Question 1.Choosing a preferred strategy makes sense not only because one can then defend the choice as being the best one, but also because, in Michael Porter’s words, “the essence of strategy is choosing what not to do.”
Question 2.Which of the following is not a bona fide opportunity (product-market issue)?
Sell existing products to China
Modify the design of an auto to attract younger buyers
Make more money through cost reduction
Create an innovative product for existing customers
Continue producing products for current customers
Question 3.Which of the following is an activity ratio?
Gross profit margin
Average collection period
Question 4.Which of the following is not a criterion when choosing the best bundle?
Selling price of product
Degree of risk
Question 5.Which element is not a part of an internal analysis?
Question 6.A multidomestic strategy is similar to a transnational strategy.
Question 7.Internal value chains need more analysis than external value chains.
Question 8.Which of the following is a criterion for creating bundles?
They must not include different strategies
They must be feasible
They must invest in other industries
They must diversify through acquisition
None of the above
Question 9.Which of the following is not one of the criteria that distinguish a capability from a core competence?
Is it valuable?
Is it supported by top management?
Is it rare?
Is it costly to imitate?
Is it nonsubstitutable?
Question 10.The final list of strategic issues should match elements in the strategic-alternative bundles.
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