Deck 2: The Context of Managing Strategically

Question 1

The industrial organization (I/O)view proposes that an organization's competitive advantage is only temporary and can be gained only by peppering the competitive marketplace with rapid radical surprises.

Answer 1

False

Question 2

The resources-based view (RBV)takes the approach that a firm's resources are more important than industry structure in getting and keeping competitive advantage.

Answer 2

True

Question 3

In the industrial organization (I/O)view, the focus of strategic analysis is on the internal situation of the organization.

Answer 3

False

Question 4

An example of a potential organizational stakeholder is a trade association.

Question 5

Technology has significantly impacted how a creative idea is turned into a product or process that can be used or sold.

Question 6

Organization change is defined as a structured transition in what an organization does and how it does it.

Question 7

Milton Friedman is an advocate of a contemporary view of social responsibility.

Question 8

Stakeholders are individuals or groups who have a stake in or are significantly influenced by an organization's decisions and actions and who, in turn, can influence the organization.

Question 9

The resource-based view focuses on the structural forces within an industry, the firm's competitive environment, and how these influence competitive advantage.

Question 10

An organizational vision is a broad comprehensive picture of what a leader wants an organization to become.

Question 11

Corporate social responsibility (CSR)is the obligation of organizational decision makers to make decisions and act in ways that recognize the interrelatedness of business and society.

Question 12

Ethics involves the principles that define right and wrong decisions and behavior in a work setting.

Question 13

According to the resource-based view, a firm's resources should add value, be rare, be exploited, and easy to duplicate or substitute.

Question 14

When an organization has numerous internal strengths, it is said to have a competitive advantage.

Question 15

According to the guerrilla-based view, a firm's competitive advantage is temporary.

Question 16

Factors critical to success in the new business environment are the ability to embrace change, creativity and innovation capabilities, and being a world-class organization.

Question 17

Physical assets encompass the actual and potential debt and equity used by the organization as well as any retained earnings or other financial holdings.

Question 18

The resource-based view (RBV)only focuses on the internal factors, with no regard for the organization's external factors.

Question 19

Globalization is one of the driving forces in the twenty-first century business environment.

Question 20

The new business environment's driving forces include continual change, the reduced need for physical assets, vanishing distance and compressed time, and increased vulnerability.

Question 21

Imitability of a resource can occur through

A) duplication.
B) exploitation.
C) substitution.
D) duplication and substitution.
E) None of the answer choices is correct.

Question 22

One of the effects of the driving forces in the new business environment is

A) vanishing distance.
B) the reduced need for physical assets.
C) compressed time.
D) continual turbulence.
E) All of the answer choices are correct.

Question 23

Technology is using only equipment to perform tasks.

Question 24

Purchasing and sending electronic greeting cards through a web site could represent a(n)________ for a traditional greeting card company like Hallmark.

A) organizational change
B) stable vision
C) physical change
D) All of the answer choices are correct.
E) None of the answer choices is correct.

Question 25

According to the guerrilla view of competitive advantage, the state of an organization's competitive advantage is

A) temporary.
B) long term.
C) long term based on the role of strategic leadership.
D) able to provide stable cash flows.
E) None of the answer choices is correct.

Question 26

Capitalizing on information, people, ideas, and knowledge characterizes the implication of

A) vanishing distance.
B) reduced need for physical assets.
C) compressed time.
D) turbulent change.
E) All of the answer choices are correct.

Question 27

Which of the following organization(s)need to have a competitive advantage to survive in the long-term?

A) Government agencies
B) Community arts organizations
C) Social service groups
D) For-profit companies
E) All of the answer choices are correct.

Question 28

American Airlines starting an airfare war by drastically reducing prices is an example of a change in the ________ environment.

A) internal
B) external
C) resource
D) modified environment
E) None of the answer choices is correct.

Question 29

________ is defined as a structured transition in what an organization does and how it does it.

A) Strategy
B) Strategic management
C) Organizational change
D) Globalization
E) Technology

Question 30

Which of the following factor(s)is(are)considered to make an organization's resources unique?

A) Durability
B) Imitability
C) Quality
D) Efficiency
E) Effectiveness

Question 31

All of the following characteristic(s)reflect the uniqueness of a resource including

A) no other competing firms possess the resource.
B) the resource is hard to imitate.
C) the resource adds value.
D) the organization should be able to exploit the resource.
E) All of the answer choices are correct.

Question 32

Competitive advantage can best be described as

A) increased efficiency.
B) what sets an organization apart.
C) a strength of the organization.
D) intangible resources.
E) aggressive research and development.

Question 33

The ability to access information with great speed reflects the impact of

A) the information revolution.
B) technological advances and breakthroughs.
C) globalization.
D) All of the answer choices are correct.
E) None of the answer choices is correct.

Question 34

________ is the process of taking a creative idea and turning it into a product or process that can be used or sold.

A) Technology
B) Innovation
C) Invention
D) Discovery
E) All of the answer choices are correct.

Question 35

The competitive advantage perspective that focuses on structural forces within an industry, the competitive environment of firms, and how these influence competitive advantage is

A) the industrial-organizational view.
B) the resource-based view.
C) the guerilla view.
D) None of these answers is correct.
E) All of these answers are correct.

Question 36

Experiences, characteristics, and knowledge are all aspects that represent

A) financial resources.
B) intangible resources.
C) human resources.
D) physical resources.
E) structural resources.

Question 37

The influence of globalization in managing strategically can be demonstrated in

A) the global marketplace.
B) global competition.
C) the organization itself.
D) global competitors and the global marketplace.
E) None of the answer choices is correct.

Question 38

An organization's attempt at creating and sustaining a long-term competitive advantage can be disrupted through

A) technological advances.
B) market instability.
C) government legislation.
D) All of the answer choices are correct.
E) None of the above affect long-term competitive advantage.

Question 39

All of the following reflect important issues in the new business environment except

A) the information revolution.
B) technological advances and breakthroughs.
C) globalization.
D) All of the answer choices are correct.
E) None of the answer choices is correct.

Question 40

The use of equipment, materials, knowledge, and experience to perform tasks is defined as

A) the information revolution.
B) technology.
C) globalization.
D) resource allocation.
E) labor allocation.

Question 41

An organization will have ________ mission(s), but ________ vision(s).

A) several; several
B) one; several
C) several; one
D) one; one
E) None of the answer choices is correct.

Question 42

Companies such as Google and Apple are finding that they can achieve a sustainable competitive advantage with

A) physical assets.
B) physical distance.
C) non-physical assets.
D) vanishing distance.
E) All of the answer choices are correct.

Question 43

Which of the following is a characteristic of a world-class organization?

A) An authoritarian climate
B) A strong customer focus
C) A bureaucratic organization structure
D) A strong marketing department
E) A functional organizational structure

Question 44

Corporate social responsibility (CSR)is the obligation of ________ to make decisions and act in ways that recognize the interrelatedness of business and society.

A) society
B) stakeholders
C) community
D) organizational decision makers
E) competitors

Question 45

The traditional view of social responsibility states that

A) corporations should exist only to represent the stockholders.
B) corporations must represent all stakeholder groups.
C) corporations should operate on the basis of their suppliers' interests.
D) corporations function as a measure of consumer behavior.
E) corporations forecast their goals on the basis of pending legislation.

Question 46

Instant interactivity reflects the environment of

A) reduced need for physical assets.
B) compressed time.
C) vanishing distance.
D) constant change.
E) All of the answer choices are correct.

Question 47

The United States Congress could represent the ________ form of stakeholders.

A) political action groups
B) supplier
C) government
D) social action groups
E) shareholder

Question 48

Ms. Gibson has come up with the idea of offering free house painting if the job is not completed within the time agreed. Which of the following best describes the competitive advantage perspective that Ms. Gibson is proposing?

A) Resource-based view
B) Guerilla view
C) Industrial organization view
D) All of the answer choices are correct.
E) None of the answer choices is correct.

Question 49

Ms. Gibson has decided the company's employees are their best organizational asset. This asset is an example of which type of resource?

A) Financial assets
B) Physical assets
C) Human resource assets
D) Intangible assets
E) Structural-cultural assets

Question 50

Ethics is both a(n)________ and ________ issue and should be part of the strategic management process.

A) inconsequential; organizational
B) personal; organizational
C) organizational; contemporary
D) None of the answer choices is correct.
E) All of the answer choices are correct.

Question 51

Change agents are

A) manipulators that facilitate change to improve an organization's revenue.
B) those who initiate and oversee the change efforts.
C) the leader who single-handedly is responsible for an organization's success through authoritarian leadership.
D) All of the answer choices are correct.
E) None of the answer choices is correct.

Question 52

A ________ statement is a statement of what specific organizational units do and what they hope to accomplish.

A) vision
B) strategy
C) technology
D) mission
E) corporate social responsibility

Question 53

The ________ should elaborate a purpose for the organization.

A) vision
B) competitive strategy
C) mission
D) strategy
E) None of the answer choices is correct.

Question 54

The following are all components of an organizational vision except

A) a strong connection to the organization's core values and beliefs.
B) strategy based on the results of a focus group.
C) elaboration of a purpose for the organization.
D) summary of the organization's operations or what it does.
E) specification of broad goals.

Question 55

The three components that form the three critical success factors include

A) the ability to embrace change, creativity and innovation capabilities, and being a world-class organization.
B) strategy formulation, strategy implementation, and strategy evaluation.
C) corporate, functional, and competitive strategies.
D) All of the answer choices are correct.
E) None of the answer choices is correct.

Question 56

Which of the following best describes the competitive advantage perspective that looks at the impact of external factors?

A) Resource-based view
B) Guerilla view
C) Industrial organization view
D) All of the answer choices are correct.
E) None of the answer choices is correct.

Question 57

Ethics can be defined as

A) the obligation of organizational decision makers to make decisions and act in ways that recognize the interrelatedness of business and society.
B) the intentional and ongoing actions of an organization to continuously transform itself by acquiring information and knowledge.
C) the rules and principles that define right and wrong decisions and behavior.
D) making decisions and implementing strategies that allow an organization to develop and maintain a competitive advantage.
E) the international linkage of economies and culture that fosters a business and competitive situation in which organizations have no national boundaries.

Question 58

Which of the following is not an example of a stakeholder?

A) Political action groups
B) Trade associations
C) Customers
D) Government
E) All of the above are stakeholders.

Question 59

An example of ethical behavior by an organization would be

A) a chemical company dumping toxic waste into a lake.
B) a cigarette manufacturer that fails to warn potential consumers about the hazards of tobacco.
C) a toy company that makes products that might be life threatening.
D) a company that develops a fund-raising campaign that would help its primary consumer group.
E) None of the answer choices is correct.

Question 60

________ and ________ are critical to strategic success in the new business environment.

A) Innovation; creativity
B) Formulation; innovation
C) Turbulence; stagnation
D) All of the answer choices are correct.
E) None of the answer choices is correct

Question 61

Compare and contrast the industrial organization (I/O)and resource-based views (RBV).

Question 62

Explain the guerrilla view of managing strategically.

Question 63

As you are studying Picture Perfect Painting's context, it seems clear that the company will have to prepare itself for continual turbulence and change. Which of the following best describes the driving forces for change that could affect the company's future?

A) Reduced need for physical assets
B) Vanishing distance and compressed time
C) Increased vulnerability
D) All of the answer choices are correct.
E) None of the answer choices is correct.

Question 64

What makes organizational resources unique?

Question 65

Define stakeholders. Describe some potential organizational stakeholders. Why are stakeholders important?

Question 66

As the consultant, you propose to Ms. Gibson that she think about the way Picture Perfect Company operates. You are suggesting the company review which of the following?

A) Its digital technology
B) Its network capabilities
C) Its technology
D) All of the answer choices are correct.
E) None of the answer choices is correct.

Question 67

Describe the traditional view of corporations.