BUS1101 Introduction to Business
Midterm Exam Review (Qns & Ans)
2025
Question 1:
Case Study: A traditional manufacturing firm is seeking to
transform its business model by integrating digital
technologies, advanced analytics, and IoT sensors into its
operations. The leadership team must decide between
making incremental improvements to existing systems or
completely reinventing its business processes.
Question: Which strategic approach best characterizes a
radical digital transformation in such a scenario?
A. Incremental Improvement
B. Disruptive Innovation
C. Cost-Cutting Measures
D. Outsourcing Non-Core Processes
©2025
, Correct ANS: B. Disruptive Innovation
Rationale: Disruptive innovation involves radically
rethinking or completely reinventing a business model to
harness new technologies. In this case, the firm is moving
beyond minor adjustments to create a fundamentally new
way of doing business.
---
Question 2:
Case Study: A multinational corporation is planning to
enter a new market. The management team uses an
analytical framework that examines the industry’s
competitive pressures, including rivalry, threat of
substitutes, supplier power, buyer power, and threat of new
entrants.
Question: Which analytical model is being applied?
A. SWOT Analysis
B. PESTEL Framework
C. Porter’s Five Forces
D. Value Chain Analysis
Correct ANS: C. Porter’s Five Forces
©2025
, Rationale: Porter’s Five Forces is a well‑established
framework that evaluates the competitive intensity and
attractiveness of an industry by analyzing these five key
factors.
---
Question 3:
Case Study: A tech startup, rapidly scaling due to venture
capital backing, faces a quickly changing environment. The
founder wants to ensure that the company is capable of
continuous innovation and can quickly adapt its resources
to meet new market demands.
Question: Which concept best describes the
organization’s ability to adapt and reconfigure its resources
in response to dynamic market conditions?
A. Core Competencies
B. Dynamic Capabilities
C. Economies of Scale
D. Strategic Alliances
Correct ANS: B. Dynamic Capabilities
Rationale: Dynamic capabilities refer to an organization’s
ability to integrate, build, and reconfigure internal and
©2025
, external competencies to address rapidly changing
environments, which is especially important for high-growth
startups.
---
Question 4:
Case Study: A global firm is re-engineering its operations
by adopting both Total Quality Management (TQM) and
Lean manufacturing principles. The aim is to improve
quality standards while reducing waste across all
processes.
Question: What is the primary goal of integrating these
methodologies?
A. Increase production volume
B. Enhance quality and reduce operational waste
C. Expand product lines rapidly
D. Lower the cost of labor only
Correct ANS: B. Enhance quality and reduce operational
waste
Rationale: TQM and Lean principles are focused on
continuous improvement—enhancing product and process
©2025
Midterm Exam Review (Qns & Ans)
2025
Question 1:
Case Study: A traditional manufacturing firm is seeking to
transform its business model by integrating digital
technologies, advanced analytics, and IoT sensors into its
operations. The leadership team must decide between
making incremental improvements to existing systems or
completely reinventing its business processes.
Question: Which strategic approach best characterizes a
radical digital transformation in such a scenario?
A. Incremental Improvement
B. Disruptive Innovation
C. Cost-Cutting Measures
D. Outsourcing Non-Core Processes
©2025
, Correct ANS: B. Disruptive Innovation
Rationale: Disruptive innovation involves radically
rethinking or completely reinventing a business model to
harness new technologies. In this case, the firm is moving
beyond minor adjustments to create a fundamentally new
way of doing business.
---
Question 2:
Case Study: A multinational corporation is planning to
enter a new market. The management team uses an
analytical framework that examines the industry’s
competitive pressures, including rivalry, threat of
substitutes, supplier power, buyer power, and threat of new
entrants.
Question: Which analytical model is being applied?
A. SWOT Analysis
B. PESTEL Framework
C. Porter’s Five Forces
D. Value Chain Analysis
Correct ANS: C. Porter’s Five Forces
©2025
, Rationale: Porter’s Five Forces is a well‑established
framework that evaluates the competitive intensity and
attractiveness of an industry by analyzing these five key
factors.
---
Question 3:
Case Study: A tech startup, rapidly scaling due to venture
capital backing, faces a quickly changing environment. The
founder wants to ensure that the company is capable of
continuous innovation and can quickly adapt its resources
to meet new market demands.
Question: Which concept best describes the
organization’s ability to adapt and reconfigure its resources
in response to dynamic market conditions?
A. Core Competencies
B. Dynamic Capabilities
C. Economies of Scale
D. Strategic Alliances
Correct ANS: B. Dynamic Capabilities
Rationale: Dynamic capabilities refer to an organization’s
ability to integrate, build, and reconfigure internal and
©2025
, external competencies to address rapidly changing
environments, which is especially important for high-growth
startups.
---
Question 4:
Case Study: A global firm is re-engineering its operations
by adopting both Total Quality Management (TQM) and
Lean manufacturing principles. The aim is to improve
quality standards while reducing waste across all
processes.
Question: What is the primary goal of integrating these
methodologies?
A. Increase production volume
B. Enhance quality and reduce operational waste
C. Expand product lines rapidly
D. Lower the cost of labor only
Correct ANS: B. Enhance quality and reduce operational
waste
Rationale: TQM and Lean principles are focused on
continuous improvement—enhancing product and process
©2025
