MGMT 4513 Final || with 100% Verified Solutions.
Recent trends that might lead managers of multinational corporations (MNCs) not to adopt a
multi-domestic strategy for their operations would include all of the following except
A. international customers' needs, interests, and tastes are becoming increasingly
homogenized or similar.
B. consumers around the world are increasingly willing to trade off idiosyncratic
preferences in product features for lower prices.
C. flexible manufacturing trends have allowed a decline in the minimum volume required
to reach acceptable levels of production efficiency.
D. cultural globalization and technological standards diffusion across countries are
resulting in increased similarities in lifestyles and preferences in an increasing number
of countries around the world. correct answers C
Competitiveness is usually enhanced by good implementation of diversification based on all of
the following reasons except:
A. Potential to share the inventory delivery system between the old and the new business
B. Potential to reduce the cost of manufacturing in the new business more than other
potential acquirers
C. Potential to overcome uncertainties in the future cash flows of a mature product line
with cash flows from a new product to protect value for shareholders
D. Potential to share managerial competences in the implementation of a particular
technological development across otherwise different businesses
E. None of the other options in this set of answers. correct answers C
High pressure for local adaptation combined with high pressure for lower costs would suggest
what type of international strategy?
A. international.
B. global.
C. multi-domestic.
D. transnational. correct answers D
Units coordinate their activities with headquarters and with one another, units adapt to special
circumstances only they face, and the entire organization draws upon relevant global resources
for enhanced efficiencies. These are all attributes of which type of strategy?
A. a global strategy
B. a transnational strategy
C. an international strategy
D. a multi-domestic strategy correct answers B
Excessive focus on reduced risk might occur if an executive has been with the company for a
long time and his/her pay package has been dominated by:
A. salary
B. bonus
C. stock options
D. benefits correct answers C
,The bargaining power of suppliers is enhanced under the following market condition:
A. no threat of forward integration
B. low differentiation of the suppliers' products
C. greater availability of substitute products
D. dominance by a few suppliers correct answers D
High product differentiation is generally accompanied by
A. higher market share.
B. decreased emphasis on competition based on price.
C. higher profit margins and lower costs.
D. significant economies of scale. correct answers B
An analysis of the economic segment of the external environment does NOT include
A. interest rates.
B. international trade.
C. the strength of the U.S. dollar.
D. the move toward a contingent work force. correct answers D
If an industry has high exit barriers and high entrance barriers, returns to the industry should be
A. low and unstable.
B. low and stable.
C. high and unstable.
D. high and stable. correct answers B
The three key types of firm factors that are central to the resource-based view of the firm are:
A. tangible resources, intangible resources, and organizational structure.
B. culture, tangible resources, intangible resources.
C. tangible resources, intangible resources, and organizational capabilities.
D. tangible resources, intangible resources, and top management. correct answers C
Which of the following is a risk (or pitfall) of cost leadership?
A. cost cutting may lead to the loss of desirable features
B. attempts to stay ahead of the competition may lead to unacceptable quality
C. cost differences increase as the market matures
D. producers are more able to withstand increases in suppliers' cost correct answers B
Mission correct answers statement explaining WHY a company exists, no specific time frame
Vision correct answers crystallization of what leaders want a firm to be, specific time frame
Strategic Plan correct answers How to beat present and potential competitors
Stakeholders correct answers Individuals and groups who can affect, and are affected by, the
strategic outcomes achieved and who have enforceable claims on a firm's performance
, Capital Market Stakeholders correct answers shareholders, major suppliers of capital, banks
Product Market Shareholders correct answers primary customers, suppliers, host communities,
unions
Organizational Shareholders correct answers employees, managers, nonmanagers
Two issues affect the extent of stakeholders in the firm correct answers How to divide returns to
keep stakeholders involved?
How to increase returns so everyone has more to share?
Corporate Governance correct answers the relationship among various participants in
determining the direction and performance of corporations
Strategic Competitiveness correct answers When a firm successfully formulates and implements
a value-creating strategy
Sustainable Competitive Advantage correct answers When competitors are unable to duplicate a
company's value-creating strategy
Strategic Management Process correct answers The full set of commitments, decisions, and
actions required for a firm to achieve strategic competitiveness and earn above-average returns
Risk correct answers An investor's uncertainty about the economic gains or losses that will result
from a particular investment
Average Returns correct answers Returns equal to those an investor expects to earn from other
investments with a similar amount of risk
Above-average returns correct answers Returns in excess of what an investor expects to earn
from other investments with a similar amount of risk
How do we know if a company is performing well? correct answers To replace assets a firm
must earn return on capital in excess of cost of capital
to survive acquisition, firm must achieve stock market value in excess of break-up value
Economic Value Model correct answers strategy objective is to maximize shareholder wealth
Approaches for evaluating firm performance correct answers financial ratio analysis, stakeholder
perspective
Industry correct answers a group of firms producing products that are close subsititues
Recent trends that might lead managers of multinational corporations (MNCs) not to adopt a
multi-domestic strategy for their operations would include all of the following except
A. international customers' needs, interests, and tastes are becoming increasingly
homogenized or similar.
B. consumers around the world are increasingly willing to trade off idiosyncratic
preferences in product features for lower prices.
C. flexible manufacturing trends have allowed a decline in the minimum volume required
to reach acceptable levels of production efficiency.
D. cultural globalization and technological standards diffusion across countries are
resulting in increased similarities in lifestyles and preferences in an increasing number
of countries around the world. correct answers C
Competitiveness is usually enhanced by good implementation of diversification based on all of
the following reasons except:
A. Potential to share the inventory delivery system between the old and the new business
B. Potential to reduce the cost of manufacturing in the new business more than other
potential acquirers
C. Potential to overcome uncertainties in the future cash flows of a mature product line
with cash flows from a new product to protect value for shareholders
D. Potential to share managerial competences in the implementation of a particular
technological development across otherwise different businesses
E. None of the other options in this set of answers. correct answers C
High pressure for local adaptation combined with high pressure for lower costs would suggest
what type of international strategy?
A. international.
B. global.
C. multi-domestic.
D. transnational. correct answers D
Units coordinate their activities with headquarters and with one another, units adapt to special
circumstances only they face, and the entire organization draws upon relevant global resources
for enhanced efficiencies. These are all attributes of which type of strategy?
A. a global strategy
B. a transnational strategy
C. an international strategy
D. a multi-domestic strategy correct answers B
Excessive focus on reduced risk might occur if an executive has been with the company for a
long time and his/her pay package has been dominated by:
A. salary
B. bonus
C. stock options
D. benefits correct answers C
,The bargaining power of suppliers is enhanced under the following market condition:
A. no threat of forward integration
B. low differentiation of the suppliers' products
C. greater availability of substitute products
D. dominance by a few suppliers correct answers D
High product differentiation is generally accompanied by
A. higher market share.
B. decreased emphasis on competition based on price.
C. higher profit margins and lower costs.
D. significant economies of scale. correct answers B
An analysis of the economic segment of the external environment does NOT include
A. interest rates.
B. international trade.
C. the strength of the U.S. dollar.
D. the move toward a contingent work force. correct answers D
If an industry has high exit barriers and high entrance barriers, returns to the industry should be
A. low and unstable.
B. low and stable.
C. high and unstable.
D. high and stable. correct answers B
The three key types of firm factors that are central to the resource-based view of the firm are:
A. tangible resources, intangible resources, and organizational structure.
B. culture, tangible resources, intangible resources.
C. tangible resources, intangible resources, and organizational capabilities.
D. tangible resources, intangible resources, and top management. correct answers C
Which of the following is a risk (or pitfall) of cost leadership?
A. cost cutting may lead to the loss of desirable features
B. attempts to stay ahead of the competition may lead to unacceptable quality
C. cost differences increase as the market matures
D. producers are more able to withstand increases in suppliers' cost correct answers B
Mission correct answers statement explaining WHY a company exists, no specific time frame
Vision correct answers crystallization of what leaders want a firm to be, specific time frame
Strategic Plan correct answers How to beat present and potential competitors
Stakeholders correct answers Individuals and groups who can affect, and are affected by, the
strategic outcomes achieved and who have enforceable claims on a firm's performance
, Capital Market Stakeholders correct answers shareholders, major suppliers of capital, banks
Product Market Shareholders correct answers primary customers, suppliers, host communities,
unions
Organizational Shareholders correct answers employees, managers, nonmanagers
Two issues affect the extent of stakeholders in the firm correct answers How to divide returns to
keep stakeholders involved?
How to increase returns so everyone has more to share?
Corporate Governance correct answers the relationship among various participants in
determining the direction and performance of corporations
Strategic Competitiveness correct answers When a firm successfully formulates and implements
a value-creating strategy
Sustainable Competitive Advantage correct answers When competitors are unable to duplicate a
company's value-creating strategy
Strategic Management Process correct answers The full set of commitments, decisions, and
actions required for a firm to achieve strategic competitiveness and earn above-average returns
Risk correct answers An investor's uncertainty about the economic gains or losses that will result
from a particular investment
Average Returns correct answers Returns equal to those an investor expects to earn from other
investments with a similar amount of risk
Above-average returns correct answers Returns in excess of what an investor expects to earn
from other investments with a similar amount of risk
How do we know if a company is performing well? correct answers To replace assets a firm
must earn return on capital in excess of cost of capital
to survive acquisition, firm must achieve stock market value in excess of break-up value
Economic Value Model correct answers strategy objective is to maximize shareholder wealth
Approaches for evaluating firm performance correct answers financial ratio analysis, stakeholder
perspective
Industry correct answers a group of firms producing products that are close subsititues
