COB 487 Midterm Exam Questions With
Correct Answers
According to Milton Friedman, the social responsibility of business is to ... -
ANSWER increase its profits
What is the main idea of the story about Jose Lopez at General Motors (GM)? -
ANSWER He achieved a lot of savings in purchasing by squeezing suppliers,
making GM benefit in the short term, but suffer in the long run.
According to stakeholder theory, how can trade-offs be resolved? - ANSWER By
leveraging imagination/creativity.
Who are typically considered primary stakeholders? - ANSWER employees,
customers, suppliers, communities, and shareholders.
Who originally developed stakeholder theory? - ANSWER Ed Freeman
What is an instrumental view on stakeholder theory? - ANSWER Believing that
creating value for stakeholders results in higher financial returns.
Stakeholder interests are - ANSWER joint.
Was Monsanto a success story? - ANSWER No, because it ignored communities
and virtual stakeholders which eventually backfired.
What is the definition of stakeholders? - ANSWER Those who can affect or be
affected by the realization of an organization's purpose.
What is a normative argument? - ANSWER It is about what ought to be done
according to a someone's value position.
What word is missing in the strategic term 'competitive advantage'? - ANSWER
Sustainable
What is the key success factor in business? - ANSWER Growth
Management innovations such as total quality, just-in-time, benchmarking,
business process reengineering, and outsourcing ... - ANSWER are important
but not enough for building sustainable competitive advantage.
, Henry Mintzberg states that ... - ANSWER the intended strategy rarely survives
in its original form.
Two Perspectives on An Organization's Success are - ANSWER romantic and
external control.
The strategic management process entails three ongoing processes: - ANSWER
analysis, formulation, and implementation.
Roy Vagelos in Merck - ANSWER demonstrated that vision and employee morale
mattered.
A zero-sum perspective means that - ANSWER one can only gain at the expense
of someone else.
According to the external control view of leadership, which of the following
factors would not be considered an external factor that might positively or
negatively affect a firm's success? - ANSWER company employee morale
The vision and mission statements of a company set the overall direction of the
organization. Strategic objectives serve what role? - ANSWER operationalize the
mission statement
In the case discussed in class, which generic strategy did Venmo pursue? -
ANSWER Focused differentiation
Pursuing both cost and differentiation advantages bears a risk of getting stuck
in the middle. For instance, a supermarket that has its ________ structure
________ than discount retailers, and its consumers do not value its products and
services due to being high-end such as those offered by Whole Foods. -
ANSWER cost; higher
In the ________ stage of the industry life cycle, product design especially
matters, while competition and market growth are low. - ANSWER Introduction
When it comes to a cost leadership strategy, experience effects are expected to
lower costs by - ANSWER repeating a process until a task becomes easier.
Differentiation strategy is typically comes along with - ANSWER decreased
emphasis on competition based on price.
In this stage of the industry life cycle, growth in the market is stagnant and
market players mainly compete on the basis of price: - ANSWER maturity
Correct Answers
According to Milton Friedman, the social responsibility of business is to ... -
ANSWER increase its profits
What is the main idea of the story about Jose Lopez at General Motors (GM)? -
ANSWER He achieved a lot of savings in purchasing by squeezing suppliers,
making GM benefit in the short term, but suffer in the long run.
According to stakeholder theory, how can trade-offs be resolved? - ANSWER By
leveraging imagination/creativity.
Who are typically considered primary stakeholders? - ANSWER employees,
customers, suppliers, communities, and shareholders.
Who originally developed stakeholder theory? - ANSWER Ed Freeman
What is an instrumental view on stakeholder theory? - ANSWER Believing that
creating value for stakeholders results in higher financial returns.
Stakeholder interests are - ANSWER joint.
Was Monsanto a success story? - ANSWER No, because it ignored communities
and virtual stakeholders which eventually backfired.
What is the definition of stakeholders? - ANSWER Those who can affect or be
affected by the realization of an organization's purpose.
What is a normative argument? - ANSWER It is about what ought to be done
according to a someone's value position.
What word is missing in the strategic term 'competitive advantage'? - ANSWER
Sustainable
What is the key success factor in business? - ANSWER Growth
Management innovations such as total quality, just-in-time, benchmarking,
business process reengineering, and outsourcing ... - ANSWER are important
but not enough for building sustainable competitive advantage.
, Henry Mintzberg states that ... - ANSWER the intended strategy rarely survives
in its original form.
Two Perspectives on An Organization's Success are - ANSWER romantic and
external control.
The strategic management process entails three ongoing processes: - ANSWER
analysis, formulation, and implementation.
Roy Vagelos in Merck - ANSWER demonstrated that vision and employee morale
mattered.
A zero-sum perspective means that - ANSWER one can only gain at the expense
of someone else.
According to the external control view of leadership, which of the following
factors would not be considered an external factor that might positively or
negatively affect a firm's success? - ANSWER company employee morale
The vision and mission statements of a company set the overall direction of the
organization. Strategic objectives serve what role? - ANSWER operationalize the
mission statement
In the case discussed in class, which generic strategy did Venmo pursue? -
ANSWER Focused differentiation
Pursuing both cost and differentiation advantages bears a risk of getting stuck
in the middle. For instance, a supermarket that has its ________ structure
________ than discount retailers, and its consumers do not value its products and
services due to being high-end such as those offered by Whole Foods. -
ANSWER cost; higher
In the ________ stage of the industry life cycle, product design especially
matters, while competition and market growth are low. - ANSWER Introduction
When it comes to a cost leadership strategy, experience effects are expected to
lower costs by - ANSWER repeating a process until a task becomes easier.
Differentiation strategy is typically comes along with - ANSWER decreased
emphasis on competition based on price.
In this stage of the industry life cycle, growth in the market is stagnant and
market players mainly compete on the basis of price: - ANSWER maturity
