Strategic Management Exam 2
A
What element of SWOT could filter in insights from a VRIO analysis? A. Strengths B. STEEP C. Weaknesses D. Strengths and Weaknesses
B
In a SWOT analysis what does the 'T' signify? A. Technology B. Threat C. Trajectory D. Thoughts
C
What is the first step in carrying out a vertical integration framework? A. Identify participants at each stage; classify transactions across stages. Transactions may be once off, contractual, or internal transfers. B. Assess the ease with which contracts can be written for each transaction. C. Lay out stages in an industry supply chain or business activity system and identify assets, resources, or activities associated with each stage. D. Evaluate where the assets, resources, or activities within a supply chain or business activity system fall on the two-dimensional framework.
A
What is the purpose of SWOT? radio_button_checked A. It provides a means to account for internal and external factors plus positive and negative factors confronting a firm, thereby providing a balanced perspective of strategic issues. B. It is used to identify the initiating, or root, of a causal chain that leads to the undesirable outcome observed. C. The purpose of a SWOT analysis is to understand and interpret the evolution of a market, product, or technology so as to make informed strategic decisions about where value may be created now and in the future. D. SWOT Analysis aids the strategist in mapping and understanding a firm's (potential) sources of competitive advantage by decomposing the firm into strategically important activities.
E
4. Which business level strategy does the following example best fit? Starbucks appeals to a wide variety of people on the basis of value - people are prepared to pay more for the cafe' experience and customized offerings. A. Stuck in the Middle B. Focus Cost Leadership C. Cost Leadership D. Focus Differentiation E. Differentiation F. Blue Ocean/Integrated Strategy
E
5. ______________ refers to the extent to which managers can identify or recognize distinct groups within the marketplace. A. Responsive B. Accessible C. Substantial D. Actionable E. Identifiable
A
Match the example with the SWOT element. If doing a SWOT for Uber Eats, where might you best put the intense competition between Postmates, Doordash and Grubhub? A. Threats B. Strengths C. Opportunities D. Weaknesses
B
The Vertical Integration (make or buy) framework that can be used to inform vertical integration decisions by factoring the importance of an activity for a firm's competitive advantage and _______________. A. The degree of relative Market Share B. The degree of difficulty to write contracts for that activity C. The degree to which the product is already pertinent to the company's value chain activities D. The degree of industry growth rate
D
The vertical integration framework is sometimes called which of the following? A. BCG matrix B. Levels of Diversification C. PESTLE analysis D. Make-or-buy framework
B
Which of the following is not a rationale for effective segmentation analysis to drive competitive advantage and superior performance? A. Identify segments of industry demand and unique abilities to serve particular segments B. The core belief around understanding value resources that the firm has that can be the source of competitive advantage. C. Target specific segments of demand that they are able to serve D. Develop specific strategies for each targeted market segment
C
Which of the following is not one of Porter's generic business level strategies? A. Cost Leadership B. Differentiation C. Economies of Scale D. Focus
D
Which of the following statements is most correct? radio_button_unchecked A. SWOT analysis is an exclusively external analysis tool B. SWOT analysis is the pinnacle of all strategic thinking C. SWOT analysis should be the cornerstone of all strategy D. SWOT analysis is, in the eyes of the scholarly community, remarkably under-theorized
A
3. Which of the following statements is true of a strategic position? A. Choosing a strategic position requires making important trade-offs between value and cost positions. B. Strategic positions are fixed; they do not change like the environment. C. Differentiation and cost leadership require similar strategic positions. D. A firm is said to have a competitive advantage when it ends up with strategic positions below the productivity frontier.
B
Difficulty writing a contract to manage a transaction is not impacted by which of these factors? A. Specificity B. Context C. Uncertainty D. Frequency
A
In a segmentation analysis, what does S-T-P refer to? A. Segmentation, Positioning & Targeting B. Scientifically Treated Petroleum C. Solvable, Pertinent, Technical D. Stone, Temple Pilots
C
Match the example with the SWOT element. If doing a SWOT analysis for Chick-Fil-A, where might you best put the possibility of increased international expansion? A. Strengths B. Weaknesses C. Opportunities D. Threats
B
Match the example with the SWOT element. If doing a SWOT analysis for Netflix, where might you best put their over reliance on Amazon Web Services for hosting capabilities? A. Threats B. Weaknesses C. Strengths D. Opportunities
D
Match the example with the SWOT element. If doing a SWOT for Disney, where might you best put their current vertical integration strategy (where they own the animation studios, film distribution, theme parks and cruise ships, and their own video on demand service)? A. Threats B. Weaknesses C. Opportunities D. Strengths
D
What is the purpose of a segmentation analysis? A. It provides the strategist in mapping and understanding a firm's potential sources of competitive advantage by decomposing the firm into strategically important activities B. It provides the decision maker with an efficient mechanism for reducing uncertainty using an inferential procedure to test the credibility of a potential solution to a strategic challenge C. It provides insight into the options that a firm has when it wishes to expand into a new market D. It provides means to understand and partition a broad consumer or business market into subgroups of consumers or businesses (called segments), such that a firm can effectively target specific segments rather than the market as a whole
B
Where does the example fit? Apple opening its own chain of retail stores A. Not an example of vertical Integration B. Forward vertical integration C. Backward vertical Integration
C
Where does the example fit? McDonalds opening an upscale hotel in Switzerland. A. Backward vertical integration B. Forward vertical integration C. Not an example of vertical Integration
B
Where does the example fit? Netflix is getting into the development of original TV content. A. Forward vertical integration B. Backward vertical integration C. Not an example of vertical Integration
A
Where does the example fit? Starbucks acquiring coffee plantations is Costa Rica. A. Backward vertical integration B. Not an example of vertical Integration C. Forward vertical integration
F
Which business level strategy does the following example best fit? Aldi appeals to a narrow segment (e.g. people who are prepared to go to two grocery stores and are ok with a limited selection) and the basis of this appeal is predicated on lower prices. A. Stuck in the Middle B. Differentiation C. Blue Ocean/Integrated Strategy D. Focus Differentiation E. Cost Leadership F. Focus Cost Leadership
B
Which business level strategy does the following example best fit? Casper Mattress has been able to successfully reconcile both low cost through D2C while also creating value through product design and branding. A. Focus Differentiation B. Blue Ocean/Integrated Strategy C. Focus Cost Leadership D. Differentiation E. Stuck in the Middle F. Cost Leadership
E
Which business level strategy does the following example best fit? Lululemon's initial appeal was to a more affluent female yoga demographic with the basis of this appeal emphasizing the unique fabric and design of its yoga pants. A. Stuck in the Middle B. Focus Cost Leadership C. Differentiation D. Blue Ocean/Integrated Strategy E. Focus Differentiation F. Cost Leadership
C
Which business level strategy does the following example best fit? The Aston Martin One-77 car retails at almost $2 million dollars - it appeals to a very narrow niche and the basis of its appeal is uniqueness. A. Stuck in the Middle B. Differentiation C. Focus Differentiation D. Cost Leadership E. Blue Ocean/Integrated Strategy F. Focus Cost Leadership
A
Which business level strategy does the following example best fit? Walmart appeals to a wide variety of people through an emphasis on cost drivers - people are drawn to Walmart for cheap prices with everything under one roof. A. Cost Leadership B. Differentiation C. Focus Differentiation D. Focus Cost Leadership E. Stuck in the Middle F. Blue Ocean/Integrated Strategy
B
Which of the following is more of a value driver than a cost driver? A. Economies of scale B. Superior customer service C. Experience-curve effects D. Learning-curve effects
C
Which of the following is not a classic limitation of a Segmentation Analysis? A. It can be difficult to manage the balance between becoming too niche and too broad B. Segments are almost never static C. The segment has many large firms competing there D. For some undifferentiated products, economies of scale and scope may render the mass market to be the most attractive segment
D
Which of the following is not a classic limitation of vertical integration framework? A. The framework depends on managers' and practitioners' ability to properly understand and categorize the assets, resources, or activities B. It can be difficult to objectively evaluate the extent to which an asset, resource, or activity is central to competitive advantage C. The framework tends to prompt strategic decisions based on only current and historic data D. All of the options are examples of limitations
B
Which of the following is not a common criticism of SWOT? A. SWOT is sometimes criticized for being overly simple and hence masking complexity. B. It is not very widely used. C. Interpretation of information generated by a SWOT is likely to vary between different managers and practitioners. D. SWOT analysis does not really identify key actions to be taken.
A
Which of the following is not a limitation of business level strategies? radio_button_unchecked A. This model fails to address the alignment of value chain activities to support the basis of competitive advantage B. The arrangement of these can be quite rigid C. Fails to acknowledge the difference between low cost strategies and best cost strategies D. Questionable applicability of this model with the advent of e-business
A
Which of the following is the underlying theory that vertical integrationis based on? A. Transaction Cost Economics B. Dynamic Capabilities C. Porter's Five Forces D. None from this list
D
____________ refers to the degree to which segments provide guidance for marketing decisions. A. Responsive B. Identifiable C. Substantial D. Actionable E. Accessible
E
____________ refers to the extent to which marketers can reach the targeted segments with promotional or distribution efforts. A. Identifiable B. Substantial C. Actionable D. Responsive E. Accessible
B
_____________ are factors that make a firm more competitive than its rivals. Areas in which a firm has superior resources or capabilities compared to competition. _______________ tend to focus on internal factors that are currently under firm's control. A. Weaknesses B. Strengths C. Opportunities D. Resources
B
_____________ refers to the extent to which a segment or group of customers represents a sufficient size to be profitable. This could mean sufficiently large in number of people or in purchasing power. A. Actionable B. Substantial C. Responsive D. Accessible E. Identifiable
E
_____________ refers to the extent to which consumers in a defined segment are likely to respond to marketing offers targeted at them. A. Substantial B. Actionable C. Identifiable D. Accessible E. Responsive
A
_________________ is the notion not only that customers display differences in current and past characteristics but also that these differences are predictors of their future behavior. A. Market heterogeneity B. Market homogeneity C. Firm heterogeneity D. Firm homogeneity
