Module 5 Quiz, Module 5 Quiz

When the practice rounds are over the simulation will be reset so that real competition can begin among the teams each management team will take the reins of... a) A $40 million company with 5 products b) A $80 million company with 4 products c) A $100 million company with 4 products d) A $100 million company with 5 products e) A $140 million company with 5 products

$100 million company with 5 products

In the video on forecasting I pointed out that you should base your production decisions on _________ and your finance decisions on _________

The best case scenario AND the worst case scenario

a stability strategy may be advisable when:

The cost of growth exceeds the benefit of growth & The firm is selling a product with an exclusive image

A stability strategy may be advisable when: a) The cost of growth exceeds the benefit of growth b) The benefit of growth exceeds the cost of growth c) The firm is selling a product with an exclusive image d) A growth strategy should always be pursued e) A and C are both correct

a and c are both correct

Horizontal integration occurs when: a) A firm merges with or acquires a supplier b) A firm expands through franchising and/or licensing c) A firm merges with or acquires a firm in another industry d) A frim expands through new products and new markets e) A firm merges with or acquires a competitor

a firm merges or acquires a competitor

If you chose to only sell to the traditional segment in the Capstone simulation, this would be an example of:

a niche strategy

In Capsim, the "place" part of the four "P's" is:

accessibility

_________ is the extent to which an organization creates a wider gap between cost and willingness to pay than the competition.

added value

Ford's initial approach of making a model T "in any color you wanted as long as it was black", was an example of: a) An unsegmented strategy b) A comprehensive segmented strategy c) A niche strategy d) Deliberate segmentation e) Focused segmentation

an unsegmented strategy

Which of the following would not be considered a stakeholder? a) Employee b) Customer c) Supplier d) Competitor e) Shareholder

competitor

The difference between price and willingness to pay is: a) Consumer surplus b) Profit c) Total value created d) Competitive advantage e) Added value

consumer surplus

Business organizations create value by driving a wedge between:

cost and willingness to pay

If a Capstone company invests heavily in automation and TQM initiatives that reduce labor/material costs, they are probably following an underlying economic logic of:

cost leadership

Wal Mart is an example of a company that uses ________ as its underlying economic logic.

cost leadership

Two generic strategies for increasing value are: a) Cost leadership and diversification b) Horizontal integration and vertical integration c) Licensing and franchising d) Cost leadership and differentiation e) Widening the gap between cost and willingness to pay

cost leadership and differentiation

Rolls Royce is an example of a business that uses _____ as its underlying economic logic. a) Penetration b) Differentiation c) Image d) Segmentation e) Cost leadership

differentiation

The three most important stakeholder groups for business organizations are: a) Managers, shareholders, and employees b) Customers, managers, and shareholders c) Employees, suppliers, and managers d) Employees, shareholders, and customers e) Employees, customers, and managers

employees, shareholders, and customers

Which of the following vehicles offers the most control but incurs the most risk? a) Licensing b) Strategic alliances c) Joint ventures d) Horizontal integration e) Franchising

horizontal integration

Business unit strategies deal with the question: a) How do we compete? b) Are our strategies consistent? c) How will we obtain our returns d) What business (or businesses) will be in? e) How will we win?

how do we compete

Two basic choices of vehicles are: a) Internal and external b) Segmented and unsegmented c) Cost leadership and differentiation d) Franchising and licensing e) Comprehensive licensing

internal and external

According to the text, a competitive advantage is considered to be a competitive advantage when a) The firm is able to spread the advantage to all of its business units b) It is able to maintain above-average profitability for a number of years c) The advantage is very large d) The advantage was gained at a low cost e) The managers who developed the advantage are still employed at the firm

it is able to maintain above-average profitability for a number of years

A takeover constraint a) Uses the threat of a takeover to cause the CEO to fear the loss of his or her job b) Prevents a company from being taken over c) Limits the extent to which managers can pursue strategies that are inconsistent with shareholder interest. d) Is reduced by corporate raiders e) Is greatest when a company's stock price is significantly higher than book value

limits the extent to which managers can pursue strategies that are inconsistent with shareholder interest

If a Capstone company invests heavily in automation and TQM initiatives that reduce labor

material costs, they are probably following an underlying economic logic of/cost leadership

Expanding a business through existing products and existing markets is called: a) Penetration strategy b) Horizontal unrelated diversification c) Vertical integration d) Horizontal related diversification e) Product rationalization

penetration strategy

In Capstone, selling off all the capacity for your traditional product would be an example of: a) Harvesting b) Horizontal integration c) Market development d) Product rationalization e) Market consolidation

product rationalization

_______ is about speed and sequencing of strategic decisions. a) Vehicles b) Exploring c) Staging d) Internal growth e) Penetration

staging

According to the text the most common pay-per-performance system has been to give managers ______. a) Semi-annual bonuses b) Annual pay increases c) Capital increases d) Stock options

stock options

The balanced scorecard perspective that deals with the question, "To satisfy our shareholders and customers what business processes must we excel at?" is: a) The financial perspective b) The shareholder perspective c) The innovation and learning perspective d) The internal business perspective e) the external business perspective

the internal business perspective