BA 466

Which of the following is an example of Blue Ocean Strategy?

A rival breaks away from existing product trends by exploiting previously unexploited opportunities.

What would one expect from a company that practices specialization?

A very specifically defined operation that reduces cost and maximizes profit.

If a corporate strategy becomes unprofitable or outdated, what action will management generally take?

Abandon the strategy and free up corporate resources.

Changing circumstances and on going managerial efforts to improve the strategy:

Account for why a company's strategy evolves over time.

What do we call a fiduciary and consensual relationship between two parties where one is represented by another in business or personal dealings with third parties?

Agency relationship

A strategic plan consists of:

All of the above

Internal control is intended to provide reasonable assurance regarding of the achievement of which objective?

All of the above

Most large public companies have implemented enterprise risk management (ERM) because demands from:

All of the above

Which question does a business model attempt to answer?

All of the above

Efficiently assessing the financial and operational performance of a business can help it to:

All of the above.

Which of the following should be taken into consideration when a company undergoes corporate restructuring?

All of the above.

Redbox uses vending machines placed outside grocery stores and other retail outlets to rent movie DVDs for $1. Among those firms that rent DVDs, Redbox offers unparalleled levels of price and convenience. This is an example of:

Focused cost leadership.

Which of Porter's generic business-level strategies would be used by a small firm employing a niche strategy and targeting a niche market strategy?

Focused differentiation.

Research of the industrial organization model indicates that ___% of company profitability can be explained by industry characteristics?

20%

Competitive advantage gives companies:

An edge over its rivals, and the ability to generate a greater value for its product

Which of the following is not an agency cost?

Employee referral bonus

Which of these are not competitive rivals?

Mercedes Benz vs. Honda

Which of the following would increase the level of competition within an industry/market?

Number of businesses operating within the market grows.

Which of the following are included in the duties of the board of directors?

Setting dividend policies

Which of the following explains strategic alliance?

A formal arrangement between two or more companies to share resources and pursue mutual benefits without exchanging equity.

Which of the following is an example of a business making changes in their strategy because of changes in the general macro environment?

A law gets passed making it necessary for companies to change their business strategy to comply with the new regulations.

In an agency relationship, the principal is:

A person who gives authority to another to act on his or her behalf.

A mission statement should include all of the following except:

Costs related to goods/services

The level of industry attractiveness is fluid and subject to change. This is an example of:

An industry's driving forces.

A recent report by the WSJ had the headline, "Singapore Seeking to Move Up Value Chain". Which of the following best describes what you might read in this article?

As a country, Singapore is making a conciliatory effort to move into more value-added industries and away from lower-margin business.

Which of these is not one of Porter's five forces?

Bargaining power of the board of directors.

The process of rating an organization's practices, processes, or products against the best in the world is known as:

Benchmarking

Building a customer value proposition plan helps show the:

Benefits your product promises to deliver to your customer and recognizes what your customer values.

The market for corporate controls takes place as a means of governance when:

Board of directors has failed.

The market for corporate control is best defined as what?

Buying majority ownership in an underperforming firm.

Stakeholders can be broken down into which of the following groups?

Capital market, product market, organizational

Companies often use large profits/returns from _____ to finance other less profitable ventures.

Cash cows.

A _____ is a business unit that is unable to provide enough of a positive cash flow to sustain operations, therefore needing to be funded by other parts of the business.

Cash hog.

Top executives are paid high compensation packages because:

Companies prefer performance based incentives.

Which of the following is not a part of the industry life cycle?

Competition phase.

Which of the following statements about ethics and competitive intelligence is most correct?

Competitive intelligence is an effective practice for maintaining competitive advantage but must adhere to the highest standard of ethics.

The rationale for making an acquisition includes each of the following except:

Decrease taxes paid by shareholders.

Economies of scope is experienced by:

Decreasing costs of production through diversification.

What is the definition of centralization?

Degree to which decision-making authority is restricted to higher levels of management in an organization.

What is the definition of monitoring?

Detecting meaning in environmental events and trends.

Which of these describe characteristics of formalization in organization structures?

Employees like being told what to do, formal organizations increase employee moral and encourage creativity.

Assume there are many employment agencies in Portland, which of the following is true regarding the relationship of the agencies to the client companies who hire their employee referrals?

Employment agencies lack power because client employees have low switching costs for finding alternative referrals.

A balanced scorecard measures:

Financial metrics against non-financial metrics

Competitive intelligible is the practice of analyzing information about competitors' strengths and weaknesses in order to enhance business decision-making. Which of the following best explains tactical competitive intelligence?

Focusing on short term issues such as a new market entry.

Which of the following is a Best Cost Provider business strategy?

Giving customers more value for their money by emphasizing low costs and differentiation, the goal being to keep costs and prices lower than that of competitors with comparable quality and features. Ex: Honda

First mover advantage is unlikely in which of the following examples?

Heavily focusing company resources on innovative legal maneuvers to extend the firm's intellectual property protection.

Lucid Technologies Inc. is currently making a strategic decision which will determine the direction of the company into a controversial new field. Which of the following ownership conditions is most likely to influence Lucid's decision?

High ownership concentration.

A question relevant to a business level strategy would be:

How souls the business compete in its market?

When conducting a SWOT analysis for a company, it is important to analyze the strengths, weaknesses, opportunities, and threats from what point of view to the company?

Internally and externally.

Which product/product category below is least subject to the threat of substitution?

International airline flights.

Which of the following is false? A distinctive competency:

Is typically less difficult for rivals to copy than a capability.

How can a business forecast with no historical data?

It is impossible to create an intelligent forecast without some form of historical data.

Once a firm implements a strategic management process:

It must continually review and adjust as the competitive conditions change.

In which of the following do cooperating parties create a legally independent company to share resources and capabilities as well as profit or loss?

Joint venture.

A company with ________ has the ability to competitively price their products while maintaining market share.

Market power.

Strategic Fit in an organization is:

Matching internal resources and capabilities to opportunities in the external environment.

Based upon common perceptions of their pricing practices, which of these companies are not in a "race to the bottom"?

Nordstrom

Which of these statements about organizational structure are true?

Organizational structure reflects cultural and power relationships.

The value or worth of a product based upon the opinion of a consumer is known as what?

Perceived value.

Which of these is not a benefit of market segmentation?

Provides economies of scope.

____ is/are the source of a firm's ____, which leave to developing the firm's ____.

Resources, capabilities, core competencies.

It is important for businesses to look into the industry environment prior to joining a new industry because:

So they can identify a successful business model and prepare for changes in the industry to increase the likelihood of profitability.

Which of the following descriptions relating to capital market is correct?

Stock markets, bond markets and money markets all belong to capital market.

The Googleplex (Google's Headquarters) is a piece of land with a futuristic building. This is an example of what?

Tangible resources.

Successful use of a focused differentiation strategy depends mostly on:

The existence of a buyer segment that is looking for special product attributes of seller capabilities.

In corporate-level strategy, a dominant business has what kind of characteristics?

The majority of revenue comes from a core business area.

A good example of core competency is:

Their ability to adapt to changes while keeping focus on goals and apply knowledge to new situations

Owners have a vested interest in agent's performance because:

Their actions directly impact business performance.

Which of the following are advantages of a late mover?

There is less uncertainty in the industry since late movers can build on what others have done and can avoid mistakes of earlier firms.

A merger is a combination of two or more businesses in which:

They combine to form one new business.

Outsourcing is:

Transferring non-core activities to foreign companies to reduce cost.

Can uncertainty reduce revenues and/or increase cost for an organization?

Yes, a mismatch between environmental uncertainty and the firm's orientation can affect revenue and cost, therefore planning is essential.