MGT 4150 EXAM 2 QUESTIONS AND
ANSWERS
What is the intent of the best defensive move against offensive challenges? - Answer-
To lower the risk of being attacked, weaken the impact of an attack, pressure
challengers to target other rivals, and help protect competitive advantage.
When can being first to initiate a strategic move be less beneficial? - Answer- When
market uncertainties make it difficult to determine what will eventually succeed.
What is a common outcome of mergers and acquisitions? - Answer- They frequently do
not produce the hoped-for outcomes.
What must a company achieve for backward vertical integration to be viable? - Answer-
The same scale economies as outside suppliers and match or beat suppliers'
production efficiency with no drop-off in quality.
What are the two big drivers of outsourcing? - Answer- Outsiders can perform activities
better or more cheaply, and outsourcing allows a firm to focus on its core competencies.
What is a joint venture? - Answer- A new corporation jointly owned by two or more
companies sharing revenues, expenses, and control.
What was the main subject of the CH7 article posted on Canvas? - Answer- Uber and
the ruling by the EU that it is not a technology company.
How does a U.S. manufacturer become more competitive in foreign markets? - Answer-
When the U.S. dollar declines in value relative to foreign currencies.
What are the primary strategic options for entering foreign markets? - Answer- Rely on
strategic alliances or joint ventures with foreign companies
Maintain a national (one-country) production base and export goods to foreign markets
Adopt a licensing approach with foreign firms to produce and distribute products or use
the company's technology
Employ a franchising strategy
What effect does a favorable exchange rate change have on U.S.-made goods? -
Answer- They have become more attractive in foreign markets.
ANSWERS
What is the intent of the best defensive move against offensive challenges? - Answer-
To lower the risk of being attacked, weaken the impact of an attack, pressure
challengers to target other rivals, and help protect competitive advantage.
When can being first to initiate a strategic move be less beneficial? - Answer- When
market uncertainties make it difficult to determine what will eventually succeed.
What is a common outcome of mergers and acquisitions? - Answer- They frequently do
not produce the hoped-for outcomes.
What must a company achieve for backward vertical integration to be viable? - Answer-
The same scale economies as outside suppliers and match or beat suppliers'
production efficiency with no drop-off in quality.
What are the two big drivers of outsourcing? - Answer- Outsiders can perform activities
better or more cheaply, and outsourcing allows a firm to focus on its core competencies.
What is a joint venture? - Answer- A new corporation jointly owned by two or more
companies sharing revenues, expenses, and control.
What was the main subject of the CH7 article posted on Canvas? - Answer- Uber and
the ruling by the EU that it is not a technology company.
How does a U.S. manufacturer become more competitive in foreign markets? - Answer-
When the U.S. dollar declines in value relative to foreign currencies.
What are the primary strategic options for entering foreign markets? - Answer- Rely on
strategic alliances or joint ventures with foreign companies
Maintain a national (one-country) production base and export goods to foreign markets
Adopt a licensing approach with foreign firms to produce and distribute products or use
the company's technology
Employ a franchising strategy
What effect does a favorable exchange rate change have on U.S.-made goods? -
Answer- They have become more attractive in foreign markets.
