Ch4 Competitive Strategy Verified Test Bank

Technology Ventures (Byers), 5e

Chapter 4 Competitive Strategy

1) To be useful, a plan must do all of the following except:

A) Be action-oriented

B) Be aware of the firm's strengths

C) Utilize opportunities

D) Divide equity equally

2) A strategy is a response to:

A) Market capitalization

B) Opportunity

C) Poor management

D) Convergence

3) A strategy can state both "what to do" and "what not to do."

4) Strategies are always static, never dynamic.

5) Which of the following is given as the first step in developing a strategy?

A) Describe the firm's core competencies

B) Identify the key factors for success

C) Develop the vision and mission statements and the business model

D) Translate the strategy into action plans with suitable measures and controls

6) Which of the following is not one of the six questions for creating a sound, dynamic strategy?

A) How will we reach profitability?

B) Why are we pursuing this objective?

C) With whom will we compete and cooperate?

D) Where will we be active?

7) Choose the best way to finish the following statement: "A capability is the capacity of the firm to ________".

A) Go to market

B) Perform some task or activity

C) Deliver a unique and innovative product

D) Run a successful firm

8) It is stated that, to be competitive, a firm must have all of the following except:

A) Unique and valuable resources

B) A willingness to accept other types of resources

C) The ability to exploit a firm's resources

D) A unique ability to manage common resources

9) Core competencies, like assets, deteriorate as they are applied and shared.

10) The core competencies of a firm should match the requirements of its business.

11) An industry necessarily consists of all of the following except:

A) A group of firms

B) Manufacturers of similar goods and services

C) Businesses attentive to a single customer base

D) A number of enterprises that serve one another

12) Which of the following do you not need to perform industry analysis, using the five elements of an industry analysis?

A) The regulatory issues in the industry

B) Knowledge of competitors

C) Sources of industry talent

D) Profit potential

13) Which of the following is not one of the four stages of an industry life cycle?

A) Emergence

B) Decline

C) Stability

D) Maturation

14) A dominant design ________.

A) Produces a series of products serving the same strategy

B) Tells customers how to correctly utilize the service

C) Provides a reference point for a number of product offerings

D) Allows certain competitors a clear advantage

15) SWOT stands for:

A) Strengths, Weaknesses, Opportunities, Threats

B) Strong, Willing, Oriented, Team

C) Success, Warranty, Opportunity, Training

D) Stable, Winning, Open, Trade

16) Which of the following is not a dimension by which you can examine opportunities?

A) Approach

B) Products

C) Returns

D) Customers

17) Which of the following is a potential barrier of entry into an industry?

A) Economies of scope

B) Economies of opportunity

C) Product deterrence

D) Product switching

18) What might lead to a customer perceiving low switching costs?

A) An incumbent company cutting costs

B) A new player in the industry providing a high barrier of entry to customers

C) Contentment with your original service provider

D) Frustration with incumbent products

19) Which of the following is not listed as a distinctive competency?

A) Innovation

B) Efficiency

C) Resources

D) Supply Chain Relations

20) Which of the following is a characteristic of Intel's strategy?

A) Low product differentiation

B) Competencies in relationships

C) Distinctive competencies in processes

D) Mass market segmentation