MGT-413 Final Exam Questions With Complete Solutions
A business-level strategy is: Correct Answers an integrated and
coordinated set of commitments and actions to gain an
advantage by exploiting core competencies.
A clothing manufacturer that sells wholesale to small fashion
boutiques has just expanded its operations internationally to
South Korea. In that country, labor costs and various materials
are cheaper. If South Korea contemplates closing its border to
importing and exporting because of an international conflict, the
clothing manufacturer would suffer as a result of which of the
following environmental risks to its international strategy?
Correct Answers Political risks
A company consists of a corporate office and operating
divisions. Each operating division represents a separate business
or profit center in which the top corporate officer delegates
responsibilities for day-to-day operations and business-unit
strategy to division managers. What type of structure does this
company have? Correct Answers Multidivisional structure
A company is working through its strategic management process
to develop a long-term strategic plan that will help it to achieve
a competitive advantage. The company's leaders have completed
the work of developing a mission, a vision, and core values.
They have also researched and conducted a thorough SWOT
analysis identifying general, industry, and competitor
environments, as well as internal resources, capabilities, and
core competencies. As they determine the business-level
strategy they will pursue for their core business unit, which of
,the following steps would they take? Correct Answers
Determine if the company will compete by reducing the cost
structure or by focusing on generating greater perceived value
by its customers—or both—based on conclusions reached in the
research and decisions up to this point
A company president for a software firm has chosen to
implement a differentiation strategy, offering his product in a
Software as a Service (SaaS) platform with a monthly
subscription. Most of his competitors are selling their products
as a one-time purchase. Which of the following represents the
greatest risk to the strategy? Correct Answers An established
competitor has announced it will begin offering its programs in a
SaaS model next quarter.
A construction company is pursuing a focused differentiation
strategy, and after reviewing its core competencies, the leaders
have decided to specialize in hospital construction. Which of the
following is an example of how that strategy is addressing the
bargaining power of buyers (customers)? Correct Answers The
company participates in competitive bidding processes, and
despite often submitting a higher bid than competitors, it is
awarded the job based on its expertise
A convenience store chain recently implemented an
international diversification strategy by opening stores in
Canada, Australia, and several South American countries. As a
U.S.-based company, the chain is still actively learning how to
manage its new geographical diversification. Six months in, the
firm has seen a drop in its return on investment. Should
executives be concerned for the firm's future? Correct Answers
,No, typically when a firm implements an international
diversification strategy, its return on investment decreases
initially and then increases quickly as the firm learns how to
manage its new geographical diversification.
A cost leadership strategy is one in which: Correct Answers a
company uses process innovations, such as advanced production
or distribution methods, to operate efficiently.
A differentiation strategy is one in which a: Correct Answers
firm creates products that have features that customers value and
are willing to pay a higher price for.
A firm can cope with differences in government policies and
practices in the host country in which it has implemented an
international strategy by: Correct Answers forming a strategic
alliance.
A firm that measures its success by performance standards that
are previously established is one that has high: Correct Answers
financial controls
A new family-owned organic grocery has been successful since
its grand opening nearly a year ago. With little competition in
the area, the organic grocery has been particularly successful in
serving organic food to consumers. The grocer has just found
out that Whole Foods will be starting construction on a new
store nearby. The grocery feels that its family ownership and
locally-grown food offerings give it a position in which to take
action against the developing Whole Foods. However, as a small
business, the organic grocery does not have the financial means
, to launch a rivalry against Whole Foods. In this instance, the
organic grocery is missing which driver of competitive
behavior? Correct Answers Ability
A pharmaceutical company has a patented antidepressant that
has few side effects and dominates the market. The company has
slowly been conducting research and development (R&D) to
improve this drug. The slow nature of drug development
categorizes the pharmaceutical company as part of a _____
market. Correct Answers slow-cycle
A popular TV network, QTV, wishes to gain a competitive
advantage by managing several businesses from its
headquarters. Among its goals, QTV hopes to acquire its
competitor, RTV, in the process. In this instance, QTV is using
which type of strategy? Correct Answers Corporate-level
strategy
A retail company feels that it has a mixed identity. Some of the
leadership is focused on promoting the company as offering the
highest quality, whereas other leaders argue that the company
should lower prices to attract customers. The team is working
through a strategic management process and determines that it
needs better definition for the way it will compete against its
rivals within the same industry and product category. This
company needs to formulate and implement a(n) _____ strategy.
Correct Answers business-level
A single-business diversification strategy and a dominant-
business diversification strategy are both examples of what level
of diversification? Correct Answers Low level
A business-level strategy is: Correct Answers an integrated and
coordinated set of commitments and actions to gain an
advantage by exploiting core competencies.
A clothing manufacturer that sells wholesale to small fashion
boutiques has just expanded its operations internationally to
South Korea. In that country, labor costs and various materials
are cheaper. If South Korea contemplates closing its border to
importing and exporting because of an international conflict, the
clothing manufacturer would suffer as a result of which of the
following environmental risks to its international strategy?
Correct Answers Political risks
A company consists of a corporate office and operating
divisions. Each operating division represents a separate business
or profit center in which the top corporate officer delegates
responsibilities for day-to-day operations and business-unit
strategy to division managers. What type of structure does this
company have? Correct Answers Multidivisional structure
A company is working through its strategic management process
to develop a long-term strategic plan that will help it to achieve
a competitive advantage. The company's leaders have completed
the work of developing a mission, a vision, and core values.
They have also researched and conducted a thorough SWOT
analysis identifying general, industry, and competitor
environments, as well as internal resources, capabilities, and
core competencies. As they determine the business-level
strategy they will pursue for their core business unit, which of
,the following steps would they take? Correct Answers
Determine if the company will compete by reducing the cost
structure or by focusing on generating greater perceived value
by its customers—or both—based on conclusions reached in the
research and decisions up to this point
A company president for a software firm has chosen to
implement a differentiation strategy, offering his product in a
Software as a Service (SaaS) platform with a monthly
subscription. Most of his competitors are selling their products
as a one-time purchase. Which of the following represents the
greatest risk to the strategy? Correct Answers An established
competitor has announced it will begin offering its programs in a
SaaS model next quarter.
A construction company is pursuing a focused differentiation
strategy, and after reviewing its core competencies, the leaders
have decided to specialize in hospital construction. Which of the
following is an example of how that strategy is addressing the
bargaining power of buyers (customers)? Correct Answers The
company participates in competitive bidding processes, and
despite often submitting a higher bid than competitors, it is
awarded the job based on its expertise
A convenience store chain recently implemented an
international diversification strategy by opening stores in
Canada, Australia, and several South American countries. As a
U.S.-based company, the chain is still actively learning how to
manage its new geographical diversification. Six months in, the
firm has seen a drop in its return on investment. Should
executives be concerned for the firm's future? Correct Answers
,No, typically when a firm implements an international
diversification strategy, its return on investment decreases
initially and then increases quickly as the firm learns how to
manage its new geographical diversification.
A cost leadership strategy is one in which: Correct Answers a
company uses process innovations, such as advanced production
or distribution methods, to operate efficiently.
A differentiation strategy is one in which a: Correct Answers
firm creates products that have features that customers value and
are willing to pay a higher price for.
A firm can cope with differences in government policies and
practices in the host country in which it has implemented an
international strategy by: Correct Answers forming a strategic
alliance.
A firm that measures its success by performance standards that
are previously established is one that has high: Correct Answers
financial controls
A new family-owned organic grocery has been successful since
its grand opening nearly a year ago. With little competition in
the area, the organic grocery has been particularly successful in
serving organic food to consumers. The grocer has just found
out that Whole Foods will be starting construction on a new
store nearby. The grocery feels that its family ownership and
locally-grown food offerings give it a position in which to take
action against the developing Whole Foods. However, as a small
business, the organic grocery does not have the financial means
, to launch a rivalry against Whole Foods. In this instance, the
organic grocery is missing which driver of competitive
behavior? Correct Answers Ability
A pharmaceutical company has a patented antidepressant that
has few side effects and dominates the market. The company has
slowly been conducting research and development (R&D) to
improve this drug. The slow nature of drug development
categorizes the pharmaceutical company as part of a _____
market. Correct Answers slow-cycle
A popular TV network, QTV, wishes to gain a competitive
advantage by managing several businesses from its
headquarters. Among its goals, QTV hopes to acquire its
competitor, RTV, in the process. In this instance, QTV is using
which type of strategy? Correct Answers Corporate-level
strategy
A retail company feels that it has a mixed identity. Some of the
leadership is focused on promoting the company as offering the
highest quality, whereas other leaders argue that the company
should lower prices to attract customers. The team is working
through a strategic management process and determines that it
needs better definition for the way it will compete against its
rivals within the same industry and product category. This
company needs to formulate and implement a(n) _____ strategy.
Correct Answers business-level
A single-business diversification strategy and a dominant-
business diversification strategy are both examples of what level
of diversification? Correct Answers Low level
