Chap 1

Question 1

It refers to the analysis of the prevailing industry where the firm has its competitive advantage with another firm in the environment.

Answer 1

Industry-based model

Question 2

It refers to the analysis of the resources available that is present in the internal environment that could be used as competitive advantage.

Answer 2

Resourced-based model

Question 3

It hinges on customer satisfactions and based on a well-developed marketing strategy.

Answer 3

Corporate profitability

Question 4

It flows from strategic mission and intent that define the firm’s direction in the pursuits of its operation and corporate expansion.

Answer 4

Strategic mission

Question 5

It is the development of the fast changes in the production of products that affect competition in the new world of business.

Answer 5

Technological change

Question 6

It refers to the presence of new computers that makes communication within the tip of the fingers in business transaction.

Answer 6

Advancement in information linkages

Question 7

It refers to innovativeness by injecting new ideas and knowledge in product development and new marketing strategies.

Answer 7

Innovativeness

Question 8

It refers to the production of more products that reduces the cost of production per unit.

Answer 8

Economies of scale

Question 9

It refers to the strategy of developing new business enterprise by integrating its operation with related industry.

Answer 9

Corporate diversification

Question 10

It refers to the corporate strategy where the major firm buyout small competitors and integrate them with their major operating units.

Answer 10

Corporate buyout/Monopoly