MGT8803 STRATEGY LATEST
EXAM
A firm in an industry with high infrastructure costs and a high minimum
efficient scale (high economies of scale) will often resort to pricing and
reduced margins to keep production volumes up as industry growth
begins to slow. (a) True (b) False - ANSWERS-True
Hierarchical (Tall) organizational structures work better than Flat
structures in stable environments. (a) True (b) False - ANSWERS-True
Core competencies are unique strengths embedded within the firm that
allow a firm to differentiate itself by creating higher value for its
customers. (a) True (b) False - ANSWERS-True
Intangible assets are \________\_ likely to drive sustainable competitive
advantage than physical assets. (a) more (b) less (c) equally -
ANSWERS-more
Using \________\_ in business is a way of comparing best industry
practices against the organizations' processes to identify performance
gaps and achieve a competitive advantage. (a) SWOT (b) VRIO analysis
(c) benchmarking (d) the AFI framework (e) SCP Model (f) Porter 5
Forces Model - ANSWERS-benchmarking
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PAGE
1
, MGT8803 STRATEGY LATEST
EXAM
Which of the following are useful in internal analysis to identify
organizational strengths and weaknesses? (Select all that apply) (a)
Ansoff Matrix (b) VRIO Analysis (c) Value Chain Analysis (d) SCP
Model (e) Ratio Analysis (f) BCG Growth-Share Matrix - ANSWERS-
(b) VRIO Analysis, (c) Value Chain Analysis, (e) Ratio Analysis
These strategies address which markets the organization will be in and
how capital will be allocated among the firm's strategic business units.
(a) Corporate (b) Qualitative (c) Functional (d) Stability (e) Tactical (f)
Business Unit - ANSWERS-Corporate
Which ONE of the following is not considered to be a component of the
scope of the firm? (a) the variety of products and services offered (b) the
extent of control the firm chooses to exercise over the industry's value
chain (c) the locations (geographies) in which the firm operates and sells
(d) the firm's market share (e) All of these statements relate to the scope
of the firm - ANSWERS-the firm's market share
Which ONE of the following strategies has the benefit of reducing
competitive intensity by increasing industry concentration? (a) Related
diversification (b) Unrelated diversification (c) Forward vertical
integration (d) Backward vertical integration (e) Horizontal integration
(f) New product development - ANSWERS-Horizontal integration
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PAGE
2
, MGT8803 STRATEGY LATEST
EXAM
Which one of the following strategies creates the potential for the firm to
capture additional profits from the industry value chain? (a) horizontal
integration (b) unrelated diversification (c) vertical integration (d)
Divestiture (e) concentration - ANSWERS-vertical integration
What are some benefits of diversification? (a) Increasing financial risks
(b) Cross subsidizing products and/or operations (c) Pursuing the same
growth and profit opportunities (d) Leveraging new capabilities over
existing markets - ANSWERS-(b) Cross subsidizing products and/or
operations
A new company decides to organize itself with the CEO at the top, a VP
for each of the businesses it competes in, and executive leaders heading
IT, Marketing, and HR functions that are shared between the business
units. This company has a: (a) Divisional structure (b) Hierarchical
structure (c) Functional structure (d) Business structure - ANSWERS-
Divisional structure
Which of the following strategies has the greatest risk of encountering
high influence costs? (a) Product Diversification (b) Unrelated
Diversification (c) Related Diversification (d) Geographic
END OF
PAGE
3
EXAM
A firm in an industry with high infrastructure costs and a high minimum
efficient scale (high economies of scale) will often resort to pricing and
reduced margins to keep production volumes up as industry growth
begins to slow. (a) True (b) False - ANSWERS-True
Hierarchical (Tall) organizational structures work better than Flat
structures in stable environments. (a) True (b) False - ANSWERS-True
Core competencies are unique strengths embedded within the firm that
allow a firm to differentiate itself by creating higher value for its
customers. (a) True (b) False - ANSWERS-True
Intangible assets are \________\_ likely to drive sustainable competitive
advantage than physical assets. (a) more (b) less (c) equally -
ANSWERS-more
Using \________\_ in business is a way of comparing best industry
practices against the organizations' processes to identify performance
gaps and achieve a competitive advantage. (a) SWOT (b) VRIO analysis
(c) benchmarking (d) the AFI framework (e) SCP Model (f) Porter 5
Forces Model - ANSWERS-benchmarking
END OF
PAGE
1
, MGT8803 STRATEGY LATEST
EXAM
Which of the following are useful in internal analysis to identify
organizational strengths and weaknesses? (Select all that apply) (a)
Ansoff Matrix (b) VRIO Analysis (c) Value Chain Analysis (d) SCP
Model (e) Ratio Analysis (f) BCG Growth-Share Matrix - ANSWERS-
(b) VRIO Analysis, (c) Value Chain Analysis, (e) Ratio Analysis
These strategies address which markets the organization will be in and
how capital will be allocated among the firm's strategic business units.
(a) Corporate (b) Qualitative (c) Functional (d) Stability (e) Tactical (f)
Business Unit - ANSWERS-Corporate
Which ONE of the following is not considered to be a component of the
scope of the firm? (a) the variety of products and services offered (b) the
extent of control the firm chooses to exercise over the industry's value
chain (c) the locations (geographies) in which the firm operates and sells
(d) the firm's market share (e) All of these statements relate to the scope
of the firm - ANSWERS-the firm's market share
Which ONE of the following strategies has the benefit of reducing
competitive intensity by increasing industry concentration? (a) Related
diversification (b) Unrelated diversification (c) Forward vertical
integration (d) Backward vertical integration (e) Horizontal integration
(f) New product development - ANSWERS-Horizontal integration
END OF
PAGE
2
, MGT8803 STRATEGY LATEST
EXAM
Which one of the following strategies creates the potential for the firm to
capture additional profits from the industry value chain? (a) horizontal
integration (b) unrelated diversification (c) vertical integration (d)
Divestiture (e) concentration - ANSWERS-vertical integration
What are some benefits of diversification? (a) Increasing financial risks
(b) Cross subsidizing products and/or operations (c) Pursuing the same
growth and profit opportunities (d) Leveraging new capabilities over
existing markets - ANSWERS-(b) Cross subsidizing products and/or
operations
A new company decides to organize itself with the CEO at the top, a VP
for each of the businesses it competes in, and executive leaders heading
IT, Marketing, and HR functions that are shared between the business
units. This company has a: (a) Divisional structure (b) Hierarchical
structure (c) Functional structure (d) Business structure - ANSWERS-
Divisional structure
Which of the following strategies has the greatest risk of encountering
high influence costs? (a) Product Diversification (b) Unrelated
Diversification (c) Related Diversification (d) Geographic
END OF
PAGE
3
