Exam Strategy Questions PDF

lOMoARcPSD|47128011 Questions for exam strategy Strategy (Universitetet i Agder) Skann for å åpne på Studocu Studocu er ikke sponset eller støttet av noen universitet eller høyskole Lastet ned av Yasemin Køse ([email protected]) lOMoARcPSD|47128011 Questions for exam- Strategy 1. Mobile banking and e-wallets are examples of which PESTEL driver of change? - Sociocultural - Political - Technical - Economic 2. The main purpose of corporate governance is: - To ensure that regulatory framework are adhered to - To ensure structures and systems of control by which managers are held accountable to those with legitimate stake in an action - To separate ownership and management control of organizations - To maximize the shareholder value 3. When the link between a company´s resources and its competitive advantage is poorly understood a state of___ exists. - Strategic drif - Causal ambiguity - Strategic uncertainty - Market uncertainty 4. Which of the following are not organizational stakeholders? - Shareholders - Governments - Employees - Competitors OBS!! Dette er ikke alltid riktig! Competitors kan også være stakeholders når de skal «utnytte» hverandre. På den måten gir de også verdien til organisasjonen og kan anses som stakeholders. 5. A blue ocean strategy - Works best when a company is the industry´s low-cost leader - … is an offensive attack using a market leader to steal customers away from unsuspecting smaller rivals - Involves a pre-emptive strike to secure an advantageous position in a fast-growing market segment - Involves abandoning efforts to beat out competitors in existing markets and, instead investing a new industry or new market segment that renders existing competitors largely inveterate allows a company to create and capture altogether new demand 6. The two-tier corporate governance is characteristic by - A clear institutional separation between a supervisor and a management body - The tension between two main stakeholder groups: management and employees - A system where the CEO has simultaneously two positions/functions: CEO and the chairman of the board - A collaborative way of resolving conflicts in the management board Lastet ned av Yasemin Køse ([email protected]) lOMoARcPSD|47128011 7. A good example of vertical integration is - A large supermarket chain getting into convenience food stores - A railroad company acquiring a trucking company specializing in long haul freight - A crude oil refiner purchasing a firm engaged in drilling and exploring for oil - A global public accounting firm acquiring a small local regional public accounting firm 8. What are core competences? - Activities and processes needed to. Meet customers´ minimum requirements therefore continue to exist - Activities that underpin competitive advantage and are difficult for competitors to improve or obtain - Key skills required for success in a particular business - Skills that critically underpin competitive advantage and that others cannot obtain 9. In relation to the PESTEL framework, which of the following statement is correct? - It can be used as a checklist to understand the different environmental influences in. the macroenvironment - It allows a detailed analysis of the structure of an industry - It takes a historical perspective on the main political, economic, sociocultural, technological, environmental and legal factors - It assist in the assessment of the organizational strengths and weaknesses From the lecture: 10. Stakeholders are the individuals or groups who: - Rely on the organization to fulfil their own goals and on whom the organization depends - Are shareholders in key competitors - Dominate the strategy development process in an organization - Determine operational issues 11. Emergent strategy comes about through - Leveraging core competences into new markets - Strategic plans - Everyday routines, activities and processes in organizations - Implementing new ideas 12. The Anglo-Saxon (US) system of corporate governance can be characterized as: - A role-model for the development of the Norwegian system of corporate governance - A failed system because of the many corporate scandals in recent times - An outsider control system - An insider control system 13. The difference between the concept of a company mission statement and the concept of a strategic vision is that Lastet ned av Yasemin Køse ([email protected]) lOMoARcPSD|47128011 - A mission statement typically concerns a company´s present business scope (“who we are, why do we exist”) whereas the principal concern of a strategic vision is the company´s long-term direction - A mission statement deals with “where we are headed” whereas a strategic vision provides the critical answer to “how will we get there?” - A mission statement specifies a companies business model whereas a strategic vision also includes competitive advantages - The mission is to make a profit, whereas the strategic vision concerns what business model to employ in striving to make a profit 14. Which of the following is a driver that permits a low-cost strategy as to be successful? - When buyers and suppliers have weak bargaining power, lowering the pressure on the industry´s profit margins - Where there is a standardization of products or services among industry rivals - When there are high industry entry barriers, diminishing the potential need for incumbents to compete on price - When customers tend to expect different features and benefits from products within a category 15. A successful hybrid strategy is - A strategy that seeks simultaneously to. Achieve differentiation and a price lower than that of competitors - Impossible to achieve in practice - The period of time when an organization is changing its strategy - A strategy that seeks to provide high perceived value, justifying a substantial price premium, usually to select market segments 16. Factors that cause the rivals among competing sellers to be weak include - a. low buyer switching costs and rival sellers that are relatively equal is size - and capability. - b. rapid growth in buyer demand and high buyer switching costs. - c. low barriers to entry and weakly differentiated products among rival - sellers. - d. slow growth in buyer demand and strongly differentiated products. 17. In mapping strategic groups - a. it is important for the variables used as axes to be highly correlated. - b. the best variables to use as axes for the map are those that differentiate - how rivals have positioned themselves in the marketplace. - c. one strategic variable and one financial variable should be used as axes for - the map. - d. all of these 18. In the BCG portfolio,____ have a high market share and a low growth rate: a) Dogs b) Question marks c) Cash cows Lastet ned av Yasemin Køse ([email protected]) lOMoARcPSD|47128011 d) Stars 19. In a single-business company, the strategy-making hierarchy consist of a) Functional strategy, business strategy b) Divisional strategy, functional strategies c) Competitive strategy, corporate strategies d) Competitive strategy, functional strategies 20. A competitive strategy/business-level strategy describes a) A firm´s resources, intent ,and mission b) The policies and procedures used in functional departments c) The firm´s action to exploit its competitive advantage over rivals d) The businesses in which the company intends to compete 21. Economies of scale refer to the fact that as the a) Quantity of product produces in a given time period decreases, the cost of manufacturing each unit decreases b) Quantity of product produces in a given time period increases, the cost of manufacturing each unit decreases c) Quantity of product produces in a given time period increases, the cost of manufacturing each unit increases d) Quantity of product produces in a given time period increases, the cost of manufacturing each unit remains constant 22. A company’s strategy evolves over time as a consequence of a) the need to keep strategy in step with changing market conditions and changing customer needs and expectations b) the need to abandon some strategy features that are no longer working well c) the need to respond to newly-initiated actions and competitive moves of rival firms d) All of the above. 23. A company achieves sustainable competitive advantage when a) an attractive number of buyers have a lasting preference for its products or services as compared to the offerings of competitors b) it is able to maximize shareholder wealth c) it is consistently able to achieve both its strategic and financial objectives d) its strategy and its business model are focused on cost-efficiency 24. Management’s story line for how and why the company’s business approaches will generate revenues sufficient to cover costs and produce attractive profits and returns on investment a) describes what is meant by a corporate strategy b) best describes what is meant by a company’s business model c) accounts for why a company’s financial objectives are at the stated level d) is what is meant by the term strategic fit 25. A company´s business model Lastet ned av Yasemin Køse ([email protected]) lOMoARcPSD|47128011 a) sets forth management’s game plan for maximizing profits for shareholders b) details exactly how management’s strategy will result in the achievement of the company’s strategic intent c) explains how it will achieve high profit margins while at the same time charging relatively low prices to customers d) sets forth the key components of the enterprise’s business approach, indicated how revenues will be generated, and makes a case for why the strategy can deliver value to customers in a profitable manner 26. By exploiting their core competencies to meet or exceed the standards of global competitions, firms create ___________ for customers. a) low prices b) valuation c) valuables d) value 27. Factors that cause the rivalry among competing sellers to be weak include a) low buyer switching costs and rival sellers that are relatively equal is size and capability b) rapid growth in buyer demand and high buyer switching costs c) low barriers to entry and weakly differentiated products among rival sellers d) slow growth in buyer demand and strongly differentiated products 28. Properly managing the value chain activities in comparison to the rivals a) is one of the most dependable ways a company can build a competitive advantage over rivals b) allows a company to avoid the impact of the five competitive forces c) is one of the best ways for a company to avoid being impacted by the industry’s driving forces d) help neutralize external threats to a company’s future business prospects 29. In mapping strategic groups a) it is important for the variables used as axes to be highly correlated b) the best variables to use as axes for the map are those that differentiate how rivals have positioned themselves in the marketplace c) one strategic variable and one financial variable d) All of the above 30. It is increasingly difficult for a firm to develop and sustain a competitive advantage because of the effects of globalization and a) the rapid development of the Internet’s capabilities b) extensive use of outsourcing within the borders of the European Union c) the declining number of inventions and patents developed by Norwegian citizens d) the simultaneous erosion of the work ethic and the education system 31. In a single-business company, the strategy-making hierarchy consists of a) functional strategy, business strategy Lastet ned av Yasemin Køse ([email protected]) lOMoARcPSD|47128011 b) competitive strategy, functional strategy c) competitive strategy, corporate strategy d) divisional strategies, functional strategies 32. The industrial organization (I/O) model argues that a) the key factor in success is choosing the correct industry in which to compete b) the firm’s internal resources and capabilities represent the foundation for development of value creating strategy c) the key to earning above-average returns is strategic flexibility d) the internal structure of the organization must match 33. Competitor analysis focuses on a) firms with which the company competes directly b) firms that produce products that are substitutes c) all firms in the industry d) companies that might enter the industry 34. In a diversifies firm, corporate-level strategy is concerned with a) operating each individual business under the corporate umbrella b) determining how each functional department of the firm will operate c) determining in which businesses to compete and how resources will be allocated between businesses d) coordination the vision and mission of each of subsidiary firm 35. A competitive strategy/business-level strategy describes a) the businesses in which the company intends to compete b) all policies and procedures used in functional departments c) the firm’s actions to exploit its competitive advantage over rivals d) a firm’s resources, intent, and mission 36. In the BCG Portfolio, _________ have a high market share and a low growth rate a) Dogs b) Cash Cows c) Question Marks d) Stars 37. Which of the following is an example of a strategic action? a) a “two movies for the price of one” campaign by Blockbuster Video b) use of product coupons by a local grocer c) entry into the European market by Home Depot d) fare increases by EasyJet Airlines 38. The competitive advantage opportunities that a global competitor can gain by dispersing performance of its activities across many nations include a) being able to shif production from one country to another to take advantage of exchange rate fluctuations, differing wage rates, differing energy costs, or differing trade restrictions b) shortening delivery times to customers by having geographically scattered distribution Lastet ned av Yasemin Køse ([email protected]) lOMoARcPSD|47128011 facilities c) location buyer-related activities (such as sales, advertising, afer-sale service and technical assistance) close to buyers d) All of the above 39. Which of the following is not an accurate statement as concerns competing in the markets of foreign countries? a) a multi-domestic strategy is generally superior to a global strategy b) there are country-to-country differences in consumer buying habits and buyer tastes and preferences c) a company must contend with fluctuating exchange rates and country-to-country variations in host government restrictions and requirements d) product designs suitable for one country are ofen inappropriate in another 40. Mergers and acquisitions a) are nearly always successful in achieving their desired purpose b) frequently do not produce the hoped-for outcomes c) are generally less effective than forming alliances or partnerships with these same companies d) are highly risky because of the financial drain that comes from using the company’s cash resources to pay for the costs of the merger or acquisitions 41. Economies of scale refer to the fact that as the a) quantity of product produced in a given time period increases, the cost of manufacturing each unit increases b) quantity of product produced in a given time period increases, the cost of manufacturing each unit remains constant c) quantity of product produced in a given time period increases, the cost of manufacturing each unit decreases d) quantity of product produced in a given time period decreases, the cost of manufacturing each unit decreases 42. The advantages of using acquisition strategy to pursue opportunities in foreign markets include a) having a high level of control and speed as an entry strategy to overcome trade barriers b) allowing a company to achieve scalable economies c) eliminating the costs and risks associated with establishing a foreign business location d) being able the achieve variable product quality and competitive product performance 43. Which of the following is the best example of a well-stated strategic objective? a) increase revenues by more than the industry average b) be among the top 5 companies in the industry on customer service c) overtake key competitors on product quality within three years d) improve manufacturing performance by 5% within 12 months (se på denne) Lastet ned av Yasemin Køse ([email protected]) lOMoARcPSD|47128011 44. A balanced scorecard for measuring company performance a) entails putting equal emphasis on financial and strategic objectives b) entails putting balanced emphasis on profit and non-profit objectives c) prevents the drive for achieving financial objectives from overwhelming the pursuit of strategic objectives d) entails creating a set of objectives that is “balanced” in the sense of including both financial and strategic objectives 45. Which is true of strategy? a. Business strategy has similarities with military strategy. b. Military principles cannot be completely applied in business. c. Militaries fight over territories, waters, and air spaces, firms compete in markets. d. All of the above. 46. Principal Agent problem arises when a. the transaction costs on markets are higher than those in hierarchies. b. interests of owners are separate from those of managers and owners cannot directly observe the efforts and the behavior of managers. c. the principal and the agent do not agree on how to implement strategy. d. transactions costs in hierarchies are higher than those on markets. 47. Developing a strategic vision for a company entails a. prescribing a strategic direction for the company to pursue and a rationale for why this strategic path makes good business sense. b. describing its business model and the kind of value that it is trying to deliver to customers. c. putting together a story line of why the business will be a moneymaker. d. describing "who we are and what we do." 48. An analysis of society’s attitudes and values would be conducted when studying the ___ segment of the general environment. a. sociocultural b. global c. legal d. economic 49. A competitive environment where there is weak to moderate rivalry among sellers, high entry barriers, weak competition from substitute products, and little bargaining leverage on the part of both suppliers and customers a. lacks powerful driving forces. b. gives each industry competitor the best potential for building sustainable competitive advantage over rival firms. c. makes it hard for industry members to compete successfully unless they can strongly differentiate their products. d. is conducive to industry members earning attractive profits. Lastet ned av Yasemin Køse ([email protected]) lOMoARcPSD|47128011 50. Which of the following is not an appropriate guideline for developing a strategic group map for a given industry? a. The variables chosen as axes for the map should indicate big differences in how rivals have positioned themselves to compete in the marketplace. b. The variables chosen as axes for the map can be either quantitative or qualitative. c. The variables chosen as axes for the map should be highly correlated. d. Several maps should be drawn if more than one pair of variables help illuminate differences in the competitive positioning of industry members. E. The sizes of the circles on the map should be drawn proportional to the combined sales of the firms in each strategic group. 51. Good competitive intelligence about the strategies and competitive strengths and weaknesses of rival companies helps management determine a. which competitor has the best strategy and which competitors have flawed or weak strategies. c. which rivals are likely to rank among the industry leaders on the road ahead. c. which rivals are likely to initiate what kinds of fresh strategic moves and why. d. All of these. 52. Compared to tangible resources, intangible resources are ________ and ________. a. less visible; more difficult to copy. b. less visible; less difficult to copy. c. more visible; more difficult to copy. d. more visible; less difficult to copy. 53. A SWOT-analysis a. Is a sophisticated tool for strategy implementation b. Facilitates stakeholder-management c. Combines internal and external analysis d. none of the above 54. The pitfalls of a differentiation strategy include a. trying to differentiate on the basis of attributes or features that are easily copied. b. choosing to differentiate on the basis of attributes that buyers do not perceive as valuable or worth paying for. c. trying to charge too high a price premium for the differentiating features. d. All of these. 55. In a diversified firm, corporate-level strategy is concerned with a. operating each individual business under the corporate umbrella. Lastet ned av Yasemin Køse ([email protected]) lOMoARcPSD|47128011 b. determining how each functional department of the firm will operate. c. determining in which businesses to compete and how resources will be allocated between businesses. d. coordinating the vision and mission of each subsidiary firm. 56. The drawbacks of a localized multi-domestic strategy include a. hindering the use of cross-border coordination of a company's activities and increasing company vulnerability to adverse shifs in currency exchange rates. b. making it very difficult to take into account significant country-to-country differences in distribution channels and marketing methods. c. making it difficult and costly to be responsive to country-to-country differences in customer needs, buying habits, cultural traditions, and market conditions. d. hindering transfer of a company's competencies and resources across country boundaries and hindering the pursuit of a single, uniform competitive advantage in all country markets where a company operates. 57. The Achilles heel (or biggest disadvantage/pitfall) of relying heavily on alliances and cooperative strategies is a. that partners will not fully cooperate or share all they know, preferring instead to guard their most valuable information and protect their more valuable know-how. b. becoming dependent on other companies for essential expertise and capabilities. c. the added time and extra expenses associated with engaging in collaborative efforts. d. the collaborative arrangements will not live up to expectations. 58. Social capital refers to a. Advantages a firm has due to its socially responsible behavior. b. Advantages a firm has due to being member of and having a certain position in a network. c. Capital that shall be used for investing in social ventures. d. None of the above. 59. The most trustworthy signs of a well-managed company are a. the eagerness with which executives set stretch financial and strategic objectives and develop an ambitious strategic vision. b. aggressive pursuit of new opportunities and a willingness to change the company's business model whenever circumstances warrant. c. good strategy-making combined with good strategy implementation. d. a visionary mission statement and a willingness to pursue offensive strategies rather than defensive strategies. 60. Which of the following is a basic structural form of organization? a. A functional structure where function is a major step in the firm's value Lastet ned av Yasemin Køse ([email protected]) lOMoARcPSD|47128011 chain. b. A multidivisional structure where each division of the firm is an independent profit center. c. A matrix structure where there are two or more divisions organized to enhance cross-communication. d. All of these 61. The best suited structural form of organization for implementing a transnational strategy is a. A divisional structure with product-divisions. b. A matrix structure with functional divisions and product divisions. c. A matrix structure with product divisions and country divisions. d. A divisional structure with regional divisions. Exam – multiple choice, answers. *Managements story line for how and why the company’s business approaches will generate revenues sufficient to cover costs and produce attractive profits and returns on investment A – describe what is meant by a corporate strategy b- best describes what is meant by a company’s business model c- accounts for why a company’s financial objectives are at the stated level d – is what is meant by the term strategic fit *It is increasingly difficult for a firm to develop and sustain a competitive advantage because of the effects of globalization and a- the rapid development of the internet’s capabilities b- extensive use of outsourcing within the borders of the European union c- the declining number of inventions and patents developed by Norwegian citizens d- the simultaneous erosion of the work ethic and the education system CEO duality refers to A – the CEO being responsible to the shareholders and the employees B – the CEO being elevated by the shareholders and the members of the supervisory board C - The CEO being the highest executive manager in the firm and at the same time being the chairman of the board D – a retires CEO becoming the chairman of the board The five forces model suggests that an industry’s profitability is a function of all the following factors expect A – buyers B – competitive rivalry c- suppliers d – the economic environment Lastet ned av Yasemin Køse ([email protected]) lOMoARcPSD|47128011 In the value chain the operations in a passenger airline service would be: a- the manufacture of the aircraf b- getting passengers and baggage from a to b c- the design of the price structure and yield plan d- lost luggage service *Which of the following is an example of a strategic action? a- a” two movies for the price of one” campaign by Blockbuster video b- use of product coupons by a local grocer c- Entry into Norwegian(European) market by Home Depot d- fare increases by easy jet airlines C: level: corporate Home depot: market entry strategy  franchising *Which of the following is not an accurate statement as concerns competing in the markets of foreign countries? a- a multi-domestic strategy is generally superior to a global strategy b- there are country-to-country differences in consumer buying habits and buyer tastes and preferences c- a company must contend with fluctuating exchange rates and country-to country variations in host government restrictions and requirements d- product designs suitable for one country are ofen inappropriate in another *Which is true of strategy? a- business strategy has similarities with military b- military principles cannot be completely a c- Militaries fight over territories, waters and air spaces, firms compete in markets? d- All of the above *A company´s business model a- sets forth managements game plan for maximizing profits for shareholders b- details exactly how management’s strategy will result in the action of the company’s strategic intent c- explains how it till achieve high profit margins while at the.. charging relatively low prices to customers d- sets fort the key components of the enterprises business approach, indicates how revenues will be generated and makes a case for why the strategy can deliver value to customers in a profitable market. It is increasingly difficult for a firm to develop and sustain a competitive advantage because of the effects of globalization and a- the rapid development of the internet’s capabilities b- extensive use of outsourcing within the borders of the European c- the declining number of inventions and patents development.. citizens d- the simultaneous erosion of the work etic and the education Lastet ned av Yasemin Køse ([email protected]) lOMoARcPSD|47128011 A company achieves sustainable competitive advantage when.. a) an attractive number of buyers have a listing preference or services as compared to the offerings of competitors b) it is able to maximize shareholder wealth c) it is consistently able to achieve bot hits strategic and.. d) its strategy and its business model are focused on.. A company’s strategy evolves over time as a consequence of a- the need to keep strategy in step with changing market conditions and changing customer need and expectations b- the need to abandon some strategy features that are no longer.. we.. c- the need to respond to the newly initiated actions and competitive of rival firms. d- All of these Principal agent problem arises when a- the transaction costs on markets are higher than.. b- interest of owners are separate from those of.. cannot directly observe the efforts and the behaviour c- the principal and the agent do not agree on how.. d- transactions costs in hierarchies are higher than.. *The Industrial organization (I/o) model argues that a- the key factor in success is choosing the correct industry in which to compete. b- The firms internal resources and capabilities represent the foundation for development of a value creating strategy c- The key to earning above-average return is strategic flexibility. d- The internal structure of the organization must match NB! Står det resource based er det alternativ b) som er riktig. C: if it assumes that flexibility is important: dynamic capability model Describe and discuss the Resource Based model Developing a strategic vision for a company entails…. a- prescribing a strategic direction for the company.. for why this strategic path makes good business b- describing it business model and the kind.. deliver to customers c- putting together a story line of why the b.. d- describing ”who we are and what we do.. An analysis of society’s attitudes and values w.. studying the __ segment of the general environment Lastet ned av Yasemin Køse ([email protected]) lOMoARcPSD|47128011 a- sociocultural b- global c- legal d- economic A competitive environment where there is weak t.. sellers, high entry barriers, weak competition from.. little bargaining leverage on the part of boty supply a- lacks powerful driving forces b- gives each industry competitor the best potential competitive advantage over rival firms c- makes it hard for industry member to compete.. can strongly differentiate their products d- is conducive to industry members earning attra.. *Factors that cause the rivalry among competing sellers to be weak include a- low buyer switching costs and rival sellers that are relatively equal in size and capability b- rapid growth in buyer demand and high buyer switching costs c- low barriers to entry and weakly differentiated products among rival sellers. d- Slow growth in buyer demand and strongly differentiated products If a said not correlated it would have been a *In mapping strategic groups a- it is important for the variables used as axes to be highly correlated b- the best variable to use as axes for the map are those that differentiate how rivals have positions themselves in the marketplace c- one strategic variable and one financial variable should be used as axes on the map. d- All of these *Competitor analysis focuses on a- firms with which the company competes directly b- firms that produce products that are substitutes c- all firms in the industry d- companies that might enter the industry NB! He did not like this question Good competitive intelligence about the strategy strengths and weaknesses of rival companies helps manager.. a-which competitor has the best strategy and which competitors has the flawed or weak strategies b- which rivals are likely to rank among the industry..ahead. Lastet ned av Yasemin Køse ([email protected]) lOMoARcPSD|47128011 c-which rivals are likely to initiate what kinds of..why. d-all of these Compared to tangible resources, intangible resources are….. a- less visible, more difficult to copy b- less visible, less difficult to copy c- more visible, more difficult to copy d- more visible, less difficult to copy *By exploiting their competencies to meet or exceed the standards of global competition, firms create __ for customers a- low prices b- valuation c- valuables d- value A SWOT-analysis a- is a sophisticated tool for strategy implementation b- facilitates stakeholder-management c- combines internal and external analysis d- none of the above *Economies of scale refer to the fact that as the a- quantity of product produces in a given time period increased, the costs of manufacturing each unit increases b- quantity of product produces in a given time period increases, the cost of manufacturing each unit remains constant c- quantity of product produces in a given time period increases, the cost of manufacturing each unit decreases d- quantity of product produces in a given time period decreases, the cost of manufacturing each unit decreases *In a single-business company, the strategy-making hierarchy consist of.. a- functional strategy, business strategy b- competitive strategy, functional strategies c- competitive strategy, corporate strategy d- divisional strategies, functional strategies order matters, corporate strategy is already set Can a company which has been existing for several years, w.. organization and a great deal of bureaucracy, manage to compete.. and more ”slim” organizations providing low-cost services/goods?.. the only viable option for the old company be to create a.. company? Lufthansa has German Wings, is German Wings simply.. it an entire new company? *A competitive strategy/business-level strategy describes a- the businesses in which the company intends to complete b- all policies and procedures used in functional department Lastet ned av Yasemin Køse ([email protected]) lOMoARcPSD|47128011 c- the firms actions to exploit its competitive advantage over rivals d- a firms resources, intent and mission The pitfalls of a differentiation strategy include a- trying to differentiate on the basis of attributes or feat..copied b- choosing to differentiate on the basis of attributes.. perceive as valuable or worth paying for c- trying to charge too high a price premium for the diff.. d- all of these In a diversified firm, corporate-level strategy is concerned with a- operating each individual business under the corporate umbrella b- determining how each functional department of the firm will operate c- determining in which businesses to compete and how resources will be allocated between businesses. d- Coordinating the vision and mission of each subsidiary *In the BCG portfolio, __ have a high market share and a low growth rate a- dogs b- cash cows c- question marks d- stars *The competitive advantage opportunities that a global competitor can gain by dispersing performance of its activities across many nations include a- being able to shif production from one country to another to take advantage of exchange rate fluctuations, differing wage rates, diff. Energy costs, or differing trade restrictions b- shortening delivery times to customers by having geographically scattered distribution facilities c- locating buyer-related activities (such as sales, advertising, afer-sale. service and technical assistance) close to buyers. d- All of these Chosen international strategy has to be aligned with the internal.. orientation of management (EPRG-model). What practical implication.. this lead to? The drawback of a localized multi-domestic strategy include a- hindering the use of cross-border coordination of a company’s activ.. and increasing company vulnerability to adverse shifs in cur.. exchange rates b- making it very difficult to take into account significant country-to-country. differences in distribution channels and marketing methods Lastet ned av Yasemin Køse ([email protected]) lOMoARcPSD|47128011 c- making it difficult and costly to be responsive to country-to-country differences n customer needs, buying habits, cultural traditi.. market conditions d- hindering transfer of a company’s competencies and resources.. country boundaries and hindering the pursuit of a sin.. competitive advantage in all country markets where a com.. The Achilles heel (or biggest disadvantage/pitfall) of relying heavily on alliances and cooperative strategies is a- that partners will not fully cooperate or share all they know, preferring instead to guard their most valuable information and protect their more valuable know-how. b- Becoming dependent on other companies for essential expertise and capabilities c- The added time and extra expenses associated with engaging in collaborative efforts. d- The collaborative arrangements will not live up to expectations Social capital refers to a- advantages a firm has due to its social responsible behaviour b- advantages a firm has due to being member of having a certain position in a network c- capital that shall be used for investing in social ventures d- none of the above *The advantages of using an acquisition strategy to pursue opportunities in the foreign markets include a- having a high level of control and speed as an entry strategy to overcome trade barriers b- allowing a company to achieve scalable economies c- eliminating the costs and risks associated with establishing a foreign business location d- being able to achieve variable product quality and competitive product performance *Mergers and acquisitions a- are nearly always successful in achieving their purpose b- frequently do not produce the hoped-for-outcomes c- are generally less effective than forming alliances or partnerships with the same companies d- are highly risky because of the financial drain that comes from using the company’s cash resources to pay for the costs of the merger or acquisition (ofen exchange of shares) The most trustworthly signs of a well-managed company are a- the eagerness with which executives set stretch financial and strategic objectives and develop an ambitious strategic vision b- aggressive pursuit of new opportunities and a willingness to change the company’s business model whenever circumstances warrant c- good strategy-making combines with good strategy implementation d- a visionary mission statement and a willingness to pursue offensive strategies rather than defensive strategies Lastet ned av Yasemin Køse ([email protected]) lOMoARcPSD|47128011 *A balanced scorecard for measuring company performance a- entails putting equal emphasis on financial and strategic objectives b- entails putting balances emphasis on profit and non-profit objectives c- prevents the drive for achieving financial objectives from overwhelming the pursuit of strategic objectives d- entails creating a set of objectives that is ”balanced” in the sense of including both financial and strategic objectives. *Which of the following is the best example of a well-stated strategic objective? a- increase revenues by more than the industry average b- be aiming the top 5 companies in the industry on customer service c- overtake key competitors on product quality within three years d- improve manufacturing performance by 5% within 12 months d: more about manufacturing performance Which of the following is a basic structural form of organization? a- a functional structure where function is a major step in the firms value chain b- a multidivisional structure where each division of the firm is an independent profit center c- a matrix structure where there are two or more divisions organized to enhance cross- communication d- all of these * Properly managing the value chain activities in comparison to the rivals a) is one of the most dependable ways a company can build a competitive advantage over rivals b) allows a company to avoid the impact of the five competitive forces c) is one of the best ways for a company to avoid being impacted by the industry’s driving forces d) helps neutralize external threats to a company’s future business prospects * In the diversified firm, corporate-level strategy is concerned with a) operating each individual business under the corporate umbrella b) determining how each functional department of the firm will operate c) determining in which businesses to compete and how recourses will be allocated between businesses d) coordinating the vision and mission of each subsidiary firm The heart and soul of company´s strategy-making effort a) Is figuring out how the industry low-cost provider b) Is figuring out how to maximize the profits and shareholder value Lastet ned av Yasemin Køse ([email protected]) lOMoARcPSD|47128011 c) Concerns how to improve the efficiency d) Involves coming up with moves and actions that produce a durable competitive advantage over rivals Which of the following is FALSE regarding how a differentiation strategy can help a firm to improve its competitive position relative to the Porter five forces model? a) By increasing firm margins, it avoids the need for a low cost position b) It reduces buyer power because buyers lack comparable alternatives c) Supplier power is increased, because suppliers will be able to charge higher prices for their inputs d) Firms will enjoy high costumer loyalty Primary value chain activities that involve the effective layout of receiving dock operation (inbound logistics) and support value chain activities that include expertise in process engineering (technology development) characterize what generic strategy? a) Differentiation b) Differentiation focus c) Overall cost leadership (combination of competitive strategy and value chain model) d) Stuck-in-the-middle Which of the following is not an appropriate guideline for developing a strategic group map for a given industry? a) The variables chosen as axes for the map should indicate big differences in how rivals have positioned themselves to compete in the marketplace b) The variables chosen as axes for the map can be either quantitative or qualitative c) The variables chosen as axes for the map should be highly correlated d) Several maps should be drawn if more than one pair of variables help illuminate differences in the competitive positioning of industry members. E. The sizes of the circles on the map should be drawn proportional to the combined sales of the firms in each strategic group. The best suited structural form of organization for implementing a transnational strategy is a) A divisional structure with product-divisions b) A matrix structure with functional divisions and product divisions. c) A matrix structure with product divisions and country divisions d) A divisional structure with regional divisions. Lastet ned av Yasemin Køse ([email protected]) lOMoARcPSD|47128011 Which of the following statements about the introduction stage of the market life cycle is true? A. It produces relatively large, positive cash flows B. Strong brand recognition seldom serves as an important switching cost C. Market share gains by pioneers are usually easily sustained for many years D. Products or services offered by pioneers may be perceived as differentiated because they are new (correct) The rivalry among competing sellers tends to be less intense when a. Industry conditions tempt competitors to use price cuts or other competitive weapons to boost unit sales b. Buyer demand is weak and many sellers have excess capacity and/or inventory c. Industry rivals are not particularly aggressive or active in making fresh moves to improve their market standing and business performance d. Rivals have diverse strategies and objectives and are located in different countries Which of the following statements about ethics is NOT true? a. Ethics may be defined as a system of right and wrong b. Ethics assists individuals in deciding when an act is moral or immoral c. Ethics is not concerned with whether or not an act is socially desirable d. Business ethics is the application of ethical standards to commercial enterprises According to Henry Mintzberg, the realized strategies of a firm: a. Combination of deliberate and emergent strategies b. Combination of deliberate and differentiation strategies c. Must be based on the strategic plan of the company d. Must be kept confidential for competitive reasons A strategic vision provides many benefits. Which of the following is not one of those benefits: a. A clear future direction b. A framework for their ORG mission and goals c. Enhanced employee communication commitment d. Diminished employee participation Which of the following is NOT typical strategic objective or benefit that drivers mergers and acquisitions? Lastet ned av Yasemin Køse ([email protected]) lOMoARcPSD|47128011 a. To gain quick access to new technologies or other resources and capabilities b. To create a more cost-efficient operation out of the combined companies c. To expand company’s geographic coverage d. To facilitate a company´s shift from a broad differentiation strategy to a focused differentiation strategy Dynamic capabilities include all of the following except…. A. Learning and innovating B. Becoming more efficient in operational processes C. The ability of an organization to challenge the conventional industry in its industry and market D. Continuously adopting new ways of serving the evolving needs of the market The network of relationship that individuals have throughout the organization is known as…. A. Human capital B. Intellectual capital C. Social capital D. Tacit capital Which of the following is not one of the five generic types of competitive strategy a. A low-cost provider strategy b. A broad differentiation strategy c. A focused low-cost provider strategy d. A market share dominator strategy A firm can achieve differentiation through all of the following means except… A. Improving brand names B. Better consumer service C. Adding additional product features D. Offering lower prices to frequent costumers (correct) A company´s business model a. Concerns how management plans to pursue strategic objectives, given the larger imperative of meeting or beating its financial performance targets Lastet ned av Yasemin Køse ([email protected]) lOMoARcPSD|47128011 b. Is management's storyline for how it will generate revenues ample to cover costs and produce a profit. c. Concerns what combination of moves in the marketplace it plans to make to outcompete rivals. d. Deals with how it can simultaneously maximize profits and operate in a socially responsible manner that keeps its prices as low as possible. A company´s “macro environment” refers to a. The industry and competitive arena in which the company operates b. General economic conditions plus the factors driving change in the markets where a company operates. c. All the relevant forces and factors outside a company's boundaries—e.g. general economic conditions, population demographics, etc d. The competitive market environment that exists between a company and its competitors. What two factors inhibit the ability of rivals to imitate a firm´s most valuable resources and capabilities? A Causal ambiguity and high competitive dynamics B Social capital and casual uncertainty C Cost leadership and causal ambiguity D Complexity and causal ambiguity Note: Resource-based view: competitive advantage is based on resources which are: rare, valuable, hard to imitate and not easy to substitute MULTIPLE CHOICE EXAM ORG-449 In the value chain, the “operations” in a passenger airline service would be: a. The manufacture of the aircraf. b. Getting passengers and baggage from A to B (core product). c. The design of the price structure and yield plan. d. Lost luggage service. Which of the following is an example of a strategic action? a. A “two movies for the price of one” campaign by Blockbuster Video. b. Use of product coupons by a local grocer. c. Entry into European market by Home Depot (internationalize). d. Fare increase by Easyjet Airlines. Which of the following statements about the introduction stage of the market life cycle is true? a. It produces relatively large, positive cash flows. Lastet ned av Yasemin Køse ([email protected]) lOMoARcPSD|47128011 b. Strong brand recognition seldom serves as an important switching cost. c. Market share gains by pioneers are usually easily sustained for many years. d. Products of services offered by pioneers may be perceived as differentiated because they are new (correct). The rivalry among competing sellers tends to be less intense when a. Industry conditions tempt competitors to use price buts or other competitive weapons to boost unit sales. b. Buyer demand is weak, and many sellers have excess capacity and/or inventory. c. Industry rivals are not particularly aggressive or active in making fresh moves to improve their market standing and business performance. d. Rivals have diverse strategies and objectives and are located in different countries. Which of the following statements about ethics is NOT true? a. Ethics may be defined as a system of right and wrong. b. Ethics assists individuals in deciding when an act is moral or immoral. c. Ethics is not concerned with whether or not an act is socially desirable. d. Business ethics is the application of ethical standards to commercial enterprises. According to Henry Mintzberg, the realized strategies of a firm: a. Combination of deliberate and emergent strategies. b. Combination of deliberate and differentiation strategies. c. Must be based on the strategic plan of the company. d. Must be kept confidential for competitive reasons. A strategic vision provides many benefits. Which of the following is not one of the benefits? a. A clear future direction. b. A framework for their ORG mission and goals. c. Enhanced employee communication commitment. d. Diminished employee participation. Which of the following it NOT typical strategic objective or benefit that drivers mergers and acquisitions? a. To gain quick access to new technologies or other resources and capabilities. b. To create a more cost-efficient operation out of the combined companies. c. To expand company’s geographic coverage. d. To facilitate a company’s shits from a broad differentiation strategy to a focused differentiation strategy. The heart and soul of company’s strategy-making effort a. Is figuring out how the industry low-cost provider. b. Is figuring out how to maximize the profits and shareholder value. c. Concerns how to improve the efficiency. d. Involves coming up with moves and actions that produce a durable competitive advantage over rivals. Lastet ned av Yasemin Køse ([email protected]) lOMoARcPSD|47128011 Which of the following is FALSE regarding how a differentiation strategy can help a firm to improve its competitive position relative to the Porter five forces model? a. By increasing firm margins, it avoids the need for a low-cost position. b. It reduces buyer power because buyers lack comparable alternatives. c. Supplier power is increased, because suppliers will be able to charge higher prices for their inputs (correct). d. Firms will enjoy high costumer loyalty. Primary value chain activities that involve the effective layout of receiving dock operations (inbound logistics) and support value chain activities that include expertise in process engineering (technology development) characterize what generic strategy? a. Differentiation. b. Differentiation focus. c. Overall cost leadership (combination of competitive strategy and value chain model). d. Stuck-in-the-middle. A company’s business model a. Concerns how management plans to pursue strategic objectives, given the larger imperative of meeting or beating its financial performance targets. b. Is management's storyline for how it will generate revenues ample to cover costs and produce a profit. c. Concerns what combination of moves in the marketplace it plans to make to outcompete rivals. d. Deals with how it can simultaneously maximize profits and operate in a socially responsible manner that keeps its prices as low as possible. A company´s “macro environment” refers to a. The industry and competitive arena in which the company operates. b. General economic conditions plus the factors driving change in the markets where a company operates. c. All the relevant forces and factors outside a company's boundaries—e.g. general economic conditions, population demographics, etc. d. The competitive market environment that exists between a company and its competitors. What two factors inhibit the ability of rivals to imitate a firm´s most valuable resources and capabilities? a. Causal ambiguity and high competitive dynamics. b. Social capital and casual uncertainty. c. Cost leadership and causal ambiguity. d. Complexity and causal ambiguity. Lastet ned av Yasemin Køse ([email protected]) lOMoARcPSD|47128011 Note: Resource-based view: competitive advantage is based on resources which are: rare, valuable, hard to imitate and not easy to substitute Dynamic capabilities include all of the following except…. a. Learning and innovating. b. Becoming more efficient in operational processes. c. The ability of an organization to challenge the conventional industry in its industry and market. d. Continuously adopting new ways of serving the evolving needs of the market. The network of relationship that individuals have throughout the organization is known as a. Human capital. b. Intellectual capital. c. Social capital d. Tacit capital. Which of the following is NOT one of the five generic types of competitive strategy? a. A low-cost provider strategy. b. A broad differentiation strategy. c. A focused low-cost provider strategy. d. A market share dominator strategy. Which is true of strategy? a. Business strategy has similarities with military strategy. b. Military principles cannot be completely applied in business. c. Militaries fight over territories, waters, and air spaces, firms compete in markets. d. All of the above. A business model a. Sets forth management´s game plan for maximizing profits for shareholders. b. Details exactly how management´s strategy will result in the achievement of the company´s strategic intent (not a ST). c. Explains how it will achieve high profit margins while at the same time charging relatively low prices to customers. d. Sets forth the key components of the enterprise´s business approach indicates how revenues will be generates, and makes a case for why the strategy can deliver value to customer in a profitable manner. It´s increasingly difficult for a firm to develop and sustain a competitive advantage because of the effects of globalization and a. the rapid development of the Internet’s capabilities. b. extensive use of outsourcing within the borders of the European Union. c. the declining number of inventions and patents developed by Norwegian citizens. d. the simultaneous erosion of the work ethic and the education system. A company achieves sustainable competitive advantage when Lastet ned av Yasemin Køse ([email protected]) lOMoARcPSD|47128011 a. an attractive number of buyers have a lasting preference for its products or services as compared to the offerings of competitors. b. it is able to maximize shareholder wealth. c. it is consistently able to achieve both its strategic and financial objectives. d. its strategy and its business model are focused on cost-efficiency.  Relate this question to the 5 forces: long lasting preferences – what kind of effect on 5 forces? Reduces: - Threat of new entrants (high degree of loyalty) - Threats of substitutes. - Bargaining power of costumers. A firm can achieve differentiation through all of the following means except… a. Improving brand names. b. Better costumer service. c. Adding additional product features. d. Offering lower prices to frequent costumers (correct). A company´s strategy evolves over time as a consequences of.. a. the need to keep strategy in step with changing market conditions and changing customer needs and expectations. b. the need to abandon some strategy features that are no longer working well. c. the need to respond to the newly-initiated actions and competitive moves of rival firms. d. All of these. Principal Agent problem arises when a. the transaction costs on markets are higher than those in hierarchies. b. interests of owners are separate from those of managers and owners cannot directly observe the efforts and the behaviour of managers. c. the principal and the agent do not agree on how to implement strategy. d. transactions costs in hierarchies are higher than those on markets. The industrial ORG (I/O) model argues that a. the key factor in success is choosing the correct industry in which to compete. b. the firm’s internal resources and capabilities represent the foundation for development of a value creating strategy. c. the key to earning above-average returns is strategic flexibility. d. the internal structure of the organization must match. Developing a strategic vision for a company entails a. prescribing a strategic direction for the company to pursue and a rationale for why this strategic path makes good business sense. b. describing its business model and the kind of value that it is trying to deliver to customers. c. putting together a story line of why the business will be a moneymaker. d. describing "who we are and what we do." (mission). Lastet ned av Yasemin Køse ([email protected]) lOMoARcPSD|47128011 An analysis of society’s attitudes and values would be conducted when studying the ___ segment of the general environment. a. Sociocultural. b. Global. c. Legal. d. Economic. A competitive environment where there is weak to moderate rivalry among sellers, high entry barriers, weak competition from substitute products, and little bargaining leverage on the part of both suppliers and customers a. lacks powerful driving forces b. gives each industry competitor the best potential for building sustainable competitive advantage over rival firms c. makes it hard for industry members to compete successfully unless they can strongly differentiate their products. d. is conducive to industry members earning attractive profits. Factors that cause the rivalry among competing sellers to be weak include a. low buyer switching costs and rival sellers that are relatively equal is size and capability. b. rapid growth in buyer demand and high buyer switching costs. c. low barriers to entry and weakly differentiated products among rival sellers. d. slow growth in buyer demand and strongly differentiated products. In mapping strategic groups a. it is important for the variables used as axes to be highly correlated. b. the best variables to use as axes for the map are those that differentiate how rivals have positioned themselves in the marketplace. c. one strategic variable and one financial variable should be used as axes for the map d. all of these. Which of the following is not an appropriate guideline for developing a strategic group map for a given industry? a. The variables chosen as axes for the map should indicate big differences in how rivals have positioned themselves to compete in the marketplace. b. The variables chosen as axes for the map can be either quantitative or qualitative. c. The variables chosen as axes for the map should be highly correlated. d. Several maps should be drawn if more than one pair of variables help illuminate differences in the competitive positioning of industry members. E. The sizes of the circles on the map should be drawn proportional to the combined sales of the firms in each strategic group. Competitor analysis focuses on a. firms with which the company competes directly. b. firms that produce products that are substitutes. Lastet ned av Yasemin Køse ([email protected]) lOMoARcPSD|47128011 c. all firms in the industry. d. companies that might enter the industry. Good competitive intelligence about the strategies and competitive strengths and weaknesses of rival companies helps management determine a. which competitor has the best strategy and which competitors have flawed or weak strategies. b. which rivals are likely to rank among the industry leaders on the road ahead. c. which rivals are likely to initiate what kinds of fresh strategic moves and why d. All of these. Compared to tangible resources, intangible resources are ________ and ________. a. less visible; more difficult to copy. b. less visible; less difficult to copy. c. more visible; more difficult to copy. d. more visible; less difficult to copy. By exploiting their core competencies to meet or exceed the standards of global competition, firms create ____ for customers. a. Low prices. b. Valuation. c. Valuables. d. Value. A SWOT-analysis. a. Is a sophisticated tool for strategy implementation. b. Facilitates stakeholder-management. c. Combines internal and external analysis. d. none of the above. Economies of scale refer to the fact that as the a. quantity of product produced in a given time period increases, the cost of manufacturing each unit increases. b. quantity of product produced in a given time period increases, the cost of manufacturing each unit remains constant. c. quantity of product produced in a given time period increases, the cost of manufacturing each unit decreases. d. quantity of product produced in a given time period decreases, the cost of manufacturing each unit decreases. In a single-business company, the strategy-making hierarchy consists of a. functional strategy, business strategy. b. competitive strategy, functional strategies. c. competitive strategy, corporate strategy. d. divisional strategies, functional strategies. Lastet ned av Yasemin Køse ([email protected]) lOMoARcPSD|47128011 A competitive strategy/business-level strategy describes a. the businesses in which the company intends to compete. b. all policies and procedures used in functional departments. c. the firm’s actions to exploit its competitive advantage over rivals. d. a firm’s resources, intent, and mission. The pitfalls of a differentiation strategy include a. trying to differentiate on the basis of attributes or features that are easily copied. b. choosing to differentiate on the basis of attributes that buyers do not perceive as valuable or worth paying for. c. trying to charge too high a price premium for the differentiating features d. All of these. In a diversified firm, corporate-level strategy is concerned with a. operating each individual business under the corporate umbrella b. determining how each functional department of the firm will operate. c. determining in which businesses to compete and how resources will be allocated between businesses. d. coordinating the vision and mission of each subsidiary firm. In the BCG Portfolio, ____ have a high market share and a low growth rate a. Dogs b. Cash Cows c. Question Marks d. Stars. The competitive advantage opportunities that a global competitor can gain by dispersing performance of its activities across many nations include a. being able to shif production from one country to another to take advantage of exchange rate fluctuations, differing wage rates, differing energy costs, or differing trade restrictions (global strategy). b. shortening delivery times to customers by having geographically scattered distribution facilities. c. locating buyer-related activities (such as sales, advertising, afer-sale service and technical assistance) close to buyers (multi-domestic strategy) d. All of these The drawbacks of a localized multi-domestic strategy include a. hindering the use of cross-border coordination of a company's activities and increasing company vulnerability to adverse shifs in currency exchange rates. b. making it very difficult to take into account significant country-to-country differences in distribution channels and marketing methods c. making it difficult and costly to be responsive to country-to-country differences in customer needs, buying habits, cultural traditions, and market conditions Lastet ned av Yasemin Køse ([email protected]) lOMoARcPSD|47128011 d. hindering transfer of a company's competencies and resources across country boundaries and hindering the pursuit of a single, uniform competitive advantage in all country markets where a company operates. The Achilles heel (or biggest disadvantage/pitfall) of relying heavily on alliances and cooperative strategies is a. that partners will not fully cooperate or share all they know, preferring instead to guard their most valuable information and protect their more valuable know-how. b. becoming dependent on other companies for essential expertise and capabilities. c. the added time and extra expenses associated with engaging in collaborative efforts. d. the collaborative arrangements will not live up to expectations. Social capital refers to a. Advantages a firm has due to its socially responsible behaviour. b. Advantages a firm has due to being member of and having a certain position in a network c. Capital that shall be used for investing in social ventures. d. None of the above. The advantages of using an acquisition strategy to pursue opportunities in foreign markets include a. having a high level of control and speed as an entry strategy to overcome trade barriers b. allowing a company to achieve scalable economies c. eliminating the costs and risks associated with establishing a foreign business location d. being able to achieve variable product quality and competitive product performance. Mergers and acquisitions a. are nearly always successful in achieving their desired purpose. b. frequently do not produce the hoped-for outcomes c. are generally less effective than forming alliances or partnerships with these same companies d. are highly risky because of the financial drain that comes from using the company's cash resources to pay for the costs of the merger or acquisition. The most trustworthy signs of a well-managed company are a. the eagerness with which executives set stretch financial and strategic objectives and develop an ambitious strategic vision. b. aggressive pursuit of new opportunities and a willingness to change the company's business model whenever circumstances warrant. c. good strategy-making combined with good strategy implementation. d. a visionary mission statement and a willingness to pursue offensive strategies rather than defensive strategies. Lastet ned av Yasemin Køse ([email protected]) lOMoARcPSD|47128011 A balanced scorecard for measuring company performance a. entails putting equal emphasis on financial and strategic objectives. b. entails putting balanced emphasis on profit and non-profit objectives. c. prevents the drive for achieving financial objectives from overwhelming the pursuit of strategic objectives. d. entails creating a set of objectives that is "balanced" in the sense of including both financial and strategic objectives. Which of the following is the best example of a well-stated strategic objective? a. Increase revenues by more than the industry average b. Be among the top 5 five companies in the industry on customer service. c. Overtake key competitors on product quality within three years d. Improve manufacturing performance by 5% within 12 months. Which of the following is a basic structural form of organization? a. A functional structure where function is a major step in the firm's value chain. b. A multidivisional structure where each division of the firm is an independent profit center. c. A matrix structure where there are two or more divisions organized to enhance crosscommunication. d. All of these. The best suited structural form of organization for implementing a transnational strategy is a. A divisional structure with product-divisions. b. A matrix structure with functional divisions and product divisions. c. A matrix structure with product divisions and country divisions. d. A divisional structure with regional divisions. MULTIPLE CHOICE QUESTIONS – FROM CLASS 1. A company’s strategy evolves over time as a consequence of a) The need to keep strategy in step with changing market conditions and changing customer needs and expectations. b) The need to abandon some strategy features that are no longer working well. c) The need to respond to the newly initiated actions and competitive moves of rival firms. d) All of these. 2. A company’s business model a) sets forth management’s game plan for maximizing profits for shareholders. b) details exactly how management’s strategy will result in the achievement of the company’s strategic intent. (about the strategy implementation – the BSC: detailing how the strategy should be implemented to reach our strategic intent) c) explains how it will achieve high profit margins while at the same time charging relatively low prices to costumers. d) sets forth the key components of the enterprise’s business approach, indicated how revenues will be generated, and makes a case for why the strategy can deliver value to customers in a profitable manner. Lastet ned av Yasemin Køse ([email protected]) lOMoARcPSD|47128011 3. The four elements of a business model include: a) The value proposition b) The value creation c) Value capture d) All of the above (and value delivery) 4. Management’s story line for how and why the company’s business approaches will generate revenues sufficient to cover costs and produce attractive profits and returns on investment a) describe what is meant by a corporate strategy. (Not right: Corporate strategy: effects the fundamental questions, like what product should we serve etc. (is about the scope of the business – product/service offering in the market) b) best describes what is meant by a company’s business model c) accounts for why the company’s financial objectives are at the stated level d) is what is meant by the term strategic fit 5. Which is true of strategy a) business strategy has similarities with military strategy b) military principles cannot be completely applied in business c) militaries fight over territories, waters, and air spaces, firms compete in markets d) all of the above 6. A company achieves sustainable competitive advantage when a) an attractive number of buyers have a lasting preference for its products or services as compared to the offering of competitors b) it is able to maximize shareholder wealth (this is kind of a more long term result) c) it is consistently able to achieve both strategic and financial objectives d) its strategy and its business model are focused on cost-efficiency (about cost leadership, it is a business/competitive strategy) 7. By exploiting their core competence to meet or exceed the standards for global competition, firms create _____ for costumers. a) low prices b) valuation c) valuables d) value 8. Factors that cause the rivalry among competing sellers to be weak include a) lower buyer switching costs and rival sellers that are relatively equal in size and capability (would usually increase the rivalry because the make the buyer stronger) b) rapid growth in buyer demand and high buyer switching costs c) low barrier to entry and weakly differentiated products among rival seller d) slow growth in buyer demand and strongly differentiated products 9. Properly managing the value chain activities in comparison to the rivals a) is one of the most dependable ways a company can build a competitive advantage over rivals b) allows a company to avoid the impact of the five competitive forces Lastet ned av Yasemin Køse ([email protected]) lOMoARcPSD|47128011 c) is one of the best ways for a company to avoid being impacted by the industry’s driving forces d) helps neutralize external threats to a company’s future business prospects 10. In mapping strategic groups a) it is important for the variables used as axes to be highly correlated (if they were not correlated this would be a good answer). b) the best variables to use as axes for the map are those that differentiate how rivals have positioned themselves in the marketplace (the variables should be valuable and make a difference in the market) c) one strategic variables and one financial variable should be used as axes for the map d) all of these 11. It is increasingly difficult for a firm to develop and sustain a competitive advantage because of the effects of globalization and a) the rapid development of the Internet’s capabilities b) extensive use of outsourcing within the borders of the EU c) the declining number of inventions and patents developed by Norwegian citizens d) the simultaneous erosion of the work ethic and the education system 12. In a single-business company, the strategy making hierarchy consists of a) functional strategy  business strategy b) competitive strategy  functional strategies c) competitive strategy  corporate strategy d) divisional strategies  functional strategies 13. The industrial organization (i/O) model argues that a) the key factor in success is choosing the correct industry in which to compete b) the firm’s internal resources and capabilities represents the foundation for development of a value creating strategy c) the key to earning above-average returns is strategic flexibility (this is about the dynamic capability model) d) the internal structure of the organization must be a match 14. Competitor analysis focuses on (a fuzzy question, will not get this on the exam) a) firms with which the company competes directly b) firms that produce products that are substitutes c) all firms in the industry d) companies that might enter the industry 15. In a diversified firm, corporate level strategy is concerned with a) operating each individual business under the corporate umbrella b) determining how each functional department of the firm will operate c) determining in which business to compete and how resources will be allocated between businesses d) coordinating the vision and mission of each subsidiary 16. A competitive strategy/business-level strategy describes a) the businesses in which the company intends to compete b) all policies and procedures used in functional departments Lastet ned av Yasemin Køse ([email protected]) lOMoARcPSD|47128011 c) the firm’s actions to exploit its competitive advantage over rivals d) a firm’s resources, intent and mission 17. In the BCH portfolio, ______ have a high market share and a low growth rate a) dogs b) cash cows c) question marks d) stars 18. Which of the following is an example of strategic action? a) a “two movies for the price of one” campaigns by Blockbuster Video b) use of product coupons by a local grocer c) entry into the European market by home depot (change the corporate strategy - internationalize) d) fare increases by EasyJet Airlines 19. The competitive advantage opportunities that a global competitor can gain by dispersing performance of its activities across many nations include a) being able to shift production form one country to another to take advantage of exchange rate fluctuations, differing wage rates, differing energy costs, or differing trade restrictions b) shortening delivery times to costumers by having geographically scattered distribution facilities c) locating buyer-related activities (such as sales, advertising, after-sale service and technical assistance) close to buyers d) all of these 20. Which of the following is not an accurate statement as concerns competing in the markets of foreign countries? a) a multi-domestic strategy is generally superior to a global strategy b) there are country-to-country differences in consumer buying habits and buyer tastes and preferences c) a company must contend with fluctuating exchange rates and country-to-country variation in host government restrictions and requirements d) product designs suitable for one country are often inappropriate in another 21. Mergers and acquisitions a) are nearly always successful in achieving their desired purpose b) frequently do not produce the hoped-for outcomes c) are generally less effective than formulating alliances or partnerships with these same companies d) are highly risky because of the financial drain that comes from using the company’s cash resources to pay for the costs of the merger and acquisition 22. Economies of scale refer to the fact that as the a) quantity of product produces in a given time period increases, the cost of the manufacturing each unit increases b) quantity of product produces in a given time period increases, the cost of the manufacturing each unit remains constant Lastet ned av Yasemin Køse ([email protected]) lOMoARcPSD|47128011 c) quantity of product produces in a given time period increases, the cost of the manufacturing each unit decreases d) quantity of product produces in a given time period decreases, the cost of the manufacturing each unit decreases 23. The advantages of using an acquisition strategy to pursue opportunities in foreign markets include a) having a high level of control and speed as an entry strategy to overcome trade barriers b) allowing a company to achieve scalable economies (can have this with otter forms pf internationalizations as well) c) elimination the costs and risks associated with establishing a foreign business location d) being able to achieve variable product quality and competitive product performance 24. Which of the following is the best example of a well-stated strategic objectives? a) Increase revenues by more than the industry average b) Be among the top five companies in the industry on costumer service c) Overtake key competitors in product quality within three years d) Improve manufacturing performance by 5% within 12 months (more about production than strategy) 25. A balanced scorecard for measuring company performance a) entails putting equal emphasis on financial and strategic objectives b) entails putting balanced emphasis n profit and non-profit objectives c) prevents the drive for achieving financial objectives form overwhelming the pursuit of strategic objectives d) entails creating a set of objectives that is “balanced” in the sense of including both financial and strategic objectives 1. A company that pursue and achieves strategic objectives a) is likely to weaken the achievement of its short term and long term financial objectives b) believes that the company’s financial performance is not as important as it really is c) is generally not strongly focused on its true mission of making a profit d) is frequently in a better position to improve its future financial performance because of the increased competitiveness that flows from the achievement of strategic objectives 2. A strategic alliance a) is a collaborative arrangement where companies join forces to defeat mutual competitive rivals b) involves two or more companies joining forces to pursue vertical integration Lastet ned av Yasemin Køse ([email protected]) lOMoARcPSD|47128011 c) is a formal agreement between two or more companies in which there is a strategically relevant collaboration of some sort, joint contribution of resources, shared risk, shared control, and mutual dependence d) is a partnership between two companies is typically intended to eliminate the need to engage outsourcing 3. A balanced scorecard is a conceptually strong approach for judging a company’s overall performance because a) it assists managers in putting roughly equal emphasis on short term and long term performance targets b) it entails putting equal emphasis on good strategy implementation and good business model coherence c) it pushes managers to avoid setting objectives that reflect the results of past decisions and organizational activities d) financial performance measures are lagging indicators that reflect the results of past decisions and organizational activities whereas strategic performance measures are leading indicators of a company’s future financial performance 4. The chief difference between a broad differentiation strategy and a focused differentiation is a) the size of the buyer group that a company is trying to appeal to b) the degree of bargaining power that buyers have c) whether the product is strongly differentiated or weakly differentiated from rivals d) the type of value chain being used to achieve a differentiation-based competitive advantage 5. The vision of the company a) should encourage employees b) serves as a guiding tool for stakeholders c) determines the future focus of corporate policy d) all of the above 6. The advantages of using a franchising strategy to pursue opportunities in foreign markets include a) having franchisees bear most of the costs and risks of establishing foreign locations and requiring the franchiser to expend only the resources to recruit, train and support foreign franchisees b) being particularly well suited to the global expansion efforts of companies with multidomestic strategies c) allowing a company to achieve scale economies d) being well suited to companies who employ cross-border transfer strategies. Lastet ned av Yasemin Køse ([email protected]) lOMoARcPSD|47128011 7. The aim of a blue ocean strategy a) Is to develop business model innovation based on intangible resources b) Is to beat competitors by combining cost leadership and differentiation strategy c) Is to outperform the strongest competitor d) Is to make competition irrelevant by creating uncontested market space 8. Which of the following is NOT a primary focus of a company’s strategy? a) How each functional piece of the business will be operated b) How to achieve above-average gains in the company’s stock price and thereby meet of beat shareholder expectations c) How to compete successfully d) How to grow the business 9. The resource-based view assumes all of the following EXEPT a) Resources. Form the basis of competitive advantage b) Resources are heterogenous within a particular industry c) Firms aquire different resources over time d) Resources are highly mobile across firms 10. An organization´s mission can be defined as a) its overriding purpose, in line with the values or expectations of stakeholders. b) its business plan. c) its desired future state. d) its overriding purpose, regardless of the values or expectations of stakeholders. 11. The theory of comparative advantage postulates a) that a country should export those goods and services it is relatively best able to produce. b) that international trade cannot take place between countries with high tariff barriers. c) that international trade must be compared to the domestic advantages a firm has. d) that a country should only engage in international trade if it has an absolute cost advantage. 12. Which of the following is key point that is explained by Porter´s Diamond? 13. Competitive, as distinct from corporate strategy, is chiefly concerned with a) deciding what new businesses to enter, which existing businesses to get off, and which existing business to remain in b) forging actions and approaches to compete successfully in a particular line of business c) coordinating the competitive approaches of a company’s different business units d) what business model to employ in each of the company’s different businesses 14. Which of the following is typically the strategic impetus for forward vertical integration? a) being able to control the wholesale/retail portion of the industry value chain b) fewer disruptions in the delivery of the company’s products to end-users c) gaining better access to end users and better market visibility d) broadening the company’s product line 15. The difference between a merger and an acquisition is that Lastet ned av Yasemin Køse ([email protected]) lOMoARcPSD|47128011 a) a merger involves one company purchasing the assets of another company with cash, whereas an acquisition involves a company acquiring another company buy buying all of the shares of common stock b) a merger is a pooling of equals whereas an acquisition involves one company, the acquirer, purchasing and absorbing the operations of another company, the acquired c) in a merger the companies retain their original names whereas in an acquisition the name of the company being acquired is changed to be the name of the acquiring company d) a merger is a combination of three or more companies whereas an acquisition is pooling of interests of just two companies 16. The range of products and services segments that the firm serves within its market is known as the firm’s a) horizontal scope b) vertical integration c) vertical scope d) product outsourcing 17. The business case for why companies should act in a socially responsible manner includes such reasons as a) it generates internal benefits (as concerns employee recruiting, employee moral etc.) b) it reduces the risk of reputation-damaging incidents c) it is in the best interest of shareholders d) all of these 18. A blue ocean strategy a) is an offensive attack used by a market leader to steal costumers away from unsuspecting smaller rivals b) involves a preemptive strike to secure an advantageous position in a fast growing market segment c) works best when a company is the industry’s low cost leader d) involves abandoning efforts to beat out competitors in existing markets and, instead, inventing a new industry or new market segment that renders existing competitors largely irrelevant and allows a company to create and capture altogether new demand 19. A key approach for a company to grow sales and profits in several country markets is to a) transfer its valuable competencies and resources strengths among these markets to aid in the development of broader competencies and capabilities b) employ a multidomestic strategy rather than a global strategy c) locate technical after-sales services close to buyers d) minimize transportation costs between these markets 20. A good example of vertical integration is a) a global public accounting firm acquiring a small local or regional public accounting firm b) a large supermarket chain getting into convenience food stores c) a crude oil refiner purchasing a firm engaging in drilling and exploring of oil d) a railroad company acquiring a trucking company specializing in long haul freight Lastet ned av Yasemin Køse ([email protected]) lOMoARcPSD|47128011 21. Diversification merits strong consideration whenever a single-business company a) has integrated backward and forward as far as it can b) is faced with diminishing market opportunities and stagnating sales in its principal business c) has achieved industry leadership in its main line for business d) encounters declining profits in its mainstay business 22. Acquisition premium is the amount by which the price offered for an existing business exceeds a) the pre-acquisition market value of the target company b) the fair market value of similar companies in the same geographic locale c) the comparable value of similar companies within the same market d) the market value of the target company plus the cost for due diligence 23. Strategic alliances a) are the cheapest means of developing new technologies and getting new products to market quickly b) are collaborative arrangements where two or more companies join forces to achieve mutually beneficial strategic outcomes c) are a proven means of reducing the costs of performing value chain activities d) are best used to insulate a company from the impact of the five competitive forces 24. The balanced scorecard a) integrates financial targets and market segmentation b) facilitates the formulation of corporate strategies c) facilitates the formulation of competitive strategies d) none of the above 25. A company’s value chain identifies a) the steps it goes through to convert its net income into value for shareholders b) the primary activities it performs in creating value for its customers and related support activities c) the series of steps it takes to get a product from the raw materials stage into the hands of end-users d) the activities it performs in transforming its competencies into distinctive capabilities 26. The strategy process a) is always rational b) must be supported by advanced information technology c) results in decreasing per units costs d) starts with the formulation of a vision and mission 27. Which one of the following is not one of the major drivers of unethical managerial behavior? a) intense competitive pressures b) overzealous pursuit of personal gain, wealth, and other self-interests c) a company culture that puts the profitability and good business performance ahead of ethical behavior d) heavy pressure on company managers to meet or beat earnings Lastet ned av Yasemin Køse ([email protected]) lOMoARcPSD|47128011 28. A joint venture is an attractive way for a company to enter a new industry when a) a firm is missing some essential skills or capabilities or resources and needs a partner to supply the missing expertise and competencies or fill the resource gap b) it needs access to economies of scope and good financial fits in order to be cost- competitive c) it is uneconomical for the firm to achieve economies of scope in its own initiative d) the firm has no prior experiences with diversification 29. A firm’s organizational structure is comprised of a) resource strengths and competitive capabilities that allow it to incorporate attributes at lower costs than rivals whose products have similar attributes b) the formal and informal arrangements of tasks, responsibilities, lines of authority, and reporting relationships by which the firm is administered c) excellent marketing and sales skills to convince buyers to pay a premium price for the attributes/features incorporated in its product d) sustainable distinctive competences to ensure cost reduction and competitiveness 30. The difference between the concept of a company mission statement and the concept of a strategic vision is that a) a mission statement deals with “where we are headed?” whereas a strategic vision provides the critical answer to “how will we get there?” b) the mission is to make a profit, whereas a strategic vision concerns what business model to employ in striving to make a profit c) a mission statement typically concerns a company’s present business scope (“who we are, why do we exist”) whereas the principal concern of a strategic vision is the company’s long term direction d) a mission statement deals with the “where we are headed” whereas a strategic vision provides the critical answer to “how will we get there?” 31. From a strategy-implementing perspective, budget allocations should a) primarily be based on the number of new strategic initiatives being implemented in each department b) be based on the number of people employed in each of the divisions c) be strategy-driven and based primarily on how much each organizational unit needs to carry out its piece of the strategic plan efficiently and effectively d) be linked to the costs of performing value chain activities as determined by benchmarking against best-in-industry competitors 32. The two-tier system of corporate governance is characterized by a) the tension between two main stakeholder groups: management and employees b) a collaborative way of resolving conflicts in the management board c) a clear institutional separation between a supervisor and a management body d) a system where the CEO has simultaneously two positions/functions; CEO and chairman of the board Lastet ned av Yasemin Køse ([email protected]) lOMoARcPSD|47128011 33. Which of the following is false? a) unique bundles of resources are the ultimate source of wealth creation b) the critical resource for firms is the ability to use the rapidly evolving internet c) a global labor market for employees now exists d) any competitive advantage will eventually disappear 34. The heart and soul of a company’s strategy-making effort a) is figuring out how to maximize the profits and shareholder value b) concerns how to improve the efficiency of its business model c) deals with how management plans to maximize profits while, at the same time, operating in a socially responsible manner that keeps the company’s prices as low as possible d) involves coming up with moves and actions that produce a durable competitive advantage over rivals 35. An emergent strategy a) must be avoided b) develops out of social and political processes c) leads to a more successful strategy implementation d) is part of the resource-based model 36. Intensifies rivalry within an industry results in a) increased hiring costs across the industry b) increased total revenues across the industry c) decreased average profitability across the industry d) increased entries into the industry 37. A company pursuing a related diversification strategy would likely address the issue of what additional industries/businesses do to diversify into by a) locating businesses with well-known brand names and large market shares b) identifying industries with the least competitive intensity c) identifying an attractive industry whose value chain has good strategic fit with one or more of the firm’s present businesses d) identifying businesses with the potential to diversify the number and types of di

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