MGMT 4502 Strategic Management: Final Exam | Questions and Answers 94% Graded - Humber College.

MGMT 4502 Strategic Management: Final Exam | Questions and Answers 94% Graded - Humber College. . SUBMITTED 4/4/ . Final Grade - RECEIPT: 79D20D033E: MULTIPLE CHOICE Gl Which of the following is the best explanation of how a joint venture differs from a strategic alliance? The two terms are interchangeable and both describe collaboration between two or more organisations. A joint venture is where two organisations act as venture capitalists to fund the development of a third organisation, whereas an alliance involves contributing expertise rather than A joint venture is when two or more organisations set up a new enterprise, whereas a strategic alliance is a collaboration (often temporary) to achieve a shared goal. Ajoint venture is where two companies own equal shares in a third, whereas a strategic alliance is where one of them is a junior partner, owning less than an equal share. MULTIPLE CHOICE Which of the following is an advantage of licensing? Combining complementary resources and know-how Limits economic and financial exposure Exploitation of economies of scale mutieLe cHoice (CEEED Which market entry mode has an advantage of sharing investment risk with a partner but a disadvantage that there is a loss of competitive advantage through imitation? Exporting Joint ventures Licensing Foreign direct investment MULTIPLE CHOICE What term is used for a contractual alliance that allows partners to use intellectual property such as patents or brands in return for a fee? Licensing muitieLe choice (CEEED In which ofthe following situations might diversification prove an appropriate strategy? When the market is experiencing high growth and an influx of new entrants When the product development of rivals is better than your own When market share is being lost to other firms in the sector When the market is mature or existing products are at the end oftheir life cycles mutieLe cHoice (CEEED Another way of describing a strategy of unrelated diversification is: a transnational strategy a conglomerate strategy a differentiated strategy muitieLe choice (CEEED What term is used for the process by which innovations spread among users? Diffusion Tripping Tipping Entrepreneurship MULTIPLE CHOICE Which of the following is not a disadvantage of external methods of development such as mergers, acquisitions and strategic alliances? New skills and competences can be obtained quickly. There is a potential conflict of objectives between partner organisations. Cultural differences can lead to conflict over methods of working. muiTipLe cHoice (EXED What key change occurs once a dominant design has been developed in a particular sector? Process innovation becomes more important than product innovation. Large incumbent firms are replaced by smaller companies. Process and product innovation become equally important. Innovation ceases. muiTipLe cHoice (EREED Which of the following is not a strategy for competing in hypercompetitive markets? Achieving advantage as a first mover Relying on tried and trusted methods of securing competitive advantage Imitating competitors’ products/market moves vuirieee choice (EEED Managers identifya small decrease in demand for one of their products after a period of steady sales. What could The product is reaching the tripping point. The product is reaching the tipping point. ® Incorrect: The product is reaching the plateau. The product should be redesigned. mutieLe cHoice (CEEED Which of the following is not a characteristic of a no-frills strategy? Alow price Low perceived product/service benefits Focus on price-sensitive market Benefits that are different from those of competitors and which are widely valued by buyers muitieLe choice (CEEED What does SBU stand for? Single business unit Strategic business unit Small business unit Services business unit MULTIPLE CHOICE Which of Porter’s determinants of national advantage relates to the clusters of high-technology enterprises in Silicon Valley: Factor conditions Demand conditions Related and supporting industries (D) Firm straresy srictire and rivalry MULTIPLE CHOICE G Which of the following is a method of changing the rules of the game? Imitating the competitors Expanding the number of distribution channels Embarking on a new advertising campaign Developing a new business model MULTIPLE CHOICE (GLiias What point identifies the time at which demand for a new product or service starts to show a rapid increase? Tipping point Tripping point Diffusion point /S Y muttieLe choice (CEEED Aleading snowboard competitor has suggested a new material to a manufacturer, who trials the new product and then introduces it into the market. What is Technology push Market pull Process innovation Innovation diffusion MULTIPLE CHOICE Corporate-level strategy is concerned with: the scope of an organisation and how value is added (or destroyed) at corporate level competitive strategy of SBUs directions of growth, for example Ansoff’s matrix addressing threats and opportunities in the macro-environment and leveraging strategic capability to create and sustain competitive advantage MULTIPLE CHOICE Which of the following best defines organic development? Building on, and developing, an organisation’s own capabilities Entering new markets and segments with existing products Developing new products for sale in existing markets Developing new products to sell in new markets MULTIPLE CHOICE Why do companies buy other companies and carry out asset stripping or unbundling? The underlying assets of the purchased company are worth more than the price of the company as a whole. The underlying assets of the purchased company are worth less than the price of the company as a whole. The underlying assets of the purchasing company are worth more than the price of the purchased company. muitieie choice (CEEED A company developed a new product, experienced a sudden growth in demand and has invested heavily in1 That demand will slow down as the diffusion curve reaches the plateau stage That demand will slow down as the diffusion curve reaches the tipping point That demand will slow down as the diffusion curve reaches the tripping point That demand will accelerate as the diffusion curve reaches the tipping point mutieLe cHoice (EEEED An entrepreneur has successfully developed a product that has sold well over many years. Which of the follc It can enhance organisational knowledge and learning. It spreads investment over time. There are no availability constraints. : mutipLe cHoice (CRad) Which of the following is not a way to sustain differentiation-based advantage? Entering a price war Creating difficulties of imitation Developing high switching costs for customers Creating a new product to extend and improve the product range MULTIPLE CHOICE (G Which of the following is a managerial motive for a merger? Unbundling Tax advantages Bandwagon effect ~ How do high-tech companies such as Cisco and Microsoft use acquisitions as a part of their R&D effort? They allow entrepreneurial start-ups to prove the idea, and then they take over these companies in order to incorporate the tec portfolio. o They research a new technology from scratch, and then merge with a company that has relevant technology know-how. They identify a gap in the marketplace and acquire a company that can help them to fill that gap. They don't need their own R&D facilities because they acquire all the innovations they need. MULTIPLE CHOICE Which market entry mode has an advantage of maintaining full control of resources and capabilities but a disadvantage that it involves substan financial exposure? Exporting Joint venture Licensing Foreign direct investment muitieLe choice (CEEED Which of the following is not an implication of the experience curve? Importance of first-mover advantage Necessity of continual reduction in costs Need to enhance perceived customer value Possibility of outsourcing MULTIPLE CHOICE In Porter’s generic strategy model, what does it mean to be ‘stuck in the middle? An organisation is trying to pursue more than one generic strategy and ends up with a confused strategy that fails to meet any custon An organisation is of medium size and becomes vulnerable to competition from both larger firms and small niche players. An organisation focuses on the mid-price segments in all its markets. muitieLe cHoice (EEEED A manufacturing company realises that its components and products could be made more cheaply in a range of countries; the products countries. What international strategy should it adopt? Complex export ® Incorrect: Multi-domestic MULTIPLE CHOICE Which of the following is analysed using Porter’s Diamond? The sources of competition in an industry or sector The key drivers of change The reasons why some nations are more competitive than others vuitieie choice (CEEED Which of the following is not a concept in game theory? Emergent strategy Competitor interaction Dominant strategy Strategic signals MULTIPLE CHOICE Which of the following terms in the Ansoff matrix is used for focusing on existing products in existing markets? Market penetration Product development Market development "meu& cHoict &5 The corporate parent is: the management of subsidiaries the board of directors the shareholders’ representative the management level above SBUs mutipLe cHoice (EEEED The fact that Japanese car companies face strong local competitors is an example of which determine Demand conditions Factor conditions Related and supporting industries Firm strategy, structure and rivalry vurrieee choice (EEED Which of Porter’s determinants of national advantage relates to German companies’ strategy of investing in engineering indust ® Incorrect: Factor conditions Home demand conditions Related and supporting industries Firm strategy, industry structure and rivalry MULTIPLE CHOICE According to the directional policy matrix, what strategy guideline applies to a business unit with medium business strength in Harvest/divest Selectivity Investment and growth I muitieLe choice (CEEED At what stages of the sequence of product innovation are small firms likely to play the most important part? The early stages Once a dominant design has been identified In the late stages Once the market is declining MULTIPLE CHOICE What term is used for a situation in which a company develops into activities concerned with the inputs into the company Backward integration Forward integration (N o MULTIPLE CHOICE Horizontal integration is: Development into activities concerned with the inputs into the company’s current business Development into activities concerned with the outputs from the company’s current business Development into activities which are complementary to present activities Development into new geographical markets MULTIPLE CHOICE What term is used to describe a business unit that has low market growth but high market share? Star . Question mark Cash COw A na muitieie choice (CEEED What term is used for an innovation that creates substantial growth by offering a new performance tre Disruptive innovation Sustaining innovation Anterior innovation Radical innovation mutipLe cHoice (EEEED A company has developed a new component for a mobile phone and is confident that a market can be Technology push Market pull Process innovation —~ MULTIPLE CHOICE Ging What point identifies the time at which demand for a new product or service suddenly collapses? Tipping point Tripping point Diffusion point S-curve inflexion MULTIPLE CHOICE (GLiias What term is used for radical change in the organisation’s business, driven principally by the organisation’s own capa Building capacity Related diversification Corporate entrepreneurship ‘—mumn::‘cnmc:—w Which international strategy involves activities that are concentrated but involve low levels of coordination? Simple export Global Complex export Multi-domestic MULTIPLE CHOICE (GLiias An advertising agency is very aware that national requirements and regulations vary widely between different coun Simple export Global Complex export Multi-domestic muitieLe choice (CEEED) Which of the following is a circumstance in which a conglomerate strategy may be effective? In developed markets In developing markets In the energy industry In commodities MULTIPLE CHOICE What term is used for the fact that gains in labour productivity occur as staff learn to do things more cheaply over time? The learning curve effect First-mover advantage Economies of scale N . - "~ Which of the following 10t sources of cost leadership? Economies of scale Experience Supply costs Correct: Selling prices CNONONONO) Product/process design MULTIPLE CHOICE (G Which of the following is not a value-creating reason for diversification? Efficiency gains from applying existing resources and competences to new markets and products/services Gains from applying corporate managerial capabilities to new markets and products/services Adiverse range of products/services can increase market power A diverse range of products/services can diffuse management effort