MGT445 Exam 2
What does USLP stand for? Universal Sustainable Living Plan Unilever Sustaining Life Program Unilever Sustainable Living Plan Universal Sustainable Life Plan
Unilever Sustainable Living Plan
BioCure Inc. is a pharmaceutical company that has many breakthroughs in medicine to its credit. Unlike many other pharmaceutical companies, BioCure has a relaxed work environment where employees are free to discuss projects with each other. Employees are encouraged to choose the projects that interest them; communication between team members and their supervisors is open and easy. Because of the company's work culture, its employees feel motivated to work harder and display more entrepreneurial behaviors. In this scenario, BioCure Inc. is most likely an organization that is centralized. formalized. organic. mechanistic.
organic
BioCure Inc. is a pharmaceutical company that has many breakthroughs in medicine to its credit. Unlike many other pharmaceutical companies, BioCure has a relaxed work environment where employees are free to discuss projects with each other. Employees are encouraged to choose the projects that interest them; communication between team members and their supervisors is open and easy. Because of the company's work culture, its employees feel motivated to work harder and display more entrepreneurial behaviors. In this scenario, BioCure Inc. is most likely an organization that is organic. formalized. mechanistic. centralized.
organic
Which of the following best illustrates forward vertical integration? A chain of ice cream parlors launches a brand of toys and accessories for children. A firm that manufactures and sells car engines to major automobile companies launches its own line of cars. A designer shoe company that previously purchased leather from external suppliers establishes its own leather tannery. A multinational coffee chain sources its coffee beans from plantations in Brazil and Vietnam.
A firm that manufactures and sells car engines to major automobile companies launches its own line of cars.
Which of the following best illustrates forward vertical integration? A multinational coffee chain sources its coffee beans from plantations in Brazil and Vietnam. A designer shoe company that previously purchased leather from external suppliers establishes its own leather tannery. A chain of ice cream parlors launches a brand of toys and accessories for children. A firm that manufactures and sells car engines to major automobile companies launches its own line of cars.
A firm that manufactures and sells car engines to major automobile companies launches its own line of cars.
Which of the following is FALSE about for-benefit business models? Benefit corporation is a legal company status that is accepted in several states in the US. The difference between for-profit and for-benefit model is the purpose behind the company operations. B-lab is a for-profit organization and aims to maximize shareholder value. B-Corp. is a certified company status that can be attained from B-lab after audits.
B-lab is a for-profit organization and aims to maximize shareholder value.
Which of the following is true about Digital Platforms? Digital platforms are basically social media where one can communicate with others. Digital platforms are open source online spaces where individuals share information. Digital platforms are becoming less and less common after the pandemic. Digital platforms are exchange platforms that connect users and providers.
Digital platforms are exchange platforms that connect users and providers.
Which of the following is true about Circular Economy? Circular economy is built on the model of take-make-waste. In circular economy, waste of one industry can be an input material of another industry. Circular economy is the new word for recycling. Circular economy does not consider the advantages of regenerative agriculture.
In circular economy, waste of one industry can be an input material of another industry.
Which of the following is an advantage offered by a functional structure? It facilitates a lower division of labor, which is linked to higher productivity. It allows for an efficient top-down communication chain and thus relies on a relatively tall structure. It allows for a higher degree of specialization and deeper domain expertise. It facilitates a lower level of specialization.
It allows for a higher degree of specialization and deeper domain expertise.
Coca-Cola was primarily known for its core competencies in marketing, bottling, and distributing aerated drinks. However, with the success of Gatorade, Coca-Cola developed competencies in the development and marketing of its own sports drink, Powerade. Which of the following is true of Coca-Cola? It is building new core competencies to protect and extend its current market position. It is leveraging existing core competencies to improve current market position. It is redeploying and recombining existing core competencies to compete in markets of the future. It is targeting the chasm between the early adopter and early majority market segment.
It is building new core competencies to protect and extend its current market position.
Coca-Cola was primarily known for its core competencies in marketing, bottling, and distributing aerated drinks. However, with the success of Gatorade, Coca-Cola developed competencies in the development and marketing of its own sports drink, Powerade. Which of the following is true of Coca-Cola? It is leveraging existing core competencies to improve current market position. It is redeploying and recombining existing core competencies to compete in markets of the future. It is building new core competencies to protect and extend its current market position. It is targeting the chasm between the early adopter and early majority market segment.
It is building new core competencies to protect and extend its current market position.
How is a cost-leader protected from threats from powerful suppliers? It is more able to absorb price increases through accepting lower profit margins. It is able to create a significant difference between perceived value and current market prices. It is more able to absorb price increases through generating higher profit margins. It is able to create a significant difference between actual value and future market prices.
It is more able to absorb price increases through accepting lower profit margins.
What must a cost-leadership strategy accomplish to be successful? It must increase the firm's cost above that of its competitors while offering superior value. It must reduce the firm's cost below that of its competitors while offering superior value. It must reduce the firm's cost below that of its competitors while offering adequate value. It must increase the firm's cost above that of its competitors while offering adequate value.
It must reduce the firm's cost below that of its competitors while offering adequate value.
Which of the following real-world scenarios best exemplifies formalization? McDonald's use of standard operating procedures across the world Yahoo's decision to fire its CEO after incurring huge losses Zappos' focus on allowing its customer service employees to use their own approach rather than depend on scripts W. L. Gore's associates organizing themselves in project-based teams that are led by sponsors, not bosses
McDonald's use of standard operating procedures across the world
Which of the following best describes how Trader Joe's maintain its strategy? Holding a large volume of inventory Opening stores in prime locations Offering unique products under Trader Joe's company name Cutting labor costs through low wages
Offering unique products under Trader Joe's company name
________ refers to a firm's resistance to change the status quo that can set the stage for the firm's subsequent failure. Formalization Organizational inertia PESTEL factors Centralization
Organizational inertia
Starfish Sodas has successfully achieved a competitive advantage in the soft drink industry as a differentiator. Which of the following scenarios would undermine Starfish's position? Starfish's product has not established an acceptable standard of quality. Starfish's customers start to consider soda a commodity. Starfish introduces a new biodegradable bottle that raises cost and perceived value. Starfish improves the recipe for its most popular soda without increasing the price.
Starfish's customers start to consider soda a commodity.
Which of the following is true of the process of organizing for competitive advantage? To maintain competitive advantage, companies need to restructure as they grow and the competitive environment changes. Formulating an effective strategy is a necessary and sufficient condition for gaining and sustaining competitive advantage. Organizing for competitive advantage is a static and not a dynamic process. Strategy formulation and strategy implementation are independent activities.
To maintain competitive advantage, companies need to restructure as they grow and the competitive environment changes.
Which of the following is False about the history of Trader Joe's? Aldi acquired Trader Joe's in 1979. Joe Coulombe was influenced by the environmental movement and offered organic products in Trader Joe's. Joe Coulombe aimed to address the needs of educated people who looked for something different. Trader Joe's stores were very big spaces and stock as many products as typical supermarkets.
Trader Joe's stores were very big spaces and stock as many products as typical supermarkets.
Which of the following is FALSE about Unilever? Unilever differentiated sustainability from corporate social responsibility. Partnerships with governments and NGOs were an important dimension of Unilever's sustainability transition. Unilever had a smooth transition toward sustainability. The company's roots can be traced back to late 19th century.
Unilever had a smooth transition toward sustainability.
W. L. Gore & Associates is organized in such a way that it has no formal job titles, job descriptions, or chains of command. This implies that it has a decentralized structure. a top-down management style. organizational inertia. a formalized structure.
a decentralized structure.
Royal Motor Corp. generates a major portion of its revenues by manufacturing luxury sports cars. However, the company also derives an insignificant percent of its annual revenues by selling its sports merchandise that includes apparel, shoes, and other accessories under the same brand name. Which of the following terms best describes Royal Motor Corp.? a subsidiary a dominant-business firm a single-business firm a conglomerate
a dominant-business firm
Tangles Costume Jewelry offers slightly lower quality merchandise than competitors at a much lower price. What strategy is Tangles using? differentiation niche marketing cost-leadership product diversification
cost-leadership
Which of the following is NOT one of the nine building blocks of the Business Model Canvas? distribution channels key partners dynamic capabilities customer segments
dynamic capabilities
A differentiation strategy works best when a firm has tangible resources, its focus of competition shifts to price, and equivalent substitutes are readily available. firm's focus of competition shifts to price, and when increasing differentiation of product features do not create additional value. firm has intangible resources, is able to pass on increases in supplier cost to the customer, and its differentiation appeal creates customer loyalty. firm's differentiated products are commoditized, and costs of providing uniqueness do not rise above the customer's willingness to pay.
firm has intangible resources, is able to pass on increases in supplier cost to the customer, and its differentiation appeal creates customer loyalty.
A differentiation strategy works best when a firm's differentiated products are commoditized, and costs of providing uniqueness do not rise above the customer's willingness to pay. firm has intangible resources, is able to pass on increases in supplier cost to the customer, and its differentiation appeal creates customer loyalty. firm has tangible resources, its focus of competition shifts to price, and equivalent substitutes are readily available. firm's focus of competition shifts to price, and when increasing differentiation of product features do not create additional value.
firm has intangible resources, is able to pass on increases in supplier cost to the customer, and its differentiation appeal creates customer loyalty.
Each stage of the vertical value chain typically represents a distinct ________ in which a number of different firms are competing. functional department industry customer segment economy
industry
Decisions relating to the range of products and services a firm will offer determine the firm's ________ level of diversification. vertical integration. geographic scope. absorptive capacity.
level of diversification.
There are many reasons why firms need to grow. Which of the following reasons is strongly influenced by economies of scale? motivating managers increasing profits lowering costs reducing risk
lowering costs
When a firm diversifies into different product lines and geographies, a ________ structure is preferred. network functional multidivisional simple
multidivisional
While working a night job at a call center, Eric creates an app called EatOut, which can be used to place orders at restaurants, rate the restaurants, and make reservations. Because he receives good responses for his app, he quits his current job to focus his efforts on EatOut. He creates a start-up called BestApps and hires three people to help him improve EatOut and maintain the servers that run it. In this scenario, BestApps most likely has a ________ structure. functional mechanistic simple matrix
simple
While working a night job at a call center, Eric creates an app called EatOut, which can be used to place orders at restaurants, rate the restaurants, and make reservations. Because he receives good responses for his app, he quits his current job to focus his efforts on EatOut. He creates a start-up called BestApps and hires three people to help him improve EatOut and maintain the servers that run it. In this scenario, BestApps most likely has a ________ structure. mechanistic matrix simple functional
simple
The smartphone division of the large consumer electronics company, True Electra Inc., has a significant market share in the fast-growing cell phone market. If the company invests further into this division, it will be able to reap increased cash flows. In the Boston Consulting Group (BCG) growth-share matrix, the smartphone division of True Electra will be categorized under ____________. question marks. dogs. cash cows. stars.
stars
A firm's ________ determines how the work efforts of individuals and teams are orchestrated and how resources are distributed. control structure norm culture
structure
Which of the following is an example of an internal transaction cost? the cost of maintaining a production unit the cost of signing a contract with a supplier the cost of searching for a contract manufacturer the cost of buying raw materials
the cost of maintaining a production unit
A blue ocean strategy differs from a low-cost strategy in that the focus of a blue ocean strategy is on lowering the economic value created, whereas a cost-leader focuses on increasing the economic value created. a blue ocean's research and development focus is on process technologies, and a cost-leader's focus is on product technologies. the intent of a blue ocean strategy is not to be the absolute lowest-cost provider because a blue ocean must also increase perceived value. economies of scale are more important to a blue ocean strategy, while economies of scope are more important to a cost-leader.
the intent of a blue ocean strategy is not to be the absolute lowest-cost provider because a blue ocean must also increase perceived value.
Due to its large sales volume and low cost structure, Quick Serve Mini-Marts enjoys a cost leadership position. Which of the following scenarios might threaten Quick Serve's competitive advantage? A new competitor is perceived to provide similar value, but in addition offers innovative self-checkout. Industry suppliers raise their prices. Existing competitors in the mini-mart industry lower their prices to match those of Quick Serve. Competitors engage in an all-out price war.
A new competitor is perceived to provide similar value, but in addition offers innovative self-checkout.
Which of the following best explains why a blue ocean strategy is difficult to implement? It requires the reconciliation of fundamentally different strategic positions—differentiation and strategic innovation. It requires the combination of fundamentally similar strategic positions—differentiation and strategic innovation. It combines the benefits of similar strategic positions—differentiation and low cost. It requires the reconciliation of fundamentally different strategic positions—differentiation and low cost.
It requires the reconciliation of fundamentally different strategic positions—differentiation and low cost.
________ define appropriate employee attitudes and behaviors. Values Norms Artifacts Appraisals
Norms
A blue ocean strategy differs from a low-cost strategy in that the focus of a blue ocean strategy is on lowering the economic value created, whereas a cost-leader focuses on increasing the economic value created. economies of scale are more important to a blue ocean strategy, while economies of scope are more important to a cost-leader. a blue ocean's research and development focus is on process technologies, and a cost-leader's focus is on product technologies. the intent of a blue ocean strategy is not to be the absolute lowest-cost provider because a blue ocean must also increase perceived value.
the intent of a blue ocean strategy is not to be the absolute lowest-cost provider because a blue ocean must also increase perceived value.