Strategic Management Final

If the willingness to pay of a customer for an automobile is $18000, and the cost to produce that automobile is $14000, the consumer surplus is

Cannot be determined with data provided

Which of following companies best exemplifies broad cost leadership?

Costco

The technology S-curves points to

Diminishing returns at some point of technology adoption

The most valuable competency in the declining phase of an industry is

Efficiency

Costco's strategy with respect to pricing of its products and services can best be described as

Increasing consumer surplus no matter the segment or product

Incumbents typically have a cost advantage as compared to new entrants because

Incumbent market shares lead to greater economies of scale

A short term profit maximizing strategy for a monopoly would focus on

Minimizing consumer surplus

In the context of the Differentiation (Quality) vs Efficiency trade-off curve, Amazon is best describes as a company

That has been a value innovator

Apple's core competency lies in its capabilities and technologies that deliver enhanced user experience and service.

True

Which of the following companies best exemplifies broad differentiation?

Volkswagen

The efficient frontier has a concave shape (I.e. a bulging shape) bbecause

It costs progressively more for every increment in quality levels

Which of the following companies best exemplifies a blue ocean strategy?

Tesla

Absolute cost advantages for incumbents (over new entrants to an industry) typically derive from

- Control of inputs -Higher levels of experience -Economies of scale from market share

Which of the following best describes a mission statement?

An objective for a company to be debt free in 5 years

Amazon's Flywheel based strategy relies first on which of the following achievements?

Customer Satisfaction

Uber is an example of industry chaining in which of the following ways

Improving access and reduced search costs for customers and service providers

An organizational structure split into international market divisions would be designed to

Increase localization and responsiveness

An equation that best describes customer valuation is

Quality/Product Price

Technology firms typically invest in higher fixed cost processes in order to

Reduce variable costs in the long run

Strategy formulation and execution is ultimately a service to

Shareholders

Strategy is defined best as

A unique value proposition supported by synergies in operations

Shareholder returns are primarily derived from

Growth in share value and dividend payments

The biggest impediment to an industry's consolidation is

Lack of scale economies

The cost of attracting new customers is the highest with which of the following groups

Laggards

McDonald's could be considered as an example of

Localization strategy in Asia

A highly capable brick and mortar electronics retailer with a loyal regional customer base (such as Fry's) should adopt which of the following medium term strategies

Niche or harvest

In the context of the Differentiation (Quality) vs Efficiency trade-off curve, Amazon is best described as a company

That has been a value innovator

Absolute cost advantages for incumbents (over new entrants to an industry) typically derive from

-Control of inputs -Higher levels of experience -Economies of scale from market share **ALL OF THE ABOVE**

Porter's Five forces helps with all of the following objective EXCEPT

Evaluate the strengths and weaknesses of a firm

Agency theory posits that in the relationship between Principal and Agent the Principal often has the information advantage as it relates to operations and market trends

False

Boeing with it's 787 program initially tried to use a Build to Print strategy to ensure quality and timeliness in the delivery of the first customer orders.

False

Pharmaceutical companies often license the innovation from smaller players because they often lack the capabilities inhouse to perform the innovative research and development

False

**A key feature of the cereal industry in recent years has been

Product proliferation

Effective marketing directly contributes to a firm's efficiency objective by

Reducing the cost of serving the average customer

Which of the following best exemplifies a capability for a company

Supply chain management

Which of the following frameworks helps a firm make trade-offs between innovation, customer experience, employee engagement and learning, and profitability of the firm

The Balanced Scorecard framwork

In the context of the Differentiation (Quality) vs Efficiency trade-off curve, the efficient frontier refers to

The company that provides maximum quality for a given cost

Blue ocean strategies represent considerable risk for a firm

True

Porter's Five forces helps with all of the following objectives:

-Evaluate opportunities and threats -Decide entry or exit from an industry -Evaluate the attractiveness of an industry

Strategy is defined as

A unique value proposition supported by synergies in operations

Amazon.com is a great example of a company that has consistently delivered

Above average share value appreciation

Which of the following companies best exemplifies focus differentiation?

Apple

Tesla's business model can be best described as

Electric vehicles and services for the technology savvy drivers with advanced engineering and in-house manufacturing

Amazon's strategy involves offering expanded variety but at very competitive prices. This is primarily achieved through

Economies of scope

Porter's framework of "competitive advantage for nations" focuses solely on factor endowments as a source of advantage

False

Network effects in technology competition help in the following sense

Help drive and cement adoption into a standard

Incumbents typically have a cost advantage as compared to new entrants because

Incumbents typically have a technological edge compared to new entrants

The most valuable competency in the embryonic phase of an industry is

Innovation

The efficient frontier has a concave shape (i.e. a bulgin shape) because

It costs progressively more for every increment in quality levels

Subway restaurants is able lower variety related costs primarily through

Modular design of its service

According to the Mintzberg model of strategy development

Most realized strategies are serendipitous in response to evolving markets

There is often limited capacity relative to demand in the early growth period of an industry because

Only few companies have products or technologies in a budding industry

Which of the following reasons could be cited for declining productivity growth in the US

Shift to service based economy

The best possible context within which to apply Porter's Five Forces model is for

Strategic group

In the context of corporate social responsibility, strategy is ultimately a comprehensive service to the company's stakeholders

True

The Toyota Production System or Lean Manufacturing can be considered a great example of successful strategy execution

True

The importance Performance Framework helps identify the most fruitful areas of innovation that can boost short term profits

True