MGMT 4513 FINAL EXAM QUESTIONS & ANSWERS
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
corporate resources. 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 - Answer -b. A transnational strategy
Convincing rivals not to enter a price war, protection from customer pressure to lower
prices, and the ability to better withstand cost increases from suppliers characterize
which type of competitive strategy?
a. Overall cost leadership
b. differentiation
c. differentiation focus
d. cost leadership focus - Answer -a. Overall cost leadership
What are the primary tradeoffs that you need to consider when choosing an entry mode
for international expansion?
a. Efficiency and local responsiveness
b. cost and degree control
c. currency fluctuations and political instability
d. factor costs and degree of rivalry
e. income of population and pricing - Answer -b. cost and degree control
Firms following a global strategy strive to offer _____ products and services as well as
locate, R&D, and marketing activities in _____ locations.
a. a wide variety of; many decentralized
b. a wide variety of; few centralized
c. standardized; many decentralized
d. standardized; few centralized - Answer -d. standardized; few centralized
Firms with core competencies that can be exploited across international markets are
able to:
a. achieve synergies and produce lower costs
b. be more responsive to local preferences than local firms in foreign markets.
c. enhance their market image and brean loyalty among local consumers
d. meet local government requirements more quickly than their international
competitors. - Answer -a. achieve synergies and produce lower costs
,High pressure for local adaption combined with high pressure for lower costs would
suggest what type of strategy?
a. international
b. global
c. mulit-domestic
d. transnational - Answer -d. transnational
Competetiveness is usually enhanced by the good implementation of diversification
based on all of the following reasons except:
a. potential to share the inventory delivery system between the old and 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 competencies in the implementation of a particular
technological development across otherwise differect businesses.
e. none of the other options in this set of answers - Answer -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
an executive might be motivated to maximize the firm's stock price in the short-term (i.e.
year end) at all costs if his or her compensation package is dominated by:
a. salary
b. bonus
c. stock options
d. salary and bonus
e. salary and stock options - Answer -b. bonus
Typically, the best method of entry into a foreign market is the establishment of a wholly
owned foreign subsidiary so that the parent organization can maintain a high level of
control. True or False?
a. True
b. False - Answer -B. False
The threat of new entrants is increased if:
a. access to distribution channels is hard to gain
b. economies of scale in the industry are high
c. product differentiation in the industry is low
d. capital requirements in the industry are high - Answer -c. product differentiation in
the industry is low
, Jim decides that the time is right to start a business that markets products for the Beijing
2008 Olymipics. He plans to sell t-shirts, replica medals, Olympic athlete actions figures,
books, and videotapes. The main concern, in Jim's mind, is the managers need to be
able to think across all functional lines, know their customers well, and be able to
change products rapidly. He does not want his managers to spend much time in
meetings, and he is not really concerned with positions redundancy. In this situation, the
most appropriate structure for Jim to use in his organization is:
a. virtual
b. divisional
c. functional
d. matrix
e. virtual or functional - Answer -a. matrix
Assuming you are interested in earning the highest profit, which of the following industry
situations would you prefer to be in?
a. There are many competitors, few large buyers, and few small suppliers
b. There are few competitors, few large buyers, and many small suppliers
c. There are few competitors, many small buyers, and few large suppliers
d. There are few competitors, many small buyers, and many small suppliers
e. There are many competitors, many small buyers, and many large suppliers - Answer
-d. There are few competitors, many small buyers, and many small suppliers
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 - Answer -b. decreased emphasis on competition
based on price
Suppliers are more powerful when:
a. volume of purchase is low
b. threat of backward integration by buyers is low
c. cost savings from the supplier's product are minimal
d. the buyer's profit margin in low - Answer -b. threat of backward integration by buyers
is low
Is it good to have an organization primarily built on intangible assets?
a. yes, intangible assets tend to be more costly for competitors to imitate
b. no, tangible assets tend to be more costly for competitors to imitate.
c. Yes, intangible assets are more stable and long-lasting
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
corporate resources. 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 - Answer -b. A transnational strategy
Convincing rivals not to enter a price war, protection from customer pressure to lower
prices, and the ability to better withstand cost increases from suppliers characterize
which type of competitive strategy?
a. Overall cost leadership
b. differentiation
c. differentiation focus
d. cost leadership focus - Answer -a. Overall cost leadership
What are the primary tradeoffs that you need to consider when choosing an entry mode
for international expansion?
a. Efficiency and local responsiveness
b. cost and degree control
c. currency fluctuations and political instability
d. factor costs and degree of rivalry
e. income of population and pricing - Answer -b. cost and degree control
Firms following a global strategy strive to offer _____ products and services as well as
locate, R&D, and marketing activities in _____ locations.
a. a wide variety of; many decentralized
b. a wide variety of; few centralized
c. standardized; many decentralized
d. standardized; few centralized - Answer -d. standardized; few centralized
Firms with core competencies that can be exploited across international markets are
able to:
a. achieve synergies and produce lower costs
b. be more responsive to local preferences than local firms in foreign markets.
c. enhance their market image and brean loyalty among local consumers
d. meet local government requirements more quickly than their international
competitors. - Answer -a. achieve synergies and produce lower costs
,High pressure for local adaption combined with high pressure for lower costs would
suggest what type of strategy?
a. international
b. global
c. mulit-domestic
d. transnational - Answer -d. transnational
Competetiveness is usually enhanced by the good implementation of diversification
based on all of the following reasons except:
a. potential to share the inventory delivery system between the old and 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 competencies in the implementation of a particular
technological development across otherwise differect businesses.
e. none of the other options in this set of answers - Answer -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
an executive might be motivated to maximize the firm's stock price in the short-term (i.e.
year end) at all costs if his or her compensation package is dominated by:
a. salary
b. bonus
c. stock options
d. salary and bonus
e. salary and stock options - Answer -b. bonus
Typically, the best method of entry into a foreign market is the establishment of a wholly
owned foreign subsidiary so that the parent organization can maintain a high level of
control. True or False?
a. True
b. False - Answer -B. False
The threat of new entrants is increased if:
a. access to distribution channels is hard to gain
b. economies of scale in the industry are high
c. product differentiation in the industry is low
d. capital requirements in the industry are high - Answer -c. product differentiation in
the industry is low
, Jim decides that the time is right to start a business that markets products for the Beijing
2008 Olymipics. He plans to sell t-shirts, replica medals, Olympic athlete actions figures,
books, and videotapes. The main concern, in Jim's mind, is the managers need to be
able to think across all functional lines, know their customers well, and be able to
change products rapidly. He does not want his managers to spend much time in
meetings, and he is not really concerned with positions redundancy. In this situation, the
most appropriate structure for Jim to use in his organization is:
a. virtual
b. divisional
c. functional
d. matrix
e. virtual or functional - Answer -a. matrix
Assuming you are interested in earning the highest profit, which of the following industry
situations would you prefer to be in?
a. There are many competitors, few large buyers, and few small suppliers
b. There are few competitors, few large buyers, and many small suppliers
c. There are few competitors, many small buyers, and few large suppliers
d. There are few competitors, many small buyers, and many small suppliers
e. There are many competitors, many small buyers, and many large suppliers - Answer
-d. There are few competitors, many small buyers, and many small suppliers
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 - Answer -b. decreased emphasis on competition
based on price
Suppliers are more powerful when:
a. volume of purchase is low
b. threat of backward integration by buyers is low
c. cost savings from the supplier's product are minimal
d. the buyer's profit margin in low - Answer -b. threat of backward integration by buyers
is low
Is it good to have an organization primarily built on intangible assets?
a. yes, intangible assets tend to be more costly for competitors to imitate
b. no, tangible assets tend to be more costly for competitors to imitate.
c. Yes, intangible assets are more stable and long-lasting
