BU 470 Strategic Management Exam 8 | Score 95/100 | Ashworth College

Strategic Management – Exam 8

Question 1 points

According to the opportunism-based explanations of vertical integration, __________ for
__________ performance would be the most appropriate type of compensation to support
strategy implementation.

Question options:

a) cash bonuses; corporate


b) cash bonuses; group


c) stock options; individual


d) stock grants; individual

Question 2 points

Research suggests that, in general, vertically integrating is ________ than not vertically
integrating.

Question options:

a) significantly more flexible


b) somewhat more flexible


c) comparatively flexible


d) less flexible

Question 3 points

To the extent that other firms may have competitive advantages in business activities
that a firm is considering to enter through vertical integration, vertically integrating
into these activities could put the firm at a:

Question options:

a) competitive advantage.


b) temporary dynamic disadvantage.

, c) sustainable competitive advantage.


d) competitive disadvantage.

Question 4 points

The ___________ committee in a U-form organization meets monthly and usually consists
of the CEO and the heads of the functional areas of a firm.

Question options:

a) executive


b) functional


c) operations


d) managerial

Question 5 points

According to the flexibility-based explanations of vertical integration, _________ for
__________ performance would be the most appropriate type of compensation to support
strategy implementation.

Question options:

a) stock options; individual


b) stock grants; individual


c) stock grants; corporate


d) cash bonuses; individual

Question 6 points

Which of the following is NOT used to determine a firm's level of vertical integration
using the value added as a percentage of sales approach?

Question options:

a) Value added