MGMT 352 E2 EXAM QUESTIONS AND ANSWERS WITH
COMPLETE SOLUTIONS VERIFIED LATEST UPDATE
Nocturnal Products started as a luxury brand for designer apparel. Soon, the
company expanded by launching its own line of premium perfumes, watches,
bags, and home furnishings. This expansion allowed the businesses under the
company to share a few of the common competencies in products, services,
technology, and distribution. Which of the following corporate strategies is
Nocturnal pursuing in this scenario?
taper integration strategy
niche marketing strategy
related-constrained strategy
related-linked strategy
related-linked strategy
Bulldog Holdings is a U.S.-based consumer electronics company. It owns smaller
firms in Japan and Taiwan where most of its cell phone technology is developed
and manufactured before being released worldwide. Which of the following
alternatives to integration does this best illustrate?
venture capitalism
franchising
joint venture
parent-subsidiary relationship
,parent-subsidiary relationship
Gold Leaf Computers sources the components for its laptops from various
suppliers on the market. The firm pays $100 for processors, $35 for disk drives,
$50 for screens, $10 for memory, and $40 for graphics and wireless internet
cards. Gold Leaf has determined that it would cost $200 per unit to produce all of
the necessary components in its in-house manufacturing facility. In this scenario,
Gold Leaf should:
continue to outsource production.
vertically integrate.
exit the laptop industry.
diversify its activities.
vertically integrate.
Which of the following is an example of an internal transaction cost?
the cost of searching for a contract manufacturer
the cost of signing a contract with a supplier
the cost of buying raw materials
the cost of maintaining a production unit
the cost of maintaining a production unit
Groundswell Industries, a U.S.-based large conglomerate, competes in the
hospitality, education, telecommunications, entertainment, airlines, and chemical
industries. It currently operates in about 30 nations, and is planning to expand its
portfolio by investing in rapidly developing countries. Which of the following
strategies is Groundswell Industries pursuing?
, zone pricing
niche marketing
product-market diversification strategy
process diversification strategy
product-market diversification strategy
A firm follows a(n) _____ when less than 70 percent of its revenues come from a
single business and there are few, if any, linkages among its businesses.
related-constrained strategy
unrelated diversification strategy
differentiation strategy
dominant-business strategy
unrelated diversification strategy
Managers in a firm hired to improve the firm's profitability and ultimately the
shareholders' value will add to the overall costs if they pursue their own self-
interests. What does this best illustrate?
diseconomies of scale
principal-agent problem
experience-curve effects
information asymmetries
principal-agent problem
Firms that use taper integration also use _____ when they rely on outside-market
firms for some of their supplies.
backward vertical integration
COMPLETE SOLUTIONS VERIFIED LATEST UPDATE
Nocturnal Products started as a luxury brand for designer apparel. Soon, the
company expanded by launching its own line of premium perfumes, watches,
bags, and home furnishings. This expansion allowed the businesses under the
company to share a few of the common competencies in products, services,
technology, and distribution. Which of the following corporate strategies is
Nocturnal pursuing in this scenario?
taper integration strategy
niche marketing strategy
related-constrained strategy
related-linked strategy
related-linked strategy
Bulldog Holdings is a U.S.-based consumer electronics company. It owns smaller
firms in Japan and Taiwan where most of its cell phone technology is developed
and manufactured before being released worldwide. Which of the following
alternatives to integration does this best illustrate?
venture capitalism
franchising
joint venture
parent-subsidiary relationship
,parent-subsidiary relationship
Gold Leaf Computers sources the components for its laptops from various
suppliers on the market. The firm pays $100 for processors, $35 for disk drives,
$50 for screens, $10 for memory, and $40 for graphics and wireless internet
cards. Gold Leaf has determined that it would cost $200 per unit to produce all of
the necessary components in its in-house manufacturing facility. In this scenario,
Gold Leaf should:
continue to outsource production.
vertically integrate.
exit the laptop industry.
diversify its activities.
vertically integrate.
Which of the following is an example of an internal transaction cost?
the cost of searching for a contract manufacturer
the cost of signing a contract with a supplier
the cost of buying raw materials
the cost of maintaining a production unit
the cost of maintaining a production unit
Groundswell Industries, a U.S.-based large conglomerate, competes in the
hospitality, education, telecommunications, entertainment, airlines, and chemical
industries. It currently operates in about 30 nations, and is planning to expand its
portfolio by investing in rapidly developing countries. Which of the following
strategies is Groundswell Industries pursuing?
, zone pricing
niche marketing
product-market diversification strategy
process diversification strategy
product-market diversification strategy
A firm follows a(n) _____ when less than 70 percent of its revenues come from a
single business and there are few, if any, linkages among its businesses.
related-constrained strategy
unrelated diversification strategy
differentiation strategy
dominant-business strategy
unrelated diversification strategy
Managers in a firm hired to improve the firm's profitability and ultimately the
shareholders' value will add to the overall costs if they pursue their own self-
interests. What does this best illustrate?
diseconomies of scale
principal-agent problem
experience-curve effects
information asymmetries
principal-agent problem
Firms that use taper integration also use _____ when they rely on outside-market
firms for some of their supplies.
backward vertical integration
