Question 1 : Competitive advantage refers to:

a. refers to intra-industry competition.

b. All of the answers are correct.

c. occurs when a firm's range of activities (i.e., production, finance, marketing, logistics, etc.) act in harmony as a set of integrated choices.

d. refers to how a firm does something unique to create added value.

Question 2 : In 1961, John F. Kennedy said, "I believe that this nation should commit itself to achieving the goal, before this decade is out, of landing a man on the moon and returning him safely to the earth."

Is this an example of a mission, a strategy or a vision. Why?

Question 3 : True or false: Firms cannot achieve a competitive advantage by producing superior goods at a lower cost.

True

False

Question 4

True or false: A differentiation strategy refers to a firm that has boosted the willingness of customers to pay for its goods and services.

True

False

Question 5 : True or false: Organizations expand abroad to create value that substitutes for what they could create at home.

True

False

Question 6 : An organization that attempts to create value mainly by adapting ideas and products that come from the firm's headquarters is following what kind of strategy?

a. Multinational

b. Network

c. Transnational

d. International

Question 7 : To create and capture value from global expansion, an organization needs a global strategy that:

a. leverages or builds on the organization's home-market competitive advantage in new countries or geographic regions.

b. minimizes costs across the countries or economic regions that it competes in.

c. ignores differences across geographic markets.

d. involves entry only into geographic markets that are the same as the organization's home-market.

Question 8 : Toyota customers have a wide range of preferences. Some prefer the fuel economy of a hybrid (Prius), some prefer a family van (Odyssey), and others may prefer a large SUV (Highlander). This is an example of :

a. horizontal differentiation

b. segmentation

c. vertical differentiation

d. mass customization

e. differences in willingness to pay

Question 9 : True or false: Using a phrase such as "being the best" in mission or vision statements delivers a clear message that differentiates a company from its competition.

True

False

Question 10 : McDonald's conducts a value chain analysis of Burger King and discovers that Burger King's logistics and procurement of inputs are less costly than its own, which allows Burger King to achieve a higher profit margin.

What is McDonald's doing and why?

Path: p

Question 11

A ____ is a specialized type of acquisition in which the target firm reacts negatively to the acquiring firm's offer.

rescue

consolidation

takeover

merger

Question 12 : There are opportunity costs to acquisitions because managers in the acquiring firm

neglect other aspects of the firm's operations.

tend be willing to pay too much for target firms.

are reluctant to take the time to do the necessary due diligence.

are susceptible to cognitive anchoring.

Question 13 : Because of environmental and technological changes taking place in the twenty-first century

companies are cutting back on the pursuit of international opportunities.

international strategies are doubling in volume and dollar value ever three years.

international strategies are becoming more widespread.

governments across the globe are pushing for higher tariffs.

Question 14 : Along with differences in cultures, the major impediment to the transfer of knowledge or sharing of other resources between companies in an international strategic alliance is

language differences.

legal restrictions.

lack of trust.

racial and ethnic prejudices.

Question 15 : When the company can sell its products above competitive prices or when its costs are below those of its primary competitor, the company has

economies of scope.

acquisitive strength.

market power.

financial leverage.

Question 16 : An organization-wide reliance on innovation and entrepreneurship within established firms is called

corporate entrepreneurship.

process innovation.

innovative entrepreneurship.

organizational innovation.

Question 17 : Faced with limited growth opportunities in their mature home markets, large European banks have responded by

selling off assets.

closing marginal that they own.

pursuing profitable niches within their home countries.

expanding into other countries.

Question 18 : An acquisition will ultimately succeed or fail on the basis of

how long the acquirer spent on due diligence.

the price paid for the target by the acquirer.

how well the target and acquiring firms integrate their operations.

the quality and comprehensiveness of the post-acquisition integration plan.

Question 19 : The international strategy that attempts to combine global scale efficiencies with local responsiveness in a geographic region is the ____ strategy.

global

multidomestic

transnational

universal

Question 20 : What is a value proposition and how can it help a firm develop a stronger competitive advantage?

Path: p

Question 21 : Performing activities outside the boundaries of the organization is known as:

a.externalizing

b.offshoring

c.internalizing

d.outsourcing

Question 22 : An organization that aims to differentiate products and services across country markets is following what kind of strategy?

Global

Transitional

International

Multinational

Question 23 : True or false: Industry-level differences (e.g. differences between industries) account for greater variation in profitability than intra-industry (e.g. differences between firms in the same industry) differences do.

True

False

Question 24 : True or false: The vision of an organization describes its very purpose or reason for existence; the mission describes what the organization hopes to be in the future.

True

False

Question 25 : Facebook CEO Mark Zuckerberg describes his company's values as "Done is better than perfect," which is an example of:

a. Quality service

b. a differentiation strategy

c. motivation

d. learning by doing

e. mission