MGT8803 - Strategy Exam Questions and Correct Answers
Latest Update (Rated A+)
1. Growth, Stability, Renewal
Answer: Three "grand" strategies
2. planning, organizing, leading, controlling
Answer: 4 functions of management
3. end result of decisions and tradeoffs made by management in formulating
strategy.
Also, how the firm plans on creates and capturing value
Answer: Business Model
4. transforming process using the internet or e-commerce capabilities (avoids
costly capital investment vis-a-vis vert. integration but harder to cap- ture all profits)
Answer: virtual integration
5. diversification, vertical integration, geographic scope
Answer: 3 determinants offirm scope
, 6. 1. Products Diversification; using existing channels to sell new products
2. Geographic Diversification
Answer: selling existing products in new channels/geo- graphies
3. Both product + geography Very risky! (aka suicde sale)
Answer: 3 diversification strategies
7. >95% of revenues come from primary activity
Answer: Diversification Single Business
8. 70-95% of revenues come from primary activity
Answer: Diversification Dominant Business
9. <70% of revenues come from primary activity
Answer: Diversification Related or Unrelated
10. Coordination costs
Influence costs
Answer: Types of Diversification Costs
11. administrative costs brought on by operating different businesses
Answer: Coordination Costs
12. Corporate executives may be misled by knowledgeable but biased business unit
managers
Latest Update (Rated A+)
1. Growth, Stability, Renewal
Answer: Three "grand" strategies
2. planning, organizing, leading, controlling
Answer: 4 functions of management
3. end result of decisions and tradeoffs made by management in formulating
strategy.
Also, how the firm plans on creates and capturing value
Answer: Business Model
4. transforming process using the internet or e-commerce capabilities (avoids
costly capital investment vis-a-vis vert. integration but harder to cap- ture all profits)
Answer: virtual integration
5. diversification, vertical integration, geographic scope
Answer: 3 determinants offirm scope
, 6. 1. Products Diversification; using existing channels to sell new products
2. Geographic Diversification
Answer: selling existing products in new channels/geo- graphies
3. Both product + geography Very risky! (aka suicde sale)
Answer: 3 diversification strategies
7. >95% of revenues come from primary activity
Answer: Diversification Single Business
8. 70-95% of revenues come from primary activity
Answer: Diversification Dominant Business
9. <70% of revenues come from primary activity
Answer: Diversification Related or Unrelated
10. Coordination costs
Influence costs
Answer: Types of Diversification Costs
11. administrative costs brought on by operating different businesses
Answer: Coordination Costs
12. Corporate executives may be misled by knowledgeable but biased business unit
managers
