Strategic MGT policy
Company U is planning to develop a motion picture movie based on a best selling novel the company spent $7 million for the rights to use a novel as the basis for the movie the company prepared for the movie by hiring a Director screen writer and actors the company also printed cameras vehicles and equipment which of the following pairs of resources are both intangible?
BEST SELLING NOVEL SCREEN WRITERS EXPERIENCE ADAPTING NOVELS
Company see manufactures cleaning products and supplies its products to Company D which is a hardware retail store company see demanded that company do you make more shelf space available for its products what it would take its products to a different hardware retail store company de has exercises bargaining powers as a buyer through?
Backward integration
Jack is a manager in an industry that has a few large players and that has remained relatively stable over the past few years he finds out that the legislators are proposing new laws to the deregulate the industry if the last pass which of these scenarios with Jack most likely face?
Many new competitors
Recently and country a the air conditioner industry has Consolidated into three major companies from 10 companies additionally air conditioner companies are not pressured to sell more units because they can profit from the acquired companies maintenance fees of already sold air conditioner and customer maintenance fees the reduction in the number of air conditioner company suggest a change in which the structural attribute of the industry?
Industry concentration
When Apple first introduced first iPhone it combined the phone music player and Internet communication device furthermore applications have been developed for people to have access to video games books movies and social networks as a result the iPhone created an industry that has become a threat to many other industries what is this phenomenon known as?
Industry convergence
Jill has been an employee with company T for 20 years she started with an entry-level job and today she is a manager of an entire product division over the years Joe has acquired a reputation for doing the right things in the company hints as an if this shit later she can effectively communicate and motivate her subordinates according to the level five leader ship pyramid which is the highest level of leader ship Jill has reached so far?
Level 4
Company S had a competitive advantage in the apparel industry with low manufacturing cost the low cost of manufacturing was possible by outsourcing the the production to companies in countries with low labor cost company W had a competitive advantage because they develop products with the latest trends and introduce them to the market quicker therefore parts of company S strategy became obsolete what are such obsolete strategies referred to?
Tactical strategy
Foldable smart phones are in the introduction stage and electric vehicles are in the group stage of the industry life cycle which of the following statements is true in this scenario?
While the industry for foldable smart phones will focus more on product innovation the electric vehicle industry will focus more on process innovation
Jack is a top executive manager of a software company in which of the following scenarios does Jack exhibit strategic leadership?
With a major pitch to potential investors coming up Jack works alone for 14 hours a day until he writes the perfect sales pitch even though the rest of his team doubts that they can meet Jack's performance goals he makes a presentation anyway.
Company R an Apple device repair company has maintained a competitive advantage by providing excellent repairs at a reasonable price the company focuses on repairing devices to the point as if they were brand new when are repaired which takes significant time customers and employees have suggested expediting the process by giving up on some qualities according to the dynamic capabilities perspective company R has lost its competitive advantage due to
core rigidity
When company why was operating at the minimum efficient scale of 50,000 units per year it's cost $20 per unit however one company one increase production to 60,000 units per year the cost increase to $25 per unit what is this phenomenon known as?
diseconomies of scale
Company T a laptop company has successfully sustain a competitive advantage due to its ability to manufacture high quality laptops at low cost is competitors developed similar quality products but I failed to develop at similar cost which of the following from the VRIO framework has helped company T sustain its competitive advantage?
High cost involved in imitatio
Company H encourage the cost of $250 to produce one unit of a headphone the company sells a headphone at the retail price of 950 the brand image of the company and the sound quality of the product create a perceived value of $1250 for its customers in the scenario what is the economic value created?
$1000
What does it mean for a company to have a 70% learning curve
A 70% learning curve indicates 30% drop every time I put is doubled.
Which of the following statements is not true of accounting data?
Accounting data do not have to be adjusted in any manner to compare companies with different capital structures.
Company G is a company that manufactures mechanical in biological products to support sustainable farming methods the company InVisions the sustainable farming will replace industrial agriculture practices in the near future which of the following statements would make an accurate vision for company G.?
All people should have access to food and fibers produced using sustainable farming methods
Company X developed a laptop where the owner could easily replace parts such as the CPU in memory this laptop me to easy for owners to keep the laptop performance capabilities up-to-date at lower cost company exes laptop components were put together in a completely different form to make it less costly to upgrade company X laptop created a new segment of customers interested in buying the product this example describes?
Architectural innovation
When smart phone bars get access to free apps the perceived value of the smart phone increases what is driving the increase in perceived value?
Availability of compliments
Often airlines justify acquiring other airlines by citing landing slots in gates at major airports that they can get access to through the acquisition this suggest that many slots and gates a major airports are in general having what effect on the industry?
Increasing entry barriers
Company tea is a large conglomerate Metairie that operates in 19 different countries the corporate executives at the headquarters have decided that the companies objective for the next five years will be to increase the value of potential future revenues generated by all of its customers in a lifetime thus the decision made by the product leader best illustrates a ---- strategy.
Business
Company M. is a brick and mortar retailer competing against company N and company O company and is the cost leader in the brick and motor retail industry through efficient distribution channels however a company oh already has a house decoration line associated with a more popular design or creating different for the company as a result company N creates less economic value than company in and company oh what can be said about company M
COMPANY M. IS STUCK IN THE MIDDLE AND HAS A COMPETITIVE DISADVANTAGE
Company R produces digital screen components used in electrical vehicles in the official year 2022 company R around in accounting profit of $10 million however company R could have used it's on production facilities to produce digital screen components for smart phones which would have generated $5 million in profit in save the company $3 million in production costs which of the following statements is true?
COMPANY R EARNED AN ECONOMIC PROFIT OF $2 MILLION
Company H has manufactured printers for 25 years and Company Jay has manufactured printers for 15 years although both companies have years of experience in manufacturing printers both companies had a return on invested capital of -3% due to outdated design the current industry average return on investment capital is 2% in this scenario company H and Company Jay most likely have?
Competitive advantage over their firms in their industry
An example of a classic tragedy of commons problem is?
Climate change
Jack is considering buying stock in either company J or company K at the time of the decision company J return on invested capital is 10% and Company K return on invert fest did capital what is 20% during the same period Company J cost of capital was 5% and Company K cost of capital was 25% only considering the given information what can jack conclude?
Company J is more likely to create value while company K is more likely to destroy value
Which of the following strategies represents a CSR perspective?
Company L donates professional services to an organization providing legal age to recent immigrants.
Which of the following businesses is most likely to disrupt an existing industry?
Company R developed a smart watch they can monitor the users hydration level with this new technology the smart watch to notify users went to hydrate.
Company E an airline company has an average return on investment capital of 1% due to the pandemic the demand for airline services has significantly declined which has affected the industry average return on investment capital to be -4% in this scenario company E has a?
Competitive advantage
Man for MP3 players has significantly decrease were only laggards will buy them which stage in the industry lifecycle has an MP3 player entered?
Define stage
Brian and Emily both love ice tea Brian prefers ice cold iced tea or as Emily doesn't mind room temperature iced tea due to his preference Brian is willing to spend more money on an insulated mug that Emily is willing to spend what limitation of the economic value creation framework is illustrated in this example?
Determining the value of a good/service through the perspective of consumers is not a simple task because consumers have different spending habits.
the ------ suggest that because the external environment changes strategic leaders must choose the current and future investments carefully overtime in order to best maintain their firms competitive advantage.
Dynamic capabilities perspective
Smart watch has just become accepted by the mass market windchill decided to purchase one she started thinking about purchasing a smart watch after most of her friends had already bought one she finally decided to purchase a smart watch on the price fell to the level she perceived to be, which of the following customer segments does Jill best represent?
Early majority
Company P. is a large manufacturer of furniture companies machine operation labor marketing and sales closer divided among a large number of products this gives company P advantage because it can sell similar furniture a lower price is not small in men's size furniture companies this illustrates company P competitive advantage is due to its?
Economies of scale
Company J is a company that sells auto parts for internal combustion engine vehicles recently the company into the electric vehicle auto part industry but is having difficulty establishing a foothold to be profitable what is most likely contributing to company J's problem
Entry barriers usually protect the incumbent players in a profitable industry
Company Z is a manufacturer of headphones in your phones two years ago the company started researching ways to cancel outside noise with his headphones in air phones one year ago the company developed a noise canceling technology they cancel 95% of external noise last month the company successfully launch new headphones in your phones with the new noise cancellation technology what should the managers of company Z prepare for next?
Increase competition from imitators
Company B invented a weight loss medication that decreases food cravings without downsides the company was able to reap the benefits of economies of the scale due to the significant consumer demand for the drug however consumers prefer the drug created by company B as it has shown a track record of effectiveness and safety which of the following does this scenario best illustrates?
First mover advantages
Company K is a wellness center that offers physical therapy to a small percentage of high-performing athletes the company offers Cyrotherapy which uses extreme cold to help athletes boost recovery since very few wellness centers offer Cyrotherapy athletes are willing to pay a premium price for the service and the scenario company K is following a?
Focus differentiation strategy
Company W is a high-end electronics retail store and Company A is a mid to low and electronics retail store company W has a competitive advantage through differentiation and company A has a competitive advantage to cost leadership both companies have a competitive advantage in the electronics retail industry indicate that?
Following a different generic business strategy within the same industry can lead to a competitive advantage for more than one organization.
Which statement is correct about the porters five forces framework?
If the five forces are all low the industries profit potential is high making the industry more attractive
Company Sand Company T both produce similar iced tea beverages the cost of producing 1 gallon of iced tea is $.32 for both companies both companies can I decrease the production cost below $.32 how can company S and Company T achieve a competitive advantage over the other?
Increase total perceive consumer benefits through differentiation
A new company companies Z entered the electric bicycle industry which is concentrated in response to companies H's entry into the industry to large incumbents company eight and company b lowered the price of their electric bicycles by doing this company a and Company b?
Increased industry exit barriers
Company T is a robotics company which has attracted highly skilled engineers due to its culture recently the company developed a robot that can move as fluidly as a human according to the dynamic capabilities perspective what is the best way for a company tea to protect against resource leakage?
Improve the benefits package to retain key employees and reduce turnover.
Due to increased competition in the firewood industry company y profit margin shrink over the past few years within the context of strategic activity systems which of the following action should the company pursue
Install modern manufacturing equipment to improve efficiency
Company why mainly develops batteries for electric vehicles after market research by the company on the need for batteries that can act as a back up power for solar powered homes the CEO and top management team decided to develop home batteries for the next year which of the following in strategic planning does this best illustrate?
Intended strategy
Company H has a version of helping every American learn how to grow a lush grass lawn the management team created a new mission statement a lush grass lawn for every home what is wrong with this mission statement?
It does not indicate how the company will accomplish its goals.
Which of the following statements is not true of the balance scorecard?
It's primary focus is to be safe from strategic goals on internal and external performance dimensions.
Company R recently developed a new production method that decreases the cost of manufacturing computer hard drives which of the following would most likely be the result of this innovation?
Jumps to a steeper learning curve
Which of the following factors best contributes to the US laptop computer industry being characterized by high entry barriers?
Laptop computer companies require experience in manufacturing computers to be cost competitive.
As a product manager of company as your task to introduce a new version of company S's folding chairs company to direct competitor manufactures each furniture at the cost of $2 dollars and it sells it for $15 it cost $5 to manufacture the new version of each folding chair for your company assuming company S sells as many folding chairs as company T which of the following strategies would allow your company to achieve a competitive advantage?
Market company S's folding chairs are a higher quality alternative and selling them for $20
Firms that are not in the same strategic group generally experience
More competitive rivalry than firms within their strategic group
Company B manufactures bicycles that are made to be used on the street these bicycles are mainly use for communing and cities were bicycles are allowed to run through the streets in terms of the porters five forces framework which of the following is considered a substitute for the bicycle industry that company be operating?
Motorcycles
Jack is the owner of a math tutoring service company for his local town recently many other math tutor services companies into the area and Jack's company is struggling to the differentiate itself from the newcomers what strategy is most likely to chief competitive advantage for Jack's company?
Narrow the scope of competition and focus on high school and pre-college math with higher quality tutoring than competitors.
Company or a social network service provider has a large user base because it became the first social network service focused on images many companies have recently tried to enter the social network industry but I fell to make profit what factor is acting as an entry barrier for social network industry in the scenario?
Network effects
Should companies always try to pursue a blue ocean strategy? If so what is the best rationale if not what is the best rationale
No companies only pursue a blue blue ocean strategy if they are able to reconcile the trade offs of each generic strategy.
Firms that are classified as operating in a Oligopoly tend to have some pricing power if they are able to differentiate their product or service offerings from those of their competitors so the recommended mode of competition is?
Non-price competition
Company M invested heavily in developing hard drives and became the leader in manufacturing the fastest and smallest hard drives available for desktop computers competitor shifted towards online cloud storage services and focused on the interface for users because company M was heavily invested in developing capabilities for manufacturing hard drives they cannot change course when the market shifted towards online cloud storage which of the following does the scenario best illustrate?
Path dependence
Company F and company G are both hub and spoke airlines however these two companies use different resources to compete in the airline industry this example best illustrates which of the following assumptions regarding the resource based view?
Resource heterogeneity
Company P a printer manufacturing company has recently experienced a demand decline for its products the decline in demand for printers is occurring in the entire industry which has a created intense competition between companies customers are buying replacement parts instead of purchasing new printers what stage of life cycle has company P. entered?
SHAKE OUT STAGE
The top management team accompany MR developing strategic plans to address potential future situations like an increase in material import cost logistics delays from international shipments and increase in interest rates inflation and a decrease in demand for the companies products company M. is employing ------ as the approach to the development of strategy
Scenario planning
Amy manages product design and development at a toy company the junior managers who report to tell her that new complimenters for the firms products are available what should Amy's reaction be.
She needs to find out if her company and other companies can provide the compliments
What kind of behavior is Jill most likely to exhibit as a late majority customer?
She would prefer to buy from well-established Browns rather than unknown new ventures.
Nowadays stakeholders are concerned with aspects of business beyond the profits the company makes shareholders and consumers want firms not only to fulfill their economic and legal responsibilities but also their ethical and philanthropy responsibilities the notion that attempts to reconcile these wants is known as?
Stakeholder impact analysis
Company she believes in a lifetime employment and ensures that its employees grow along with the company also keeps a fair and trustworthy relationship with suppliers the company shareholders are satisfied with its increase in stock price over the years in addition the company spends 5% of profits on the environment preserving activities customers like being associated with the company because of these incentives with these efforts company she has been able to sustain its competitive advantage in the industry and operates which of the following best illustrates a scenario?
Stakeholder strategy
Which of the following statements is correct about stakeholders and stockholders?
Stakeholders can be both internal and external while stockholders on shares of a firm and are classified as internal to the firm.
The CEO of genesis a division with its own profit and loss responsibility reported to Honda motors corporation CEO also the CEO of Kia a division with its own profit and loss responsibility reports to Hyundai motors Corporation CEO therefore Genesis in Kia or a ------- of Hyundai motor corporation
Strategic business unit
Company L was the first company to start selling electric scooters soon after the other company started to sell their own brand of electric scooters thereby giving company L ample can competition company L consistently outperform its competitors for 10 years in this scenario company help maintain a -------- through its innovative strategy
Sustainable competitive advantage
Company G manufactures weapons for governments currently the bargaining power of buyers the bargaining power of suppliers and the threat of substitutes are low in addition there are a few rivals in the industry what can be concluded based on this information?
The company is likely to be very profitable as long as the threat to entry is low
Company E a diversified company is experiencing an economic regression in this country however an analysis of the company show that it could still be profitable in this economic downturn if it devastated one of its business units which of the following businesses would company find it most easy to exit?
The computer software business were investments in assets are low.
Company E a software company has acquired numerous companies over the years which of the following assets of company e will likely lead to the company gaining and sustaining a competitive advantage?
The expertise required by the employees in the company
Tom works at a small sports equipment manufacturing company the company wants to understand the sociocultural factors that are affecting the external environment which of the following should Tom research?
The family size of the firms target market
Years ago the travel industry was controlled by a few large travel companies that book holidays air tickets bus tickets and hotels for the customers however with the emergence of the Internet smaller travel agency started mushrooming in the industry in customer started making their own reservations which of the following can be inferred from this information?
The travel industry change from a constant consolidated structure to a fragmented one.
Company I, a future company turned a profit of $55 million by recycling wood from thrown away furniture the company is continuously making efforts to decrease landfill waste by incorporating recycled material into its products not only does this help the world ecologically but it also increases the value to shareholders by decreasing the cost which of the following best represents the efforts made by company I?
The triple bottom line framework
Which is an accurate statement about the task of the AFI strategy framework?
They are highly in turn dependent and frequently occur simultaneously
What kinda has a highly developed high-tech costume industry the industry is characterized by high economies of scale high economies of scope hi capital requirements proper rarity technology among incumbent firms in high product differentiation therefore in the high tech costume industry the.....
Threat of new entrance is most likely low
When the iPhone took over the smart phone industry many smart phone companies scrambled to adapt to the new touchscreen format one of those companies company L canceled all of its focus on developing a touchscreen smart phone with its operating system what Apple introduced second version of the iPhone it had five years of experience developing touchscreen smart phones on the other hand company L introduce its first touchscreen smart phone when Apple introduced the second version in this scenario which of the following contribute to company L failure?
Time compression diseconomies
Jackie grew up in a family with financial difficulties therefore Jack wasn't able to buy a laptop which would have been very helpful in completing assignments during his college years shack start in a company that focuses on developing affordable laptops for college students the strategic choice lead to the financial success of the company which of the following does this example demonstrate.
Upper-echelons theory
Which of the following statements best represents a customer oriented vision?
We provide solutions to streamline payroll and tax processing.
Which of the following goals relates to the E dimension of ESG criteria for evaluating company performance?
We will reduce our carbon footprint by 50% or more in five years
Company C company the company E are the largest companies in the game desktop industry the three companies combine market sure is above 85% these companies compete against each other by providing products with unique designs rather than pricing them low which of the following industry competitive structure does this scenario best illustrate
oligopoly
In the porters five forces framework which of the following factors is not related to assessing the industry rivalry force?
the ability to engage in forward to vertical integration
