Deck 2: Integrated Strategy

Question 1

Nonmarket strategies serve the objective of superior performance by developing and sustaining the competitive advantage required to take advantage of market opportunities.

Answer 1

False

Question 2

The more intense is private politics, the more important is the nonmarket strategy.

Answer 2

True

Question 3

The value of a nonmarket capability depends on the effectiveness of a firm's allies in addressing nonmarket issues.

Answer 3

True

Question 4

A firm that decides to enter a country that has erected trade barriers requires only a simple market strategy.

Question 5

Nonmarket strategies are more important when opportunities are controlled by markets.

Question 6

Positioning in legal space affects not only the liabilities to which a company is exposed but also a company's market and nonmarket strategies.

Question 7

Nonmarket strategy is essential because in its absence competitors in the nonmarket environment will influence the outcome of issues and shape the rules of the game to their advantage.

Question 8

Issues such as the environment, sustainability, human rights, privacy, health, and safety seldom attract private politics but are the subject of public politics.

Question 9

If a firm addresses the nonmarket issue in the legislative stage, the firm has more flexibility and its range of alternatives is wider.

Question 10

Positioning in political space affects the opportunity to participate effectively in lawmaking and rule-making processes.

Question 11

Government exercises relatively little control over pharmaceutical firms and their activities.

Question 12

A firm that decides to enter a country that has open markets relies primarily on a nonmarket strategy.

Question 13

Opportunities can be controlled by actions such as protests, boycotts, and public criticism.

Question 14

The pharmaceutical companies tend to seek visibility rather than covering their activities through an association or other means.

Question 15

When a firm chooses a market strategy and a nonmarket strategy, the strategies compete with the strategies of other participants in the market.

Question 16

Opportunities can be controlled by government at one extreme and markets at the other extreme.

Question 17

Expertise in dealing with the news media is a market asset.

Question 18

A synergy is present between market and nonmarket strategies if a nonmarket action increases the return from a market action.

Question 19

A business strategy serves as a firm's navigational guide in its market and nonmarket environments.

Question 20

Nonmarket positioning should be a conscious choice rather than dictated by a firm's market positioning or by those in its environment.

Question 21

Moral motivations are analyzed in the screening phase of analysis.

Question 22

Which of the following issues is most often the subject of public politics?

A) environmental laws
B) human rights
C) health and safety
D) copyright laws

Question 23

Which of the following is the final stage of the nonmarket issue life cycle?

A) interest group formation
B) legislation
C) administration
D) enforcement

Question 24

Governments often exercise considerable control over which of the following industries?

A) consumer electronics
B) software
C) local telecommunications
D) automobile

Question 25

Which of the following is true of nonmarket positioning?

A) It should be dictated by a firm's market positioning or by those in its environment.
B) It provides a platform on which both market and nonmarket strategies can be constructed.
C) It is not influenced by the firm's market strategy.
D) It should neither be a conscious nor a strategic choice.

Question 26

The nonmarket environment is often more complex than the market environment, because public institutions are complex and a larger set of interests participate.

Question 27

Granted rights are to be used to screen out alternatives in the analysis stage, whereas claimed rights are to be evaluated in the screening stage.

Question 28

Which of the following characterizes nonmarket strategies?

A) They are less important when opportunities are controlled by government.
B) They are important when opportunities are controlled by markets.
C) They are less important when protests, boycotts, and public criticism are more intense.
D) They are decreasingly important due to issues such as privacy and protection of IP.

Question 29

Which of the following is an example of a global market strategy?

A) universal ethics principles
B) intellectual property rights enforcement
C) tax policy
D) pharmaceuticals approval

Question 30

A firm that decides to enter a country that has open markets relies primarily on ________.

A) a nonmarket strategy
B) a market strategy
C) a communist economic strategy
D) a mercantile strategy

Question 31

Which of the following is the first stage of the nonmarket issue life cycle?

A) issue identification
B) interest group formation
C) legislation
D) administration

Question 32

Opportunities can be controlled by ________ at one extreme and ________ at the other extreme.

A) competitors; customers
B) customers; suppliers
C) government; markets
D) markets; buyers

Question 33

The nonmarket strategies focus on adaptation to change during which of the following stages in the nonmarket issue life cycle?

A) interest group formation
B) legislation
C) administration
D) enforcement

Question 34

Which of the following issues is most often the subject of private politics?

A) intellectual property protection
B) privacy
C) liability reform
D) antitrust laws

Question 35

A market strategy is ________

A) a concerted pattern of actions taken in the market environment to create value by improving the firm's economic performance
B) a concerted pattern of actions taken in the nonmarket environment to create value by improving the overall performance of a firm
C) an elaborate and systematic plan of actions to achieve successful market capitalization
D) usually never used by firms that decide to enter a country that has open markets or trade barriers

Question 36

Which of the following industries has the least government control?

A) Local communications service
B) Biotechnology
C) Automobile
D) Consumer electronics

Question 37

The most effective means of integrating market and nonmarket strategies is ________.

A) to incorporate nonmarket strategy formulation into the process of developing a market strategy
B) to incorporate market strategy formulation into the process of developing a nonmarket strategy
C) to incorporate both into the business strategy process
D) to view both as separate strategies unified by the goal of profit maximization

Question 38

In the United States, the regulation of telecommunications is being replaced by ________.

A) nationalization
B) market competition
C) monopolization
D) privatization

Question 39

The framework for analysis of nonmarket issues includes the screening of generated alternatives, the analysis of those alternatives, and the choice of a strategy.

Question 40

The responsibility for addressing nonmarket issues should reside with operating managers and not with a separate staff unit.

Question 41

________ is determined by the diverse interests, viewpoints, and preferences of the individuals in a society.

A) Ethnic diversity
B) Corporate social responsibility
C) Public sentiment
D) Public relations

Question 42

Alternatives that are contrary to the law or company policy are eliminated in the ________ stage of the framework for the analysis of nonmarket issues.

A) analysis
B) choice
C) enforcement
D) screening

Question 43

Positioning is often perilous. Which of the following companies had been lobbied heavily to increase its commitment to its own causes?

A) Xerox
B) GM
C) Microsoft
D) Starbucks

Question 44

Lawmaking and rulemaking take place in ________, where the formal rules of the game are made.

A) political space
B) legal space
C) social place
D) the space of public sentiment

Question 45

Explain, with examples, the nonmarket positioning that takes place in public sentiment, political and legal spaces.

Question 46

The evaluations of ethics claims and the application of normative principles occur in which stage of the framework for the analysis of nonmarket issues?

A) screening
B) identification
C) analysis
D) choice

Question 47

What space had Microsoft largely ignored, relying instead on its aggressive approach to markets?

A) legal
B) public sentiment
C) political
D) commercial

Question 48

Illustrate, with examples, the framework for the analysis of nonmarket issues.

Question 49

Firms deploy nonmarket capabilities to ________.

A) beat the competition
B) create new markets
C) test new strategies
D) add value

Question 50

Bartlett and Ghoshal characterized market strategies as multidomestic, international, and global. Compare and contrast between the three types.

Question 51

In legal space, ________ provide the most important protection for intellectual property for many industries.

A) trademarks
B) patents
C) copyright laws
D) logos

Question 52

Describe market and nonmarket strategies. Explain the significance of a nonmarket strategy.

Question 53

Which of the following stages in the framework for the analysis of nonmarket issues is based on the methods of economics, political science, and other social sciences and focuses on predicting the actions of interests and the consequences of alternative strategies?

A) identification
B) analysis
C) choice
D) screening

Question 54

Describe the different approaches to integrate market and nonmarket strategies.

Question 55

According to Wartick and Rude, who, among the following, must be involved for successful issues management?

A) competitors
B) government
C) suppliers
D) top management