MGT 8803 BUSINESS STRATEGY FREQUENTLY TESTED
ACTUAL EXAM QUESTIONS WITH CORRECT ANSWERS
Question 1.
Diversification: Coordination Costs
ANSWER
Increase in administrative problems associated with operating different businesses
Question 2.
Core competencies
ANSWER
unique capabilities of a firm to enable delivery & support of competitive advantage
Question 3.
External Context for Planning
ANSWER
regulators | partners & shareholders | competitors | suppliers | tech, econ, labor, society |
communities | customers
Question 4.
External Analysis
ANSWER
environmental trends & actions of industry players that impact the firm's markets &
operations
Question 5.
SCP: Structure
ANSWER
*number of competitors & product diversity
*value chain & extent of vertical integration
*economics of supply & demand
*cost of entry/exit
,Question 6.
How Tesla does Differentiation
ANSWER
battery technology, autonomous driving, high performance, supercharger network, wow
factor
Question 7.
Value Creation
ANSWER
creates value & supports product/service post-sales | focus on business ops | core
competencies | resources required for activities/capabilities | strategic resources
Question 8.
Core Values
ANSWER
guiding principles of firm | support company's vision, shape culture, & reflect company's
identity & personality
Question 9.
Residual Uncertainty
ANSWER
the unknowable; uncertainty that remains...important in assessing risk
Question 10.
Turnaround
ANSWER
*for more serious problems
*managers cut costs & reorganize
*may involve formal bankruptcy (chapter 11 ONLY)
, Question 11.
Resource-Based (VRIO)
ANSWER
*valuable, rare, costly to imitate, & firm organized to capture value
*firm's use of their unique bundle of resources to create competitive advantage
*resources are heterogeneous & immobile
Question 12.
Monopolistic Competition
ANSWER
*many firms
*some pricing power
*differentiated product
*medium entry barriers
Ex: fine dining restaurants, universities
Question 13.
SWOT: Weaknesses
ANSWER
*weak mgt
*poor reputation/brand
*operational inefficiencies
*stagnant culture
*supply chain inefficiencies
*lack of capital or access to capital / inadequate cash flow
*access to distribution channels/poor location
Question 14.
Divestiture
ANSWER
firm rids itself of underperforming asset
ACTUAL EXAM QUESTIONS WITH CORRECT ANSWERS
Question 1.
Diversification: Coordination Costs
ANSWER
Increase in administrative problems associated with operating different businesses
Question 2.
Core competencies
ANSWER
unique capabilities of a firm to enable delivery & support of competitive advantage
Question 3.
External Context for Planning
ANSWER
regulators | partners & shareholders | competitors | suppliers | tech, econ, labor, society |
communities | customers
Question 4.
External Analysis
ANSWER
environmental trends & actions of industry players that impact the firm's markets &
operations
Question 5.
SCP: Structure
ANSWER
*number of competitors & product diversity
*value chain & extent of vertical integration
*economics of supply & demand
*cost of entry/exit
,Question 6.
How Tesla does Differentiation
ANSWER
battery technology, autonomous driving, high performance, supercharger network, wow
factor
Question 7.
Value Creation
ANSWER
creates value & supports product/service post-sales | focus on business ops | core
competencies | resources required for activities/capabilities | strategic resources
Question 8.
Core Values
ANSWER
guiding principles of firm | support company's vision, shape culture, & reflect company's
identity & personality
Question 9.
Residual Uncertainty
ANSWER
the unknowable; uncertainty that remains...important in assessing risk
Question 10.
Turnaround
ANSWER
*for more serious problems
*managers cut costs & reorganize
*may involve formal bankruptcy (chapter 11 ONLY)
, Question 11.
Resource-Based (VRIO)
ANSWER
*valuable, rare, costly to imitate, & firm organized to capture value
*firm's use of their unique bundle of resources to create competitive advantage
*resources are heterogeneous & immobile
Question 12.
Monopolistic Competition
ANSWER
*many firms
*some pricing power
*differentiated product
*medium entry barriers
Ex: fine dining restaurants, universities
Question 13.
SWOT: Weaknesses
ANSWER
*weak mgt
*poor reputation/brand
*operational inefficiencies
*stagnant culture
*supply chain inefficiencies
*lack of capital or access to capital / inadequate cash flow
*access to distribution channels/poor location
Question 14.
Divestiture
ANSWER
firm rids itself of underperforming asset
