MGMT Quiz Review

_____________________ is a phenomenon that shareholders who prefer short-term returns press management to focus only on short-term performance and not to invest in long-term projects.

short-termism

___________________ includes the process, content, and outcome of refreshment or replacement of attributes that have the potential to substantially affect its long-term prospects in a company.

strategic renewal

In the video, I introduced an executive, Ron Johnson, who was a CEO of JC Penney. Which company did he work for before he became the CEO of JC Penney?

Apple

As a recent movement, some companies participate in the __________________ process. _________________ is certified by the nonprofit organization B Lab to meet rigorous standards of social and environmental performance, accountability, and transparency.

B Corporation

Which one is not true about strategic alliances?

Because commonly shared knowledge is the most critical factor that determines the success of strategic alliances, the alliances are formed only between companies in the same industry.

Choose all companies that are introduced/mentioned in this week's lecture video.

De Beers, Qualcomm, 3M, FedEx, Disney

Which one is not true about M&A (merger and acquisition)?

M&As are mostly more cost-effective than internal development because organic growth takes too much time.

Which one is not true about overall cost leadership?

Overall cost leadership always implies some limitations on the overall market share achievable.

Which one is not SM (strategic management)'s key attributes that are introduced in the lecture?

SM leads every company to make profits in business.

Which company does this description explain? "This company positions in the market to deliver low-cost, convenient service on particular type of route. They use only 737 aircrafts, they don't have first-class or business-class service. They do not assign seats for passengers. The first bag check-in is free. All these things are well aligned to pursue its strategic direction."

Southwest Airlines

Which one is an example of business strategy (not corporate strategy)?

To attract price sensitive customers, Walmart pursues cost leadership strategy by offering products with cheap prices.

Which one is not advantages of vertical integration?

by vertically integrating, firms can lower exit barriers

When an industry consists of [Raw material producer]-[Supplier]-[Firm]-[Channel], which stage is a downstream player?

channel

Which one is not an attribute that explains when a resource can create sustainable competitive advantage from the RBV perspective?

approachable

Economies of scale is a phenomenon that the ___________ decreases as a company's production level increases.

average cost

There are two levels of strategies. While ______________ is about how the firm competes within a particular industry, _____________ is about managing organizational boundary related to diversification, vertical integration, merger & acquisition, and resource allocation.

business strategy, corporate strategy

_____________________ is corporate self-regulation integrated into its business model. A corporate tries to be responsible for environmental, ethical, and sustainable issues.

corporate social responsibility

Among generic strategies, which generic competitive strategy does this explain? "Lush is unlike any other makeup brand on the marketplace. This cosmetics maker has international reach with a local "warm and fuzzy" approach that isn't afraid to push the boundaries. So, what makes LUSH so different from the likes of Sephora or even Etsy? Handmade products. Advocates of LUSH are committed to ethical buying, and are obsessed with the purity that comes from a handmade item. The company's biggest success is knowing that its core buyers value social and corporate responsibility over a luxurious and out-of-reach image."

differentiation

________________________ is the capacity of a company to purposefully create, extend, or modify its resource base.

dynamic capability

While ______________________ is the reductions in average costs that result from an increase in the output of a single product, _______________________ is cost economies from increasing the output of multiple products.

economies of scale, economies of scope

Which one is not a source of first-mover advantages?

high level of technological market uncertainty

What are causes of agency problems? (Pick two)

information asymmetry and moral hazard

_______________________________ is a phenomenon that a successful company focuses on major customers and a small, new company starts to enter the niche-market and sharpen technological capabilities which surpass that of incumbent companies.

innovator's dilemma

When an industry is growing, the intensity of rivalry is _____________.

low

When buyers' switching cost is high, the bargaining power of buyers is _____________.

low

When economies of scale is significant, the threat of new entrants is __________________.

low

To understand the competitive intensity of two industries, a business consultant conducted market concentration analysis by using Hirshman-Herfindahl Index (HHI). The HHI of industry X was 0.40 and the HHI of industry Y was 0.15. Based on this calculation, the consultant concludes that industry X is _______ concentrated market than industry Y and that industry X is _______ competitive market.

more, less

_____________ comprise all the expenses that network users incur in order to establish and maintain platform affiliation.

multi-homing costs

Which one is not a benefit of vertical integration strategy?

secure flexibility to choose alternative transaction partners

According to Michael Porter's paper, 'What is strategy?', while is about achieving excellence in individual activities, is about combining activities

operational effectiveness, strategy

Which activity is one of the primary activities in the value chain analysis?

operations

Among generic strategies, which generic competitive strategy does this explain? "To attract price-sensitive customers away from competitors, 7-Eleven stores offer $1 coffee or iced coffee."

overall cost leadership

A firm successfully implementing a differentiation strategy would expect _______

to charge premium prices

In traditional businesses, growth beyond some point usually leads to diminishing returns. However, in the digital age, successful platforms enjoy increasing returns to scale. So we observe mature two-sided network industries are dominated by a handful of large platforms. This phenomenon is called __________________.

winner-takes-all