MGT 487 Final Exam Questions With
Accurate Answers
The primary aim of strategic management at the business level is - ANSWER
Achieving competitive advantage
Which of the following is NOT one of Porter's generic strategies? - ANSWER
Prospector
A manufacturing business pursuing cost leadership is likely to - ANSWER Rely
on experience effects to raise efficiency.
One aspect of using a cost leadership strategy is that experience effects may
lead to lower costs. Experience effects are achieved by - ANSWER Repeating a
process until a task becomes easier
A firm can achieve differentiation through all the following means except -
ANSWER Offering lower prices to frequent customers
Which statement regarding competitive strategy is true? - ANSWER More than
one competitor can successfully pursue a differentiation strategy within the
same industry
According to Dr. Mueller, a differentiation strategy can be based on - ANSWER
All of the above
A firm following a focus strategy must focus on - ANSWER A market segment or
group of segments
In the ______ stage of the industry life cycle, the emphasis on product design is
very high, the intensity of a competition is low, and the market growth rate is low
- ANSWER Introduction
According to Miles and Snow, a firm that imitates the innovation of the first
mover and is the second mover in an industry can be labeled - ANSWER an
analyzer
a benefit is being the second mover in an industry is - ANSWER Learning from
the mistakes of the first mover
Markets that are volatile and innovation are called - ANSWER Fast-cycle markets
, Which of the following statements about corporate level strategy is true? -
ANSWER As part of corporate level strategy, managers often need to make
acquisitions and divesting decisions
Diversification initiatives include all the following except - ANSWER Shareholder
development
Polaris, a manufacturer of snowmobiles, motorcycles, watercraft, and off-road
vehicles, shares manufacturing operations across its businesses. It also has a
corporate research and development facility and staff departments that support
all the Polaris operating divisions. This is an example of creating value by using -
ANSWER related diversification to acquire economies of scope by sharing.
Market power is derived from - ANSWER firm size and reputation.
At Cooper Industries, there are few similarities in the products it makes or the
industries in which it completes. The corporate office adds value through such
activities as improving their accounting activities and centralizing union
negotiations. This is an example of creating value by using - ANSWER unrelated
diversification to acquire synergies through corporate restructuring and
parenting.
3M leverages its competencies in adhesives technologies to many industries,
including automotive, construction, and telecommunications. This is an example
of creating value by using - ANSWER related diversification to acquire
economies of scope by leveraging core competencies.
Firms have several choices of diversification initiatives that can be used to
create value. Which of the following is not one of them? - ANSWER using related
diversification to acquire parenting and restructuring synergies
When management uses common production facilities or purchasing
procedures to distribute different but related products, they are - ANSWER
sharing activities.
Shaw Industries, a giant carpet manufacturer, increases its control over raw
materials by producing much of its own polypropylene fiber, a key input into its
manufacturing process. This is an example of - ANSWER vertical integration.
Backward integration is when a company - ANSWER acquires a supplier.
Companies sometimes diversify into unrelated businesses in order to - ANSWER
reduce portfolio risk.
Accurate Answers
The primary aim of strategic management at the business level is - ANSWER
Achieving competitive advantage
Which of the following is NOT one of Porter's generic strategies? - ANSWER
Prospector
A manufacturing business pursuing cost leadership is likely to - ANSWER Rely
on experience effects to raise efficiency.
One aspect of using a cost leadership strategy is that experience effects may
lead to lower costs. Experience effects are achieved by - ANSWER Repeating a
process until a task becomes easier
A firm can achieve differentiation through all the following means except -
ANSWER Offering lower prices to frequent customers
Which statement regarding competitive strategy is true? - ANSWER More than
one competitor can successfully pursue a differentiation strategy within the
same industry
According to Dr. Mueller, a differentiation strategy can be based on - ANSWER
All of the above
A firm following a focus strategy must focus on - ANSWER A market segment or
group of segments
In the ______ stage of the industry life cycle, the emphasis on product design is
very high, the intensity of a competition is low, and the market growth rate is low
- ANSWER Introduction
According to Miles and Snow, a firm that imitates the innovation of the first
mover and is the second mover in an industry can be labeled - ANSWER an
analyzer
a benefit is being the second mover in an industry is - ANSWER Learning from
the mistakes of the first mover
Markets that are volatile and innovation are called - ANSWER Fast-cycle markets
, Which of the following statements about corporate level strategy is true? -
ANSWER As part of corporate level strategy, managers often need to make
acquisitions and divesting decisions
Diversification initiatives include all the following except - ANSWER Shareholder
development
Polaris, a manufacturer of snowmobiles, motorcycles, watercraft, and off-road
vehicles, shares manufacturing operations across its businesses. It also has a
corporate research and development facility and staff departments that support
all the Polaris operating divisions. This is an example of creating value by using -
ANSWER related diversification to acquire economies of scope by sharing.
Market power is derived from - ANSWER firm size and reputation.
At Cooper Industries, there are few similarities in the products it makes or the
industries in which it completes. The corporate office adds value through such
activities as improving their accounting activities and centralizing union
negotiations. This is an example of creating value by using - ANSWER unrelated
diversification to acquire synergies through corporate restructuring and
parenting.
3M leverages its competencies in adhesives technologies to many industries,
including automotive, construction, and telecommunications. This is an example
of creating value by using - ANSWER related diversification to acquire
economies of scope by leveraging core competencies.
Firms have several choices of diversification initiatives that can be used to
create value. Which of the following is not one of them? - ANSWER using related
diversification to acquire parenting and restructuring synergies
When management uses common production facilities or purchasing
procedures to distribute different but related products, they are - ANSWER
sharing activities.
Shaw Industries, a giant carpet manufacturer, increases its control over raw
materials by producing much of its own polypropylene fiber, a key input into its
manufacturing process. This is an example of - ANSWER vertical integration.
Backward integration is when a company - ANSWER acquires a supplier.
Companies sometimes diversify into unrelated businesses in order to - ANSWER
reduce portfolio risk.
