MGMT 182 -
Strategic Management
STUDY GUIDE FOR
EXAM II
INSTRUCTIONS
Exam II includes Chapters 5, 6, 7, 8, and 9. You are to study these chapters with a focus on the areas outline in this study guide. Please come to class thoroughly prepared on the days the aforementioned chapters are scheduled to be covered.
1. A company can be said to have competitive advantage if:
2. The heart and soul of building competitive advantage entails:
3. How valuable a low-cost leader's cost advantage is depends on:
4. A low-cost leader can achieve superior profit performance by:
5. A competitive strategy of striving to be the low-cost provider is particularly attractive when:
6. Successful low-cost providers:
7. The products of a company pursuing a low-cost leadership strategy would likely:
8. Broad differentiation strategies are well-suited for market situations where:
9. The price premium commanded by a broad differentiation strategy is:
10. Successful differentiation allows a firm to:
11. Differentiation enhances a company's total profits whenever:
12. A differentiation strategy is more likely to result in competitive advantage when the approaches to differentiation:
13. A firm pursuing a best-cost provider strategy:
14. Best-cost provider strategies are appealing in those market situations where:
15. The most powerful competitive approach a company can employ is:
16. Focus strategies based either on low-cost or differentiation are especially appropriate for situations where:
17. What sets focus strategies apart from low-cost leadership and differentiation strategies is:
18. Alliances and partnerships have become an important component of the strategies of many companies because:
19. Companies racing against rivals for global market leadership often utilize alliances and collaborative partnerships with companies in foreign countries in order to:
20. Merger and acquisition strategies:
21. An offensive strategy that avoids direct assault on entrenched competitors and aims at being the first to occupy new ground is best described as:
22. Launching a series of offensive initiatives across many fronts simultaneously:
23. Preemptive strike strategies entail:
24. First-mover disadvantages arise when:
25. The reasons why companies opt to expand outside their home market include:
26. A company is said to be an international (or multinational) competitor when:
27. A company is said to be a global competitor when:
28. One of the biggest strategic challenges to competing in the international arena is:
29. The defining characteristic of global competition is:
30. The strategic approaches to competing in foreign markets include:
31. Using domestic plants as a production base for exporting goods to selected foreign country markets:
32. How is a multicountry strategy defined?
33. A multicountry strategy is preferable to a global strategy when:
34. A company pursuing a multicountry strategy in a globally competitive industry is potentially vulnerable to competition from rivals pursuing a global low-cost leadership strategy and intent on global dominance because:
35. Profit sanctuaries are:
36. To successfully use cross-market subsidization to wage a strategic offensive in selected country markets, a company needs to:
37. The Internet can be most accurately characterized as:
38. Which of the following is not one of the ways that growing use of the Internet is reshaping the economic and business landscape?
39. The Internet gives buyers greater bargaining power because:
40. The Internet makes it feasible for companies to:
41. The advantages of a brick-and-click strategy (as opposed to a pure dot.com strategy or a pure brick-and-mortar strategy), especially for e-tailers, include:
42. The term e-markets refers to:
43. At this stage in the evolution if the Internet Economy, competing successfully seems to revolve around such key success factors as:
44. To be successful in emerging industries, companies usually have to pursue such strategic avenues as:
45. A high-velocity industry environment is characterized by:
46. The central strategy-making challenge in a turbulent market environment is:
47. Competitive success in fast-changing or high velocity markets tends to hinge on a company's ability to:
48. The types of strategic moves and initiatives that seem to offer the best payoff in turbulent, high velocity markets include:
49. The transition to a slower-growth, maturing industry environment tends to result in:
50. In a maturing market where the rates of growth are on the decline, rival firms can often improve their competitive position in the marketplace by:
51. Competitive advantage in industries with stagnant or declining market demand usually involves:
52. An industry is said to be fragmented when:
53. The basic strategic options for an industry leader include:
54. Potentially attractive turnaround strategy options for a struggling business include:
55. End-game strategies involve:
56. Diversification generally doesn't need to become a strategic priority until a company:
57. To create value for shareholders via diversification, a company must:
58. The three tests for judging the merits of a particular diversification move are:
59. Different businesses are said to be "related" when:
60. An advantage of related diversification is:
61. A company pursuing a related diversification strategy would likely address the issue of what additional industries/businesses to diversify into by:
62. What makes related diversification an attractive strategy is:
63. Economies of scope:
64. Unrelated diversification is:
65. A joint venture is an attractive way for a company to enter a new industry when:
66. The most popular strategy for entering new businesses and accomplishing diversification is:
67. Retrenchment strategies in diversified companies typically entail:
68. Divestiture is an attractive corporate strategy option for:
336 MGMT 182 Study Guide for Exam
II