Man 4720 Final
Which of the following enables you to combine the results from your external and internal analyses into a single framework? a. PESTEL Analysis b. SWOT Analysis c. Resource-Based View d. PROFIT model
b. SWOT Analysis
Which of the following would be illegal if asked in an interview? a. Are you married? b. Do you have any disabilities? c. What is your religion? d. All of the above
d. All of the above
Which of the following elements of the A-S-A framework captures that: individuals who don't fit in an organization will tend to leave? a. Attraction b. Selection c. Stratification d. Attrition
d. Attrition
When aligning the incentives of owners and managers, it is possible to provide too much market-based incentives (e.g., stock, stock options) True False
True
Which of the following is a key premise of the resource-based view? a. Asymmetric resource endowments b. Symmetric resource endowments c. Efficient markets d. Inefficient markets
a. Asymmetric resource endowments
To maintain the highest level of human capital, what three things should the firm be good at? a. Attraction, Development, and Retention b. Value Chain Management, Supply Chain Management, and Cost Chain Management c. Recruiting, Networking, and Attraction d. Training, Evaluation, and Education
a. Attraction, Development, and Retention
Which of the following strategies is likely to underperform the others? a. Being stuck in the middle b. Overall Cost Leadership c. Best Cost d. Focused Differentiation
a. Being stuck in the middle
Which of the following strategies reflects a joint emphasis on both uniqueness and cost (as distinct from a lack of emphasis on them) a. Best Cost b. Stuck in the Middle c. Focused Differentiation d. Focused Low Cost
a. Best Cost
What are the two dimensions on which generic business strategies are classified? a. Breadth of competitive scope/Source of competitive advantage b. Breadth of product line/Source of competitive advantage c. Breadth of competitive scope/Extent of vertical integration d. Breadth of product line/Extent of vertical integration
a. Breadth of competitive scope/Source of competitive advantage
CheapOBurger has basically the same resources as Freddy's Burger Stop. However, CheapOBurger is able to use these resources to produce burgers more efficiently and effectively than Freddy's Burger Stop. Based on this information, which of the following best conveys why CheapOBurger has a competitive advantage over Freddy's Burger Stop? a. CheapOBurger has better organizational capabilities b. Freddy's Burger Stop's resources are less valuable c. CheapOBurger's resources are rare and inimitable d. Freddy's Burger Stop is better able to exploit their resources
a. CheapOBurger has better organizational capabilities
According to the A-M-C framework, which of the following is not a characteristic of motivation to respond? a. Consumer reaction b. Resource similarity c. Market commonality d. Actor's reputation
a. Consumer reaction
If you download movies illegally, what form of intellectual property right are you violating? a. Copyright b. Trademark c. Patent d. Trade secrets
a. Copyright
Apple is a leader in innovation in the watch industry and targets all watch users. However, Apple still pays some attention to the price of their watches to make sure they aren't pricing themselves out of the market. Which of the following generic business strategies best describes Apple's strategy? a. Differentiation b. Cost Leadership c. Focused Differentiation d. Focused Low Cost
a. Differentiation
which of the following Human Resource actions is best reflective of contingent selection? a. Drug tests b. Job simulations c. Interviews d. Paper applications
a. Drug tests
What arises when there is an inverse relationship between the quantity of a single product produced and per-unit fixed costs? a. Economies of scale b. Experience curve c. Economies of scope d. Competitive parity
a. Economies of scale
Which of the following would be considered a tangible resource? a. Equipment b. Reputation c. Organizational structure d. Values
a. Equipment
Which of the following is an advantage of the differentiation generic business strategy? a. High Profit margins b. In-depth understanding of a relatively small niche c. Resilience against knock-offs d. Resilience against price wars with companies competing on overall cost leadership
a. High Profit margins
Which of the following is least likely to reduce the likelihood of managers acting in ways that are damaging to shareholders? a. Increase the salary of the managers b.Issue stock/stock options to managers c.Provide bonuses linked to outcomes that shareholders want to see d.Maintain an active, involved, and independent board of directors
a. Increase the salary of the managers
Which of the following is NOT a disadvantage of the Cost Leadership strategy? a. It is harder for them to survive price wars b. Customers may perceive their product to be of inferior quality c. The firm can become less adaptable to environmental changes d. They are susceptible to changes in volume
a. It is harder for them to survive price wars
Which of the following would be an S-T strategy for an insurance company? a. Leverage our broad portfolio of low-cost insurance options to protect our bottom line against a deteriorating economy (where customers will be more price sensitive). b. Leverage our broad portfolio of low-cost insurance options to take advantage of the passage of legislation facilitating the purchase of insurance by lower income individuals. c. Start developing low-cost insurance options to protect our bottom line against a deteriorating economy (where customers will be more price sensitive). d. Start developing low-cost insurance options to take advantage of the passage of legislation facilitating the purchase of insurance by lower income individuals.
a. Leverage our broad portfolio of low-cost insurance options to protect our bottom line against a deteriorating economy (where customers will be more price sensitive).
Which of the following does a patent NOT protect? a. New Symbols b. New Products c. New Life Forms d. New Processes
a. New Symbols
Which of the following is consistent with a proactive approach to competitive dynamics? a. Pursuing a first mover advantage b. Establishing a fighting brand c. Coopetition d. The A-M-C framework
a. Pursuing a first mover advantage
Which of the following is most appropriately used if you want perpetual, if informal, protection for your intellectual property? a. Trade secrets b. Trademarks c. Patents d. Copyrights
a. Trade secrets
After learning what a first mover advantage is, many people are quick to recommend pursuing one without carefully thinking things through. What is the most salient potential flaw with this? a. You're taking a lot of risk on doing something new and are likely going to make mistakes from which competitors can learn and mimic you but without the mistakes b. It's not as good as a late mover advantage c. It's not enough to be the first mover, you also have to make sure that others aren't aware of you being the first mover d. It's not enough to be the first mover, you also have to make sure that you aren't in multipoint competition with competitors
a. You're taking a lot of risk on doing something new and are likely going to make mistakes from which competitors can learn and mimic you but without the mistakes
In the event of a hostile takeover attempt, management may seek out a different company to acquire them. In this situation, the company the management team is looking for would be called a(n): a.White Knight b.Black Knight c.Corporate Raider d.Golden Parachute
a. white knight
In Agency Theory, the managers are called ____________________; whereas the owners are called ______________________. a.Agents; Principals b.Principals; Agents
a.Agents; Principals
Consider the following situation: Managers are not managing the company well, so shareholders sell the stock. This sell-off of the company's stock reduces the market value of the company, making the company more attractive for a takeover. This process provides a high-level overview of what strategic management phenomenon? a.The Market for Corporate Governance b. Leveraged Buyout c.Industry Lifecycle d.Agency Theory
a.The Market for Corporate Governance
Which of the following analyses could be used to provide data for the strengths and weaknesses in a SWOT analysis? a. TOWS Matrix b. Resource-Based View and Value Chain c. PESTEL and Porter's Five Forces analysis d. Porter's Five Forces and PROFIT model
b. Resource-Based View and Value Chain
Your colleague tells you that they have tremendous social capital because they have a big network of colleagues both within the firm and in other firms. What is the most appropriate response to this assertion from a strategic management perspective? a. "That is fantastic, congratulations" b. "Just having a large social network isn't enough, you need to assess whether these relationships actually create value in some way." c. "Just having a large social network isn't enough, you need to identify whether the relationships are strong or weak determine whether they can be counted in social capital" d. "Relationships with entities outside the firm should not be considered when determining your social capital"
b. "Just having a large social network isn't enough, you need to assess whether these relationships actually create value in some way."
Chinese manufacturers are beginning to create cell phones at a much "cheaper" cost than Apple and Samsung. These manufacturers are not focused on being a leader in innovation in the cell phone industry. They target the broad set of users that are looking to spend less on their cell phone purchases. Which of the following generic business strategies best describes this firm's strategy? a. Differentiation b. Cost Leadership c. Focused Differentiation d. Focused Low Cost
b. Cost Leadership
Direct labor for the manufacturing of surfboards in a plant started at $30/surfboard. Since opening, the plant has now produced over 50,000 surfboards. Having produced so many surfboards, now the cost of direct labor is $10/surfboard because more efficient manufacturing processes have been found. What concept is best demonstrated here? a. Economies of scale b. Experience curve c. Economies of scope d. Competitive parity
b. Experience curve
Knowledge, skills, and abilities are the key components of which of the following? a. Social Capital b. Human Capital c. Intellectual Property d. P-O Fit
b. Human Capital
A fellow student tells you that the more people you hire, the more human capital the firm has. Which of the following critiques best conveys the flaw with this logic? a. Human capital is less concerned with the number of employees than it is with the relationships among employees within the firm and the firm's relationships with external parties. b. Human capital is more than the number of employees; the knowledge, skills, and abilities contributed by the new employees need to be considered. c. Human capital is not concerned with the number of employees, it is concerned with their ability to sell products and services d. Human capital is not concerned with the number of employees, it is concerned with the protection of assets created by individuals in the organization (e.g., patents, trademarks, copyrights).
b. Human capital is more than the number of employees; the knowledge, skills, and abilities contributed by the new employees need to be considered.
According to strategic management, what is one of the principal contributors to the difference between the book and market value of a firm? a. Inventory turnover speed b. Intellectual Capital c. Current assets d. Payment term agreements
b. Intellectual Capital
If any one dimension of the A-M-C framework is not met, what can be said about the likelihood of a competitive response: a. Nothing can be said about the likelihood b. It is less likely c. It is more likely
b. It is less likely
Which of the following would be considered an intangible resource? a. Property, plant, and equipment b. Organizational culture c. Cash d. Land
b. Organizational culture
The key difference between the Focused Low Cost and Focused Differentiation generic business strategies is: a. The breadth of target market b. The basis for competition/source of competitive advantage c. Location d. The expertise required to remain competitive
b. The basis for competition/source of competitive advantage
Which of the following best captures the concept of competitive parity with respect to companies pursuing a Differentiation strategy? a. They need to innovate in inimitable ways b. They shouldn't completely ignore price c. They need to assess market commonality They need to innovate in ways that customers value
b. They shouldn't completely ignore price
Which combination of resource-based view components, when combined, creates a temporary competitive advantage? (Assume that the company is organized to exploit the resource) a. Valuable and inimitable b. Valuable and rare c. Valuable and non-substitutable d. Valuable, rare, inimitable, non-substitutable
b. Valuable and rare
You are the owner of a restaurant. You have benchmarked your order processing time against that of your three largest competitors, finding that yours is significantly higher. As a result you enter "Slow order processing time" into your SWOT analysis. Which element of the SWOT analysis should this item be entered into? a. Strength b. Weakness c. Opportunity d. Threat
b. Weakness
Which of the following is most reflective of a substantive selection activity? a. When a firm identifies you as having entered the candidate pool for a job b. When a firm identifies you as having what it takes to do the job well c. When a firm will hire you so long as you pass a final hurdle d. When a firm identifies a supplier based on the characteristics of a product
b. When a firm identifies you as having what it takes to do the job well
Which of the following best characterizes multipoint competition? a. When two companies compete with multiple products b. When two companies compete in multiple markets c. When two companies compete in multiple industries d. When two companies compete in multiple strategic groups
b. When two companies compete in multiple markets
Jeffrey Immelt is the CEO and Chairman of the Board of General Electric. This potentially efficient/potentially problematic situation is referred to as: a.Insider Trading b.CEO Duality c.Chairman Activism d.CEO Activism
b.CEO Duality
You suggest to a firm's CEO that, from a human capital perspective, the company is not very diverse. Your client becomes offended and says that this is clearly not the case as the firm has people from all different races, sexes, and religions. What is the most appropriate response to this? a. "Oh, I didn't realize that, I suppose the firm is more diverse than I had originally thought" b. "Yes, but there are several different protected groups (e.g., age) that you have not listed, depressing the firm's human capital" c. "From a human capital perspective, protected groups are only one aspect of diversity, it is also important to consider whether/how these individuals contribute diverse knowledge, skills, and abilities"
c. "From a human capital perspective, protected groups are only one aspect of diversity, it is also important to consider whether/how these individuals contribute diverse knowledge, skills, and abilities"
You know many of the employees in your firm; however, other than through you, most of the employees in Group A don't interact with group B. What best describes your position in the social network? a. A closed position b. An open position c. A bridging relationship d. A reporting relationship
c. A bridging relationship
Which of the following is most likely to increase a firm's motivation to respond to a competitive action? a. A possibility of consumer reaction b. A high level of resource similarity c. A low level of market commonality d. The actor's poor reputation
c. A low level of market commonality
You are the hiring manager of a skateboard manufacturing company. You have been asked to hire a team of three employees for a project aimed at improving the skateboard manufacturing process. You want to create a team where each individual significantly adds to the level of human capital in a way that would most directly contribute to the project. According to Monday's lecture, what set of new employees will be most likely to accomplish this? (Pick the best answer) a. Three management majors. b. A marketing, accounting, and finance major. c. A mechanical engineering, industrial design, and business major d. A literature, pre-law, and interpretive dance major
c. A mechanical engineering, industrial design, and business major
According to the A-M-C framework, what are the three factors that determine if a firm will respond to a competitive move? a. Analysis, Motivation, Competence b. Awareness, Market, Capability c. Awareness, Motivation, Capability d. Analysis, Market, Competence
c. Awareness, Motivation, Capability
The A-M-C framework treats: a. Competitors as passive participants in the market b. Competition as occurring at only one point in time c. Competitors as paying attention and responding to what happens in an industry d. All companies as having the same strategy
c. Competitors as paying attention and responding to what happens in an industry
You are analyzing the human capital of the US Patent and Trademark Office. In your research, you identify that they provide a strong employee training program and tuition reimbursement for certain programs to employees. What human capital capability have you uncovered as a strength? a. Attraction b. Selection c. Development d. Retention e. Attrition
c. Development
You are launching a surfboard company in San Diego. While you will sell your product to anyone who will pay, your emphasis is on providing the highest quality surfboards catered to the needs of surfing professionals. What generic business strategy best reflects this business? a. Differentiation b. Cost Leadership c. Focused Differentiation d. Focused Low Cost
c. Focused Differentiation
Which of the following aspects of the Resource-based view is most directly impacted by intellectual property? a. Valuable b. Rare c. Inimitable d. Non-substitutable e. Organized to Exploit
c. Inimitable
Which of the following is least likely to be a benefit of social capital within a firm? a. It can facilitate the building of buy-in on a proposed strategy b. It can help retain good employees c. It can offset a bad generic business strategy d. It can enhance the flow of communication within the company
c. It can offset a bad generic business strategy
In what major way does the A-M-C framework differ from the frameworks we discussed in the external/internal analysis weeks? a. It looks at competition in an industry b. It looks at individual firms c. It explicitly considers how competition plays out over time rather than at a point in time d. It considers the firm's strategy
c. It explicitly considers how competition plays out over time rather than at a point in time
The ABC Company produces the most popular type of baseball bat that is called a "dinger". Over time, it becomes more common to refer to all baseball bats as "dingers" rather than "baseball bat". ABC is likely to lose their right to protect their name because: a. It is not patented properly. b. It may not have been formally registered with the US Patent and Trademark Office c. It is becoming a genericized trademark. d. Trademarks are not protected by federal law.
c. It is becoming a genericized trademark.
15. Which of the following is not a strategy derived from a TOWS matrix? a. S-O strategy b. W-T strategy c. O-T strategy d. W-O strategy
c. O-T strategy
What framework is most directly used to take information from a SWOT analysis and generate actionable strategies to address opportunities and threats using the firm's strengths and weaknesses? a. PROFIT model b. Resource-based view c. TOWS matrix d. Strategic group map
c. TOWS matrix
Your firm is developing specialty headphones catered to individuals that listen to music with lots of bass. Your assessment is that customers will pay more for these headphones and no competitors know how to manufacture headphones to these specifications. However, the technology in these headphones is not proprietary - a well-funded competitor could figure out how to do the same with their headphones. What is the best the company can do with respect to developing a competitive advantage given the above information? a. Competitive disadvantage b. Competitive parity c. Temporary competitive advantage d. Sustainable competitive advantage
c. Temporary competitive advantage
Which of the following captures the difference between an experience curve and economies of scale? a. The experience curve is concerned with the decline in per-unit cost of production whereas economies of scale is concerned with the decline in the total cost of production b. The experience curve is concerned with the decline in the total cost of production whereas economies of scale is concerned with the decline in per-unit cost of production c. The experience curve is influenced by the cumulative volume of a product produced whereas economies of scale are influenced by the volume of a product being produced over a period of time. d. The experience curve is influenced by the volume being produced over a period of time whereas economies of scale is influenced by the cumulative volume produced
c. The experience curve is influenced by the cumulative volume of a product produced whereas economies of scale are influenced by the volume of a product being produced over a period of time.
The resource-based view of the firm is most appropriately applied to a. The industry level b. The strategic group level c. The firm level d. The team level
c. The firm level
Which of the following intellectual properties is NOT protected by federal law? a. Patents b. Trademarks c. Trade Secrets d. Copyrights
c. Trade Secrets
Marriott has stated that their locations are key to the success of their firm and that they are able to leverage these locations. You agree with this assessment; however, you find that the other hotels are located in the same areas. Some of the locations almost share the same parking lot. What dimensions of the resource-based view are being met? a. Just valuable b. Valuable and rare c. Valuable and organized to exploit d. Valuable, inimitable, and organized to exploit
c. Valuable and organized to exploit
Which one of the following groups is not a key participant in corporate governance? a.board of directors (if publicly-traded) b.shareholders/owners c.legislators d.top management team
c.legislators
Which of the following describes why a company pursuing a Cost Leadership strategy might still want to do *some* differentiation. This is an example of: a. Economies of scale b. Experience curve c. Economies of scope d. Competitive parity
d. Competitive parity
4. Which of the following best reflects a firm's ability to develop new and change existing capabilities to adapt the firm to a changing environment a. Munificent capabilities b. Complex capabilities c. Static capabilities d. Dynamic capabilities
d. Dynamic capabilities
What question is the A-M-C framework best suited to analyze? a. Given a resource and the A-M-C characteristics, what is the likelihood of securing a first mover advantage? b. Given a competitive action and the A-M-C characteristics, what is the likelihood of securing a first mover advantage? c. Given a resource and the A-M-C characteristics, what is the likelihood of imitation? d. Given a competitive action and the A-M-C characteristics, what is the likelihood of a competitive response?
d. Given a competitive action and the A-M-C characteristics, what is the likelihood of a competitive response?
Which of the following is least likely to be a consequence of strong fit? a. Increased job satisfaction of employees b. Increased ability to attract new talent c. Increased likelihood of receiving a job offer d. Increased intention to quit
d. Increased intention to quit
Which of the following aspects of the resource-based view is a firm-level (as distinct from resource-level) dimension? a. Rare b. Valuable c. Non-substitutability d. Organized to exploit
d. Organized to exploit
Which combination of resource-based view components would create a sustainable competitive advantage? (Assume that the company is organized to exploit the resource) a. Valuable and inimitable b. Valuable and rare c. Valuable and non-substitutable d. Valuable, rare, inimitable, non-substitutable
d. Valuable, rare, inimitable, non-substitutable
Please select the TOWS matrix strategy that is most closely associated with the following strategy: Eliminate the unnecessary spending in our strategic business units, freeing up cash to fund the penetration of our growing target market. a. S-O strategy b. W-T strategy c. O-T strategy d. W-O strategy
d. W-O strategy
Which of the following international entry strategies offers the highest degree of control over the in-country operations? a. Joint Venture b. Franchising c. Licensing d. Wholly-owned subsidiary
d. Wholly-owned subsidiary
When the top management team are not significant owners of the company, managers may start making decisions that benefit the managers, but are not in the best interest of the company's owners. For example, using the company jet for personal purposes, avoiding reasonable risk-taking that would encourage faster growth, etc. This type of problem is most accurately described as a(n): a.Principal-Principal Agency Problem b.Escalation of Commitment Problem c.Agent-Agent Agency Problem d.Principal-Agent Agency Problem
d.Principal-Agent Agency Problem
Who of the following is not a formal part of the formal corporate governance process, but might still greatly influence the way the firm is governed? a.Members of the firm's board of directors b.Librarians c.People who own the company's stock d.The CEO e.Analysts
e.Analysts
P-J fit is most concerned with fit associated with ________(1)________; whereas, P-O fit is most concerned with fit associated with _________(2)____________. e. (1) Values/ideals; (2) Knowledge, skills, and abilities f. (1) Knowledge, skills, and abilities; (2) Values/ideals g. (1) Values/ideals; (2) Compensation h. (1) Compensation; (2) Values/ideals
f. (1) Knowledge, skills, and abilities; (2) Values/ideals
Which of the following is NOT a disadvantage of the focused generic business strategies? e. Potentially limited demand f. The niche may change/disappear g. Inability to customize your product to the needs of the niche h. Other companies may enter your niche in even more focused ways
g. Inability to customize your product to the needs of the niche
A new start-up company that is in the restaurant industry creates a logo that is similar to Apple's iconic apple logo. Which of the following intellectual properties is this restaurant company infringing upon? i. Trade Secrets j. Trademarks k. Copyrights l. Patents
j. Trademarks
