Mid-stra.docx

QUESTION 1

The term hypercompetition means that competitive intensity has increased and that

competition decreases over time.

new technology can help a company sustain a strong competitive advantage over time.

no single strategy can sustain a competitive advantage over time.

only radical innovations increase competitive advantage; incremental innovations will not increase competitive advantage.

4 points QUESTION 2

Each stage in the industry life cycle requires a different set of core competencies. What is the set of core competenies required in the Growth stage?

R & D, Manufacturing, Marketing

Manufacturing; Process engineering; Marketing

R & D; Marketing

Manufacturing, Process engineering, Marketing, Service

4 points QUESTION 3

The 4 factors that Porter mentions in his framework to explain how a country gains a national competitive advantage include:

Factor conditions, supply conditions, demand conditions, financial resources

Factor conditions, demand conditions, competitive intensity in the focal industry, related and supporting industries

Factor conditions, supply conditions, demand conditions, competitive intensity in the focal industry

Factor conditions, supply conditions, demand conditions, related and supporting industries

4 points QUESTION 4

The 3 dimensions of corporate level strategy are:

regional markets, national markets, global markets

value chains, products & services, hypercompetition

diversification, integration, hypercompetition

vertical integration, horizontal integration, geographic scope

4 points QUESTION 5

The business level strategy of an organization answers the question: How should we compete?

True False4 points QUESTION 6

According to the Integration - Responsiveness Framework there are 4 main global strategy positions for MNEs. The 4 are:

Global strategy, International strategy, Transnational strategy, Diversification strategy

Global-standardization strategy, Transnational strategy, International strategy, Localization strategy

Global strategy, Standardization strategy, International strategy, Regional strategy

Global strategy, Transnational strategy, Localization strategy, Diversification strategy

4 points QUESTION 7

Transaction costs are all costs associated with doing business. They are sometimes called Administrative costs. These costs help the company make its decision as to whether it should 'Buy" or "Make" the goods and services it needs to do its business. These are 2 extremes on a continuum. Some of the alternatives on this continuum include:

short term contracts, long term contracts, strategic alliances, equity alliances, joint ventures

short term contracts, vertical integration, taper integration, backward integration, forward integration, diversification

short and long term contracts, mergers, acquisitions, strategic alliances

vertical integration, horizontal integration, taper integration, backward vertical integration, forward vertical integration

4 points QUESTION 8

Because of globalization and the internet, there is no longer a positive relationship between firm location in a regional cluster and competitive advantage.


The industry life cycle has 4 main stages:

Radical innovation, Incremental innovation, Architectural innovation, Disruptive innovation

Invention, Innovation, Commercialization, Growth

Early adopters, Maturity, Laggards, Growth

Introduction, Growth, Maturity, Decline

4 points QUESTION 10

Which quadrant in the BCG Growth Share Matrix is described as having high, stable or growing earnings; neutral cash flow; and a proposed strategy of holding or investing for growth?

Dog

Cash Cow

Question mark

Star


According to Porter's 5 Forces Model, which of these products would be a "Threat of Substitues" to Coca Cola?

Pepsi Cola

Going to a movie

Smoking a cigarette or an e-cigarette

A Candy Bar


Most mergers fail because of inadequate financing.


Taper integration is a form of vertical integration which serves to reduce some of the risks that come with vertical integration and also has several other benefits, such as:

increases a firm's flexibility, allows the firm to retain it competencies in marketing and manufacturing, can lead to more innovations.

product diversification, geographic diversification, market diversification

outsourcing, off-shoring, product related diversification

lowering costs, improving quality, reducing potential for legal liability


There are 2 basic business level strategies:

1. differentiation and cost leadership

2. value drivers and product features

3. generic and unique

4. integration and diversification


Even though we still use Hofstede's work on national cultures, we do know there are limitations and drawbacks. And research is being continually done by his foundation to update the studies. Which are the dimensions from the original study?

power-distance, masculinity-femininity, agressiveness-collegiality, national culture-national religion

Power-distance, individualism-collectivism, masculinity-femininity, uncertainty avoidance

cultural distance, power distance, individualism, agressiveness

aggressiveness-collegiality, power-distance, national culture, individualism


Intrepreneurs start their own businesses; entrepreneurs use their creativity as employees within large businesses.


The most common reasons for entering a strategic alliance include:

reduce costs, reduce inventory levels, reduce competition

reduce costs, increase perceived value, reduce inventory

diversification, integration, geographic scope

increase competitive position, enter new markets, learn new capabilities, hedge against uncertainty


The distinction between mergers and acquisitions can be blurry--so we often use the umbrellat term M & A to describe horizontal integration.


As a corporate strategy, firms use horizontal integration to:

increase competition, increase competitive advantage, increase perceived value

increase shareholder value, increase perceived value, reduce principal-agent problems

reduce costs, reduce principal-agent problems, reduce equity alliances.

reduce competition; lower costs; increase differentiation; get into new markets


The 2 grids on the BCG Growth-Share matrix are:

sales growth and cash flowf

relative market share and market growth

Cash flow and strategy

vertical integration and horizontal integration


Globalization is a process of closer integration and exchange between different countries. This has led to significant increases in the standard of living in many countries.


Research indicates that mergers are most ofte not financially successful. However, there are still lots of mergers? Why?

a merger is ofen the 1st step in creating strategic networks

Their company is suffering from a severe competitive disadvantage and they think this is the best way to overcome it

Most companies are either not aware of this fact

They don't have enough money to buy the other firm, so they try for a merger.


Why is it difficult to succeed at an integration strategy?

the internal value chain activities relating to cost leadership and differentiation are so different.

there are disadvantages to both a generic business strategy and a focused busines strategy.

There are too many possible substitute products available.

strategic positions are fixed.


A company can gain a cost leadership competitive advantage by:

making products that are easy to use for the widest group of possible users

increasing the perceived value of the product or service

focusing on customer service and responsiveness

reducing the cost to produce the good or service


The text refers to the 'self-interest' issue as the 'principal - agent' issue. This means that a person is focusing on their own personal needs,not that of the company.

True False4 points

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