Multiple Choice Questions

All of these.
  • A vertical integration strategy can expand the firm's range of activities:
  • A company that fails in managing their strategic alliance probably has not:
  • The range of product and service segments that the firm serves within its market is known as the firm's:
  • Which of the following rivals make the best targets for an offensive attack?
Enables a company to gain better access to end users and better market visibility.
  • Which of the following is NOT one of the factors that affects whether a strategic alliance will be successful and realize its intended benefits?
  • Which of the following is NOT one of the benefits of outsourcing value chain activities presently performed in-house?
  • Which of the following signals would NOT warn challengers that strong retaliation is likely?
  • Which of the following is NOT a typical strategic objective or benefit that drives mergers and acquisitions?
facilitating the coordination of production flows and avoiding bottlenecks.
  • Experience indicates that strategic alliances:
  • Vertical integration can lower costs by:
  • The difference between a merger and an acquisition relates to:
  • For every emerging opportunity there exists:
vertical scope.
  • The extent to which a firm's internal activities encompass one, some, many, or all of the activities that make up an industry's entire value chain system is known as:
  • A strategy of vertical integration can have both important strengths and weaknesses and depends on:
  • The formation of a new corporation, jointly owned by two or more companies agreeing to share in the revenues, expenses, and control, is known as:
  • When firms are involved in a mix of in-house and outsourced activity in any given stage of the vertical chain, it is called:
the details of ownership, management control, and the financial arrangements.
  • A strategy of vertical integration can have substantial drawbacks, including:
  • The strategic impetus for forward vertical integration is to:
  • The difference between a merger and an acquisition is that:
  • The difference between a merger and an acquisition relates to:
cooperative arrangements with other companies are very helpful in racing against rivals to build a strong global presence and/or racing to seize opportunities on the frontiers of advancing technology.
  • A primary reason for why mergers and acquisitions sometimes fail is due to the:
  • Entering into strategic alliances and collaborative partnerships can be competitively valuable because:
  • In which of the following cases are late-mover advantages (or first-mover disadvantages) NOT likely to arise?
  • Being first to initiate a particular strategic move can have a high payoff in all of the following EXCEPT when:
it reinforces the brand, enhances consumer satisfaction, and results in lower prices to end users.
  • Relying on outsiders to perform certain value chain activities offers such strategic advantages as:
  • Being first to initiate a particular strategic move can have a high payoff in all of the following EXCEPT when:
  • Because when to make a strategic move can be just as important as what move to make, a company's best option with respect to timing is:
  • Bypassing regular wholesale/retail channels in favor of direct sales and Internet retailing can have appeal if:
Did the company pour too many resources into getting ahead of the market opportunity?
  • The principal advantages of strategic alliances over vertical integration or horizontal mergers/acquisitions is defined best by:
  • The Achilles heel (or biggest disadvantage/pitfall) of relying heavily on alliances and cooperative strategies is:
  • Which one of the following is NOT a strategic choice that a company must make to complement and supplement its choice of one of the five generic competitive strategies?
  • Any company that seeks competitive advantage by being a first-mover must ask several hard questions prior to executing its strategy. Which question would it NOT ask?
develops over time, out of effort and learning.
  • The difference between a merger and an acquisition relates to:
  • A vertical integration strategy can expand the firm's range of activities:
  • Alliance management is considered an organizational capability and:
  • The strategic impetus for forward vertical integration is to:
When opportunities exist for a blue-ocean strategy to invent a new industry or distinctive market segment that creates altogether new demand.
  • Which of the following is NOT a potential advantage of backward vertical integration?
  • Which of the following is NOT a strategic disadvantage of vertical integration?
  • Which of the following is NOT one of the factors that affects whether a strategic alliance will be successful and realize its intended benefits?
  • In which of the following cases are late-mover advantages (or first-mover disadvantages) NOT likely to arise?
Minimizing the amount of resources that the partners commit to the alliance.
  • Which of the following is NOT one of the benefits of outsourcing value chain activities presently performed in-house?
  • Which of the following is NOT a purpose of a defensive strategy?
  • Which of the following is NOT one of the factors that affects whether a strategic alliance will be successful and realize its intended benefits?
  • Which of the following ways are employed by defending companies to fend off a competitive attack?
can suffer culture clash and integration problems due to different management styles and business practices.
  • Vertical integration can lower costs by:
  • Backward vertical integration can produce:
  • First-mover disadvantages (or late-mover advantages) rarely ever arise when:
  • Experience indicates that strategic alliances:
The range of activities the firm performs internally and the breadth of its product offerings, the extent of its geographic market, and its mix of businesses
  • A good example of vertical integration is:
  • The two big drivers of outsourcing are:
  • What does the scope of the firm refer to?
  • The difference between a merger and an acquisition is that:
help master new technologies and build new expertise and competencies, establish a stronger beachhead for participating in the target industry, and open up broader opportunities in the target industry.
  • Companies racing against rivals for global market leadership need strategic alliances and collaborative partnerships with companies in foreign countries to:
  • The race among rivals for industry leadership is more likely to be a marathon rather than a sprint when:
  • Any company that seeks competitive advantage by being a first-mover must ask several hard questions prior to executing its strategy. Which question would it NOT ask?
  • A company racing to seize opportunities on the frontiers of advancing technology often utilizes strategic alliances and collaborative partnerships to:
the market response is strong and the pioneer gains a monopoly position that enables it to recover its investment.
  • For every emerging opportunity there exists:
  • In which of the following instances is being a first-mover NOT particularly advantageous?
  • A strategy of vertical integration can have substantial drawbacks, including:
  • First-mover disadvantages (or late-mover advantages) rarely ever arise when:
Firms with weaknesses in areas where the challenger is strong.
  • Which of the following ways are employed by defending companies to fend off a competitive attack?
  • Which of the following is NOT a purpose of a defensive strategy?
  • Which of the following is NOT a strategic disadvantage of vertical integration?
  • Which of the following rivals make the best targets for an offensive attack?
obtaining higher quality and/or cheaper components or services, improving a company's ability to innovate, and reducing its risk exposure.
  • Mergers and acquisitions are often driven by such strategic objectives as:
  • What does the scope of the firm refer to?
  • Outsourcing strategies can offer such advantages as:
  • Outsourcing the performance of value chain activities presently performed in-house to outside vendors and suppliers makes strategic sense EXCEPT when:
misinterpretation of the cultural differences, like employee disenchantment and low morale, differences in management styles and operating procedures, and operations integration decision mistakes.
  • A primary reason for why mergers and acquisitions sometimes fail is due to the:
  • A company that fails in managing their strategic alliance probably has not:
  • Which of the following is NOT a principal offensive strategy option?
  • A company racing to seize opportunities on the frontiers of advancing technology often utilizes strategic alliances and collaborative partnerships to:
The alliance helps the company obtain additional financing on better credit terms.
  • Which of the following is NOT a factor that makes an alliance "strategic" as opposed to just a convenient business arrangement?
  • Which of the following rivals make the best targets for an offensive attack?
  • Which of the following is NOT a potential advantage of backward vertical integration?
  • What is the goal of signaling a challenger that strong retaliation is likely in the event of an attack?
frequently do not produce the hoped-for outcomes.
  • Vertical integration strategies:
  • Merger and acquisition strategies:
  • Strategic alliances:
  • Mergers and acquisitions:
are highly selective, focusing on particular value chain activities and on obtaining a particular competitive benefit, thereby enabling the firm to build on its strengths and to learn.
  • The best strategic alliances:
  • What does the scope of the firm refer to?
  • The two big drivers of outsourcing are:
  • Merger and acquisition strategies:
the environmental costs of coordinating operations across vertical chain activities.
  • A strategy of vertical integration can have both important strengths and weaknesses and depends on:
  • Which of the following is NOT a strategic disadvantage of vertical integration?
  • A strategy of vertical integration can have substantial drawbacks, including:
  • The difference between a merger and an acquisition relates to:
When markets are slow to accept the innovative product offering of a first-mover, and fast followers possess sufficient resources and marketing muscle to overtake a first mover.
  • Which of the following is NOT a potential advantage of backward vertical integration?
  • Which of the following is NOT a typical reason that many alliances prove unstable or break apart?
  • In which of the following instances is being a first-mover NOT particularly advantageous?
  • Which of the following is NOT a typical strategic objective or benefit that drives mergers and acquisitions?
exploiting a company's strongest competitive assets—its most valuable resources and capabilities.
  • Outsourcing strategies can offer such advantages as:
  • First-mover disadvantages (or late-mover advantages) rarely ever arise when:
  • Strategic offensives should, as a general rule, be based on:
  • The strategic impetus for forward vertical integration is to:
hollowing out a firm's own capabilities and losing touch with activities and expertise that contribute fundamentally to the firm's competitiveness and market success.
  • The two big drivers of outsourcing are:
  • The big risk of employing an outsourcing strategy is:
  • What does the scope of the firm refer to?
  • The difference between a merger and an acquisition is that:
ensuring the division of work is directly apportioned to appropriate skill sets.
  • Capturing the benefits of strategic alliances is not easy, but success generally is a function of six factors, except when:
  • Which of the following ways are employed by defending companies to fend off a competitive attack?
  • What is the goal of signaling a challenger that strong retaliation is likely in the event of an attack?
  • Which of the following is NOT one of the factors that affects whether a strategic alliance will be successful and realize its intended benefits?
Walmart's logistics and distribution.
  • Which of the following is NOT a typical reason that many alliances prove unstable or break apart?
  • Which of the following is NOT a prime example of a blue-ocean market strategy?
  • Which of the following is NOT a potential advantage of backward vertical integration?
  • Which of the following is NOT one of the benefits of outsourcing value chain activities presently performed in-house?
a differentiation-based competitive advantage when activities enhance the performance of the final product.
  • Backward vertical integration can produce:
  • Experience indicates that strategic alliances:
  • For every emerging opportunity there exists:
  • A good example of vertical integration is:
buyers respond immediately (to a dramatic cost-based price cut or imaginative ad campaign).
  • A good example of vertical integration is:
  • The difference between a merger and an acquisition is that:
  • An offensive to yield good results can be short if:
  • Which of the following is NOT a potential advantage of backward vertical integration?
To enable greater opportunities for employee advancement.
  • Which one of the following is NOT a strategically beneficial reason why a company may enter into strategic partnerships or cooperative arrangements with key suppliers, distributors, or makers of complementary products?
  • Which of the following is NOT one of the factors that affects whether a strategic alliance will be successful and realize its intended benefits?
  • Which of the following is NOT a typical strategic objective or benefit that drives mergers and acquisitions?
  • Which of the following is NOT a purpose of a defensive strategy?
focusing relentlessly on building a competitive advantage.
  • Capturing the benefits of strategic alliances is not easy, but success generally is a function of six factors, except when:
  • Any company that seeks competitive advantage by being a first-mover must ask several hard questions prior to executing its strategy. Which question would it NOT ask?
  • Sometimes it makes sense for a company to go on the offensive to improve its market position and business performance. The best offensives tend to incorporate the following EXCEPT:
  • Companies racing against rivals for global market leadership need strategic alliances and collaborative partnerships with companies in foreign countries to:
involves farming out certain value chain activities presently performed in-house to outside vendors.
  • Merger and acquisition strategies:
  • Strategic alliances:
  • An outsourcing strategy:
  • Vertical integration strategies:
becoming dependent on other companies for essential expertise and capabilities.
  • The Achilles heel (or biggest disadvantage/pitfall) of relying heavily on alliances and cooperative strategies is:
  • A company that has greater success in managing their strategic alliance can credit all of the following, EXCEPT:
  • Relying on outsiders to perform certain value chain activities offers such strategic advantages as:
  • Capturing the benefits of strategic alliances is not easy, but success generally is a function of six factors, except when:
involves abandoning efforts to beat out competitors in existing markets and instead invent a new industry or new market segment that renders existing competitors largely irrelevant and allows a company to create and capture altogether new demand.
  • A primary reason for why mergers and acquisitions sometimes fail is due to the:
  • Strategic alliances:
  • Merger and acquisition strategies:
  • A blue-ocean strategy:
horizontal scope.
  • A strategy of vertical integration can have both important strengths and weaknesses and depends on:
  • When firms are involved in a mix of in-house and outsourced activity in any given stage of the vertical chain, it is called:
  • The formation of a new corporation, jointly owned by two or more companies agreeing to share in the revenues, expenses, and control, is known as:
  • The range of product and service segments that the firm serves within its market is known as the firm's:
To facilitate a company's shift from a broad differentiation strategy to a focused differentiation strategy.
  • Which of the following is NOT a typical reason that many alliances prove unstable or break apart?
  • Which of the following is NOT a factor that makes an alliance "strategic" as opposed to just a convenient business arrangement?
  • Which of the following is NOT a typical strategic objective or benefit that drives mergers and acquisitions?
  • Which of the following is NOT one of the benefits of outsourcing value chain activities presently performed in-house?
the market depends on the development of complementary products or services that are currently not available, buyers have high switching costs, and influential rivals are in position to derail the efforts of a first-mover.
  • For backward vertical integration into the business of suppliers to be a viable and profitable strategy, a company:
  • A company racing to seize opportunities on the frontiers of advancing technology often utilizes strategic alliances and collaborative partnerships to:
  • The two best reasons for investing company resources in vertical integration (either forward or backward) are to:
  • The race among rivals for industry leadership is more likely to be a marathon rather than a sprint when:
initiating a market threat and counterattack simultaneously to effect a distraction.
  • Strategic offensives should, as a general rule, be based on:
  • All firms are subject to offensive challenges from rivals. The intent of the best defensive move is to:
  • The principal offensive strategy options include all of the following EXCEPT:
  • Which of the following is NOT a strategic disadvantage of vertical integration?
Whether to employ a market share leadership strategy.
  • Any company that seeks competitive advantage by being a first-mover must ask several hard questions prior to executing its strategy. Which question would it NOT ask?
  • Which of the following is NOT a factor that makes an alliance "strategic" as opposed to just a convenient business arrangement?
  • Which of the following is typically the strategic impetus for forward vertical integration?
  • Which one of the following is NOT a strategic choice that a company must make to complement and supplement its choice of one of the five generic competitive strategies?
Announcing strong quarterly earnings potential to financial analysts.
  • Which of the following is NOT one of the factors that affects whether a strategic alliance will be successful and realize its intended benefits?
  • Which of the following signals would NOT warn challengers that strong retaliation is likely?
  • Which of the following is typically the strategic impetus for forward vertical integration?
  • Which of the following is NOT a typical reason that many alliances prove unstable or break apart?
a market penetration curve, and this typically has an inflection point where the business model falls into place.
  • Experience indicates that strategic alliances:
  • What does the scope of the firm refer to?
  • The difference between a merger and an acquisition is that:
  • For every emerging opportunity there exists:
reducing the company's risk exposure to changing technology and/or changing buyer preferences.
  • Which of the following is NOT a typical strategic objective or benefit that drives mergers and acquisitions?
  • Relying on outsiders to perform certain value chain activities offers such strategic advantages as:
  • Which of the following signals would NOT warn challengers that strong retaliation is likely?
  • Bypassing regular wholesale/retail channels in favor of direct sales and Internet retailing can have appeal if:
backward into sources of supply and/or forward toward end users.
  • Mergers and acquisitions are often driven by such strategic objectives as:
  • A vertical integration strategy can expand the firm's range of activities:
  • The difference between a merger and an acquisition relates to:
  • A strategy of vertical integration can have substantial drawbacks, including:
that outsiders can often perform certain activities better or more cheaply, and outsourcing allows a firm to focus its entire energies on those activities that are at the center of its expertise (its core competencies).
  • The race among rivals for industry leadership is more likely to be a marathon rather than a sprint when:
  • The two big drivers of outsourcing are:
  • Merger and acquisition strategies:
  • The big risk of employing an outsourcing strategy is:
to carefully weigh the first-mover advantages against the first-mover disadvantages and act accordingly.
  • Outsourcing the performance of value chain activities presently performed in-house to outside vendors and suppliers makes strategic sense EXCEPT when:
  • Which of the following is NOT a factor that makes an alliance "strategic" as opposed to just a convenient business arrangement?
  • Because when to make a strategic move can be just as important as what move to make, a company's best option with respect to timing is:
  • The two best reasons for investing company resources in vertical integration (either forward or backward) are to:
market uncertainties make it difficult to ascertain what will eventually succeed.
  • A company that has greater success in managing their strategic alliance can credit all of the following, EXCEPT:
  • Being first to initiate a particular strategic move can have a high payoff in all of the following EXCEPT when:
  • Which of the following is NOT a factor that makes an alliance "strategic" as opposed to just a convenient business arrangement?
  • Which of the following is NOT a typical reason that many alliances prove unstable or break apart?
a joint venture.
  • The range of product and service segments that the firm serves within its market is known as the firm's:
  • The formation of a new corporation, jointly owned by two or more companies agreeing to share in the revenues, expenses, and control, is known as:
  • The Achilles heel (or biggest disadvantage/pitfall) of relying heavily on alliances and cooperative strategies is:
  • An alliance becomes "strategic" as opposed to just a convenient business arrangement when it serves strategic purposes such as when designed to help:
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Multiple Choice Questions
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