MGMT 475 Final Exam questions well
answered already passed
A competitive advantage developed through a cooperative strategy often is called a
collaborative or __________ advantage.
a.alliance
b.relational
c.collusive
d.economic - correct answer ✔✔b.relational
McDonald's, Hilton International, and Subway all heavily rely on the ______ strategy.
a. transnational
b. network cooperative
c. cross-border alliances
d. franchising cooperative - correct answer ✔✔d. franchising cooperative
U.S. Steel and Nucor (the two remaining major players in the U.S. steel industry) have been
forming alliances as a means to enter ________ markets in Europe and Asia. The steel industry
is an example of a typically use alliances to gain market access.
a. fast-cycle
b. standard-cycle
c. slow-cycle
d. intermediate-cycle - correct answer ✔✔c. slow-cycle
A cooperative strategy
,a. is an integrated and coordinated set of commitments and actions designed to exploit core
competencies and gain a competitive advantage.
b. is a strategy in which firms work together to achieve a shared objective.
c. is an integrated and coordinated set of commitments and actions the firm uses to gain a
competitive advantage by exploiting core competencies in specific product markets.
d. specifies actions a firm takes to gain a competitive advantage by selecting and managing a
group of different businesses competing in different product markets - correct answer ✔✔b. is a
strategy in which firms work together to achieve a shared objective.
The opportunity-maximization approach is more difficult to establish in international
relationships than in domestic relationships because of differences in all of the following
EXCEPT:
a.trade policies.
b.culture.
c.laws.
d.technology. - correct answer ✔✔d.technology.
The fact that the prices consumers pay for branded breakfast cereals are above the prices that
would exist if there were true competition suggests that the cereal manufacturers are engaging
in
a. excessive cooperation.
b. joint ventures.
c. tacit collusion.
d. horizontal strategic alliances - correct answer ✔✔c. tacit collusion.
BPM Corp. is a manufacturer of radar systems for regional-sized jet aircraft. The company has
announced plans to enter into a joint venture with J3 Composites, a producer of advanced
composite materials. The announced venture will produce a new, combined product consisting
of the radar unit and protective composite cover. Which of the following ownership
arrangements would be most typical for a joint venture?
, a. BPM will own more than 50 percent of the venture and a new company will be formed.
b. J3 will own more than 50 percent of the venture and a new company will be formed.
c. BPM and J3 will both own 50 percent of the venture and a new company will be formed.
d. BPM and J3 will both own 50 percent of the venture but no new company will be formed -
correct answer ✔✔c. BPM and J3 will both own 50 percent of the venture and a new company
will be formed.
For the purpose of diversification, a corporate-level cooperative strategy may be preferable to a
merger or acquisition for all of the following reasons EXCEPT:
a.cooperative strategies allow greater flexibility in diversifying the firm's portfolio.
b.a host nation may forbid a merger or acquisition.
c.cooperative strategies require fewer resources.
d.opportunistic behaviors are less likely. - correct answer ✔✔d.opportunistic behaviors are less
likely.
Mutual forbearance is:
a.exercised when alliance partners refrain from opportunistic behaviors.
b.a variety of risk-sharing by firms in highly fragmented industries.
c.illegal in the United States.
d.a type of competition-reducing strategy. - correct answer ✔✔d.a type of competition-
reducing strategy.
The cooperation between Fiat and Chrysler to produce a Fiat-designed car in Chrysler's Illinois
factory is a(n) __________ alliance because it allows the firms to share resources and
capabilities across multiple functions.
a.synergistic
b.diversifying
c.opportunistic
answered already passed
A competitive advantage developed through a cooperative strategy often is called a
collaborative or __________ advantage.
a.alliance
b.relational
c.collusive
d.economic - correct answer ✔✔b.relational
McDonald's, Hilton International, and Subway all heavily rely on the ______ strategy.
a. transnational
b. network cooperative
c. cross-border alliances
d. franchising cooperative - correct answer ✔✔d. franchising cooperative
U.S. Steel and Nucor (the two remaining major players in the U.S. steel industry) have been
forming alliances as a means to enter ________ markets in Europe and Asia. The steel industry
is an example of a typically use alliances to gain market access.
a. fast-cycle
b. standard-cycle
c. slow-cycle
d. intermediate-cycle - correct answer ✔✔c. slow-cycle
A cooperative strategy
,a. is an integrated and coordinated set of commitments and actions designed to exploit core
competencies and gain a competitive advantage.
b. is a strategy in which firms work together to achieve a shared objective.
c. is an integrated and coordinated set of commitments and actions the firm uses to gain a
competitive advantage by exploiting core competencies in specific product markets.
d. specifies actions a firm takes to gain a competitive advantage by selecting and managing a
group of different businesses competing in different product markets - correct answer ✔✔b. is a
strategy in which firms work together to achieve a shared objective.
The opportunity-maximization approach is more difficult to establish in international
relationships than in domestic relationships because of differences in all of the following
EXCEPT:
a.trade policies.
b.culture.
c.laws.
d.technology. - correct answer ✔✔d.technology.
The fact that the prices consumers pay for branded breakfast cereals are above the prices that
would exist if there were true competition suggests that the cereal manufacturers are engaging
in
a. excessive cooperation.
b. joint ventures.
c. tacit collusion.
d. horizontal strategic alliances - correct answer ✔✔c. tacit collusion.
BPM Corp. is a manufacturer of radar systems for regional-sized jet aircraft. The company has
announced plans to enter into a joint venture with J3 Composites, a producer of advanced
composite materials. The announced venture will produce a new, combined product consisting
of the radar unit and protective composite cover. Which of the following ownership
arrangements would be most typical for a joint venture?
, a. BPM will own more than 50 percent of the venture and a new company will be formed.
b. J3 will own more than 50 percent of the venture and a new company will be formed.
c. BPM and J3 will both own 50 percent of the venture and a new company will be formed.
d. BPM and J3 will both own 50 percent of the venture but no new company will be formed -
correct answer ✔✔c. BPM and J3 will both own 50 percent of the venture and a new company
will be formed.
For the purpose of diversification, a corporate-level cooperative strategy may be preferable to a
merger or acquisition for all of the following reasons EXCEPT:
a.cooperative strategies allow greater flexibility in diversifying the firm's portfolio.
b.a host nation may forbid a merger or acquisition.
c.cooperative strategies require fewer resources.
d.opportunistic behaviors are less likely. - correct answer ✔✔d.opportunistic behaviors are less
likely.
Mutual forbearance is:
a.exercised when alliance partners refrain from opportunistic behaviors.
b.a variety of risk-sharing by firms in highly fragmented industries.
c.illegal in the United States.
d.a type of competition-reducing strategy. - correct answer ✔✔d.a type of competition-
reducing strategy.
The cooperation between Fiat and Chrysler to produce a Fiat-designed car in Chrysler's Illinois
factory is a(n) __________ alliance because it allows the firms to share resources and
capabilities across multiple functions.
a.synergistic
b.diversifying
c.opportunistic
