Exam 1 Review PDF

Per the discussion in the supplemental lecture on Strategic Management, which of the following is the first of the Primary Objectives of Organizational Strategy A. Sustainable Competitive Advantage B. Competitive Advantage C. Competitive Parity D. **Survival** E. None of the Above are Corr...

Per the discussion in the supplemental lecture on Strategic Management, which of the following is the first of the Primary Objectives of Organizational Strategy A. Sustainable Competitive Advantage B. Competitive Advantage C. Competitive Parity D. **Survival** E. None of the Above are Correct Royal Caribbean is a company that offers its customers the opportunity to enjoy great food, great shows. luxury spa services, and gambling while traveling on a cruise ship to exotic destinations. Bellagio Hotels and Casinos offers its customers the opportunity to enjoy great food. great shows, luxury spa services, and gambling while staying in a Las Vegas strip luxury hotel room. From Royal Caribbean\'s perspective. which of Porter\'s Five Forces best describes where Royal Caribbean would categorize its analysis of Bellagio A. Barriers of Entry B. Threats of Entry C. Rivalry D. Supplier Power E. **Threat of Substitution** An analysis of the economic segment of the external environment would include all of the following EXCEPT: A. Interest Rates B. The Gross Domestic Product of a country C. Inflation Rates D. **Income Distribution Data Across a Country's Population** E. All of the Above Which of the following is NOT typically described as a barrier to entry for an industry? (Hint: Look for something that is not listed as an entry barrier in the textbook) A. Capital Requirements B. Economies of Scale C. Switching Cost D. **Bargaining Powers of Suppliers** E. They are all listed as barrier of entry A situation where there are only three buyers of a firm\'s products and services and the buyers are working together to force the seller to sell its products/services below a normal competitive price is known as a(n) \_\_\_\_ A. Monopoly B. Oligopoly C. Monopsony D. **Oligopsony** E. None of the Above are Correct From the supplemental lecture on Strategic Management, \_\_\_\_ is defined as, \"The strategic course of action that an organization actually pursues, whether planned or reactive.\" A. Strategic Plan B. Strategy Foundation C. Strategic Governance D. **Realized Strategy** E. None of the Above In analyzing the demographic segment of the general environment, one typically examines all of the following factors EXCEPT: A. Age Structure B. Ethnic Mix C. Distribution of Income D. **Trends regarding cultural values of the local high school** E. All of the Above are Included in Demographic Analysis YouTube, Facebook, Twitter, Snapchat, Instagram, and Google offer different types of content, but they control the vast majority of all online communications in North America and much of the Western world. They are all service providers. Many companies and individuals market and sell their products or services through these social media platforms, and most politicians and regulators use these platforms to communicate with and influence the public marketplace. Decisions made at these companies about issues such as \"Which company or person is demonetized,\" or \"Which posts are blocked and which are not\" can significantly determine if other companies and groups can continue to survive.\ If it were demonstrated that social media companies were colluding together to force one type of organization or consumer to bear costs that were substantially higher than normal market costs for their services, this small but powerful set of service providers would best be described as a(n) (Blank) (Hint: A few colluding sellers of a service) A. Oligopsony B. **Oligopoly** C. Strategic Group D. Monopoly E. None of the Above are Correct When evaluating the political legal segment of the external environment (which is part of the PEST-DEG analyses) a company should include all the following topics in its analysis EXCEPT: A. Child Labor Regulations B. Corporate Tax Codes from IRS C. **Corporate Policies allowing greater flextime and "work from home" options in their employees** D. Public disclosure requirements by the Security & Exchange Commission for publicly traded companies E. All of the following above are part of political legal segment of the external environment Which scholar is often associated with being the Father of Strategic Planning? A. Fredrick Taylor B. Jay Barney C. Michael Porter D. **Igor Ansoff** E. None of the Above are Correct Which of the following is NOT usually considered an activity included in the basic external environmental analysis process (p. 41 of the textbook)? (Hint: Just checking to see if you recognize the basic categories of steps usually followed when completing external analyses - as described in the textbook) A. Scanning B. Forecasting C. Monitoring D. Assessing E. **They are all used in the external environment analysis process** What is the third step of the Strategic Planning Process as described in the supplemental PowerPoint lecture? A. **Formulation** The textbook (p. 9) describes two specific factors as being the primary drivers of hypercompetition. Using the textbook\'s description, the two primary drivers of hypercompetition are \_\_\_ and \_\_\_\_. A. Rising global income inequality, increased inflation B. **The emergence of global economy, rapid technology change** C. Increased global military, conflict, decreased tariff D. Decreased availability of capital, increased authoritarianism of governments E. None of the above are correct The Cory Electric Car Company is assessing its external environment, and it has found a persistent problem that is harming its ability to earn better profits. The problem is that the Sexton Engine Manufacturing Corporation produces a highly complicated magnetic motor that is a key component inside of Cory\'s electric cars. Sexton has no identifiable competitors, and they are charging extremely high prices for their magnetic motors.\ From the Cory Electric Car Company\'s perspective, this problem is best described as being found in which of Porter\'s Five Forces. A. Buyer Power B. **Supplier Power** C. Competitive Rivalry D. Threat of Substitution E. None of the Above are Correct All of the following are core assumptions of the industrial organization (I/O) model EXCEPT: A. Organizational decisions are assumed to act in an economically rational way B. **Resources to implement strategies are often unique to individual firms, and those differences tend to remain in place over the long term.** C. The external environment is assumed to impose pressures and constraints that determine a company's strategies D. Most firms competing within an industry or withing a segment of that industry are assumed to control similar strategically relevant resources and to pursue similar strategies E. All of the above are correct During its most recent strategic planning process, Purple Dinosaur Manufacturing Company considered taking advantage of new advances in robotic control systems to increase the number of robots and robotic aluminum press machines on its factory floor. The primary component of analysis in the PEST-DEG model where this option was considered during the strategic planning process was most likely the \_\_\_\_ component. A. Global B. Environmental C. Economic D. Demographics E. **None of the above are correct** All of the following are resources of an organization EXCEPT: A. The skills of hourly production employees that allows them to catch subtle quality defect in products B. Oil drilling right the company own in a promising region C. **Weak competition in the industry** D. A company's reputation among its customers E. All of the above are resources of an organization All of the following are core assumptions of the industrial organization (I/O) model EXCEPT: (Hint: Be careful here to find the exception that does not fit with the resource-based model) A. Firms acquire different resources and develop unique capabilities based on how they combine and use resources B. Firms performances across time due primarily to their unique resources and capabilities rather than the industry structural characteristics C. **Capabilities are formed when competencies are turned into resources** D. Differences in resources and capabilities between firm are the basis of competitive advantage E. All of the following are correct To have the potential to become a source of sustainable competitive advantage, resources and capabilities must be valuable. (Blank), (Blank), and difficult to substitute for. (Don\'t overthink this question. It is just a question testing whether you know the basic four components of Dr. Jay Barney\'s framework) A. Readily available; easy to make B. Rare; difficult to implement C. Readily available; difficult to imitate D. **Rare; difficult to imitate** E. None of the above are correct From the textbook and lecture, we know that stakeholders are typically categorized into three basic groups. One of those groups is called \"Capital market stakeholders.\" Capital market stakeholders include which of the following specific type(s) of constituents? A. Unsecuritized debt holders B. Preferred shareholders C. Common shareholders D. First mortgage securitized debt holders E. **All of the above are found in the Capital Market Shareholder group** According to the supplemental PowerPoint lecture, which of the following types of statements is primarily supposed to answer the question. \"What do we as a company want to accomplish in the future and by when?\" A. Objective Statement B. Mission Statement C. Values Statement D. **Vision Statement** E. None of the Above are Correct \"Common shareholders\" of a company who are dissatisfied with how the company is performing and being managed can legally engage in which of the following activities? A. Sell their stock B. Vote for or submit a candidate to be a new member of the board of directors C. Submit a resolution at the Annual Shareholder meeting asking that a policy or strategy change D. Start a social campaign to effect change E. **All of the above are correct** \_\_\_ innovation is a term used to describe how rapidly and consistently new, information- intensive technologies replace older ones. (Hint: I pulled four definitions from the textbook that were not listed in the margin, and I talked about them in my narrated lecture. This is one of those four) A. **Perpetual** B. Disruptive C. Preemptive D. Diffusion E. None of the Above are Correct Organizational culture is defined in the textbook as \_\_\_ A. An integrated and coordinated set of commitments and actions designed to exploit core competencies and gain competitive advantage B. How firms acquire, uses, and develops its various people-related resources and capabilities C. A set of capabilities used to respond to various demands and opportunities existing in a dynamic and uncertain competitive environment D. **The complex set of ideologies, symbols and core values that are shared throughout the firm** E. All of the above The acronym SWOT stands for A. Strengths, weaknesses, organization, and threats B. Success, weaknesses, opportunities and taxes C. Strengths, weaknesses, opportunities, and talents D. **Strengths, weaknesses, opportunities and threats** E. None of the the above are correct Who typically has the authority to fire the CEO of a publicly-traded corporation in the United States? A. Chief Legal Officer B. U.S. Department of Commerce C. U.S. Department of Labor D. President of the Company E. **None of the Above are Correct** Which of the following scholars is most associated with the concept of Emergent Strategy? A. Michael Porter B. **Henry Mintzberg** C. Jay Barney D. Gary Hamel E. None of the above According to the supplemental PowerPoint lecture on Strategic Management, with respect to organizational strategy. Dysergy is defined as \_\_\_\_ A. An event where both companies end up better off B. **An event where both companies end up worse off** C. An event where both companies end up neither better nor worse off D. A positive-sum event E. None of the Above are Correct Which of the following was one of the earliest scholars of management theory and developed the basic concepts of \"Management as a Science, and Labor Efficiency\"? A. Igor Ansoff B. **Fredrick Taylor** C. Jay Barney D. Henry Mintzberg E. Alfred Chandler Who is typically the highest-ranking executive of a company? A. Chair of Board B. President C. **Chief Executive Officer** D. Common Shareholders E. None of the Above Which of the following is primarily supposed to answer the question, \"Why does this company exist?\" A. Vision Statement B. **Mission Statement** C. Value Statement D. Accounting Statement E. None of the Above are Correct The Ken Cory Radar Systems Company (\"KCRSC\") is the only supplier of a new type of radar system that dramatically improves the performance of self-driving vehicles. KCRSC sells its radar systems to all the major car manufacturers in North America **at prices that are generally considered to be the** same as what they would be in a highly competitive market. KCRSC could best be described as having and exerting what type of power? A. Oligopoly Power B. Monopoly Power C. Monopsony Power D. Duopoly Power **E. None of the Above are Correct** In the supplemental PowerPoint lecture, the instructor specifically discussed alternative definitions of the term strategy.\ Using the supplemental PowerPoint definitions provided by the instructor, \_\_\_ is typically defined as the entire set of activities that senior executives and boards of directors engage in while serving as a leader of their organization. It also refers to the entire field of study in academia that focuses on senior executives and boards of directors. A. Strategic Planning Process B. Observed Strategy C. **Strategic Management** D. Strategic Capabilities E. None of the Above are Correct Which (if any) of the following are important attributes of a Vision Statement? A. Clarifying Who Your Primary Supplier Are B. Listing Your Company Main Organizational Values C. **Having a Specific Timeframe Target** D. Identifying Your Key Competitors E. None of the Above are Correct According to the supplemental PowerPoint lecture, which of the following relationships is true? A. **Strategic planning is a subset of strategic management** B. Strategic management is a subset of strategic planning C. Strategic analysis demonstrates a company's mission statement D. Strategic Intent is that category of activities where you would perform the external and internal analysis of the strategic plan E. None of the Above are Correct According to the supplemental PowerPoint lecture, corporate governance in the U.S. often allows executives to (Blank) more than is typically allowed in many other Western countries. A. Participate as an individual's social media outlet B. Have single-person authority on the company's bank accounts C. Have insurance protection against lawsuits from the Board of Directors D. **Hold all titles of CEO, President, and Chair simultaneously** E. All of the Above are Correct According to the supplemental PowerPoint lecture, which of the Barriers to Entry was described as probably being the strongest and most important? A. **Government Policy** B. Capital Requirements C. Switching Cost D. Economies of Scale E. Proprietary Resources The invention of the automobile had a tremendous impact on society and especially on the use of horses as a primary source of transportation. This is an early example of A. The march of globalization B. Rapid technological diffusion C. **A disruptive technology** D. Product that were not imitated by competitors E. All of the above are correct Restaurants often succeed or fail based on their physical location. Assume there\'s a restaurant that happens to be located on the only hill that exists overlooking a small city. In addition, the view of the city from the hilltop at night is widely considered to be beautiful and highly sought after, so there\'s usually a long waiting list to get a reservation for dinner.\ Which of the barriers to entry would best describe the competitive advantage held by this restaurant? (Hint: Only consider the information above that relates to barriers to entry A. **Proprietary Resources** B. Economies of Scale C. Supportive Government Policies D. High Switching Cost E. None of the Above are Correct The (Blank) environment is composed of dimensions in the broader society that influence an industry and the firms within it, but the individual companies can\'t really affect the external factors back in any significant way. (HINT: This is a straight-forward definition question). A. General B. Competitor C. **Sociocultural** D. Industry E. None of the Above are Correct Assume China has just imposed new tariffs on certain types of goods entering their country from a large number of other countries. When completing an analysis of the general environment, into which segment would you categorize this activity? A. Demographic B. Sociocultural C. Physical/Environmental D. **Political/Legal** E. All of the Above are Correct It is more likely that an industry will see a lot of new entrants when: A. It is difficult to gain access to distribution channels B. **Economies of scale in the industry are low** C. Product differentiation in the industry is high D. Capital requirements in the industry are high E. All of the above will lead to a larger number of new entrants into an industry A certain type of hardwood tree called an Ironwood Oak that comes from a single producer in Argentina is very unique - with a deep, rich color and striking cross patterns in the wood when cut. It has been used to accent prestigious churches and public buildings throughout the world. The architect of a new headquarters for a prestigious Fortune 500 company has requested the use of this one type of wood, and this type of wood only, for an upcoming project. Which of the following statements is MOST likely to be true? Which of the following aspects of the external environment is usually analyzed using Porter\'s Five Forces Model? A. Sociocultural environments B. Demographics of the environment C. Economy of a country D. **Power of the customer/buyer** E. None of them are used in the Five Forces model The PEST-DEG tool is used primarily to assess \_\_\_ category of factors in the external environment. A. Strength of Suppliers B. Industry Environment C. Competitor Environment D. **General Environment** E. All of the Above are Correct The threat from substitutes is generally higher (stronger) when: A. Switching cost are high B. **The substitute product\'s price is substantially lower than the industry product\'s price.** C. The quality of the substitute product is substantially lower than the quality of the industry product D. The substitute product is manufactured in a different country E. None of the Above are Correct The Ken Cory Machine Company\'s main product is a GPS tracking device that is only one square inch in size but can be tracked on the internet from nearly any location in the world. Their device is relatively new and is still working out some problems, but there are no other GPS trackers in the world that are as small in size as the Ken Cory Company\'s device. Investors told the company they expected to earn a risk- adjusted return of 12% on their investment, and the device has been profitable with an 8% return on investment which is expected to also be the long-term return on investment. From a VRIS perspective. which of the following is a correct description of Ken Cory Machine Company\'s situation?(This is not a trick question, but it is difficult. Please think through the definition of \"Value\" and the sequence of steps in the VRIS framework) A. **The device is valuable and rare and a source of competitive advantage** B. The device is not considered valuable and therefore needs a significant improvement C. The device is valuable, rare and difficult to copy, but has a lot of substitutes so the company has a temporary competitive advantage D. The device is valuable but not rare, so the company is experiencing competitive parity E. None of the above are true According to the five forces model, an attractive industry would have all of the following characteristics EXCEPT: A. **Low barrier to entry** B. Supplier and buyer with little bargaining power C. A low to moderate degree of rivalry among competitors D. Not many viable product substitutes E. All of the above characteristics would imply an attractive industry When evaluating barriers to entry, what does the phrase \"capital requirements\" usually refer to? A. The benefit realized through incremental efficiency improvements B. The cost customers incur when they switch to a new provider C. **The resources (usually financial) needed to become a viable competitor in a new industry** D. The cost incurred by a firm when it changes distributors E. None of the Above are Correct Investors are usually listed in which of the three major categories of company stakeholders? A. **Capital Market Stakeholders** B. Product Market Stakeholders C. Organizational Stakeholders D. International Stakeholders E. None of the above are correct