1) Centralization/decentralization is defined as the level at which strategic decision making authority is located in the organization. If only executives (e.g., CEO, CFO) make strategic decisions, the organization is highly centralized. If middle managers and employees are given the authority to make strategic decisions, it is decentralized. Is this statement true?

True

False

2) According to Porter (2008, The five competitive forces that shape strategy), exploiting strategy aims at leveraging an external event to disrupt the underpinnings of competitive forces and seek industry changes for successful entrance to existing markets.

All of the following are examples of exploiting strategy EXCEPT

a. Apple's adoption of digital distribution of music removed the entrance barriers to the traditional music industry. Its strategy can be understood as exploiting strategy.

b. Sysco, the largest food-service distribution in North America, has consolidated the highly fragmented food-service distribution industry by adding strategic dimensions and making substitutes and new entrants less attractive. its strategy can be understood as exploiting strategy. (The case of Sysco can be found in the Porter's article: the five competitive forces that shape strategy).

c. Tesla's electronification has effectively lowered the entrance barriers to the automotive mass market industry. Its strategy can be understood as exploiting strategy.

d. Exploiting strategy focuses on new and promising competitive positions that may appear due to disruptive events.