MGT 4150 FINAL EXAM QUESTIONS
AND ANSWERS ALL CORRECT
All firms are subject to offensive challenges from rivals. The intent of the best defensive
move is to:
A. lower the risk of being attacked.
B. weaken the impact of any attack that occurs.
C. pressure challengers to aim their efforts at other rivals.
D. help protect a competitive advantage.
E. All of these. - Answer- E. All of these.
Being first to initiate a particular strategic move can have a high payoff in all of the
following EXCEPT when:
A. pioneering helps build up a firm's image and reputation and creates strong brand
loyalty.
B. buyers remain strongly loyal to pioneering firms because of incentives and switching
costs barriers.
C. there is a steep learning curve and when learning can be kept proprietary.
D. moving first can constitute a preemptive strike, making imitation extra hard or
unlikely.
E. market uncertainties make it difficult to ascertain what will eventually succeed. -
Answer- E. market uncertainties make it difficult to ascertain what will eventually
succeed.
Mergers and acquisitions:
A. are nearly always successful in achieving their desired purpose.
B. frequently do not produce the hoped-for outcomes.
,C. are generally less effective than forming alliances or partnerships with these same
companies.
D. are highly risky because of the financial drain that comes from using the company's
cash resources to pay for the costs of the merger or acquisition.
E. are usually more successful in achieving cost reductions than in expanding a
company's market opportunities. - Answer- B. frequently do not produce the hoped-for
outcomes.
For backward vertical integration into the business of suppliers to be a viable and
profitable strategy, a company:
A. must first be a proficient manufacturer.
B. must be able to achieve the same scale economies as outside suppliers and match
or beat suppliers' production efficiency with no drop-off in quality.
C. must have excess production capacity so that it has an ample in-house ability to
undertake additional production activities.
D. needs to have a wide product line, so it can supply parts and components for many
products.
E. should have a distinctive competence in production process technology and at least
a core competence in manufacturing R&D. - Answer- B. must be able to achieve the
same scale economies as outside suppliers and match or beat suppliers' production
efficiency with no drop-off in quality.
The two big drivers of outsourcing are:
A. an increased ability to cut R&D expenses and an increased ability to avoid the
problems of strategic alliances.
B. that outsiders can often perform certain activities better or more cheaply, and
outsourcing allows a firm to focus its entire energies on those activities that are at the
center of its expertise (its core competencies).
C. a desire to reduce the company's investment in fixed assets and the need to narrow
the scope of the company's in-house competencies and competitive capabilities.
D. the ability to avoid capital investments that accompany vertical integration and a
desire to reduce the company's risk exposure to changing technology and/or changing
buyer preferences.
, E. that a smaller in-house workforce and a low investment in intellectual capital will
produce cost savings. - Answer- B. that outsiders can often perform certain activities
better or more cheaply, and outsourcing allows a firm to focus its entire energies on
those activities that are at the center of its expertise (its core competencies).
The formation of a new corporation, jointly owned by two or more companies agreeing
to share in the revenues, expenses, and control, is known as :
A. a joint venture.
B. a limited liability company.
C. a partnership.
D. sole proprietorship.
E. an S corporation. - Answer- A. a joint venture.
The reasons why a company opts to expand outside its home market include all of the
following EXCEPT:
A. gaining access to new customers for the company's products/services.
B. spreading its business risk across a wider market base.
C. achieving lower costs through economies of scale, experience, and increased
purchasing power.
D. exploiting its core competencies and capabilities.
E. identifying resources and capabilities in the company's home market. - Answer- E.
identifying resources and capabilities in the company's home market.
Competing in the markets of foreign countries entails dealing with such factors as:
A. fluctuating exchange rates, country-to-country parallels in host government
restrictions and requirements, and country-to-country variations in cultural,
demographic, and market conditions.
B. important country-to-country differences in consumer buying habits and buyer tastes
and preferences.
C. whether to customize the company's offerings in each different country market or
whether to offer a mostly standardized product worldwide.
AND ANSWERS ALL CORRECT
All firms are subject to offensive challenges from rivals. The intent of the best defensive
move is to:
A. lower the risk of being attacked.
B. weaken the impact of any attack that occurs.
C. pressure challengers to aim their efforts at other rivals.
D. help protect a competitive advantage.
E. All of these. - Answer- E. All of these.
Being first to initiate a particular strategic move can have a high payoff in all of the
following EXCEPT when:
A. pioneering helps build up a firm's image and reputation and creates strong brand
loyalty.
B. buyers remain strongly loyal to pioneering firms because of incentives and switching
costs barriers.
C. there is a steep learning curve and when learning can be kept proprietary.
D. moving first can constitute a preemptive strike, making imitation extra hard or
unlikely.
E. market uncertainties make it difficult to ascertain what will eventually succeed. -
Answer- E. market uncertainties make it difficult to ascertain what will eventually
succeed.
Mergers and acquisitions:
A. are nearly always successful in achieving their desired purpose.
B. frequently do not produce the hoped-for outcomes.
,C. are generally less effective than forming alliances or partnerships with these same
companies.
D. are highly risky because of the financial drain that comes from using the company's
cash resources to pay for the costs of the merger or acquisition.
E. are usually more successful in achieving cost reductions than in expanding a
company's market opportunities. - Answer- B. frequently do not produce the hoped-for
outcomes.
For backward vertical integration into the business of suppliers to be a viable and
profitable strategy, a company:
A. must first be a proficient manufacturer.
B. must be able to achieve the same scale economies as outside suppliers and match
or beat suppliers' production efficiency with no drop-off in quality.
C. must have excess production capacity so that it has an ample in-house ability to
undertake additional production activities.
D. needs to have a wide product line, so it can supply parts and components for many
products.
E. should have a distinctive competence in production process technology and at least
a core competence in manufacturing R&D. - Answer- B. must be able to achieve the
same scale economies as outside suppliers and match or beat suppliers' production
efficiency with no drop-off in quality.
The two big drivers of outsourcing are:
A. an increased ability to cut R&D expenses and an increased ability to avoid the
problems of strategic alliances.
B. that outsiders can often perform certain activities better or more cheaply, and
outsourcing allows a firm to focus its entire energies on those activities that are at the
center of its expertise (its core competencies).
C. a desire to reduce the company's investment in fixed assets and the need to narrow
the scope of the company's in-house competencies and competitive capabilities.
D. the ability to avoid capital investments that accompany vertical integration and a
desire to reduce the company's risk exposure to changing technology and/or changing
buyer preferences.
, E. that a smaller in-house workforce and a low investment in intellectual capital will
produce cost savings. - Answer- B. that outsiders can often perform certain activities
better or more cheaply, and outsourcing allows a firm to focus its entire energies on
those activities that are at the center of its expertise (its core competencies).
The formation of a new corporation, jointly owned by two or more companies agreeing
to share in the revenues, expenses, and control, is known as :
A. a joint venture.
B. a limited liability company.
C. a partnership.
D. sole proprietorship.
E. an S corporation. - Answer- A. a joint venture.
The reasons why a company opts to expand outside its home market include all of the
following EXCEPT:
A. gaining access to new customers for the company's products/services.
B. spreading its business risk across a wider market base.
C. achieving lower costs through economies of scale, experience, and increased
purchasing power.
D. exploiting its core competencies and capabilities.
E. identifying resources and capabilities in the company's home market. - Answer- E.
identifying resources and capabilities in the company's home market.
Competing in the markets of foreign countries entails dealing with such factors as:
A. fluctuating exchange rates, country-to-country parallels in host government
restrictions and requirements, and country-to-country variations in cultural,
demographic, and market conditions.
B. important country-to-country differences in consumer buying habits and buyer tastes
and preferences.
C. whether to customize the company's offerings in each different country market or
whether to offer a mostly standardized product worldwide.
