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This 3 page Class Notes was uploaded by Ms. Scottie Brekke on Wednesday September 23, 2015. The Class Notes belongs to MGMT450 at Drexel University taught by AziGera in Fall. Since its upload, it has received 59 views. For similar materials see /class/212570/mgmt450-drexel-university in Business, management at Drexel University.
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Date Created: 09/23/15
LA VI 00 LA TrueFalse There is complete consensus among strategic managers and academic researchers about what a quotstrategy is a False strategies mean different things to different people Good strategies are not the same A quot good strategy does not necessarily have to create a competitive advantage a False the only reason to have a strategy is to create competitive advantage It is usually possible to know for sure that a rm is choosing the right strategy a False High quality objectives are tightly connected to the elements of a rm39s mission but tend to be relatively dif culty to measure and track over time a False objectives are measureable and contradictory to the meaning of objective By conducting an internal analysis a rm identi es the critical threats and opportunities in the industry s competitive environment a False would be strengthsweaknesses In general a rm has a competitive advantage when it is able to create more economic value than rival rms a True In general technological changes creates opportunities but not threats a False can work against you if you do not keep up b True used to help companies be better In the structureconductperformance model the term structure refers to industry structure measured by such factors as the number of competitors in an industry a EXtemal analysis b True related to the size of the rms In a perfectly competitive industry there are large numbers of rms operating in the industry whose products and services are similar to each other and it is not very costly for rms to enter into or eXit these markets a 5 forces b true When all 5 forces framework when all 5 threats are very high competition in the industry begins to approach a monopoly a True The threat of entry in an industry depends on the cost of entry and the cost of entry in turn depends upon the existence and quotheightquot of barriers to entry a True b The height determines the easiness of entry The threat of buyers is greater if the products or services that are being sold to buyers are standard and not differentiated than if the products sold to buyers are highly differentiated a True b Buyer threat is when there is nominimum product differentiation and then all customer cares about is price It is possible for a single rm to be a complementor of one rm and a competitor of another a True Apple and Nike 4 UI ON 00 O N 4 N UI N gt1 If you were to purchase a new Apple iPod and were unable to use your previously downloaded library of digital music with your new iPod this would be an example of a customerswitching cost you would incur to use Apple s product a True they try to make it easier Within the VIRO framework valuable resources and capabilities are also known as strengths a True The assumption of resource immobility holds that it may be very costly for rms without certain resources and capabilities to develop or acquire them a True if costs weren t a factor than resources will be mobile Resources in the Resource Based View are de ned as the tangible and intangible assets that a rm controls which it can use to conceive of and implement its strategies a True Most rms has a resourcebase that is composed primarily of valuable but common resources and capabilities some of which are essential if a rm is to gain competitive parity a True A sustained competitive advantage can be competed away by strategic imitation a False if it s imitated away it is not sustained A process is said to be path dependent when imitating rms are not able to understand the relationship between the resources and capabilities controlled by a rrn and that rm s competitive advantage a False de nition of path dependent A rms patents may decrease rather than increase the cost of imitation a True when you issue a patent you give full disclosure of information Decisions made by other rms given the strategic choices of a particular rm de ne the nature of the competitive dynamics that exist in an industry a rue Any actions that a rm takes that have the effect of reducing the level of rivalry in an industry that also do not require rms in an industry to negotiate with each other can be thought of as explicit cooperation a False Inthe end competitive advantage is so important to a rm s success it must remain the sole property of senior management a False need input from others and is not the only objective of senior management To the extent that a resource or capability is a source of sustained competitive advantage in one country it virtually guarantees that it will also be valuable rare and costly to imitate in another country a False one thing can work for one company but not another A rm that chooses a costleadership business strategy focuses on gaining advantages by reducing its costs to a level equal to all of its competitors a False Firms that are successful in pursuing a costleadership strategy focus solely on keeping costs low and abandoning other business or corporate strategies a False they wouldn t be successful L N L Ul LA 00 High volumes of production are also associated with high levels of generality in employee tasks and as workers become increasingly generalized in accomplishing a variety of tasks the can become more effective at these tasks thereby reducing the firm s costs a Cost leadership b False Increase worker specialization associated with higher levels of production can lead to worker demotivation and diseconomies of scale a True Economies of scale focuses on the relationship between the cumulative volume of production and average unit costs while the learning curve focuses on the relationship between the volume of production at a given time and average unit costs a True In general economies of scale and diseconomies of scale are relatively easytoduplicate bases of cost leadership a True If costleadership strategies can be implemented by numerous firms in an industry or if no firms face a coast disadvantage in imitating a costleadership strategy then being a cost leader does not generate a sustained competitive advantage for a firm a True Learning curvecost advantages are restricted solely to manufacturing and the advantage associated only with the manufacturing business function a False helps everyone Walmart exemplifies a firm pursuing a product differentiation strategy while Victoria s Secret exemplifies a firm in pursuing a cost leadership strategy a False other way around If products or services are perceived as being different in a way that is valued by customers even if there is no physical differentiation then product differentiation exists a True Timebased product differentiation relies solely one being a first mover a False rst mover doesn t always have advantage Once developed a firm s reputation can last a long time even if the basis for that reputation no longer exists a True way you perceive it It is reasonable to expect that in the near future a marketing specialist will develop a definitive list of bases of product differentiation a False can always be different ways to differentiate In emerging industries product differentiation efforts often focus on product refinement as a basis for product differentiation a False refining a product would be in mature industries While product features by themselves are usually not a source of sustained competitive advantage they can be a source of a temporary competitive advantage a True
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