MGMT 495 REVIEW EXAM QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026

MGMT 495 REVIEW EXAM QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026 Organizational inertia - Answers_____ refers to a firm's resistance to change the status quo that can set the stage for the firm's subsequent failure. radical innovation will disturb the existing power distribution within the firms. - AnswersIncumbent firms favor incremental innovation over radical innovation because simple - AnswersWhile working a night job at a call center, Carlos creates an app called DineSmart, which can be used to place orders at restaurants, rate the restaurants, and make reservations. Because he receives good responses for his app, he quits his current job to focus his efforts on DineSmart. He creates a start-up called TYOP and hires three people to help him improve DineSmart and maintain the servers that run it. In this scenario, TYOP most likely has a _____ structure. it underestimates its liability of foreignness when entering the Zevar market. - AnswersSilca Electronics Inc. is a consumer-electronics company based in the country of Pelo. It has approximately 300 stores across the country and is already active in three foreign countries. It attempts to establish itself successfully in the country of Zevar, and uses its low-cost strategy to do so. However, due to the additional costs associated with training, coordinating across geographic distances, and other costs associated with doing business in an unfamiliar cultural and economic environment, Silca Electronics Inc. incurs huge financial losses in Zevar. In this scenario, Silca Electronics Inc.'s failure to establish itself successfully in Zevar occurs most likely because sell its products in several different regional, national, and international markets. - AnswersWhen a firm is said to be pursuing a geographic diversification strategy, it means that the firm will shakeout stage - AnswersIn emerging economies, the LCD television industry is in that phase of the industry life cycle in which the previously increasing market demand becomes limited. The competitive intensity within the industry is high, and inefficient firms have begun to exit the industry. This has allowed only a few major companies to come out as cost-leaders and hold the shrinking market. Which of the following stages of the industry life cycle is the LCD television industry currently in? It increases the value of the focal firm's offering from a customer's perspective. - AnswersWhich of the following statements best explains how the presence of top-notch complementors within a firm's industry affects the focal firm's business? slow down decision making - AnswersA high degree of formalization in an organization is most likely to are able to increase value due to economies of scope. - AnswersCompanies that pursue related diversification are able to create a diversification premium because they Rachel implemented a new and more efficient way to produce pottery. - AnswersWhich of the following scenarios would be characteristic of an entrepreneur? A simple structure could not provide the effective division, coordination, and integration of work required to accommodate future growth. - AnswersWhy did W. L. Gore reorganize itself into a functional structure from a simple structure? social entrepreneur - AnswersGeorgia Ray is the founder of the departmental stores chain, Ether Inc. She ensures that the products in her stores are ethically and responsibly sourced. Most products are therefore 100 percent organic and manufactured from recycled material. Also, her company purchases handicrafts from nonprofit organizations supporting the aged. Georgia's belief is that her company should be able to support the community at large. Which of the following terms best describes Georgia Ray? While the industry for cell phones with holographic keyboards will focus on product innovation, the tablet industry will focus on process innovation. - AnswersWhile cell phones with holographic keyboards are currently in the introduction stage of the industry life cycle, tablet computers are in the growth stage. In the context of this scenario, which of the following statements is true? two - AnswersResearchers at Games First Inc. spent several months coming up with a fun game for toddlers that incorporates a new idea in preschool education. This scenario describes step _____ of the innovation process. when extreme closeness to the resource partner is necessary to understand and obtain its underlying knowledge - AnswersWhen should mergers and acquisitions (M&A) be considered the "buy" option for a strategist trying to determine which corporate strategy to implement? there is a well-functioning capital market in the host country. - AnswersThe administrative and political distance between two trading countries reduces when There is a reduction of excess capacity in the market. - AnswersWhich of the following is a result of horizontal integration in terms of Porter's five forces model? high span of control - AnswersWhich of the following is a feature of an organic organization? the pursuit of an innovation that uses concepts from strategic management - AnswersWhat is strategic entrepreneurship? growth stage - AnswersThe leading producer of gardening tools, YourGarden Inc, has achieved great success because they produce high-quality tools that are not too expensive. Even so, another company that produces lower-quality tools at the same price has also achieved some success, but not as much as YourGarden. Also, in general, the price of gardening tools has declined because of economies of scale and learning. In addition, YourGarden has added complementary assets, such as gardening instruction. Considering all of these factors, the gardening tool industry is most likely in the It plants the seed of subsequent failure: the tightly coupled system can break apart when internal or external pressures occur. - AnswersWhat most likely happens when a firm optimizes its organizational structure to its current situation? Innovation has to be high-tech in order to be a potent competitive weapon. - AnswersWhich of the following statements is not true about innovation? backward vertical integration - AnswersNeon Electronics Inc. sourced touch screens required for its tablet computers, cell phones, and televisions from a manufacturer in China. But the demand for such components was high globally, and the supplier could not meet the quality standards of Neon Electronics. Thus, Neon Electronics decided to set up its own unit to develop and manufacture the required touch screens. What does this scenario best illustrate? by focusing its resources on producing high-quality content for content streaming - AnswersHow was Netflix able to outperform both Hulu and Amazon? Multinational enterprises (MNEs) began to create smaller, self-contained replicas of themselves in a few key countries. - AnswersWhich of the following is a feature of the Globalization 2.0 stage? enter into the market in large numbers, creating a herding effect. - AnswersIt is important for a firm to win over the early majority section of the market to ensure the commercial success of an innovation because they product diversification - AnswersBM Goods Inc. is a large conglomerate that operates only in its home country. The company competes in industries like the consumer electronics, health care, hotel, airlines, education, and steel industries. Which of the following diversification strategies does this best illustrate? managerial hubris - AnswersJetStream Airway's decision to acquire Rex Fuels Inc. proved to be ill-fated because its managers had overestimated their abilities and skills. They believed that they had the skills to manage such diversified businesses and create additional shareholder value. However, the acquisition failed to create the anticipated synergies because the managers' capabilities were restricted to the airlines industry. What does this scenario best illustrate?