BUS 475 - Midterm Exam 230 Questions And Correct
Answers (Verified Answers) 2026|2027 Q&A | Instant
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What is an example of AI creating a temporary advantage? - correct answer -Netflix's recommendation
engine initially enhanced engagement but was replicated by competitors.
What distinguishes AI that creates sustained advantage? - correct answer -It is integrated with unique
assets and distinctive competencies that are hard to replicate.
What is the primary business model transformation associated with Amazon? - correct answer -
Integration of AI into logistics, fulfillment, and pricing.
What does Tempus utilize AI for? - correct answer -To guide cancer treatment using clinical and
genomic data.
What is the strategic shift in healthcare emphasized by Tempus? - correct answer -Moving from
standardized to precision medicine.
What is the difference between Red Ocean and Blue Ocean strategies in AI? - correct answer -Red
Ocean focuses on competing better, while Blue Ocean aims to change the game.
What is an example of Blue Ocean strategy? - correct answer -Stitch Fix, which created personal styling
as a service.
What are the two main types of corporate level strategies? - correct answer -Growth strategies and
diversification strategies.
What is the purpose of vertical integration? - correct answer -To control supply chains by making
supplies or opening retail stores.
What is the corporate governance problem often associated with? - correct answer -Empire building,
risk aversion, and strategic inertia.
1|Page
,What are some corporate governance devices? - correct answer -Investor monitoring, board of
directors, and market-based compensation.
What is the role of distinctive competencies in corporate strategy? - correct answer -They help firms
sustain competitive advantage by being hard to imitate.
What does corporate diversification entail? - correct answer -Competing in multiple businesses and
managing that portfolio effectively.
What are the two ways Goldman Sachs competes in its business? - correct answer -Low cost and
differentiation.
What is the significance of VRIO in competitive advantage? - correct answer -It assesses resources and
capabilities to determine if they provide a competitive edge.
What is the impact of AI on operational effectiveness? - correct answer -AI improves operations but
does not replace strategy.
What is a characteristic of disruptive innovation? - correct answer -It starts at the low end of the
market and expands to compete with existing players.
What is the essence of strategic innovation in organizations? - correct answer -Renovation, innovation,
and disruptive innovation can all expand markets.
What does the term 'downscope' refer to in corporate strategy? - correct answer -Identifying and
eliminating under-performing business units.
What is the goal of corporate level strategy? - correct answer -To create value such that the value of
the corporate whole increases.
2|Page
, What does operational effectiveness mean in the context of AI? - correct answer -AI enhances
efficiency but does not inherently provide a competitive advantage.
What is the relationship between corporate restructuring and firm performance? - correct answer -
Restructuring can lead to improved governance, strategy, and performance outcomes.
What does the term 'unrelated diversification' imply? - correct answer -Expanding into businesses that
do not share commonalities or competencies.
What are the implications of competitive convergence in AI? - correct answer -AI firms may adopt
similar strategies, leading to reduced differentiation.
What is the importance of complementary assets in AI strategy? - correct answer -They enhance the
effectiveness of AI integration and create sustainable advantages.
What does strategic repositioning involve? - correct answer -Realigning a firm's strategy to leverage AI
for competitive advantage.
What is the purpose of a corporate-level strategy? - correct answer -To create synergies that add value
beyond what equity holders can achieve through portfolio investing.
What is vertical integration? - correct answer -A strategy where a company expands its operations
either forward towards the consumer or backward towards suppliers.
What is forward vertical integration? - correct answer -Expanding operations closer to the consumer,
such as Nike opening its own stores.
What is backward vertical integration? - correct answer -Acquiring control over suppliers, such as Zara
buying its own manufacturing facilities.
What are the pros of vertical integration? - correct answer -Control, profitability, innovation, cost
savings, and improved coordination.
3|Page
Answers (Verified Answers) 2026|2027 Q&A | Instant
Download Pdf
What is an example of AI creating a temporary advantage? - correct answer -Netflix's recommendation
engine initially enhanced engagement but was replicated by competitors.
What distinguishes AI that creates sustained advantage? - correct answer -It is integrated with unique
assets and distinctive competencies that are hard to replicate.
What is the primary business model transformation associated with Amazon? - correct answer -
Integration of AI into logistics, fulfillment, and pricing.
What does Tempus utilize AI for? - correct answer -To guide cancer treatment using clinical and
genomic data.
What is the strategic shift in healthcare emphasized by Tempus? - correct answer -Moving from
standardized to precision medicine.
What is the difference between Red Ocean and Blue Ocean strategies in AI? - correct answer -Red
Ocean focuses on competing better, while Blue Ocean aims to change the game.
What is an example of Blue Ocean strategy? - correct answer -Stitch Fix, which created personal styling
as a service.
What are the two main types of corporate level strategies? - correct answer -Growth strategies and
diversification strategies.
What is the purpose of vertical integration? - correct answer -To control supply chains by making
supplies or opening retail stores.
What is the corporate governance problem often associated with? - correct answer -Empire building,
risk aversion, and strategic inertia.
1|Page
,What are some corporate governance devices? - correct answer -Investor monitoring, board of
directors, and market-based compensation.
What is the role of distinctive competencies in corporate strategy? - correct answer -They help firms
sustain competitive advantage by being hard to imitate.
What does corporate diversification entail? - correct answer -Competing in multiple businesses and
managing that portfolio effectively.
What are the two ways Goldman Sachs competes in its business? - correct answer -Low cost and
differentiation.
What is the significance of VRIO in competitive advantage? - correct answer -It assesses resources and
capabilities to determine if they provide a competitive edge.
What is the impact of AI on operational effectiveness? - correct answer -AI improves operations but
does not replace strategy.
What is a characteristic of disruptive innovation? - correct answer -It starts at the low end of the
market and expands to compete with existing players.
What is the essence of strategic innovation in organizations? - correct answer -Renovation, innovation,
and disruptive innovation can all expand markets.
What does the term 'downscope' refer to in corporate strategy? - correct answer -Identifying and
eliminating under-performing business units.
What is the goal of corporate level strategy? - correct answer -To create value such that the value of
the corporate whole increases.
2|Page
, What does operational effectiveness mean in the context of AI? - correct answer -AI enhances
efficiency but does not inherently provide a competitive advantage.
What is the relationship between corporate restructuring and firm performance? - correct answer -
Restructuring can lead to improved governance, strategy, and performance outcomes.
What does the term 'unrelated diversification' imply? - correct answer -Expanding into businesses that
do not share commonalities or competencies.
What are the implications of competitive convergence in AI? - correct answer -AI firms may adopt
similar strategies, leading to reduced differentiation.
What is the importance of complementary assets in AI strategy? - correct answer -They enhance the
effectiveness of AI integration and create sustainable advantages.
What does strategic repositioning involve? - correct answer -Realigning a firm's strategy to leverage AI
for competitive advantage.
What is the purpose of a corporate-level strategy? - correct answer -To create synergies that add value
beyond what equity holders can achieve through portfolio investing.
What is vertical integration? - correct answer -A strategy where a company expands its operations
either forward towards the consumer or backward towards suppliers.
What is forward vertical integration? - correct answer -Expanding operations closer to the consumer,
such as Nike opening its own stores.
What is backward vertical integration? - correct answer -Acquiring control over suppliers, such as Zara
buying its own manufacturing facilities.
What are the pros of vertical integration? - correct answer -Control, profitability, innovation, cost
savings, and improved coordination.
3|Page
