56 Questions
According to the population ecology theory, what is the key challenge for organizations in adapting to changing conditions?
Organizations are unable to adapt once established in a niche
Which theory suggests that organizations can adapt by imitating other successful organizations?
Institution theory
According to the strategic choice perspective, which of the following is true?
Organizations can reshape their environment as well as adapt to it
Which theory suggests that organizations adjust defensively to changing environments and use knowledge offensively to improve their fit?
Organizational learning theory
What is required for an organization to achieve strategic flexibility, according to the text?
Long-term commitment to developing and nurturing critical resources
Which of the following is NOT a key requirement for an organization to become a learning organization, according to the text?
Reshaping the environment to suit the organization's needs
According to the theories discussed, which of the following statements is true?
Organizations can reshape their environment as well as adapt to it
What is the key difference between the population ecology theory and the institution theory?
Population ecology theory suggests adaptation is impossible, while institution theory suggests it is possible
Which of the following theories suggests that organizations can actively shape their environment, rather than just adapt to it?
Strategic choice perspective
What is the key characteristic of a learning organization?
Long-term commitment to developing and nurturing critical resources
What is the purpose of nominating committees in large U.S. corporations?
To identify potential board member candidates
What is the difference between a direct and indirect interlocking directorate?
A direct one involves sharing a director, an indirect one uses a third firm
What is a staggered board in the context of board member elections?
Boards where some members have shorter terms than others
Based on the text, which of these statements about codetermination is true?
It is the inclusion of workers on corporate boards
What is a key factor contributing to intense rivalry among existing firms, as per Porter's analysis?
Number of competitors
Which of the following is NOT considered a possible barrier to entry for new entrants into an industry?
Rate of industry growth
In the context of industry competition, what role do exit barriers play in influencing rivalry among existing firms?
Increase it by making it harder for firms to leave the industry
Which of the following is NOT a factor contributing to the threat of new entrants into an industry?
Amount of fixed costs
What is a characteristic of industries where corporations exhibit mutual dependence and competitive moves by one firm can lead to retaliation?
Presence of high switching costs
What is the purpose of analyzing the industry situation and predicting competitors' behavior under different scenarios?
To understand how external forces will impact the company's competitive position
Why is it important to determine the sources of competitive advantage under different scenarios?
To leverage strengths and opportunities while mitigating weaknesses and threats
In the context of competitor analysis, what does selecting scenarios that are most likely to occur or have a strong impact help in?
Formulating strategies based on potential industry changes
How does combining assumptions about individual trends into internally consistent scenarios benefit strategic planning?
It enhances decision-making by providing a holistic view of possible futures
Why is it necessary to identify uncertainties in each force of the task environment for effective strategic management?
To evaluate how external factors might impact the organization
What is the purpose of an External Factor Analysis Summary (EFAS) table?
To analyze a company's competitive environment and strategic position
In the context of competitor analysis, what does multiplying each factor's weight by its rating help determine?
The impact of each factor on the company's strategic position
How does an External Factor Analysis Summary (EFAS) table help companies understand their competitive landscape?
By identifying opportunities and threats in the external environment
Which of the following is NOT a source of competitive intelligence?
Patent filings
What is the primary reason for monitoring a competitor's cost base and liquidity, according to the text?
To gauge their financial stability and pricing power
Which of the following is NOT mentioned in the text as a factor to consider when monitoring competitors for strategic planning?
The competitors' supply chain and logistics capabilities
Based on the information in the text, which of the following would be the LEAST effective way to gather competitive intelligence?
Engaging in industrial espionage
Which of the following is a key factor to consider when monitoring competitors for strategic planning?
Which of your customers the competitors are most interested in
What is the primary purpose of mapping strategic groups in a particular industry?
To determine which firms are in direct competition with each other
In the context of strategic types, which type of firms focus on product innovation and market opportunities?
Prospectors
How does hypercompetition threaten market stability in industries?
By frequently redefining market boundaries as industries merge
What are key success factors in the context of competitive analysis within an industry?
Variables that can affect companies' competitive positions within an industry
Which type of firms lack a consistent strategy-structure-culture relationship according to the text?
Reactors
Based on the EFAS table, which of the following is a potential 'bing bang disruption' threat to Skechers USA?
Rapidly changing consumer preferences
Which of the following is NOT considered a key aspect of an organization's environment that can influence its long-term decisions according to the text?
Organizational culture
Based on Porter's Five Forces analysis, which of these forces is LEAST likely to affect the intensity of rivalry within a mature industry?
Threat of new entrants
Which of the following is a key characteristic of industries where firms exhibit mutual dependence, as discussed in the text?
Competitive moves by one firm are likely to lead to retaliation by others
Which of the following is NOT a factor that can contribute to the threat of new entrants into an industry?
Strict government regulations
Which of the following statements best describes how industry maturity affects the competitive forces in an industry, according to the text?
In mature industries, the threat of new entrants is lower, but the bargaining power of suppliers and buyers is higher.
What is a key factor that contributes to intense rivalry among existing firms in an industry?
All of the above
Which of the following is a key characteristic of industries where firms can easily enter and exit, as discussed in the text?
Firms can quickly adjust their capacity and strategic decisions in response to market changes
According to Porter's Five Forces analysis, which of the following forces is MOST likely to affect the intensity of rivalry in a highly fragmented industry with many small competitors?
Threat of new entrants
Which of the following is a key success factor that can be used to develop an industry matrix, as discussed in the text?
All of the above
Which of the following is NOT a key characteristic of industries where firms exhibit mutual dependence?
Firms can easily enter and exit the industry
In competitor analysis, selecting scenarios that are least likely to occur helps in understanding the competitive landscape better.
False
Exit barriers play a minimal role in influencing rivalry among existing firms in an industry.
False
Porter's Five Forces analysis suggests that the threat of substitutes is least likely to affect the intensity of rivalry within an industry.
False
Mapping strategic groups in an industry primarily helps in identifying the weakest competitors.
False
Competitive intelligence sources should not be varied to ensure a holistic understanding of the competitive environment.
False
Industry maturity has a minimal impact on the competitive forces within an industry.
False
In highly fragmented industries with many small competitors, rivalry is less likely to be intense according to Porter's Five Forces analysis.
False
Hypercompetition can contribute to market stability within industries.
False
Explore the potential impact of globalization on an organization's future in terms of one, two, five, and ten years. Assess the acceptability of potential outcomes and recommend specific actions for management to undertake. Analyze the risks and payoffs associated with the decisions.
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