A) they involve collaboration with suppliers or distribution allies or when both parties conclude that continued collaboration is in their mutual interests.
B) the alliance involves partners based in countries with distinctly different cultures and consumer buying habits and preferences.
C) both partners are experienced with strategic alliances and routinely enter into collaborative agreements with firms in peripheral industries.
D) the alliance involves joining forces in R&D to develop new technologies cheaper than a company could develop the technology on its own.
E) each partner has considerable resource weaknesses in the marketplace.
G) A) and C)
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A) Publicly committing to a company policy of matching competitors' terms or pricing
B) Making a strong counter-response to the moves of weak competitors
C) Publicly announcing management's commitment to maintain market share
D) Maintaining a war chest of cash and marketable securities
E) Announcing strong quarterly earnings potential to financial analysts
G) A) and D)
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A) involves random offensive attacks used by a market leader to steal customers away from unsuspecting smaller rivals.
B) involves undertaking surprise moves to secure an advantageous position in a fast-growing and profitable market segment;usually the guerrilla signals rivals that it will use deep price cuts to defend its newly won position.
C) works best if the guerrilla is the industry's low-cost leader.
D) involves pitting a small company's own competitive strengths head-on against the strengths of much larger rivals.
E) involves unexpected attacks (usually by a small to medium-sized competitor) to grab sales and market share from complacent or distracted rivals.
G) A) and B)
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A) To acquire or improve access to new markets
B) To expedite the development of promising new technologies or products
C) To enable greater vertical integration
D) To improve supply chain efficiency
E) To overcome deficiencies in technical and manufacturing expertise and to create desirable new skill sets and capabilities
G) None of the above
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A) resource pooling and risk sharing,more adaptive response capabilities,and greater speed of deployment.
B) material additions to a company's technological capabilities,strengthening of the firm's competitive position,and boosting of its profitability.
C) the transactional and relational concepts of operating practices and competencies.
D) potential profitability of the alliance and related experience-curve economics.
E) the facilitation of best practices,more production capacity,and relevant synergistic savings.
G) B) and C)
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A) go on the offensive and initiate aggressive strategic moves to improve the company's market position.
B) bolster the company's market position by merging with or acquiring another company.
C) form strategic alliances and collaborative partnerships to add to its accumulation of resources and competitive capabilities.
D) integrate forward or backward into more stages of the industry value chain.
E) discontinue disruptive product innovation.
G) A) and D)
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A) are nearly always successful in achieving their desired purpose (unlike strategic alliances and collaborative partnerships) .
B) all too frequently do not produce the hoped-for outcomes.
C) are generally more effective in securing a new competitive advantage than in protecting an existing competitive advantage.
D) are highly risky because of the financial drain that comes from using the company's cash resources to pay for the costs of the merger or acquisition.
E) are usually more successful in helping a company's shift from one competitive strategy to another than in improving a company's competitive strength and resource capabilities.
G) C) and E)
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A) cutting prices below a weak rival's costs.
B) moving first to secure an advantageous competitive assets that rivals cannot readily match or duplicate.
C) using hit-and-run tactics to grab sales and market share away from complacent or distracted rivals.
D) attacking the competitive weaknesses of rivals.
E) leapfrogging into next-generation products and technologies,thus forcing rivals to play catch-up.
G) A) and B)
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Sometimes,furious technological change o...View Answer
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A) a merger involves one company purchasing the assets of another company with cash,whereas an acquisition involves one company becoming the owner of another company by buying all of the shares of its common stock.
B) a merger is the combining of two or more companies into a single corporate entity (with the newly created company often taking on a new name) ,whereas an acquisition is a combination in which one company,the acquirer,purchases and absorbs the operations of another,the acquired.
C) nonexistent;in both instances,two companies become one.
D) the brands of both companies are retained in a merger,whereas with an acquisition,there is only one surviving brand name.
E) a merger involves two or more companies deciding to adopt the same strategy,whereas an acquisition involves one company becoming the owner of another company but with each company still pursuing its own separate strategy.
G) A) and C)
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A) gain better access to end users,improve market awareness,and/or include the end user's purchasing experience as a differentiating feature.
B) the opportunity to capture the profits being earned by forward distribution allies (and thereby increase the company's own profits) .
C) reduce or eliminate disruptions in the delivery of the company's products to end users.
D) avoid channel conflict.
E) expand a company's geographic coverage.
G) A) and E)
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A) performing industry value chain activities previously performed by suppliers or other companies engaged in earlier stages of the value chain.
B) linking with businesses within the array of value chain activities to eliminate competition and broaden the product offering.
C) capitalizing on company's underutilized managerial capabilities for achieving greater synergistic cost advantages.
D) reducing the opportunity for achieving greater product differentiation.
E) developing new skills and business capabilities.
G) A) and C)
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A) a desire to reduce the company's investment in fixed assets and the need to narrow the scope of the company's in-house competencies and competitive capabilities
B) an increased ability to cut R&D expenses and an increased ability to avoid the problems of strategic alliances
C) that a smaller in-house workforce and a low investment in intellectual capital will produce cost savings
D) the ability to avoid capital investments that accompany vertical integration and a desire to reduce the company's risk exposure to changing technology and/or changing buyer preferences
E) that outsiders can often perform certain activities better or more cheaply,and outsourcing allows a firm to focus its entire energies on those activities that are at the center of its expertise (its core competencies)
G) A) and C)
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A) When pioneering helps build a firm's image and reputation with buyers
B) When first-time customers remain strongly loyal to pioneering firms in making repeat purchases
C) When early commitments to new technologies,new-style components,new or emerging distribution channels,and so on can produce an absolute cost advantage over rivals
D) When moving first can constitute a preemptive strike,making imitation extra hard or unlikely
E) When rapid market evolution (due to fast-paced changes in technology or buyer preferences) presents opportunities to leapfrog a first-mover's products with more attractive next-version products
G) B) and C)
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A) the increased time it takes to respond effectively to the fresh strategic moves of rival firms.
B) hollowing out the competitive capabilities a company needs to be a master of its own destiny.
C) impairing a company's capability to be a leader in product innovation.
D) increased vulnerability to shifts in buyer demand.
E) increased costs of differentiating the company's product/service from those of competitors.
G) A) and C)
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A) Vertical scope
B) Vertical integration
C) Horizontal scope
D) Horizontal integration
E) Scoping strategy
G) A) and B)
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A) The increase in a company's differentiation capabilities and the possibility of a differentiation-based competitive advantage
B) Reduced vulnerability to powerful suppliers (who may be inclined to raise prices at every opportunity)
C) Reduced costs
D) Reduced risks of disruptions in obtaining crucial components or support services
E) Reduced business risk because of controlling a bigger portion of the overall industry value chain
G) A) and E)
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Strategic cooperation is a much-favored ...View Answer
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A) What makes backward vertical integration such an attractive strategic option is the opportunity to capture the profit margins of suppliers and thereby increase the company's own profitability.
B) Backward vertical integration can produce a differentiation-based competitive advantage when a company,by performing activities internally rather than utilizing outside suppliers,ends up with a better-quality product/service offering,improves the caliber of its customer service,or in other ways enhances the performance of its final product.
C) For backward integration to be a viable and profitable strategy,a company must be able to (1) achieve the same scale economies as outside suppliers and (2) match or beat suppliers' production efficiency with no drop in quality.
D) The best potential for being able to reduce costs via a backward integration strategy exists in situations where suppliers have outsized profit margins,where the item being supplied is a major cost component,and where the requisite technological skills are easily mastered or can be gained by acquiring a supplier with the desired technological know-how.
E) Potential advantages of backward integration include sparing a company the uncertainty of being dependent on suppliers for crucial components or support services and lessening a company's vulnerability to powerful suppliers inclined to raise prices at every opportunity.
G) A) and E)
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A) have considerable expertise in supply chain management,transportation logistics,and inventory control techniques.
B) be able to achieve the same scale economies as outside suppliers and match or beat suppliers' production efficiency with no drop in quality.
C) have large state-of-the-art production facilities so that it can fully capture all economies of scale in producing parts and components.
D) have core competences in R&D,product design and engineering,and distribution logistics so that it will have adequate capabilities to produce and distribute parts and components in a timely and cost-effective manner.
E) have a distinctive competence in production process technology and at least a core competence in manufacturing R&D.
G) A) and E)
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