4800J GERINGER QUIZZES CHAPTERS 1-4 EXAM

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4800J GERINGER QUIZZES CHAPTERS 1-4 EXAM

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-Guarantee passing score -40 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation Question 1: If a company chooses to keep its vision customer-oriented rather than product-oriented, what will be the implication of that decision?

Answer:

The company will tend to be more flexible when adapting to changing environments.Question 2: If a firm is not effectively organized to exploit the competitive potential of a valuable, rare, and costly to imitate (VRI) resource, the best case scenario is

Answer:

a temporary competitive advantage.Question 3: Which of the following is a stakeholder attribute that managers should consider at every step in a stakeholder impact analysis?

Answer:

legitimacy

Question 4: Product-oriented vision statements provide managers with

Answer:

goals to improve service.

Question 5: Which of the following groups is most likely to be considered a firm's internal stakeholder?

Answer:

board members

Question 6: According to the upper-echelons theory,

Answer:

organizational outcomes reflect the values of the top management team.Question 7: While most of Savvy Inc.'s competitors were moving toward developing and emerging markets, Savvy Inc. decided to keep its operations limited to its home country so that it could gain some advantage. A few years later, however, Savvy Inc. lost its footing in the home market due to a sharp fall in demand. It then decided to invest in large-scale operations in the same developing nations as its competitors, within a short period of six months. However, its costs kept increasing, so it could not compete against the already established brands. In this scenario, the failure of Savvy Inc. can be best attributed to

Answer:

time compression diseconomies.Question 8: A firm's _____ is likely to fall by the wayside because of unpredictable events and turn into unrealized strategy.

Answer:

intended strategy Question 9: When a firm integrates the competitive strategies of cost-leadership and differentiation, it will most likely result in

Answer:

trade-offs that work against each other.

Question 10: A company's vision primarily states

Answer:

what the company wants to ultimately accomplish.

Question 11: Which of the following is an example of a firm's capabilities?

Answer:

skills involved in training and managing a workforce

Question 12: Which of the following statements is true of customer-oriented visions?

Answer:

They define a business in terms of providing solutions to people's needs.

Question 13: How do complements affect a primary product or service?

Answer:

They increase the demand for the primary product.Question 14: Evaluating the data collected from environmental analysis, the corporate executives of F&S Pharma Inc. realized that it was the right time to expand the business. The company's vision was accordingly adjusted from "To Be the Best in the Pharmaceutical Industry" to "To Make Good Health Accessible to Everyone around the Globe." To support the new vision, the executives decided that the company would first enter the Asian market where its growth potential would be huge. To further support these decisions, the general managers of different SBUs and the functional managers formulated their own strategies. Which of the following approaches to the development of strategy does this best illustrate?

Answer:

top-down strategic planning

Question 15: Which of the following statements is true of strategy?

Answer:

Actions that allow a firm to address a competitive challenge are strategy

Question 16: In a perfectly competitive industry structure

Answer:

any competitive advantage that one firm has will be short-lived.Question 17: The amount that savers are paid for use of their money and the amount that borrowers pay for that use is best described as a(n)

Answer:

interest rate.Question 18: Which of the following real-world examples best supports the statement that strategic commitments to a specific industry may be the result of political rather than economic considerations?

Answer:

A number of European governments created Airbus through direct subsidies to provide a countervailing power to Boeing.

Question 19: Which of the following statements best supports the fact that even during a period of low demand in the U.S. automotive industry, excess capacity remained?

Answer:

GM and Chrysler, despite their bankruptcy, restructured instead of exiting the industry.

Question 20: Which of the following is a feature of a fragmented industry?

Answer:

It consists of many small firms.Question 21: Incumbent firms can benefit from several important sources of entry barriers.Economies of scale are one such source. Which of the following is an implication of economies of scale for incumbent firms?

Answer:

They can demand better terms from their suppliers.Question 22: Which of the following statements does the upper-echelons theory support?

Answer:

Executives interpret situations through the lens of their unique perspectives, shaped by personal circumstances, values, and experiences.Question 23: Which of the following statements accurately brings out the difference between an organization's vision and mission?

Answer:

Vision defines what the organization wants to accomplish ultimately, whereas the mission defines the means by which vision is accomplished.Question 24: Within the context of strategic management it is important to understand that black swan events in the past have demonstrated that

Answer:

stakeholders can affect or be affected by a firm's actions.Question 25: Widgets Inc. is a vendor who supplies machine parts to an appliance manufacturing company. In return, Widgets Inc. relies on the company for its revenue and is affected by any decisions taken by the company. In this scenario, Widgets Inc. is a(n) _____ for the appliance manufacturing company.

Answer:

external stakeholder