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BUS 475 FINAL EXAM QUESTIONS AND CORRECT ANSWERS

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BUS 475 FINAL EXAM QUESTIONS AND CORRECT ANSWERS

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An arbitrage strategy


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An automobile manufacturing company has its production units and sales
units in two different locations. The production units are situated in
geographical areas that offer cheap labor and easy resource availability.
On the other hand, the sales units are in places where there is a high
demand for the products. Which of the following strategies is best
exemplified in this scenario?




local responsiveness over standardization


Multidomestic strategy:A strategy involving tailoring products or services to local
markets.


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, Firms that use a multidomestic strategy to do business internationally
emphasize ________.




Virgo Corp., a company that contracts out a business activity to another company


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Which of the following scenarios illustrates the concept of outsourcing?




The airline industry is a profitable industry. The firms in this industry create barriers to
entry through patents and regulations in order to reduce the threat of new entrants. It
also minimizes the threat of substitutes while keeping rivalry to a minimum. The airline
industry can be best categorized as a(n) ________.


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Attractive industry




Lavender Inc., a computer manufacturing company, sells its products at costs that are
lesser than its competitors as it wishes to gain profits in order to cover more of the
competitive market. The company follows this method as it has high unit volumes. The
scenario best illustrates the


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Pricing Strategy

,A bundling strategy


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A cell phone manufacturing company gives away a free case with a
purchase of any product higher than $50. Which of the following is being
exemplified in this case?




It offers the least amount of control of all the various modes of entry.


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In the context of modes of international market entry, which of the
following statements is true of a joint venture?




Managers make difficult trade-offs to satisfy one shareholder group at the expense of
others.


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Which of the following is an issue pointed out by critics of the shareholder
primacy school as evidence against this model?




Modular interdependence


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, DHC Inc. is a television manufacturing company. The components of the
televisions are manufactured separately by different companies around the
globe. Later, these components are tested and then assembled to get the
finished products in house by DHC Inc. In the context of the degree of
coordination, this scenario best illustrates ________.




Speed Express, a courier company, proves to be a challenge to its competitors. The
technology, personnel, services, and organizational structure of the company are
bound together to create a system widely appreciated by its customers. Speed
Express has state-of-the-art facilities for its transportation, delivery, and packaging
operations. Speed Express also has a range of travelling bags and brand of wrist
watches. The company's success rests on the complex interplay between its functions,
products, and operations. Customers remain loyal to the company and prefer it over
other brands and services. Which of the following factors of inimitability does Speed
Express have?


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Complexity




A global strategy


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Trosome Petroleum Corp. opens new plants in Sopintry. In order to gain
economies of scale, it centralizes its products and operations. Decisions
regarding operations in Sopintry are made at the central headquarters.
Which of the following primary strategies is used by the company to do
business internationally?

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