MGT 3830 Final

An international firm's competitive advantage depends not only on its resources and capabilities but also on the national environments in which it operates. a. T b. F

A

A long-term underlying cause of the financial crisis was: a. 'Light touch' regulation which encouraged financial innovation b. Lehman Brothers c. Increased lending by Chinese savers d. Governments selling CDOs

a

A significant determining factor on whether a firm conducts an activity internally is: a. Whether the transaction costs of buying in the activity in the market exceed the administrative cost of doing it themselves b. Whether transaction costs in the market of buying in the activity exceed the administrative cost buying it in c. How reliable their workforce is, compared with an external supplier's reliability d. None of the above

a

A symbol of TNCs acting differently from MNCs is: a. Creating or moving divisional or corporate headquarters out of the firm's country of origin b. Developing product logos that are globally recognizable c. Listing the company's shares on several global stock markets d. All of the above

a

Being international can be a source of competitive advantage. a. T b. F

a

Business strategy can be summarized as: a. The means by which organisations achieve their long-term objectives b. The means by which individuals achieve their objectives c. The formal detailed plans used by organizations to guide their actions d. The will of top managers to change their organization

a

By strategy, structure and rivalry Porter means things such as intense domestic competition - e.g. good restaurants in France. a. T b. F

a

Long term agreements between gas producers and gas pipeline companies are an example of a strategic alliance. a. T b. F

a

Organizational identity is the link between a firm's externally-perceived position and its internal self-image. a. T b. F

a

The key success factor in the Introduction phase of the industry is: a. Effective product innovation i.e. getting new products launched and in front of customers b. Making sure the workforce is multi-skilled c. Having a committed workforce, e.g. prepared to work weekends for no extra wages d. Just being creative

a

3M's parallel structure: a. Was consciously designed in 1912 b. Involves employees working on projects in their own private time, but turning these into official projects if they show real promise c. Is known elsewhere as a matrix structure d. Involves people being employed in either a 'staff' or a 'line manager' position

b

A dominant design is: a. One which has won the most industrial design awards b. An emergent de facto industry standard broad product format c. The one advertised most strongly by the market leader d. The latest new product which gains the most media attention

b

A firm which is international automatically has several competitive advantages over purely national firms. a. T b. F

b

A matrix structure means a firm is formally organized by: a. Executive Committees b. Products, geography and functions simultaneously c. Products, functions and structure simultaneously d. Either of answers a or c

b

An adhocracy describes the kind of structure found in: a. A modern retail chain of supermarkets b. A research lab or new product development group - such as much of Google or Microsoft c. A prestigious firm of Latin-speaking lawyers d. A private hedge fund of financial traders with clear trading rules and limits

b

Consumer electronics (laptops, personal devices etc.) are an example of: a. A multi-domestic industry b. A global industry c. A trading industry d. The phishing industry

b

Departments within a firm rarely have their own departmental goals conflicting with other departments' goals; they are exclusively driven by the firm's overall goals. a. T b. F

b

Often, to succeed in the evolution from Introduction to Growth a firm: a. Needs to acquire an injection of cash from a venture capital company b. Needs to be closely associated with the dominant design which emerges c. Needs to buy a major competitor d. Needs to pull back on product innovation

b

One huge problem with vertical integration of activities with only one major sellable output is: a. The company will be too large to manage efficiently b. The entire integrated value-chain is subject to the same single market risk c. Upstream stages are isolated from market forces d. It's no longer possible to use external suppliers

b

Schein says that corporate culture can be understood: a. At three levels: artificial constructs, values and explicit statements b. At three levels: artefacts, values and tacit beliefs c. As being at the intersection of personal, corporate and national values d. The acme of inimitable competitive advantage

b

To determine the amount of the value created between players appropriated by the innovator, 4 factors are critical: a. Complementary resources, tacitness and complexity of technology, corporate culture, and HR management b. Property rights, tacitness and complexity of technology, lead-time, and complementary resources c. Tacitness and complexity of technology, lead-time, excellence of top management teams, and luck d. Lead-time, complementary resources, relative bargaining power, and structure of the industry

b

A country has a comparative advantage: a. In producing milk if its cows are heavy milk producers b. In producing mobile phones if it has a big timber industry c. In producing those products or services that make intense use of those resources in which it has a relative abundance d. In producing those products or services that make intense use of those resources for which it has the lowest domestic demand

c

A new industry life cycle begins when: a. A very large gap in the market emerges b. Another industry dies c. New knowledge manifests itself in the guise of a sufficiently radical product innovation d. There are sufficient entrepreneurs

c

Apple's ITunes success was an example of: a. A great new IT product: compatible hardware, software and content all working together b. The decline of the conventional recorded music industry c. An innovative and legal business model replacing the conventional (legal) recorded music business model d. Apple's non-stop stream of wacky gimmicks

c

Business strategy defines: a. The way a firm competes in a particular industry or market b. How a firm gains a competitive advantage over its rivals within a specific industry or market c. Both a and b d. Neither a nor b

c

If banks lack 'social legitimacy' they: a. Have balance sheets which, though legal, are weaker than society expects b. Have not paid enough money into fashionable charities and swanky dinners c. Are perceived by society to have equity, ethical and/or sustainability problems d. Are perceived by society to have equity, gearing and sustainability problems

c

If top management understands the customers, suppliers, competitors and the general environment then: a. It will be a successful company b. A successful strategy will emerge from these factors c. This is a good basis for assessing the industry, but has little bearing on predicting the success of an individual company d. They can save money by not employing management consultants

c

In a multidivisional structure each division is responsible for: a. A major market or country b. A major function or task of the firm c. All functions necessary to produce one range of products d. Either of answers a or b

c

Not-for-profit organisations: a. Are required by law not to make any profit b. Avoid making profits as far as possible c. Often do make profits (called a surplus), but these are re-invested in the organisation d. Must explain any profit they inadvertently make to the government

c

The basis for different structures is different ways of organizing: a. The Board of Directors b. The firm's core processes c. Hierarchies within the firm d. Relationships between departments

c

The internal environment: a. Is the structure inside an industry b. Has become less important as an explanation of firms' profitability c. Is how a firm's resources and capabilities are deployed to deliver its business strategy d. Can safely be left to the HR Department to manage

c

The overall bargaining power of buyers depends on: a. The buyer's price sensitivity b. The intensity of rivalry among sellers and the willingness of the buyer to exploit this c. The buyer's price sensitivity and the relative bargaining power between the seller and the buyer d. The intensity of rivalry among buyers and the ability to vertically integrate

c

Transnational corporations (TNCs) differ from multinational corporations (MNCs) in that: a. They have different kinds of internal financial reconciliation processes b. TNCs are a globally integrated network of independent profit centers c. TNCs are a globally integrated network of independent resources and capabilities d. There is no real difference

c

"Strategic innovation" involves: a. Limitless financial and organizational resources b. Spending more on Research & Development than your competitors c. Top managers' total dedication to achieving timely innovations d. Pioneering in at least one of the three dimensions: new industry, new customer segment, or new source of competitive advantage

d

55. To bring labor specialization to a productive conclusion firms need to implement structures and systems that: a. Command and Control employees b. Control and Coordinate employees c. Coordinate and Command employees d. Make employees Coordinate their actions and Cooperate with other stakeholders

d

A barrier to entry is: a. Anything that facilitates the entry of would-be new entrants in a specific industry b. Capital requirements, cost advantages, and product differentiation c. A law restricting trade d. Anything that makes entry into an industry as a new competitor more difficult, more costly, slower or even impossible

d

Economies of scale are a barrier to entry because: a. New entrants do not know where they are positioned on their learning curve b. New entrants do not yet understand the scale economies so they cannot precisely determine their selling price c. New entrants face a risk of price retaliation from the incumbents which could occur immediately on a large scale d. New entrants face the cost and risk of creating large scale capacity to start with or a severe cost disadvantage if they enter on a smaller scale

d

International strategic alliances allow: a. Governments to share national resources b. Retailers to control their suppliers c. Strong firms to dominate weak ones without having to buy them d. Firms to share resources and capabilities

d

The bargaining power of suppliers is likely to be high: a. When the suppliers' industry is concentrated b. When suppliers are supplying differentiated products c. When "our" (the customer's) industry is relatively fragmented d. All of the above

d

The strategic worry about short-termism is that: a. Managers focus on short-term sales targets and are not concerned about profits b. Managers focus too much on short-term economic conditions and not on profits c. Managers focus too much on immediate operations, and not on strategic issues d. Managers focus too much on headline profitability and not enough on the underlying causes of it

d

To survive in an unpredictable and more competitive environment requires: a. To survive in an unpredictable and more competitive environment requires b. Firms to perform with a broad range of capabilities c. Firms to respond faster to changes in the environment d. Answers b and c

d

Two mechanisms promote internationalization: a. Inter-governmental bond borrowing, and inter-bank capital flows b. Inter-bank capital flows and trade c. Inter-bank capital flows and direct investment d. Direct investment and trade

d

The simplest useful definition of business strategy would be: a. A sort of plan b. A conceptual construct relating to the juxtaposition of corporate richness versus the snakes and ladders of a kaleidoscopic environment c. How to win the corporate wars; price wars, technology races, develop killer applications d. The means by which organisations achieve their long-term objectives

d mburle7525