BUS 345 Final Exam Study Guide with
Complete Solutions
____________ describes the collectively shared values and norms of an organization's
members.
A) Competitive advantage
B) Organizational structure
C) Organizational culture
D) Core competency - ANSWER-C) Organizational culture
A bank, CQC, offers a customer a personal loan. In which of the following
circumstances will this decision most likely be considered unethical?
A) The bank knows that the customers will be unable to pay the loan if the interest rate
rises
B) The bank is not aware of the investments made by the customer
C) The bank has the financial statements of the customer, but it is not aware of each
source of income
D) The bank is depending on the customer to pay back the loan before term completion
- ANSWER-A) The bank knows that the customer will be unable to pay the loan if the
interest rate rises
A greater cultural distance between two trading countries
A) Increase the likelihood the locations are always very far apart
B) Increases the liability of foreignness
C) Reduces the uncertainty of doing business
D) Reduces the transaction costs associated with business - ANSWER-B) Increases the
liability of foreignness
A(n) ___________ leverages new technologies to attack existing markets.
A) Disruptive innovation
B) Incremental innovation
C) Radical innovation
D) Archiecturial innovation - ANSWER-A) Disruptive innovation
Bargain Styles Inc. is an apparel company that caters to the highly price-conscious
customers. Through its simple designs, acceptable quality levels, and minimal customer
service, the company has been able to sell its merchandise at the lowest prices in the
industry. Which of the following generic business strategies is Bargain Styles applying?
A) Product diversification
, B) Diversification
C) Niche marketing
D) Cost-leadership - ANSWER-D) Cost-leadership
Coca-Cola was primarily known for its core competencies in marketing, bottling, and
distributing aerated drinks. However, with the success of Gatorade, Coca-Cola
developed competencies in the development and marketing of its own sports drink,
Powerade. Which of the following is true of Coca-Cola?
A) It is leveraging existing core competencies to improve current market position
B) It is building new core competencies to protect and extend its current market position
C) It is redeploying and recombining existing core competencies to compete in markets
of the future
D) It is targeting the chasm between the early adopter and early majority market
segment - ANSWER-B) It is building new core competencies to protect and extend its
current market position
Decisions relating to "what stages of the industry value chain to participate in"
determine a firm's ______________.
A) Level of diversification
B) Geographic scope
C) Vertical integration
D) Competitive strategy - ANSWER-C) Vertical integration
ElectraSync Inc., a large consumer electronics company, has divided each product in its
portfolio into a separate strategic business unit (SBU). The desktop SBU has been
experiencing drastic decline in its cash flow, and its market share has also reduced to
an insignificant 10 %. This has been attributed to the low growth in the desktop market
after the arrival of tablet computers and laptops. In the context of the Boston Consulting
Group (BCG) growth-share matrix, the desktop SBU will be categorized under
A) Stars
B) Question marks
C) Dogs
D) Cash cows - ANSWER-C) Dogs
Emirates, Etihad Airlines, and Qatar Airways are a threat to U.S. legacy carriers
because they offer
A) Higher quality for lower costs for international routes
B) Higher quality for similar costs for U.S. domestic routes
C) Similar quality for lower costs for international routes
D) Similar quality for lower costs for U.S. domestic routes - ANSWER-A) Higher quality
for lower costs for international routes
Complete Solutions
____________ describes the collectively shared values and norms of an organization's
members.
A) Competitive advantage
B) Organizational structure
C) Organizational culture
D) Core competency - ANSWER-C) Organizational culture
A bank, CQC, offers a customer a personal loan. In which of the following
circumstances will this decision most likely be considered unethical?
A) The bank knows that the customers will be unable to pay the loan if the interest rate
rises
B) The bank is not aware of the investments made by the customer
C) The bank has the financial statements of the customer, but it is not aware of each
source of income
D) The bank is depending on the customer to pay back the loan before term completion
- ANSWER-A) The bank knows that the customer will be unable to pay the loan if the
interest rate rises
A greater cultural distance between two trading countries
A) Increase the likelihood the locations are always very far apart
B) Increases the liability of foreignness
C) Reduces the uncertainty of doing business
D) Reduces the transaction costs associated with business - ANSWER-B) Increases the
liability of foreignness
A(n) ___________ leverages new technologies to attack existing markets.
A) Disruptive innovation
B) Incremental innovation
C) Radical innovation
D) Archiecturial innovation - ANSWER-A) Disruptive innovation
Bargain Styles Inc. is an apparel company that caters to the highly price-conscious
customers. Through its simple designs, acceptable quality levels, and minimal customer
service, the company has been able to sell its merchandise at the lowest prices in the
industry. Which of the following generic business strategies is Bargain Styles applying?
A) Product diversification
, B) Diversification
C) Niche marketing
D) Cost-leadership - ANSWER-D) Cost-leadership
Coca-Cola was primarily known for its core competencies in marketing, bottling, and
distributing aerated drinks. However, with the success of Gatorade, Coca-Cola
developed competencies in the development and marketing of its own sports drink,
Powerade. Which of the following is true of Coca-Cola?
A) It is leveraging existing core competencies to improve current market position
B) It is building new core competencies to protect and extend its current market position
C) It is redeploying and recombining existing core competencies to compete in markets
of the future
D) It is targeting the chasm between the early adopter and early majority market
segment - ANSWER-B) It is building new core competencies to protect and extend its
current market position
Decisions relating to "what stages of the industry value chain to participate in"
determine a firm's ______________.
A) Level of diversification
B) Geographic scope
C) Vertical integration
D) Competitive strategy - ANSWER-C) Vertical integration
ElectraSync Inc., a large consumer electronics company, has divided each product in its
portfolio into a separate strategic business unit (SBU). The desktop SBU has been
experiencing drastic decline in its cash flow, and its market share has also reduced to
an insignificant 10 %. This has been attributed to the low growth in the desktop market
after the arrival of tablet computers and laptops. In the context of the Boston Consulting
Group (BCG) growth-share matrix, the desktop SBU will be categorized under
A) Stars
B) Question marks
C) Dogs
D) Cash cows - ANSWER-C) Dogs
Emirates, Etihad Airlines, and Qatar Airways are a threat to U.S. legacy carriers
because they offer
A) Higher quality for lower costs for international routes
B) Higher quality for similar costs for U.S. domestic routes
C) Similar quality for lower costs for international routes
D) Similar quality for lower costs for U.S. domestic routes - ANSWER-A) Higher quality
for lower costs for international routes
