MGMT 4513 FINAL EXAM QUESTIONS & ANSWERS
Which of the following would be the most difficult to assess?
A. The deficiency with which a firm utilizes its assets
B. The liquidity position of a firm
C. Market share growth
D. The legitimacy and reputation of a firm - Answer -D. The legitimacy and reputation of
a firm
True or False
A newly acquired business must always have products that are similar to the existing
businesses' products to benefit from the corporation's core competence - Answer -
False
A crash R&D program buy one firm cannot replicate a successful technology developed
by another firm when research findings cumulate. This is an example of
A. Social complexity
B. Path dependency
C. Physical uniqueness
D. Casual ambiguity - Answer -B. Path dependency
The downsides or limitations of mergers and acquisitions include all of the following
except:
A. Expensive premiums that are frequently paid to acquire a business
B. Difficulties in integrating the activities and resources of the acquired firm into a
corporation's on-going operations.
C. It is a slow means to enter new markets and acquire skills and competences
D. There can be many cultural issues that can doom an otherwise promising acquisition
- Answer -C. It is a slow means to enter new markets and acquire skills and
competences
True or False
Portfolio management should be considered as the primary basis for formulating
corporate-level strategies - Answer -False
It may be advantageous to vertically integrate when
A. Various segregated specializations will be combined
B. Lower transaction costs and improved coordination are vital and achievable through
vertical integration
C. Flexibility is reduced, providing a more stationary position in the competitive
environment
D. The minimum efficient scales of two corporations are different - Answer -B. Lower
transaction costs and improved coordination are vital impound achievable through
vertical integration
, Firms following a global strategy strive to offer __________ products and services as
well as locate manufacturing, R&D, and marketing activities in ________ locations.
A. A wide variety of; few
B. Standardized; few
C. A wide variety of; several
D. Standardized; several - Answer -B. Standardized; few
Which of the following types of international firms are most likely to benefit from a global
strategy as opposed to a multi domestic strategy?
A. Firms in industries that are expanding very rapidly
B. Firms in industries that have value added by sales and marketing departments
C. Firms in industries that have much value added in research and design or
manufacturing
D. Firms that compete in industries in which consumer preferences vary substantially in
each country - Answer -C. Firms in industries that have much value added in research
and design or manufacturing
True or False
A multi domestic strategy is the most appropriate strategy for International operations
because it drives economies of scale as far as possible and provides a middle of the
road product appealing to the largest number of consumers in every market - Answer -
False
True or False
Corporations with multiple foreign operations that act very independently of one another
are following a multi domestic strategy - Answer -True
Although firm infrastructure is often viewed only as an overhead expense, it can
become a source of competitive advantage. Examples include all of the following
except;
A. Marketing expertise increasing a firm's revenues and enabling it to enter new
markets
B. Negotiating and maintaining ongoing relations and regulatory bodies
C. Effective information systems contributing significantly to a firm's overall cost
leadership strategy
D. Top management proving a key role in collaborating with important customers -
Answer -A. Marketing expertise increasing a firm's revenues and enabling it to enter
new markets
A resource is valuable and rare but neither difficult to imitate nor without substitutes.
This should enable the firm to attain
A. No competitive advantage
B. Competitive parity
C. A sustainable competitive advantage
Which of the following would be the most difficult to assess?
A. The deficiency with which a firm utilizes its assets
B. The liquidity position of a firm
C. Market share growth
D. The legitimacy and reputation of a firm - Answer -D. The legitimacy and reputation of
a firm
True or False
A newly acquired business must always have products that are similar to the existing
businesses' products to benefit from the corporation's core competence - Answer -
False
A crash R&D program buy one firm cannot replicate a successful technology developed
by another firm when research findings cumulate. This is an example of
A. Social complexity
B. Path dependency
C. Physical uniqueness
D. Casual ambiguity - Answer -B. Path dependency
The downsides or limitations of mergers and acquisitions include all of the following
except:
A. Expensive premiums that are frequently paid to acquire a business
B. Difficulties in integrating the activities and resources of the acquired firm into a
corporation's on-going operations.
C. It is a slow means to enter new markets and acquire skills and competences
D. There can be many cultural issues that can doom an otherwise promising acquisition
- Answer -C. It is a slow means to enter new markets and acquire skills and
competences
True or False
Portfolio management should be considered as the primary basis for formulating
corporate-level strategies - Answer -False
It may be advantageous to vertically integrate when
A. Various segregated specializations will be combined
B. Lower transaction costs and improved coordination are vital and achievable through
vertical integration
C. Flexibility is reduced, providing a more stationary position in the competitive
environment
D. The minimum efficient scales of two corporations are different - Answer -B. Lower
transaction costs and improved coordination are vital impound achievable through
vertical integration
, Firms following a global strategy strive to offer __________ products and services as
well as locate manufacturing, R&D, and marketing activities in ________ locations.
A. A wide variety of; few
B. Standardized; few
C. A wide variety of; several
D. Standardized; several - Answer -B. Standardized; few
Which of the following types of international firms are most likely to benefit from a global
strategy as opposed to a multi domestic strategy?
A. Firms in industries that are expanding very rapidly
B. Firms in industries that have value added by sales and marketing departments
C. Firms in industries that have much value added in research and design or
manufacturing
D. Firms that compete in industries in which consumer preferences vary substantially in
each country - Answer -C. Firms in industries that have much value added in research
and design or manufacturing
True or False
A multi domestic strategy is the most appropriate strategy for International operations
because it drives economies of scale as far as possible and provides a middle of the
road product appealing to the largest number of consumers in every market - Answer -
False
True or False
Corporations with multiple foreign operations that act very independently of one another
are following a multi domestic strategy - Answer -True
Although firm infrastructure is often viewed only as an overhead expense, it can
become a source of competitive advantage. Examples include all of the following
except;
A. Marketing expertise increasing a firm's revenues and enabling it to enter new
markets
B. Negotiating and maintaining ongoing relations and regulatory bodies
C. Effective information systems contributing significantly to a firm's overall cost
leadership strategy
D. Top management proving a key role in collaborating with important customers -
Answer -A. Marketing expertise increasing a firm's revenues and enabling it to enter
new markets
A resource is valuable and rare but neither difficult to imitate nor without substitutes.
This should enable the firm to attain
A. No competitive advantage
B. Competitive parity
C. A sustainable competitive advantage
