Organizational Strategy

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Question 1
Free
Multiple Choice

PeoplePapers, a greeting cards manufacturing company, has retail stores in most parts of the country. It hires its employees from the best universities around the world and uses the best equipment in its manufacturing processes. In this scenario, the organization's processes, its employees, and its equipment are examples of its _____ .

Choose correct answer/s
A

reserves

B

resources

C

variable costs

D

overheads

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Question 2
Free
Multiple Choice

Organizations can achieve a competitive advantage by using their resources to:

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A

create strategies that are simultaneously being implemented by competitors.

B

duplicate the value a competitor firm provides to its customers.

C

provide greater value for customers than competitors can.

D

foster competitive inertia.

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Question 3
Free
Multiple Choice

Klivinich is a manufacturer of oral hygiene products. In addition to manufacturing and selling oral hygiene products, Klivinich also focuses on educating its customers on oral hygiene and dental problems. All its employees are trained to answer questions and help customers with oral hygiene and dental problems. This has helped Klivinich _____ .

Choose correct answer/s
A

produce low-cost products

B

procure rare resources

C

achieve a competitive advantage

D

form a strategic alliance

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Question 4
Free
Multiple Choice

_____ is a competitive advantage that other companies have tried unsuccessfully to duplicate and have, for the moment, stopped trying to duplicate.

Choose correct answer/s
A

Sustainable competitive advantage

B

Comparative advantage

C

Revealed competitive advantage

D

Core competency advantage

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Question 5
Free
Multiple Choice

A competitive advantage becomes a sustainable competitive advantage when:

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A

a company collaborates with its competitors to obtain a larger market share.

B

other companies cannot duplicate the value a firm is providing to customers.

C

a company uses a competitive move designed to reduce a rival's market share or profits.

D

market commonality is large, and companies have overlapping products or services.

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Question 6
Multiple Choice

Unlike a long-lasting competitive advantage, a sustainable competitive advantage is one where:

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A
competitors have tried unsuccessfully to duplicate the advantage and have, for the moment, stopped trying to duplicate it.
B
organizations collect and store the resources they require while preventing their competitors from accessing those resources in order to curb competition.
C
organizations have gained an edge by using their resources to provide greater value for customers than their competitors can.
D
competitors buy a portion of an organization's market share and use it to improve their market presence, thereby increasing the longevity of their own organization.
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Question 7
Multiple Choice

Which of the following conditions must be met if a firm's resources are to be used to achieve a sustainable competitive advantage?

Choose correct answer/s
A
The resources must be low-cost and commutable.
B
The resources must be controlled by other competing firms.
C
The resources must be perfectly imitable.
D
The resources must be valuable, rare, and nonsubstitutable.
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Question 8
Multiple Choice

Smarty Tots manufactures children's clothing and prices them at twice the price of other children's clothing brands. The clothes sell exceptionally well because customers believe that its clothes are made of non-irritant and non-allergenic fabric. Smarty Tots's competitors do not have access to this type of fabric and cannot produce the same quality of clothing. The special fabric used in the clothing gives Smarty Tots _____ .

Choose correct answer/s
A
a sustainable competitive advantage
B
the advantage of undifferentiated marketing
C
an oligopolistic advantage
D
the advantage of competitive inertia
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Question 9
Multiple Choice

Unlike valuable resources, rare resources:

Choose correct answer/s
A
do not improve a firm's efficiency and effectiveness.
B
are susceptible to changes in customer demands and preferences.
C
need not be nonsubstitutable resources to produce a competitive advantage.
D
are not controlled or possessed by many competing firms.
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Question 10
Multiple Choice

In the context of sustainable competitive advantage, unlike rare resources, imperfectly imitable resources:

Choose correct answer/s
A
are not controlled or possessed by many competing firms.
B
are impossible or extremely difficult to duplicate.
C
can be used by firms to improve their effectiveness and efficiency.
D
need not be nonsubstitutable resources to produce a competitive advantage.
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Question 11
Multiple Choice

In the context of sustainable competitive advantage, unlike rare resources, nonsubstitutable resources cannot be:

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A
used by firms to improve their effectiveness.
B
controlled or possessed by many competing firms.
C
replaced by other resources to produce similar value.
D
used to sustain a competitive advantage.
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Question 12
Multiple Choice

Which of the following is the first step of a strategy-making process?

Choose correct answer/s
A
Conducting situational analysis
B
Assessing the need for strategic change
C
Choosing strategic alternatives
D
Evaluating strategic alternatives
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Question 13
Multiple Choice

Which of the following best defines competitive inertia?

Choose correct answer/s
A
It is a reluctance to change strategies or competitive practices that have been successful in the past.
B
It is a risk-seeking strategy that aims to create and acquire companies in completely unrelated businesses.
C
It is a discrepancy between a company's intended strategy and the strategic actions managers take when implementing that strategy.
D
It is a corporate-level strategy that minimizes risk by diversifying investment among various businesses or product lines.
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Question 14
Multiple Choice

Ziff Corp. was a leading electronics firm for about three decades. As new competitors entered the industry, Ziff Corp's market share dropped. The managers at Ziff Corp. refuse to change any of their strategies, as they believe that their existing strategies will get them back to becoming the market leaders as they did in the past. This scenario is an example of _____ .

Choose correct answer/s
A
distinctive competence
B
strategic dissonance
C
strategic uncertainty
D
competitive inertia
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Question 15
Multiple Choice

Heeleo Inc. is a television manufacturer that has been in the market for several years. Most television companies are now manufacturing LED and smart televisions as they provide more utility and a better viewing experience when compared to direct view televisions. Heeleo, however, has been reluctant to adopt new strategies because it thinks that its direct view televisions were selling well when it first started and will continue to sell the same way even if new competitors and better products enter the market. Which of the following concepts is illustrated in this scenario?

Choose correct answer/s
A
Strategic dissonance
B
Competitive inertia
C
Competitive advantage
D
Strategic alliance
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Question 16
Multiple Choice

Cajemp Inc. is a real estate developer that has been in the market for several years. Most real estate developers are now constructing their projects using concrete blocks as they are more durable and easier to lay out when compared to traditional brick and mortar. Cajemp, however, has been reluctant to use concrete blocks because its brick and mortar houses have been selling well so far. They will continue to sell the same even if new competitors and better products enter the market. Which of the following concepts is illustrated in this scenario?

Choose correct answer/s
A
Strategic dissonance
B
Competitive inertia
C
Competitive advantage
D
Strategic alliance
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Question 17
Multiple Choice

Ziff Corp. was a leading electronics firm for about three decades. As new competitors entered the industry, Ziff Corp's market share dropped. The managers at Ziff Corp. refuse to change any of their strategies, as they believe that their existing strategies will help them become one of the market leaders as they did in the past. This scenario is an example of _____ .

Choose correct answer/s
A
distinctive competence
B
strategic dissonance
C
strategic uncertainty
D
competitive inertia
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Question 18
Multiple Choice

Which of the following best defines strategic dissonance?

Choose correct answer/s
A
It is a reluctance to change strategies or competitive practices that have been successful in the past.
B
It is a discrepancy between a company's intended strategy and the strategic actions taken by managers while implementing that strategy.
C
It is a risk-seeking strategy that aims to create and acquire companies in completely unrelated businesses.
D
It is a corporate-level strategy that minimizes risk by diversifying investment among various businesses or product lines.
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Question 19
Multiple Choice

Which of the following can help managers improve the speed and accuracy with which they determine the need for strategic change?

Choose correct answer/s
A
Fostering competitive inertia
B
Promoting strategic alliances with leading firms
C
Looking for signs of strategic dissonance
D
Limiting design iterations
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Question 20
Multiple Choice

Cardwire Inc. has decided to lower the price of all its products to keep up with its competitors. To achieve this, the company needed to lower its overall costs. However, the procurement department at Cardwire has been spending twice its allotted budget to buy raw materials. Which of the following best illustrates the situation at Cardwire?

Choose correct answer/s
A
Competitive inertia
B
Job deskilling
C
Strategic dissonance
D
Price fixing
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