Question 1

A(n)____ resource is a resource that is not controlled or possessed by many competing firms.
A)rare
B)imperfectly imitable
C)nonsubstitutable
D)strategically dissonant
E)permanent

Accepted Answer

The answer of A(n)____ resource is a resource that is...

Question 2

A sustainable competitive advantage exists for an organization when other companies have tried unsuccessfully to duplicate the advantage and ____.
A)those companies have been prohibited from duplicating the advantage by federal law
B)those companies have, for the moment, stopped trying to duplicate the advantage
C)the organization is able to implement exclusive distribution
D)the organization operates in the international marketplace
E)the organization has a follower strategic stance

Accepted Answer

The definition of sustainable competitive advantage highlights the fact that other companies have tried but failed to duplicate the advantage. It does not necessarily mean that these companies are prohibited from duplicating it by federal law, or that the organization is able to implement exclusive distribution, operates in the international marketplace, or has a follower strategic stance. Option B ("those companies have, for the moment, stopped trying to duplicate the advantage") is the best choice because it reflects the idea that the advantage is sustainable because other companies have given up on trying to duplicate it.

Question 3

NTL is the largest cable company in the United Kingdom. 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)brainstorming
C)conducting focus groups
D)assessing the need for strategic change
E)conducting a situation analysis

Accepted Answer

The answer of NTL is the largest cable company in...

Question 4

When making travel plans, many tourists have selected Thomas Cook, a British tour operation, because they perceive that no other tour company can duplicate the customer service and satisfaction that Thomas Cook has provided over its years of operation. Thomas Cook has apparently created a sustainable competitive advantage by using ____ resources.
A)synergistic
B)valuable
C)tangible
D)nonsubstitutable
E)rare

Accepted Answer

Nonsubstitutable resources are defined as those that produce value or competitive advantage and have no equivalent substitutes or replacements.

Question 5

Which of the following must be met if a firm's resources are to be used to achieve a sustainable competitive advantage?
A)differentiation
B)imperfectly imitable resources
C)related diversification
D)unrelated diversification
E)a matrix organizational structure

Accepted Answer

In order for a firm's resources to provide a sustainable competitive advantage, they must be imperfectly imitable. This means that competitors cannot easily replicate or imitate the resources, making them unique to the firm and difficult for competitors to obtain. Differentiation may be a part of achieving a competitive advantage, but it is not a requirement. Related or unrelated diversification and a matrix organizational structure do not necessarily contribute to a sustainable competitive advantage.

Question 6

According to the text, valuable, rare, imperfectly imitable resources can produce sustainable competitive advantage only if they are ____ resources.
A)nonsubstitutable
B)substitutable
C)reliable
D)expensive
E)imitable

Accepted Answer

The text states that valuable, rare, imperfectly imitable resources can produce sustainable competitive advantage only if they are nonsubstitutable, meaning they cannot be easily replaced by other resources or capabilities.

Question 7

The first step in the strategy-making process is to ____.
A)assess the need for strategic change
B)conduct a situation analysis
C)choose strategic alternatives
D)evaluate the impact of changes on the internal environment
E)create a strategic budget

Accepted Answer

The answer of The first step in the strategy-making process...

Question 8

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 9

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 10

Top-Flite manufactures Strata golf balls and prices these balls at about three times what ordinary golf balls cost. The Strata ball sells exceptionally well because customers perceive its patented three-layer construction to improve handling and increase distance. The patent on these golf balls gives Top-Flite a(n)____.
A)sustainable competitive advantage
B)aggregate marketing strategy
C)reliable differentiation
D)strategic stance
E)differential stance

Accepted Answer

The patent on the three-layer construction of Strata golf balls gives Top-Flite a sustainable competitive advantage, as it allows them to offer a unique and superior product that cannot be easily replicated by competitors. This advantage is likely to endure over time, as long as the patent remains in effect.

Question 11

Deutsche Bank is the largest bank in the world. Would this give it a sustainable competitive advantage?
A)yes, because it would make its operations synergistic
B)no, because size is not a criteria for sustainable competitive advantage
C)no, because large institutions make more effective use of resources
D)no, because large organizations are always targeted for anti-trust activities
E)yes, because size is directly and positively related to efficiency

Accepted Answer

Size alone is not a criteria for sustainable competitive advantage, as other factors such as innovation, customer service, and cost efficiency also play important roles in a company's success. Furthermore, being the largest bank in the world may even be a disadvantage due to increased regulatory scrutiny and anti-trust activities.

Question 12

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 compete in the same market with similar products or services. Resource similarity refers to the extent to which two firms have similar types and amounts of resources. These two factors directly affect the intensity of competition between firms.

Question 13

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 14

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 implies that companies in the same industry have access to similar resources such as technology, talent, capital, and distribution channels. This similarity increases the likelihood that competitors can implement similar strategies and take similar actions to gain or maintain their competitive positions.

Question 15

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

Accepted Answer

A focus strategy is a narrow market approach that targets a specific group of customers or geographic location. It involves using either a cost leadership or a differentiation approach to producing a good or service that meets the unique needs and preferences of the target market.

Question 16

A(n)____ is a resource that is impossible or extremely costly or difficult for other firms to duplicate.
A)rare
B)imperfectly imitable
C)nonsubstitutable
D)strategically dissonant
E)reliable

Accepted Answer

The answer of A(n)____ is a resource that is impossible...

Question 17

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

Accepted Answer

This statement is false. There are many different types of adaptive strategies, including but not limited to: problem-solving, compromising, collaborating, avoiding, accommodating, and adapting to the situation at hand.

Question 18

_______ 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, distinctive competencies, competitive advantages, and strategic stances are all related concepts, but they do not directly describe the resources of the organization.

Question 19

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 creating a unique product or service that is perceived as superior in the market, often with higher production costs than competitors. The strategy is not focused on producing at lower costs than competitors.

Question 20

Aveda is a manufacturer and marketer of cosmetics, perfumes, hair-care, and skin-care products. To differentiate its products from other similar brands, Aveda focuses on educating its customers on general skin and hair care. Its salespeople are trained to answer questions and help customers find solutions. Aveda has used customer education and employee training to ____.
A)create synergy through relationship marketing
B)prevent product duplication
C)make efficient use of imitative resources
D)eliminate the need for nonsubstitutable resources
E)create a competitive advantage

Accepted Answer

By educating its customers and training its employees, Aveda has created a competitive advantage by differentiating itself from other similar brands. This allows them to provide added value to their customers, which can lead to increased customer loyalty and ultimately, increased sales.

Quiz 5: Organizational Strategy

A(n) ____ resource is a resource that is not controlled or possessed by many competing firms.

A sustainable competitive advantage exists for an organization when other companies have tried unsuccessfully to duplicate the advantage and ____.

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

According to the text, valuable, rare, imperfectly imitable resources can produce sustainable competitive advantage only if they are ____ resources.

The first step in the strategy-making process is to ____.