Research shows that approximately ________ percent of a firm's profitability is explained by the industry in which it competes, whereas ________ percent of the variance in profitability is explained by the firm's characteristics and actions.
36; 20
90; 10
60; 40
20; 36
The resource-based model of above-average returns argues that the foundation for a firm’s competitive advantage is:
the structure of the industry in which the firm competes.
resources that are valuable, rare, costly to imitate, and non-substitutable.
all the resources and capabilities that the firm has at its disposal.
resources that are directly comparable with those of competing organizations.
The global economy, globalization, rapid technological change, and the increasing importance of knowledge are creating the need to:
expand the strategic responsibilities to all organizational stakeholders.
delegate strategic responsibilities to employees "closer to the action."
re-centralize the responsibility for all strategic decision making to the CEO.
split strategic responsibilities between the CEO and the board of directors.
The organization's role as a taxpayer is most important to which group of stakeholders?
unions
host communities
major suppliers of capital
shareholders
Disruptive technologies are defined as:
technologies that destroy the value of an existing technology and create new markets
technologies that change rapidly and enhance existing markets for that technology
replacement technologies that improve on existing technology but fulfil a similar function
technologies that enhance organizational communication and knowledge management
The economic interdependence among countries as reflected in the free movement of goods, services, financial capital and knowledge across geographic borders is defined as:
strategic intensity.
boundaryless retailing.
globalization.
hypercompetition.
Research evidence suggests that employees perceive their CEOs as visionary where they:
focus on maximizing profits for shareholders above all other objectives of the organization
concentrate their decision making on the practical day-to-day aspects of the organization's operations.
work long hours and make ambiguous decisions about the strategic direction of the organization
work long hours and make ambiguous decisions about the strategic direction of the organization
Analysis of the industry's profit pool enables strategic managers to:
determine whether an industry will be viable in the long term.
estimate profit potential in each area of an industry's value chain.
predict growth in company sales over the medium to long range.
predict future revenue streams for the organization.
Capital market stakeholders include:
employees.
shareholders.
industry competitors.
government regulators.
The "liability of foreignness" is the:
inability of organizations to meet product needs in foreign cultures.
political disadvantage that domestic firms have when doing business abroad.
overall risk a domestic firm encounters when entering global competition.
preference for buying local, which disadvantages foreign firms in domestic markets.