Quiz 1 for Business Strategy 405

Topics: Strategic management, Economics, Strategy Pages: 5 (857 words) Published: March 18, 2013
1) All firms have almost entirely emergent strategies.
2) Activity ratios are ratios with some measure of profit in the numerator and some measure of firm size or assets in the denominator. Answer

Consolidation strategy is a good option in what type of industry? Answer
| | Mature|
| | Emerging|
| | Fragmented|
| | Declining|

4) A(n) ________ is any individual, group, or organization outside a firm that seeks to reduce the level of that firm's performance. Answer
| | environmental threat|
| | environmental opportunity|
| | environmental equalizer|
| | competitive advantagepg 205 A firm's mission defines both what it wants to be in the long run and what it wants to avoid in the meantime.Answer True False6  A competitive advantage that lasts a very short period of time is known as a ________ competitive advantage.Answer | | temporary| | | sustained|

| | transient|
| | perpetual|
7 Green Frog is an environmentally friendly firm in the cosmetics industry. If during the strategic planning process Green Frog tried to determine the critical threats and opportunities in its competitive environment, it would be performing a(n)Answer | | internal analysis.| | | external analysis.|

| | WACC analysis.|
| | economic analysis.|
8 | | Diseconomies of scale exist in an industry when a firm's costs fall as a function of that firm's volume of production.Answer True False9A firm's general environment consists of broad trends in the context within which the firm operates that can have an impact on the firm's strategic choices.Answer True False10 Emergent strategies are theories of how to gain competitive advantage in an industry that emerge over time or that have been radically reshaped once they are initially implemented.Answer True False|

| | |
11 Firms in industries characterized by ________ can expect to earn only competitive parity. Answer
| | perfect competition|
| | monopolistic competition|
| | oligopoly|
| | MonopolyPg 3712All other things being equal, which of the following would lead to lower barriers to entry in an industry?Answer | | The existence of economies of scale in the industry| | | Products are highly differentiated in the industry.| | | Industry incumbents have learning-curve cost advantages.| | | Raw materials are widely and readily available at a competitive price.| 13 | |  By conducting an external analysis, a firm identifies the critical threats and opportunities in the industry's competitive environment.Answer True False14 Firms with strategies that are unlikely to be a source of competitive advantage will rarely provide the same career opportunities as firms with strategies that do generate such advantages.Answer True False|

15A firm that earns its cost of capital is said to be earning Answer
| | above normal economic performance.|
| | normal economic performance.|
| | below normal economic performance.|
| | normal accounting performance.|
16 | |  A sustained competitive advantage is virtually permanent.Answer True False|
17 Emergent strategies are only important when a firm fails to implement the strategic management process effectively. Answer
Firms that have either recently begun operations in an industry or that threaten to begin operations in an industry soon are considered to be ________ in the five forces framework. Answer
| | barriers to entry|
| | new entrants|
| | suppliers|
| | Buyers19 A firm's ________ is a measure of its competitive advantage calculated using information from a firm's published profit and loss and balance sheet statements.Answer | | economic performance| | | accounting performance|

| | strategic performance|
| | sustainable performance|
Question 20
Firms that generate less economic value than their...
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