Strategic Mgmt Exam Answered

Strategic Mgmt Exam Answered Offensive strategic moves involve all of the following except - Answer- blocking the avenues open to challengers Bumble, a digital dating site where women make the first move, specifically uses which strategic weapon in its offensive arsenal - Answer- pursuing disruptive product innovations to create new markets A blue-ocean strategy - Answer- involves abandoning efforts to beat out competitors in existing markets and instead invent a new industry or new market segment that renders existing competitors largely irrelevant and allows a company to create and capture altogether new demand. what is the goal of signaling a challenger that strong retaliation is likely in the event of an attack - Answer- to dissuade challenges from attacking or diverting then into using less threatening options first-mover advantages are unlikely to be present when - Answer- rapid market evolution due to face-paced changes in technology or buyer preferences, presents opportunities to leapfrog a first-movers products with more attractive next-version products a difference between a merger and an acquisition is that - Answer- a merger is the combining of two or more companies into a single corporate entity whereas an acquisition involves one company (the acquirer) purchasing and absorbing he operations of another company (the acquired) Vertical Integration Strategy - Answer- offer good potential to expand a company's lineup of products and services A strategic disadvantage of vertical integration is - Answer- to impair a company's flexibility in accommodating shifting buyer preferences strategic alliances are - Answer- collaborative formal arrangements where two or more companies join forces and agree to work cooperatively toward some strategically relevant objective if you were advising Hoffmann-LaRoche, which set up Roche Partnering to manage more than 190 alliances in the healthcare industry, what might not be a reason why some of those alliances could prove to be unstable or break apart? - Answer- a partner obtains access to another partner's proprietary knowledge base, technologies, or trade secrets What does the scope of the firm refer to? - Answer- The range of activities the firm performs internally and the breadth of its product offerings, the extent of its geographic market, and its mix of businesses Late-mover advantages (or first-mover disadvantages) are not likely to arise when - Answer- the costs of pioneering are much higher than being a follower and only negligible learning/experience benefits accrue to a pioneer ExxonMobil enters into a pact with Gazprom, the worlds largest natural gas extractor, to set up a processing unit in Baku, Azerbaijan. Which of the following is most likely the reason for ExxonMobil to opt for this strategic alliance? - Answer- to gain access to low-cost inputs of production Crafting a strategy to compete in one or more foreign markets can be considered complex because - Answer- Because of the potential for location-based advantages to conducting value chain activities in certain countries. One of the biggest strategic challenges to competing in the international arena includes - Answer- Whether to offer a standardized product worldwide or a customized product offering in each different country market The difference between political risks and economic risks is that - Answer- Political risks stem from instability or weakness in national governments, while economic risks stem from the stability of a country's monetary system, and its economic and regulatory policies. The advantages of manufacturing goods in a particular country and exporting them to foreign markets - Answer- are weakened when that country's currency grows stronger relative to the currencies of the countries where the output is being sold The advantages of using an acquisition strategy to pursue opportunities in foreign markets include - Answer- having a high level of control and speed as an entry strategy to overcome trade barriers acquisition of an existing firm rather than via internal development may be the least risky and cost-efficient means of overcoming entry barriers such as - Answer- gaining access to local distribution networks, building supplier networks, and establishing working relationships with key government officials what is the foremost strategic issue that must be addressed by firms when operating in two or more foreign markets - Answer- deciding on the degree to vary its competitive approach to fit the specific market conditions and buyer performances in each host country when is it appropriate to use a think-local, act-local approach strategy - Answer- when the need for local responsiveness is high due to significant cross-country differences in demographic, cultural, and market conditions and where benefits from standardization is limited