Question 1

The only kinds of adaptive strategies are defending, analyzing, and reacting.

Accepted Answer

This statement is not true. There are many different kinds of adaptive strategies that individuals or organizations may use, including but not limited to defending, analyzing, and reacting. Examples include problem-solving, collaboration, innovation, and resilience.

Question 2

One of the important conditions that a firm must meet in order to gain a sustainable competitive advantage with its capital is:
A)the firm's overhead costs must be high.
B)the firm's resources must be imperfectly imitable.
C)the firm's production technology should be obsolete.
D)the firm's product prices must be high.
E)the firm's organization must be highly centralized.

Accepted Answer

A sustainable competitive advantage requires resources that are valuable, rare, difficult to imitate, and non-substitutable. Imperfectly imitable resources are those that cannot be easily copied or acquired by competitors, thus giving the firm a sustained advantage. High overhead costs, obsolete technology, high product prices, and highly centralized organization are not necessarily conditions that lead to sustainable competitive advantage.

Question 3

CLM is a big cable company. The company has recently declared bankruptcy and needs to engage in restructuring in order to give it more flexibility and allow it to raise capital. Since it has identified the need for strategic change, what would be the organization's next step in this strategy- making process?
A)Finding the optimal strategic solution
B)Eliminating impediments
C)Refreezing change
D)Freezing the strategic change
E)Conducting a situation analysis

Accepted Answer

The organization's next step in the strategy-making process should be conducting a situation analysis to identify its current situation and determine the best course of action moving forward. This involves analyzing internal and external factors that affect the company's performance, such as finances, market trends, and competition. Once this is done, the organization can then move on to identifying and evaluating strategic options, setting objectives, and developing a plan for implementation.

Question 4

From a competitive standpoint, resource similarity means that the strategic actions your company takes could probably be matched by your direct competitors.

Accepted Answer

Resource similarity refers to the degree to which a company's resources and capabilities are similar to those of its direct competitors. If there is high resource similarity, it means that competitors are likely to have similar strengths and weaknesses, making it easier for them to match your company's strategic actions. Therefore, the statement is true.

Question 5

Most companies compete directly with all the firms in their industry.

Accepted Answer

Most companies compete directly with a subset of firms in their industry that offer similar products or services, target similar customers, or operate in the same geographic region, rather than competing with all firms in the industry.

Question 6

The two factors that determine the extent to which firms will be in direct competition with each other are market commonality and resource similarity

Accepted Answer

Market commonality refers to the degree to which two firms operate in the same market with similar products or services, while resource similarity refers to the degree to which the two firms possess comparable resources or capabilities that are valuable, rare, and difficult to imitate. The higher the market commonality and resource similarity, the more likely the firms will be in direct competition with each other.

Question 7

A _____ resource is a resource that is not controlled or possessed by many competing firms.
A)rare
B)perfectly imitable
C)substitutable
D)capital
E)slack

Accepted Answer

A resource that is not controlled or possessed by many competing firms is rare, and therefore, valuable. If a resource is possessed by many competing firms, it is not rare and therefore, may not be as valuable.

Question 8

When making travel plans, most tourists select the company Travel Book because they perceive that no other tour company can duplicate the customer service and satisfaction that Travel Book has provided over its years of operation. Travel Book uses a very efficient software that allows customers to quickly make or change their travel bookings. Travel Book has apparently created a sustainable competitive advantage by using _____ resources.
A)obsolete
B)slack
C)expensive
D)imitable
E)​nonsubstitutable

Accepted Answer

The answer of When making travel plans, most tourists select...

Question 9

The greater the market commonality, the less intense the direct competition between two companies.

Accepted Answer

Greater market commonality means the companies share more markets, which typically leads to more direct competition as they vie for the same customers within those markets.

Question 10

Sivinch is a manufacturer and marketer of cosmetics, perfumes, hair-care, and skin-care products. To differentiate its products from other similar brands, Sivinch focuses on educating its customers on general skin and hair care. Its salespeople are trained to answer questions and help customers find solutions. This has helped Sivinch gain _____.
A)a process advantage
B)a technological lockout
C)customer defections
D)a competitive inertia
E)a competitive advantage

Accepted Answer

Sivinch's focus on education and customer service sets it apart from other similar brands, giving it a competitive advantage. This means that customers are more likely to choose Sivinch over other brands because they feel that Sivinch can provide them with more tailored solutions to their skin and hair care needs.

Question 11

Differentiation is the positioning strategy of producing a product or service of acceptable quality at consistently lower production costs than competitors.

Accepted Answer

Differentiation is the positioning strategy of producing a product or service that is perceived as unique and valuable to a specific target market. The goal is to create a competitive advantage that makes the product or service more attractive to customers than those of competitors. Cost leadership, on the other hand, is the positioning strategy of producing a product or service at the lowest possible cost to achieve a price advantage over competitors.

Question 12

​Organizations can achieve a _____ by using their resources to provide greater value for customers than competitors can.
A)​distinctive competence
B)​strategic dissonance
C)​competitive inertia
D)​competitive advantage
E)​strategic reference point

Accepted Answer

Competitive advantage is the ability of an organization to provide greater value to customers than competitors. This can be achieved through resource allocation and superior strategic planning, resulting in better products, lower costs, or other advantages over the competition. Distinctive competence refers to what an organization does better than others, whereas strategic dissonance and competitive inertia refer to challenges or obstacles faced by organizations. Strategic reference point is a concept related to goal-setting and performance evaluation.

Question 13

A focus strategy entails using either a cost leadership or a differentiation approach to producing a good or service.

Accepted Answer

A focus strategy involves focusing on a particular segment or niche in the market, and using either a cost leadership or a differentiation approach to produce a good or service that specifically meets the needs and preferences of that segment.

Question 14

Reactors follow the consistent strategy of anticipating and reacting to potential external opportunities and threats prior to their occurrence.

Accepted Answer

Reactors do not proactively anticipate or react to external opportunities and threats; instead, they tend to respond only after these events occur, often in a less structured or consistent manner.

Question 15

The strategy-making process begins with:
A)the assessment of the need for strategic change.
B)a situation analysis.
C)the finalization of strategic alternatives.
D)the evaluation of alternatives.
E)satisficing.

Accepted Answer

The strategy-making process begins with assessing the need for strategic change to determine if current strategies are effective or if new strategies are required.

Question 16

Valuable, rare, imperfectly imitable resources can produce sustainable competitive advantage only if they are _____ resources.
A)nonsubstitutable
B)slack
C)duplicable
D)expensive
E)obsolete

Accepted Answer

Valuable, rare, imperfectly imitable resources are only able to create a sustainable competitive advantage if they are nonsubstitutable because if a competitor can easily replicate the same resources, then the advantage will be short-lived.

Question 17

______ are the assets, capabilities, processes, information, and knowledge that an organization uses to improve its effectiveness and efficiency, to create and sustain competitive advantage, and to fulfill a need or solve a problem.
A)Grand strategies
B)Distinctive competencies
C)Competitive advantages
D)Resources
E)Strategic stances

Accepted Answer

Resources are the assets, capabilities, processes, information, and knowledge that an organization uses to improve its effectiveness and efficiency, to create and sustain competitive advantage, and to fulfill a need or solve a problem. Grand strategies refer to the overall direction and scope of an organization over the long-term. Distinctive competencies are the unique strengths of an organization that are difficult for competitors to imitate or replicate. Competitive advantages refer to the factors that allow an organization to outperform its competitors. Strategic stances refer to the ways in which an organization positions itself in relation to its competitors and the market.

Question 18

BallGame manufactures A1 golf balls and prices these balls at about three times what ordinary golf balls cost. The A1 ball sells exceptionally well because customers perceive its patented three-layer construction to improve handling and increase distance. None of the other golf ball manufacturers can produce the same quality. The patent on these golf balls gives BallGame a(n) _____.
A)sustainable competitive advantage
B)aggregate marketing strategy
C)anticompetitive advantage
D)technological lockout
E)customer defection

Accepted Answer

The patent on the three-layer construction of the A1 golf balls gives BallGame a sustainable competitive advantage over other golf ball manufacturers who cannot produce the same quality. This allows BallGame to charge a premium price for their product and maintain a strong market position.

Question 19

Which of the following conditions must be met if a firm's resources are to be used to achieve a sustainable competitive advantage?
A)The resources must be easily available.
B)The resources must be rare.
C)The resources must be obsolete.
D)The resources must be duplicable.
E)The resources must be substitutable.

Accepted Answer

For a firm's resources to achieve a sustainable competitive advantage, they must be rare, meaning that they are not possessed by many other firms in the same industry. This rarity makes it difficult for competitors to duplicate or find substitute resources, thus providing a long-term competitive advantage. Resources that are easily available, obsolete, duplicable, or substitutable do not offer the same level of sustained competitive advantage.

Question 20

A(n) _____ resource is a resource that is impossible or extremely costly or difficult for other firms to duplicate.
A)accessible
B)imperfectly imitable
C)nonsubstitutable
D)obsolete
E)slack

Accepted Answer

An imperfectly imitable resource is one that is difficult for other firms to duplicate because it has unique qualities that are not easily replicated. This gives the owning firm a sustained competitive advantage over its rivals, making it a valuable resource. Accessible resources can be duplicated, while obsolete and slack resources are not valuable at all. Nonsubstitutable resources can have substitutes, but an imperfectly imitable resource cannot be easily substituted.

Quiz 6: Organizational Strategy

The only kinds of adaptive strategies are defending, analyzing, and reacting.

One of the important conditions that a firm must meet in order to gain a sustainable competitive advantage with its capital is:

From a competitive standpoint, resource similarity means that the strategic actions your company takes could probably be matched by your direct competitors.

Most companies compete directly with all the firms in their industry.

The two factors that determine the extent to which firms will be in direct competition with each other are market commonality and resource similarity

A _____ resource is a resource that is not controlled or possessed by many competing firms.

The greater the market commonality, the less intense the direct competition between two companies.

Differentiation is the positioning strategy of producing a product or service of acceptable quality at consistently lower production costs than competitors.

​Organizations can achieve a _____ by using their resources to provide greater value for customers than competitors can.

A focus strategy entails using either a cost leadership or a differentiation approach to producing a good or service.

Reactors follow the consistent strategy of anticipating and reacting to potential external opportunities and threats prior to their occurrence.

The strategy-making process begins with:

Valuable, rare, imperfectly imitable resources can produce sustainable competitive advantage only if they are _____ resources.

______ are the assets, capabilities, processes, information, and knowledge that an organization uses to improve its effectiveness and efficiency, to create and sustain competitive advantage, and to fulfill a need or solve a problem.

Which of the following conditions must be met if a firm's resources are to be used to achieve a sustainable competitive advantage?

A(n) _____ resource is a resource that is impossible or extremely costly or difficult for other firms to duplicate.

Organizations can achieve a _____ by using their resources to provide greater value for customers than competitors can.