University of Southern Mississippi

MANAGEMENT 300

1)An industry-level strategy that is best suited to changes in the organization's external environment is a(n)                  strategy.

1.           is the rivalry between two companies that offer similar products and services,

acknowledge each other as rivals, and act and react to each other’s strategic actions.

2. Bargaining power of buyers tends to be higher when a company sells a popular product to

multiple buyers than when a company is dependent on just a few high-volume buyers.

3. In an attempt to stop declining profitability, Chimos Inc., a chemical company, removed

petrochemical products from its production and concentrated on specialty chemicals, a less capital-intensive, less cyclical business. What type of a grand strategy was Chimos Inc. using?

4. A(n) is a committee within a company that analyzes the company’s own weaknesses to

determine how competitors could exploit them for competitive advantage.

5. Among companies who use the adaptive strategies, analyzers blend the strategies used by

6.           means producing a product or service of acceptable quality at consistently lower

production charges than competitors so that the firm can offer the product or service at the lowest price in the industry.

7. 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?
8. A           is an assessment of the strengths and weaknesses in an organization's internal

environment and the opportunities and threats in its external environment.

9. The only kinds of adaptive strategies are defending, analyzing, and reacting.
10.           strategies typically work in market niches that competitors have overlooked or have

difficulty serving.

11. Which of the following conditions must be met if a firm's resources are to be used to achieve a

sustainable competitive advantage?

12.           is a strategy for reducing risk by buying a variety of items so that the failure of one stock

or one business does not doom the entire portfolio.

13. MCRS Toys manufactures learning toys and games exclusively for children in the age group of

one to six years. The company is using a(n)          strategy.

14.           is the measure of the intensity of competitive behavior between companies in an

industry.

15. When Klonorox Corporation, a manufacturer of bleach and bleach-based cleaning products, acquired Masterssauce brand steak sauce; it was an example of                                       .
16. From a competitive standpoint, resource similarity means that the strategic actions your

company takes could probably be matched by your direct competitors.

17. Which of the following is an example of a common approach to corporate-level strategy?
18. According to Michael Porter, which of the following is one of the five industry forces that

determine an industry’s overall attractiveness and potential for long-term profitability?

19. Bargaining power of buyers tends to be higher when a company sells a popular product to multiple buyers than when a company is dependent on just a few high-volume buyers.
20. Reactors follow the consistent strategy of anticipating and reacting to potential external

opportunities and threats prior to their occurrence.

21. The second step in a retrenchment strategy is                   .
22. A(n) strategy is a broad corporate-level strategic plan used to achieve strategic goals and

guide the strategic alternatives that managers of individual businesses or subunits may use.

23. Under conditions of                      , a competitive attack by a rival is more likely to produce sustained

competitive advantage.

24. An organization is experiencing                        when it is reluctant to change strategies or competitive

practices that have been successful in the past.

25. Which of the following is NOT one of the five industry forces that determine an industry's overall

attractiveness and potential for long-term profitability?

26. Organizations can achieve a                        by using their resources to provide greater value for customers

than competitors can.

27.            are the targets that managers use to measure whether their firm has developed the core competencies that it needs to achieve a sustainable competitive advantage.
28. There are four conditions that must be met if a firm's resources are to be used to achieve a

sustainable competitive advantage. The resources must be valuable, rare, imperfectly imitable, and nonsubstitutable.

29. An analysis of an organization's external environment begins with an assessment of the

company's distinctive competencies and core capabilities.

30.            means producing a product or service of acceptable quality at consistently lower

production charges than competitors so that the firm can offer the product or service at the lowest price in the industry.

31. There are four conditions that must be met if a firm's resources are to be used to achieve a

sustainable competitive advantage. The resources must be valuable, rare, imperfectly imitable, and nonsubstitutable.

32. When companies are performing above or better than their strategic reference points, top

management is more likely to choose a daring, risk-taking strategy.

33. Because of slowing sales, Ace Glue started promoting innovative uses for its all-purpose glue. By

searching for new market opportunities, the manufacturer of Ace Glue is using which type of adaptive strategy?

34. Most companies compete directly with all the firms in their industry.
35. The threat of substitute products or services is a measure of the ease with which customers can

find substitutes for an industry's goods or services

36. Aries Inc. is a large a computer manufacturer which has been in the market for several years.

Many other companies have started manufacturing compact, portable gadgets to keep up with the new technological developments. Aries, however, has been reluctant to adopt these changes because it thinks that its products are already popular. Which of the following concepts is illustrated in the scenario?

37. The   is a portfolio strategy that managers use to categorize their corporation's businesses by

growth rate and relative market share. This strategy helps them to decide how to invest corporate funds.

38. MCRS Toys manufactures learning toys and games exclusively for children in the age group of

one to six years. The company is using a(n)          strategy.

39. Industry-level strategy is a corporate strategy that addresses the question "How should we compete against a particular firm in our industry?"
40. The                 is a measure of the degree to which barriers to entry make it easy or difficult for new

companies to get started in an industry.

41.              is the degree to which two companies have overlapping products, services, or customers in multiple ventures.
42. The term              refers to the overall organizational strategy that addresses the question "What business or businesses are we in or should we be in?"
43. TRUE OR FALSE: There are four conditions that must be met if a firm's resources are to be used to achieve a sustainable competitive advantage. The resources must be valuable, rare, imperfectly imitable, and nonsubstitutable.
44. Wisher Technologies became a large software development company through a merger with Ringus Tech., a growing software solutions firm. Since both the companies had similar core capabilities, this would be classified as an example of      .
45. share similar products, manufacturing, marketing, technology, or cultures.
46. A(n)               strategy is a corporate strategy that addresses the question "How should we compete in this line of business?"
47. industry?”
48. TRUE OR FALSE: Companies often choose a stability strategy when their external environment doesn't change much or after they have struggled with periods of explosive growth.
49. From a competitive standpoint,            means that the strategic actions your company takes can probably be matched by your direct competitors.
50. direct competitors can probably match the strategic actions that your company takes.

51. Because of slowing sales, Ace Glue started promoting innovative uses for its all-purpose glue. By searching for new market opportunities, the manufacturer of Ace Glue is using which type of adaptive strategy?
52. According to Michael Porter, which of the following is one of the five industry forces that determine an industry’s overall attractiveness and potential for long-term profitability?
53. industry’s overall attractiveness and potential for long-term profitability. These include the character of the rivalry, the threat of new entrants, the threat of substitute products or services, the bargaining power of suppliers, and the bargaining power of buyers.
54. Which of the following is NOT one of the five industry forces that determine an industry's overall attractiveness and potential for long-term profitability?
55. industry’s overall attractiveness and potential for long-term profitability. These include the character of the rivalry, the threat of new entrants, the threat of substitute products or services, the bargaining power of suppliers, and the bargaining power of buyers.
56.   consists of the strategic actions that a company takes to return to a growth strategy.
57. growth strategy.
58. Under conditions of              , a competitive attack by a rival is more likely to produce sustained competitive advantage.
59. resource similarity), then a competitive attack is more likely to produce sustained competitive advantage.
60. A                 is a company with a large share of a slow growing market.
61. Companies in this situation are often highly profitable, hence the name “cash cow.”
62. The purpose of a               strategy is to turn around very poor company performance by shrinking the size or scope of the business.
63. performance by shrinking the size or scope of the business or, if a company is in multiple businesses, by closing or shutting down different lines of the business.
64. TRUE OR FALSE: Bargaining power of buyers tends to be higher when a company sells a popular product to multiple buyers than when a company is dependent on just a few high-volume buyers.

65. 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)   .
66. competitive advantage when other companies cannot duplicate the value a firm is providing to customers.
67. The term                refers to the overall organizational strategy that addresses the question "What business or businesses are we in or should we be in?"
68. addresses the question “What business or businesses are we in or should we be in?”
69. One of the important conditions that a firm must meet in order to gain a sustainable competitive advantage with its capital is:
70. sustainable competitive advantage when other companies cannot duplicate the value a firm is providing to customers
71.   strategy is a corporate-level strategy that minimizes risk by diversifying investment among various businesses or product lines.
72. investment among various businesses or product lines.
73. An industry-level strategy that is best suited to changes in the organization's external environment is a(n)                      strategy.
74.           is the rivalry between two companies that offer similar products and services, acknowledge each other as rivals, and act and react to each other’s strategic actions.
75. Bargaining power of buyers tends to be higher when a company sells a popular product to multiple buyers than when a company is dependent on just a few high-volume buyers.
76. In an attempt to stop declining profitability, Chimos Inc., a chemical company, removed

petrochemical products from its production and concentrated on specialty chemicals, a less capital-intensive, less cyclical business. What type of a grand strategy was Chimos Inc. using?

77. A(n) is a committee within a company that analyzes the company’s own weaknesses to determine how competitors could exploit them for competitive advantage.

78. Among companies who use the adaptive strategies, analyzers blend the strategies used by
79.           means producing a product or service of acceptable quality at consistently lower

production charges than competitors so that the firm can offer the product or service at the lowest price in the industry.

80. 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?

81. A is an assessment of the strengths and weaknesses in an organization's internal environment and the opportunities and threats in its external environment.
82. The only kinds of adaptive strategies are defending, analyzing, and reacting.
83.           strategies typically work in market niches that competitors have overlooked or have

difficulty serving.

84. Which of the following conditions must be met if a firm's resources are to be used to achieve a

sustainable competitive advantage?

85.           is a strategy for reducing risk by buying a variety of items so that the failure of one stock

or one business does not doom the entire portfolio.

86. MCRS Toys manufactures learning toys and games exclusively for children in the age group of one to six years. The company is using a(n)                                           strategy.