MGMT 301 Chapter 6

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

• competitors have tried unsuccessfully to duplicate the advantage and have, for the moment, stopped trying to duplicate it

• organizations collect and store the resources they require while preventing their competitors from accessing those resources in order to curb competition

• organizations have gained an edge by using their resources to provide greater value for customers than their competitors can

• 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

Unlike the distinctive competencies of a company, the core capabilities of a company _____.

• include things that the company can make, do, or perform better than its competitors

• are tangible and more visible

• determine how efficiently inputs can be turned into outputs

• cannot be sustained for long without superior distinctive competencies

Which of the following statements is true of a portfolio strategy?

• It is a corporate-level strategy with the purpose of reducing risk in the entire collection of stocks.

• It emphasizes improving the way in which the company sells the same products.

• It measures the intensity of competitive behavior among companies in an industry.

• It focuses on turning around very poor company performance by significant cost reductions.

Newell Brands, founded in 1903 as a curtain rod manufacturer, acquired dozens of companies, including Sharpie markers, Rubbermaid Brands, Baby Jogger, Elmer’s Glue, Coleman outdoors products, and Sunbeam appliances. This is an example of _____.

• distinctive competence

• competitive inertia

• strategic dissonance

• unrelated diversification

Renee Farm grows fruits and vegetables by using nutrient-enriched soil and chemically enhanced fertilizers. Its products are extremely popular among health-conscious individuals who believe that natural fruits and vegetables do not have an adequate amount of nutrients. Renee Farm's products are popular even though its market is very niche. In the context of industry-level strategy, Renee Farm is most likely using a(n) ____

• diversification strategy

• focus strategy

• divestment strategy

• adaptive strategy

Which of the following is a difference between reactors and analyzers?

• Unlike reactors, analyzers are the first to bring innovative new products to market.

• Unlike reactors, analyzers do not follow a consistent strategy.

• Unlike analyzers, reactors are the blend of the defender and prospector strategies.

• Unlike analyzers, reactors tend to react to changes in their external environment after they occur.

SweetCream is an ice cream manufacturer. It sells Guilt-Free, a zero-calorie ice cream, which competes with FlavorBell's MooSweet, a low-calorie ice cream. FlavorBell reduces MooSweet's prices to match Guilt-Free's prices. Which strategic move is most likely being implemented by FlavorBell in this scenario?

• Rejoinder

• Recovery

• Attack

• Acquisition

A countermove, prompted by a rival's attack, that is designed to defend or improve a company's market share or profit is known as a(n) _____.

• attack

• response

• recovery

• acquisition

In the context of direct competition between firms, which of the following affects the likelihood of an attack or a response to an attack?

• Market commonality

• Differentiation

• Cost leadership

• Diversification

In the context of direct competition between firms, which of the following largely affects response capability, that is, how quickly and forcefully a company can respond to an attack?

• Diversification

• Cost leadership

• Differentiation

• Resource similarity