REVIEWER BUS 5

1. If a firm intentionally delays investing in something such as new information technology based on
potentially lower costs in the future, it has most probably based its decision on _
a. Predicting b. Forecasting c. SWOT d. Monitoring e. Scanning
2. An environmental analysis affords managers the ability to examine the environment at all but which of
the following levels?
a. Direct competitors b, The Industry c. The General Environment d. Vertical Integration e.
Strategic group
3. A top name automobile manufacturer is anticipating an increased need for more luxury type vehicles to
be manufactured in the immediate future. This decision is most probably based on studies from which
segment of the external environment?
a. Economic b. Globalization c. Cultural d. Political e. Demographic
4. Which part of the environment consists of the norms, values, and preferences of a society?
a. Demographics b. Individualism c. Socio-Cultural d. Globalization e. Regulatory
5. A/An _______ is composed of a group of firms with products than can substitute for one another.
a. Strategic Alliance b. conglomerate c. Benchmark d. Value chain e. Industry
6. Which of the following may be used by firms in order to improve their market positions?
a. Different Competitors b. Extended warranties c. Value Chain d. Imitation e. Free Options
7. The Solar Corporation possesses several areas of strength. It currently excels within the industry at
providing service to its customers. This strength can be classified as a/an _______ for the Solar
Corporation
a. Strategic Vision b. Core Competency c. Concentric Diversification d. Objective e.
benchmark
8. A strategic group may adopt all of the following common strategies except ________.
a. Technological Leadership b. Quality standards c. Products d. prices e, customer services
9. Of the following, which is best identified as a strategic management analysis that breaks the firm down
into a sequential series of activities and attempts to identify the worth added by each activity?
A. Functional Analysis b. Concentric Strategy c. Benchmarking d. Forecasting e. Value-chain
analysis
10. When Dale compares the capabilities of his organization with those of his closest competitors in order to
derive possible improvements within his company, he is ____.
a. Strategizing b. forecasting c. benchmarking d. differentiating e. scanning
11. Intel's ________ states that "we intend to become the premier building block supplier to the computer
industry."
a. Vision statement b. Strategic intent c. Strategic mission d. Objective e. Goal
12. A firm's strategic plan to create and manage a mix of businesses owned by a firm is referred to as a __
a. Diversification strategy b. corporate level strategy c. management level strategy d. Company

13. Top-level management members are charged with the responsibility for overseeing all aspects of
the strategic management process. The strategic management process is comprised of all but which of
the following?
a. Performance of an internal environmental analysis
b. Determining primary competitors
c. Defining the mission of the organization
d. Implementation of competitive advantage strategies

14. A primary strategic management tool is a/an ____ analysis. The objective of this tool is to analyze
factors from inside and outside the organization that may impact upon the success of the business
a. Scanning b. monitor c. assessment d. forecast e. SWOT

15. Of the following items, which one is not considered a component of an external analysis?
a. Assessing b. Scanning c. Profiling d. Monitoring e. Forecasting

16. Ronald is one of the upper management leaders for his company. He has recently completed a process in
which he was able to identify the early signs of an emerging trend for increased diversity within
consumers that purchase products manufactured by his organization. Jeremy most probably completed
which of the following components of an external
a. SWOT b. Forecasting c. Monitoring d. Scanning e. Assessment
17. A new information technology based on potentially lower costs in the future, it has most probably
based its decision on _______.
a. Predicting b. Forecasting c. SWOT d. Monitoring e. Scanning
18. Evaluation of environmental data received to study the implications for the firm is the process of .
a. Assessing b. Monitoring c. Scanning d. Value Chain Analysis e. Concentric Diversification
19. Homer spends his management work hours observing environmental changes continuously. It is his
job to determine whether or not a clear trend is emerging so that he may alert his organization. It can be
stated Homer is engaged in ________
a. Organizing b. Predicting c. Forecasting d. Assessment e. Monitoring
20. A firm's strategic plan to create and manage a mix of businesses owned by a firm is referred to as a
__________
a. Diversification strategy b. corporate level strategy c. management level strategy d.
Company strategy e. portfolio strategy
21. A model that sees resources as key to superior firm performance.
a. Resource-Based view (RBV) b. VRIO framework c. Value chain d. Strategic Model
22. Resources with physical attributes, which thus are visible
a. Tangible resources) b. VRIO framework c. Value chain d. Strategic Model
23. Resources that do not have physical attributes and thus are invisible
a. Resource-Based view (RBV) b.VRIO framework c. Intangible resources d. Strategic Model
24. A model that emphasizes a firm’s ability to modify a leverage its resources base in a way that enables it
to gain and sustain competitive advantage in a constantly changing environment
a. Support activities b. Dynamic Capabilities perspective c. Intangible d Primary activities.
25. Activities that add value directly by transforming inputs into outputs, raw materials, productions phases,
sales and marketing
a. Support activities b. Value chain c. Intangible Resources d. Primary activities.
TRUE OR FALSE:

1. Dynamic capabilities perspective is a model that emphasizes a firm’s ability to modify and leverage
base in a way that enables it to gain and sustain competitive advantage in a constantly changing
environment –TRUE
2. Strategic group are the set of companies that Pursue a similar strategy within a specific industry – TRUE
3. Resource heterogeneity is the assumption in the resource based view that a firm has resources that tend
to be “sticky” and that do not move easily from firm to firm- FALSE
4. Casual ambiguity is a situation in which that cause and effect of a phenomenon are not readily apparent
– TRUE Support activities are activities that add value directly by transforming inputs into outputs raw
materials, production phases, sales and marketing. –FALSE primary activities
5. Support activities are activities that add value directly by transforming inputs into outputs raw materials,
production phases, sales and marketing. –FALSE primary activities
6. Mobile barriers are industry specific factors that separate one strategic group from another – TRUE
7. Path dependencies are a situation in which the options one faces in the current situation are limited by
decisions made in the past. TRUE
8. Resource-based view are certain types of resources that are seen as key to superior firm performance-
TRUE
9. A sociocultural factor includes a society’s culture, norms and values. TRUE
10. PESTEL framework is a framework that explains differences in industry performance. FALSE-
STRUCTURE-CONDUCT PERFORMANCE MODEL (SCP)
11. Resource-based view is relevant in markets that are constantly shifting –FALSE- DYNAMIC
CAPABILITIES PERSPECTIVE
12. Economic factors are situation in which different social and business systems interact with one another-
FALSE –SOCIAL COMPLEXITY
13. Resource flows is the firm’s level of investment to maintain or build a resource TRUE
14. Industry makes the supply side of the market, while customers make up the demand side. TRUE
15. Resource immobility is the assumption in the resource based view that a firm is a bundle of resources
and capabilities that differ across firms-FALSE
16. Core competencies can be very specialized indeed or may be transferable between markets. TRUE
17. TR Company bases its competitive advantage through identifying activities that its competitors cannot
easily imitate. This approach is referred to the positioning approach. FALSE—RBV approached
18. Generic strategies are identified with value chain framework and activity systems concept. TRUE
19. Resourced based-view attributes one approach to viewing a firm and approaching competitive advantage.
TRUE
20. Economic value is the difference between perceived customer benefits associated with buying a product
and the costs of producing and selling the product TRUE