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Test Questions

Test Questions
Question 1.
From what perspective might innovation be called the single most important building block of competitive advantage?
Question 2.
What are the strengths of formal strategic planning? What are its weaknesses?
Question 3.
Which is more important in explaining the success and failure of companies: strategizing or luck?
Question 4.
Why is it important to understand the drivers of profitability as measured by the return on invested capital?
Question 5.
Evaluate the accuracy of the following statement: Formal strategic planning systems are irrelevant for firms competing in high-technology industries where the pace of change is so rapid that plans are routinely made obsolete by unforeseen events.
Question 6.
What do you think are the sources of sustained superior profitability?
Question 7.
What role can top management play in helping a company achieve superior efficiency quality innovation and responsiveness to customers?
Question 8.
Is it possible for a company to be the lowest cost producer in its industry and simultaneously have an output that is most valued by customers?
Question 9.
When is a companys competitive advantage most likely to endure over time?
Question 10.
Under what environmental conditions are price wars most likely to occur in an industry? What are the implications of price wars for a company? How should a company try to deal with the threat of a price war?
Question 11.
Tom decided to sell his old house and purchase a new house that is closer to his work. He put his old house on the market and after eight months he received an offer from Jennifer. After a short negotiating process Tom agreed on the selling price. However because he has not purchased a new home yet he decided to postpone the closing sale for another five months. Jennifer was not happy with Toms decision because of the inconvenience of having to wait that long and the challenges of getting a bank to guarantee an interest rate for a loan that is so far in advance. To easer Jennifers concerns Tom adjusted the price so Jennifer would agree with the postponement. She agreed on the adjusted price but she would have preferred to close the deal sooner rather than later. Two months later Tom found a home that met his requirements. The seller of the house Lisa set the asking price at $250000 which was $20000 above what Tom hoped to pay but $10000 below the most he would be willing to pay. Tom realized that the more he paid for the house the less he would have to make some other purchases such as furniture or bedroom setting.
Using the example above identify the following:
What is the target point?
What is resistance point?
What is a reservation price?
What is the asking price?
How does Tom decide on the initial offer?
Question 12.
There are at least two reasons that an exaggerated opening offer is advantageous. Identify and explain the two reasons
Question 13.
The goal of creating value is to push the potential negotiation solutions toward a point where there is no agreement that would make any party better off without decreasing the outcomes to any other party. Which of the following BEST describes the definition:
Question 14.
Identify and describe the four ways that goals affect negotiation.
Question 15.
At what point in time is it all right to use ethically questionable tactics in negotiation?
Question 16.
A negotiator who employs an unethical tactic will experience a positive consequence.

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