an external environmental analysis are: Scanning, Monitoring, Forecasting, Assessing

Which of the following is a true statement about opportunities and threats?

firms must develop the skills required to identify opportunities and threats that are a part of their external environment

 Which of the following do firms use to identify early signals of potential changes in the general environment and detect changes that are already under way?

Scanning

 Which of the following requires the firm to identify important stakeholders and understand its reputation among these stakeholders as the foundation for serving their unique needs?

Monitoring

One of the following is concerned with a population’s size, age structure, geographic distribution, ethnic mix, and income distribution?

The demographic segment

Which of the following refers to the nature and direction of the economy in which a firm competes or may compete?

Economic segment

_______________ is the arena in which organizations and interest groups compete for attention, resources, and a voice in overseeing the body of laws and regulations guiding interactions among nations as well as between firms and various local governmental agencies.

Political/legal segment

 What is concerned with a society’s attitudes and cultural values.

Sociocultural segment

 When studying the _______________ , firms should recognize that globalization of business markets may create opportunities to enter new markets, as well as threats that new competitors from other economies may also enter their market.

Global Segment

 _______________  often is used by firms with moderate levels of international operations who increase their internationalization by focusing on global niche markets.

Globalfocusing

What is the key objective of analyzing the general environment?

Identify opportunities and threats

 The five forces of competition model is made up of all of the following except which one?

The Five Forces of Competition Model includes: Threat of new entrants, Bargaining power of suppliers, Bargaining power of buyers, Threat of substitute products or services, Rivalry among existing competitors

When using ______________ the cost of producing each unit declines as the quantity of a product produced during a given period increases.

Economies of scale

When using product differentiation, companies will combat the perception of uniqueness by offering products at lower prices. This decision, however, may result in what?

A reduction in profit margins

 _______________  are companies or networks of companies that sell goods or services that are compatible with the focal firm’s good or service.

Complementors

Those with a _______________ recognize that their firms must possess resources and capabilities that allow understanding of and appropriate responses to competitive situations that are influenced by country-specific factors and unique cultures.

global mindset

 Firms create _____________ by innovatively bundling and leveraging their resources to form capabilities and core competencies.

Value

 Three conditions affect managers as they analyze the internal organization and make decisions about resources, which of the following is that condition?

Uncertainty, complexity, and intraorganizational conflict

Which of the following is the foundation of competitive advantage?

Resources, capabilities, and core competencies

Production equipment, manufacturing facilities, distribution centers, and formal reporting structures are examples of what type of resources.

Tangible resources

Knowledge, trust between managers and employees, managerial capabilities, organizational routines (the unique ways people work together), scientific capabilities, the capacity for innovation, brand name, the firm’s reputation for its goods or services and how it interacts with people (such as employees, customers, and suppliers), and organizational culture are what type of resources. 

Intangible resources

 Which resources require nurturing to maintain their ability to help firms engage in competitive battles?

Intangible resources

The value of which resources is constrained because they are hard to leverage—it is difficult to derive additional business or value from them?

Tangible Resources

The more unobservable a _________________ resource is, the more valuable that resource is to create capabilities and their use can be leveraged. 

Intangible Resources

When the firm combines individual tangible and intangible resources it creates something that can be used to complete the organizational tasks required to produce, distribute, and service the goods or services the firm provides to customers for the purpose of creating value for them, what is created?

Capabilities

_________________ provide the capacity to take action, act as the “crown jewels of a company,” are the activities the company performs especially well compared to competitors, and through which the firm adds unique value to the goods or services it sells to customers. 

Core Competencies

Discussing the four criteria of sustainable competitive advantage does what for the firm?

evaluate whether its resources, capabilities, and core competencies can actually lead to long-term success

 _______________ capabilities are capabilities that do not have strategic equivalents.

Nonsubstitutable

 Which of the following includes the activities or tasks the firm completes in order to support the work being done to produce, sell, distribute, and service the products the firm is producing.

value chain activities

 When firms have strong positive relationships with suppliers and customers, they are said to have what?

Social Capital

What is the purchase of a value-creating activity or a support function activity from an external supplier? 

Outsourcing

 Firms engaging in effective outsourcing increase what? 

flexibility, mitigate risk, and reduce capital investment

 Deciding to outsource to a foreign supplier is commonly called what?

Offshoring

Some firms do what when they decide they are weak in certain areas in order to improve its ability to use its remaining resources to create value? 

Outsource

 Which resources are those with the potential to be formed into core competencies as the foundation for creating value for customers and developing competitive advantages because of doing so.

Strategic “Right” resources.