BUSI 4940 EXAM 1 QUESTIONS & ANSWERS
Which of the following statements is accurate concerning the components of a SWOT
analysis - Answer -Two components of SWOT (SW) relate to the company and its
internal environment- strengths and weaknesses
Two of the components of SWOT (OT) relate to the industry and external environment-
Opportunities and Threats
Strategy is formulated at various levels within the organization. In this course we focus
on corporate level strategy. The order from top to bottom of strategy within an
organization is corporate level, then business unit level, then functional level - Answer -
True
the implementation plan for a strategic proposal should include detailed plans (steps)
and the cost associated with each over a 5 year time horizon and for three key functions
or department areas. Further, those steps should be organized using the Organization
Performance Matrix to insure proper sequencing - Answer -False
Reading the paragraph providing an accurate example then answer the question below:
Berkshire Hathaway's (BH) is a large insurance company. The huge cash BH collects
from policies allows them to make large investments in either companies. Two such
examples were large investments BH made in both Kraft/Heinz and General Electric
Thinking about the Six S's. Which of the Six S's is BH employing in the example? Select
the single best answer - Answer -Spreading capital
Read the paragraph describing an accurate example then answer the question below:
Recently, Apple announced a new alliance with Goldman Sachs to provide banking and
credit to Apple users. This example broadens Apple's services, increasing switching
costs for its users.
insulation of advantage by increasing switching costs to consumers best represents
which level of the strategic hierarchy. - Answer -Strategy
Acquisitions, strategic alliances and innovation are different strategies a firm can
choose for either horizontal or vertical diversification - Answer -false
in the make, buy and ally framework, make means do it in house. buy means acquire
and ally means to execute in some sort of alliance with another company - Answer -
True
The concept of forward and backward integration are related to the value chain. forward
integration usually focuses on the operational component integration while backward
integration focuses more on the customer facing integration. these may also be referred
to as the front and back halves of the value chain - Answer -false
, The strategic hierarchy includes three levels and steps - (1) the identification of the
greatest problem or opportunities for a company (2) development proposals (3)
development of the SWOT has four parts detailed implementation plans - Answer -false
Disruptive innovation generally comes from outside of incumbent firms (existing firms)
the industry FinTech, Telsa, Amazon e-commerce and Skype are examples of
disruptive innovation that came from outside the established industry competitors -
Answer -true
advantages of outsourcing can include loss of control, loss of power, and loss of
capabilities - Answer -false
Read the paragraph that accurately describes general electric then answer the question
below
general electric was a company that endured throughout history by acquiring unrelated
businesses. one of the few remaining corporates. General electric finally failed, in a
crisis division oft he company are being sold off and general electric will cease to be a
company
this example shows that related diversification usually does not create value for a
company - Answer -false
it is especially difficult in this environment of rapid changes for company's to develop
strategy that provides sustainable competitive advantage. however, that is the ultimate
responsibility of the board of directors and CEO of a company - Answer -true
A companys sense of urgency for change, can be supported by the placement of the
firm in the organizational performance matrix. the quadrant placement bears some
similar to the three change states- anticipatory reactive or crisis. the closer a firm is to
crisis, the stronger is the motivation or urgency for change yet, there are fewer strategic
options available - Answer -true
which of the following is not an example of how acquisitions can be integrated - Answer
-Borrow acquiring company borrows assets and knowledge from the company it
acquires
Read the information provided accurately about Apple then answer the question:
Apple outsources 100% if it's manufacturing to a Chinese manufacturing company
called foxconn
one of the most compelling reasons for vertical integration is control- the more important
the element of the value chain is to the company's value proposition. the more likely it is
that the company will vertically integrate. Apple (above) provides a good example of
vertical integration - Answer -false
read the following paragraph that provides an accurate example then answer the
question below
recently africas tobacco company acquired a 35% investment in juul
Which of the following statements is accurate concerning the components of a SWOT
analysis - Answer -Two components of SWOT (SW) relate to the company and its
internal environment- strengths and weaknesses
Two of the components of SWOT (OT) relate to the industry and external environment-
Opportunities and Threats
Strategy is formulated at various levels within the organization. In this course we focus
on corporate level strategy. The order from top to bottom of strategy within an
organization is corporate level, then business unit level, then functional level - Answer -
True
the implementation plan for a strategic proposal should include detailed plans (steps)
and the cost associated with each over a 5 year time horizon and for three key functions
or department areas. Further, those steps should be organized using the Organization
Performance Matrix to insure proper sequencing - Answer -False
Reading the paragraph providing an accurate example then answer the question below:
Berkshire Hathaway's (BH) is a large insurance company. The huge cash BH collects
from policies allows them to make large investments in either companies. Two such
examples were large investments BH made in both Kraft/Heinz and General Electric
Thinking about the Six S's. Which of the Six S's is BH employing in the example? Select
the single best answer - Answer -Spreading capital
Read the paragraph describing an accurate example then answer the question below:
Recently, Apple announced a new alliance with Goldman Sachs to provide banking and
credit to Apple users. This example broadens Apple's services, increasing switching
costs for its users.
insulation of advantage by increasing switching costs to consumers best represents
which level of the strategic hierarchy. - Answer -Strategy
Acquisitions, strategic alliances and innovation are different strategies a firm can
choose for either horizontal or vertical diversification - Answer -false
in the make, buy and ally framework, make means do it in house. buy means acquire
and ally means to execute in some sort of alliance with another company - Answer -
True
The concept of forward and backward integration are related to the value chain. forward
integration usually focuses on the operational component integration while backward
integration focuses more on the customer facing integration. these may also be referred
to as the front and back halves of the value chain - Answer -false
, The strategic hierarchy includes three levels and steps - (1) the identification of the
greatest problem or opportunities for a company (2) development proposals (3)
development of the SWOT has four parts detailed implementation plans - Answer -false
Disruptive innovation generally comes from outside of incumbent firms (existing firms)
the industry FinTech, Telsa, Amazon e-commerce and Skype are examples of
disruptive innovation that came from outside the established industry competitors -
Answer -true
advantages of outsourcing can include loss of control, loss of power, and loss of
capabilities - Answer -false
Read the paragraph that accurately describes general electric then answer the question
below
general electric was a company that endured throughout history by acquiring unrelated
businesses. one of the few remaining corporates. General electric finally failed, in a
crisis division oft he company are being sold off and general electric will cease to be a
company
this example shows that related diversification usually does not create value for a
company - Answer -false
it is especially difficult in this environment of rapid changes for company's to develop
strategy that provides sustainable competitive advantage. however, that is the ultimate
responsibility of the board of directors and CEO of a company - Answer -true
A companys sense of urgency for change, can be supported by the placement of the
firm in the organizational performance matrix. the quadrant placement bears some
similar to the three change states- anticipatory reactive or crisis. the closer a firm is to
crisis, the stronger is the motivation or urgency for change yet, there are fewer strategic
options available - Answer -true
which of the following is not an example of how acquisitions can be integrated - Answer
-Borrow acquiring company borrows assets and knowledge from the company it
acquires
Read the information provided accurately about Apple then answer the question:
Apple outsources 100% if it's manufacturing to a Chinese manufacturing company
called foxconn
one of the most compelling reasons for vertical integration is control- the more important
the element of the value chain is to the company's value proposition. the more likely it is
that the company will vertically integrate. Apple (above) provides a good example of
vertical integration - Answer -false
read the following paragraph that provides an accurate example then answer the
question below
recently africas tobacco company acquired a 35% investment in juul
