BUS 345

The rules for "make or buy", in terms of vertical integration, that a firm should follow would be? A) If in-house costs to make are lower than market costs, then vertically integrate B) If market costs to make are lower than in-house costs, then vertically integrate C) If in-house costs to make are equal to market costs, then vertically integrate D) If market costs to make are equal to in-house costs, then vertically integrate

A) If in-house costs to make are lower than market costs, then vertically integrate

Using the Boston Consulting Group growth-share matrix, the managers of Xylicon International determined that their business unit devoted to personal health monitoring devices was a star. Based on this finding, which of the following strategies is likely to produce the best results? A) Increase investment in the personal health monitoring unit to encourage future growth. B) Seek to lower costs in the personal health monitoring unit to increase market share. C) Harvest as much cash flow as possible before shutting the business D) Immediately divest from the personal health monitoring industry.

A) Increase investment in the personal health monitoring unit to encourage future growth.

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 customer 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.

A) The bank knows that the customer will be unable to pay the loan if the interest rate rises.

Firms that use taper integration also use ________ when they rely on outside-market firms for some of their supplies. A) backward vertical integration B) forward vertical integration C) backward horizontal integration D) forward horizontal integration

A) backward vertical integration

A(n) ________ leverages new technologies to attack existing markets. A) disruptive innovation B) incremental innovation C) radical innovation D) architectural innovation

A) disruptive innovation

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.

A) higher quality for lower costs for international routes.

Ethics is A) not synonymous with law. B) impossible to codify into law. C) universal and cannot differ between cultures. D) the minimum acceptable standard in business practice.

A) not synonymous with law.

Which of the following customer segments as described in the chasm framework make up the mass market? A) the early and late majority together B) the technology enthusiasts and laggards together C) all the early adopters D) the technology enthusiasts alone

A) the early and late majority together

Organizational design is A) the process of creating, implementing, and modifying the structure of an organization. B) primarily focused on replacing a firm's competitive advantage with competitive parity. C) a process that always functions independently of strategy formulation. D) primarily focused on formulating effective strategies, not implementing them.

A) the process of creating, implementing, and modifying the structure of an organization.

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.

B) It is building new core competencies to protect and extend its current market position.

One way to foster ethical behavior in employees is to A) avoid codifying organizational culture. B) create a control system that encourages desired values. C) view clients as counter parties to transactions. D) align the vision statement of the organization with its informal culture.

B) create a control system that encourages desired values.

The concept of a(n) ________ attempts to capture both learning effects and process improvements at firms. A) anecdotal curve B) experience curve C) growth matrix D) diminishing utility curve

B) experience curve

A greater cultural distance between two trading countries A) increases 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.

B) increases the liability of foreignness.

There are many reasons why firms need to grow. Which of the following reasons is strongly influenced by economies of scale? A) increasing profits B) lowering costs C) reducing risk D) motivating managers

B) lowering costs

When Airbus and Boeing first began to produce jet engines for airplanes, no one else was doing it. These were first offering jet engines, forever changing the commercial aviation industry. The were leveraging new technology in markets. We would call this type of innovation, A) regressive innovation. B) radical innovation. C) disruptive innovation. D) architectural innovation.

B) radical innovation

The smartphone division of the large consumer electronics company, True Electra Inc., has a significant market share in the fast-growing cell phone market. If the company invests further into this division, it will be able to reap increased cash flows. In the Boston Consulting Group (BCG) growth-share matrix, the smartphone division of True Electra will be categorized under A) question marks. B) stars. C) cash cows. D) dogs.

B) stars.

Which of the following real-world scenarios best exemplifies formalization? A) Zappos' focus on allowing its customer service employees to use their own approach rather than depend on scripts B) Uniqlo's associates organizing themselves in project-based teams that are led by sponsors, not bosses C) Burger King's use of standard operating procedures across the world D) Yahoo's decision to fire its CEO after incurring huge losses

C) Burger King's use of standard operating procedures across the world

What are three components in developing a global mindset? A) Intellectual capital, financial capital, social capital B) Investment capital, psychological capital, social capital C) Intellectual capital, psychological capital, social capital D) Intellectual capital, psychological capital, sunk capital

C) Intellectual capital, psychological capital, social capital

________ describes the collectively shared values and norms of an organization's members. A) Competitive advantage B) Organizational structure C) Organizational culture D) Core competency

C) Organizational culture

Pepsi has been a market leader in the soft drink industry for several decades. However, its market research shows that consumer tastes have begun to shift to sugar-free flavored seltzer waters, a product that Pepsi is capable of producing with minimal changes to its facilities and production processes. Based on your knowledge of the core competence-market matrix, which diversification strategy should Pepsi pursue? A) Leverage existing core competencies to improve current market position. B) Build new core competencies to protect and extend current market position. C) Redeploy and recombine existing core competencies to compete in markets of the future. D) Build new core competencies to create and compete in markets of the future.

C) Redeploy and recombine existing core competencies to compete in markets of the future

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 percent. 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.

C) dogs.

The stages of the industry life cycle, in the correct order are? A) introduction, growth, maturity, shakeout, and decline B) introduction, shakeout, growth, maturity, and decline C) introduction, growth, shakeout, maturity, and decline D) introduction, shakeout, maturity, growth, and decline

C) introduction, growth, shakeout, maturity, and decline

The primary goal of a firm pursuing a blue ocean strategy should be to A) create the highest perceived value in its respective industry. B) build a reputation of being the lowest-cost producer in its chosen industry. C) offer a differentiated product or service at a low cost. D) achieve a less steep learning curve.

C) offer a differentiated product or service at a low cost.

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.

C) vertical integration.

How does availability of complements act as a value driver? A) Complements add value to a product by offering an inferior substitute to it. B) Complements add value to a product by competing with it. C) Complements add value to a product when they imitate it. D) Complements add value to a product when they are consumed in tandem with it.

D) Complements add value to a product when they are consumed in tandem with it.

Our Blue Ocean framework follows which pattern? A) Erase, reduce, raise, create B) Eliminate, raise, reduce, create C) Eliminate, reduce, review, create D) Eliminate, reduce, raise, create

D) Eliminate, reduce, raise, create

What must a cost-leadership strategy accomplish to be successful? A) It must increase the firm's cost above that of its competitors while offering adequate value. B) It must reduce the firm's cost below that of its competitors while offering superior value. C) It must increase the firm's cost above that of its competitors while offering superior value. D) It must reduce the firm's cost below that of its competitors while offering adequate value.

D) It must reduce the firm's cost below that of its competitors while offering adequate value.

________ define appropriate employee attitudes and behaviors. A) Values B) Artifacts C) Appraisals D) Norms

D) Norms

In a successful ________ strategy, the trade-offs between differentiation and low cost are reconciled. A) red ocean B) focused differentiation C) liquidation D) blue ocean

D) blue ocean

Which quadrant in the core competence-market matrix is the hardest to pursue? A) building new core competencies to protect and extend current market position B) redeploying and recombining core competencies to compete in markets of the future C) leveraging core competencies to improve current market position D) building new core competencies to create and compete in markets of the future

D) building new core competencies to create and compete in markets of the future

Bargain Styles Inc. is an apparel company that caters to the highly price-conscious customers. Through its simple apparel 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) differentiation C) niche marketing D) cost-leadership

D) cost-leadership

The four-step innovation process ends with A) idea generation. B) invention. C) idea testing. D) imitation

D) imitation

Esther is the CEO of a line of accessories and cosmetics, Starring Me! Inc., which has retail stores and production units in five countries. In this scenario, Starring Me! Inc. is most likely a A) nonprofit organization. B) nationalized firm. C) sole proprietorship. D) multinational enterprise.

D) multinational enterprise.

European aircraft maker Airbus invested $600 million in Mobile, Alabama, to build jetliners. Which of the following statements best explains why it used this strategy? A) to take advantage of the high labor costs in the southern United States B) to take advantage of the high cost of living in the southern United States C) to take advantage of the low impact of globalization in the United States D) to take advantage of lower taxes in the southern United States

D) to take advantage of lower taxes in the southern United States