1. The resource that is most likely to create a sustained competitive advantage is one that is (Select all that apply)

A. valuable

B. fragmented

C. rare

D. costly to duplicate

2. The two parts of the strategy process are ____ and _____

A. fragmentation, implementation

B. scale, scope

C. differentiation advantage, cost advantage

D. diversification, cost leadership

3. In strategic management, the formulation of a good strategy needs to account for how the strategy will be ____, otherwise it's just an idea. Strategy implementation often leads to information about how the strategy will be ____.

A. carried out, implemented by employees

B. implemented by employees, carried out

C. concentrated, fragmented

D. fragmented, concentrated

4. Which statement best describes how SWOT analysis fits into the strategy process?

A. provides a foundation for the strategy process

B. only includes an internal analysis

C. is only necessary for very large corporations

D. only includes an external analysis

5. The amount a customer is willing to pay is relevant in determining _____ whereas the amount a customer actually pays determines ______.

A. cost, differentiation

B. integration, concentration

C. scale economies, scope economies

6. The goal of industry analysis is to ascertain why ____ whereas the goal of strategic management is to determine ____.

A. some industries have strengths, weaknesses, opportunities, and threats; both the firm's internal and external resources and capabilities

B. some industries are more profitable than others, ultimately how managers can enhance their firm's profits

C. some industries are more profitable than others, the firm's internal resources and capabilities

7. Both oligopolies and monopolies can be classified as operating in ____ and are important for examining the threat of _____.

A. fragmented industries, buyers

B. differenced industries, rivalry

C. concentrated industries, rivalry

D. cost leadership industries , buyers

8. Where there is industry ____ and industry growth ______ the threat of rivalry is high

A. concentration, is low

B. concentration, is high

C. fragmentation, is high

D. fragmentation is low

9. ____ economies represent an entry barrier because of the amount of time it takes new firms to achieve efficiencies through trial and error

A. scope

B. concentration

C. scale

10. The threat of ___ is less likely when _____

A. complements, the price of complements is low

B. substitutes, the price of substitutes is high

C. substitutes, the price of substitutes is low

D. substitutes, the price of complements is high

11. _____ vertical integration allows a firm to exert more bargaining power, while _____ vertical integration allows a firm to have more control over distribution

A. backward, forward

B. tapered, fragmented

C. forward, backward

D. fragmented, tapered

12. Differentiation strategies focus on getting buyers to _____ while cost leadership strategies focus on getting buyers to _____.

A. purchase the firms unique products or services at lower cost, pay a price premium for their firm's generally acceptable products.

B. purchase the firms generally acceptable products or services at a lower cost, pay a price premium for their firms unique products or services

C. pay a price premium for their firms generally acceptable products purchase their firms unique products or services at a lower cost

13. Jerry is currently undergoing the second step of an analysis of her firms resources and capabilities, which statement describes her current activities in that step?

A. she is performing a benchmark analysis to determine if resources and capabilities are rare.

B. she is determining whether it would be difficult for another firm to imitate each resource or capability

C. she is identifying resources and capabilities that are valuable

14. Company cultures can be difficult for rivals to copy because they are intangible and are an example of tacit knowledge. Tacit knowledge can lead to

A. casual ambiguity

B. imitation

C. time compression

15. Which of these statements best describes that difference between competitive and corporate strategy?

A. Competitive strategy is concerned with how the firm can gain and sustain a competitive advantage. Corporate strategy is concerned with how an individual business firm can be more profitable than the firm.

B. Competitive strategy is concerned with how a multi-business firm can be more profitable than the firm. Corporate strategy is concerned with how the firm can gain and sustain a competitive advantage

C. . Competitive strategy is concerned with how an individual business firm can be more profitable than the firm. Corporate strategy is concerned with how the firm can gain and sustain a competitive advantage

D. Competitive strategy is concerned with how the firm can gain and sustain a competitive advantage. Corporate strategy is concerned with how a multi-business firm can be more profitable than the individual business.

16. Which of the following are ways corporations can develop parenting advantages? (select all that apply)

A. cost selling

B. related diversification

C. scope economies

D. unrelated diversification