MC Questions
Which of the following ways can a company diversify? Acquisitions Joint Ventures None of the above All of the above Alliances
All of the above
Which of the following reasons are why countries have tariffs. Protecting home industries. Generate revenue. Discourage importation of goods. All of the above.
All of the above.
Which of the following is not a cultural consideration. Body language Language Asset forfeiture Religion
Asset forfeiture
Which of the following is not a good outcome of globalization? Increased standard of living More wealth Exploitation of workers in poor nations Greater access to specialized resources and capabilities
Exploitation of workers in poor nations
A large number of competitors are entering the market during the maturity stage of the product life cycle. T/F
False
Business level and corporate level strategies are the same thing. T/F
False
Corporate governance does not concern governmental regulations. T/F
False
Corporate venture capital concerns an individual purchasing corporate stock. T/F
False
Cost leadership is the business level strategy that should be focused on during the introduction stage of the product life cycle. T/F
False
Employees usually do not feel entitled to additional rewards even if the company is doing well financially. T/F
False
Expropriation is the biggest political risk of global business T/F
False
Quotas are taxes that are imposed on foreign goods entering the home country. T/F
False
The "E" in CREST stands for "Environmental." T/F
False
The World Trade Organization is responsible for worldwide interest rates on global trade. T/F
False
The bottom of the market pyramid is not worth pursuing as a market. T/F
False
Which of the following is not considered a business level strategy: Differentiation Cost Leadership Focused Unfocused
Focused Unfocused
Why must successful managers recognize opportunities and threats in their company external environment? If they identify all of the environmental threats, they are guaranteed to acquire large market share If they identify all of the environmental opportunities, they are guaranteed to acquire large market share If they misread the market, they are likely to become rich If they miscalculate the market, opportunities will be lost
If they miscalculate the market, opportunities will be lost
Which of the following is not an example of a differentiation focused strategy? Lowering costs Building a strong brand image. Customer service. Seeking to enhance psychological value for customers.
Lowering costs
Cost leadership focuses on all of the following except: Maintaining relationships with non-profitable customers Economies of scope Process innovation Economies of scale
Maintaining relationships with non-profitable customers
Which of the following is not a potential problem of differentiation? Potentially imitated easily. Providing a high level of brand equity so customers are willing to pay more. Value not equal to price, leading to customers unwillingness to pay. Focus on all the parts, but not the whole.
Providing a high level of brand equity so customers are willing to pay more.
Which of the following is not a stage in the product life cycle? Maturity Growth Decline R&D
R&D
Which of the following is not among Porter's Five Forces: Threat of substitutes Threat of new entrants Bargaining power of buyers Stakeholder power
Stakeholder power
Companies can diversify into related or unrelated businesses? T/F
True
Differentiation can reduce potential negative consequences of supplier power. T/F
True
Environmental scanning and competitor intelligence provide important inputs for forecasting activities. T/F
True
Globalization and foreign trade can help mitigate military disputes. T/F
True
If a firm builds its strategy solely on a capability that cannot, by itself, create or sustain competitive advantage, it is wasting its time and resources. T/F
True
Quotas can be used to support a country's industries. T/F
True
Related diversification normally has a goal of economies of scale. T/F
True
Some countries may not allow all revenue generated by a foreign company to leave the country. T/F
True
Strategic management consists of the analyses, decisions, and actions an organization undertakes in order to create and sustain competitive advantages. T/F
True
Which of the following are prevalent legal issues in international business: cyber laws intellectual property protection advertising laws tax systems all of the above none of the above
all of the above
According to the text, the strategic management process entails three ongoing processes. They are : analyses, evaluation, and critique analyses, decisions, and actions analyses, actions, and synthesis analyses, synthesis, and decisions
analyses, decisions, and actions
SWOT analysis is a framework for analyzing the internal and external environment of a company. It consists of strengths, weaknesses, opportunities, and threats. According to a SWOT analysis, which of the following is not an aspect that the strategy of the firm must follow? remedy the weaknesses or work around them build on its weaknesses take advantage of the opportunities presented by the environment protect the firm from the threats
build on its weaknesses
The bargaining power of suppliers is enhanced under the following market condition: greater availability of substitute products low differentiation of the supplier products dominance by a few suppliers no threat of forward integration
dominance by a few suppliers
The four key attributes of strategic management include all of the following except: incorporating both short-term and long-term perspectives emphasis on the attainment of short-term objectives including multiple stakeholder interests in decision making recognizing the trade-offs between effectiveness and efficiency
emphasis on the attainment of short-term objectives
Human capital and social capital are vital for superior firm performance. If a firm has strong human capital, the firm may exploit this by building social capital. This can be accomplished by: decreasing the interaction of departments within the firm. requiring workers to work independently of each other. encouraging the sharing of ideas between employees in the firm. structuring the firm with rigid departmental and employee divisions.
encouraging the sharing of ideas between employees in the firm.
Historical comparisons provide information to managers about changes in the competitive position of a firm. Historical comparisons often are misleading if the firm's stock is publicly traded. if the firm shows constant growth. in periods of recession or economic boom. if the overall strategy of the firm is the same.
in periods of recession or economic boom.
In order to be considered strategic resources that contribute to competitive advantage, they must have several characteristics. Which of the following is not one of these? inexpensive to imitate costly to substitute valuable rare
inexpensive to imitate
Strategy analysis is the starting point of the strategic management process and consists of the... matching of vision, mission, and objectives with the relevant internal and external environmental factors. analysis only of the vision, mission, and objectives of the firm analysis of relevant competitors only analysis of the relevant internal and external environmental factors only
matching of vision, mission, and objectives with the relevant internal and external environmental factors.
Changes in our economy have forced firms to be ____________ concerned with protecting their knowledge workers, social capital, and intellectual capital. more potentially not less
more
If a competitive advantage based on inimitability can be sustained for at least some time, if it has the following characteristics: rarity, path dependency, causal ambiguity, and social substitutability. physical uniqueness, path dependency, causal ambiguity, and social complexity geographic uniqueness, cause dependency, social ambiguity, and path complexity. psychographic uniqueness, path dependency, causal ambiguity, and substitutability.
physical uniqueness, path dependency, causal ambiguity, and social complexity
Comparing your firm with all other firms in your industry assesses _________ performance. relative excessive consistent non-comparable
relative
Which is considered a force in the five-forces model? the threat of government intervention recent technological innovation increased deregulation in an industry rivalry among competing firms
rivalry among competing firms
The network of relationships that individuals have throughout the organization is known as tacit knowledge human capital social capital intellectual capital
social capital
The text discusses three areas a firm must be concerned with in order to keep their best and brightest employees from leaving. These include all of the following except sorting/absorbing. developing hiring/selecting. retaining
sorting/absorbing.
The three key types of resources that are central to the resource-based view of the firm are: culture, tangible resources, intangible resources. tangible resources, intangible resources, and organizational capabilities. tangible resources, intangible resources, and top management. tangible resources, intangible resources, and organizational structure.
tangible resources, intangible resources, and organizational capabilities.
Firms that were successful in the past can fail today because: the company strategy is outdated management monitors the relevant environmental factors regularly their financial situation is resilient they keep pace with changes in the nature of competition
the company strategy is outdated
All of the following are important elements of the political and legal segment of the general environment except: the Americans with Disabilities Act (ADA) increases in the federally mandated minimum wage the increased use of Internet technology the deregulation of utilities
the increased use of Internet technology
Developing human capital is essential to maintaining a competitive advantage in the current knowledge economy. Efforts and initiatives to develop human capital should be directed: at the employees themselves. at top managers. throughout the firm at all levels. at human resource departments.
throughout the firm at all levels.