NAME__Marc Sitt________________________

1. When a firm creates value for customers by performing activities that its competitors cant perform, the firm is said to possess a. a good reputation c. a competitive advantage b. positive return for shareholders d. intangible values

2. Conditions in the external environment that can help a company reach its vision are known as a. strengths c. opportunities b. capabilities d. vision channels 3. Conditions in the external environment that can prevent a company from reaching its vision are known as a. threats c. opportunities b. weaknesses d. descending cycles 4. Individuals and groups who have an interest in how a firm performs and can influence a firms actions are known as a. competitors c. stakeholders b. cohorts d. shareholders 5. a. b. c. d. Entrepreneurial cultures value innovation encourage employees to identify and exploit new opportunities encourage creativity and risk-taking all of these

6. Corporate governance begins with a. the CEO. b. the Board of Directors.

c. front-line managers. d. everyone in the organization.

7. When managers make decisions that are in their own best interests, rather than the best interests of their company, they are a. acting entrepreneurially c. acting opportunistically b. acting strategically d. none of these 8. a. b. c. d. 9. a. b. c. d. According to the text, the external environment is comprised of which segments or parts? company history, governance mechanisms and environmental threats boards of directors, consumer advocacy groups and news media general, industry and competitor environments none of these A companys choice of which strategies to implement is a function of conditions in the firms external and internal environments government policy managerial risk taking competitor imitation

10. When a company has deficiencies in resources or capabilities that make it hard for them to complete important tasks, these deficiencies are known as a. threats c. weaknesses b. strengths d. intangible resources 11. a. b. c. d. Manufacturing equipment and financial capital are examples of tangible resources that are difficult to see and quantify tangible resources that are easy to see and quantify intangible resources that are difficult to see and quantify intangible resources that are easy to see and quantity

12. Resources, such as Coca-Colas brand name or reputation, that accumulate and become more useful over time, but are not physical in nature, are known as a. tangible resources c. human capital b. intangible resources d. social capital 13. a. b. c. d. In the textbook, value is defined as the lowest price. the ability to differentiate one product from another. the satisfaction a product creates for customers. the highest price.

14. According to the text, one of the primary reasons for the decline in Coca-Colas stock price in recent years has been a. their extensive use of outsourcing b. their ineffective use of human capital c. their inability to create a well-known, global brand name d. their lack of a clear mission statement 15. a. b. c. d. The two dimensions of business level strategy are supply and demand. competitive scope and cost leadership. narrow or broad target market. competitive advantage and competitive scope.

16. The business-level strategy that focuses on a narrow competitive scope and product uniqueness is a. integrated cost leadership/differentiation. b. focused cost leadership. c. Differentiation d. focused differentiation. 17. a. b. c. d. The market for a cost leadership strategy is the industrys average customer. low income consumers. the segment of consumers who desire high quality at a low cost. consumers who are being poorly served by competing organizations.

18. Economies of scale would be most important for an organization with a/an ____ strategy.

a. Differentiation b. Integration

c. cost leadership d. market segmentation

19. Which of the following is most typical of a value-creating activity associated with the differentiation strategy compared with the cost leadership strategy? a. frequent evaluation processes to monitor suppliers performance b. intense and effective training programs to improve worker efficiency and effectiveness c. easy-to-use manufacturing technologies. d. extensive personal relationships with buyers and suppliers

20. A cost leader can maintain its power by all of the following except
a. b. c. d. continually increasing its level of efficiency. negotiating tough short-term contracts with suppliers. maintaining lower prices than its competitors. selling to a large number of buyers.