Multiple Choice
Identify the letter of the choice that best
completes the statement or answers the question.
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1.
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Kelleher & Company developed a highly trained and expert staff to solve client
solutions. Other firms in this industry were not been able to match this level of expertise with
their own staff members and currently no longer try to do so. This situation most accurately
exemplifies Kelleher & Company’s __________. a. | competitive advantage | b. | sustainable competitive advantage | c. | nonsubstitutable resource | d. | competitive inertia | | |
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2.
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Palladium, a required element in the control of emissions in cars, is in short supply
and none of the major car producers controls its availability. Palladium is best described as
___________ resource. a. | an imperfectly imitable | b. | a nonsubstitutable | c. | a sustainable competitive
advantage | d. | a
rare | | |
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3.
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Senior
management of a local security firm intended to develop a strategy based on price leadership in the
industry. However, the strategy as it was implemented by lower-level managers tended to focus more on
unique characteristics of their service rather than its low price. This exemplifies
__________. a. | competitive
inertia | b. | an imperfectly
imitable resource | c. | strategic dissonance | d. | distinctive competence | | |
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4.
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Glitter
Group’s senior manager wrestled with the question, “What business are we in?” Finally
the Group decided it was in the entertainment business. This question and its answer are part of the
process of establishing __________ strategy. a. | corporate-level | b. | industry-level | c. | portfolio-level | d. | firm-level | | |
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5.
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A
division of Hicks Company Limited was performing poorly. It had a low share of a low-growth market.
From the perspective of the BCG matrix, this division is a ___________. a. | question mark | b. | star | c. | cash cow | d. | dog | | |
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6.
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The
directors of Smalltown Builders Inc. wants managers to focus on continually improving the quality of
the houses it sells to its customers. This is a __________ strategy. a. | recovery | b. | stability | c. | retrenchment | d. | growth | | |
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7.
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In a
particular industry, James, an analyst, notes that firms are aggressive and competitive and tend to
use attack strategies frequently. From the perspective of Porter’s five industry forces model,
this is indicative of the __________ in the industry. a. | threat of new entrants | b. | bargaining power of customers | c. | character of the rivalry | d. | bargaining power of suppliers | | |
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8.
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Paco’s firm has long provided excellent service to a broad array of clients in
the housing industry based on lowest price. Paco is following a positioning strategy based on
__________. a. | cost
leadership | b. | differentiation | c. | focus | d. | being a defender | | |
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9.
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Gwyneth
operates a fast-growing public relations firm, and she is growing her business by seeking new
clients, taking risky assignments, and trying innovative strategies for her clients. The firm’s
adaptive strategy is best characterized as a(an) __________. a. | defender | b. | prospector | c. | analyzer | d. | reactor | | |
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10.
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Both
the Esquire Pub and the Downtown Bar and Grill offer mid-priced, sit-down lunch and dinner services
as well as a variety of local and imported beers to people who work in and visit downtown Halifax.
These two firms __________. a. | are in direct competition | b. | have no market commonality | c. | use attack strategies | d. | are both reactors | | |
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True/False
Indicate whether the sentence or statement is true or
false.
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11.
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Britten, Gallant & Associates have a competitive advantage–based resource
available to them for which other firms can find no replacement with which to add value to their
services. Britten, Gallant & Associates have a nonsubstitutable resource.
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12.
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Stebbins and Ferns Ltd., a supplier of educational materials, has been very successful
over the past 20 years. This success has lead senior managers in the firm to be reluctant to change
strategies. This firm is an example of competitive inertia.
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13.
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Doyle
and Tilley, purveyors of fine foods, have established a committee to examine the firm’s
strengths and weaknesses and to monitor competition. This committee is known as a secondary
firm.
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14.
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Hank
owns and operates a card and gift shop. He was developing a strategy that determines how he would
compete with others who provide similar products and services. Hank is developing a corporate-level
strategy.
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15.
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Val is
trying to get her new product into a well-established market. She is engaged in
entrepreneurship.
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