MGT 8803 STRATEGY FINAL EXAM
LATEST ACTUAL VERIFIED QUESTIONS & CORRECT
ANSWERS
Question 1.
Match the framework to the characteristic or purpose that best describes it:
Focused on macro-factors that impact entire industries
ANSWER
PESTEL
Question 2.
George is considering acquiring Alabama Woods. Like The North Georgia Products SBU, Alabama
Woods, sells lumber specifically milled for barns and other farm related out buildings directly to its
customers through a company owned store in Muscle Shoals (Alabama); near the Mississippi state line.
Unlike North Georgia products, Alabama woods also sell product through its robust eCommerce
website. George is considering buying Alabama Woods but running it as a separate SBU. The firm
would not be consolidated into a single SBU with North Georgia Products; instead, the Georgia
Lumber Company would be run as 3 SBUs with a corporate "umbrella". Alabama Woods would
continue to focus its physical store on its Alabama customers while extending its eCommerce
capabilities to the Georgia Lumber Company to service North Georgia Products retail customers. That
said, the eCommerce capabilities are not a driver nor is it an important p
ANSWER
concentration
Question 3.
Match the framework to the characteristic or purpose that best describes it:
When a firm purchases its own distributor
ANSWER
Forward integration
,Question 4.
Which of the following Porter "generic" strategies creates competitive advantage by creating a larger
"wedge" between firm const (C) and the value (v) created for the customer than it does its direct
competitors?
- differentiation
- cost leadership
- both a and b are true
- neither a or b are true
ANSWER
both a and b are true
Question 5.
All of the following below are drivers that can create a differentiation advantage and a greater
willingness to pay except one. Select the one that does not belong on the list:
- brand
- existence of complements
- economies of scale
- customer experience
- product features
- product performance
ANSWER
economies of scale
Question 6.
Concluding the Georgia Lumber Company, George has been approached by entrepreneur who has
been successful in the business of installing solar energy panels on the roofs of rural barns in the
North and Central Georgia farm belt. The entrepreneur has offered to sell a controlling interest in his
company to the Georgia Lumber Company in exchange for cash and the opportunity to stay on and
continue to run the solar panel installation company. The company would continue to be run
autonomously as a subsidiary of the Georgia Lumber Company and the Georgia Lumber Company
would be entitled to 80% of the company's profits. Although there would be no synergies between the
solar SBU and the other SBUs George still likes the idea and believes that solar power could be a large
growth area for the firm. If the Georgia Lumber Company decided to pursue this opportunity, this
strategy would be best described as an example of _________
ANSWER
unrelated diversification
, Question 7.
Which ONE of the following is not considered to be a component of the scope of a firm.
- the variety of products and services offered
- the extent of control the firm chooses to exercise over the industry's value chain
- the locations (geographies) in which the firm operates and sells
- the firm's market share
- Bogus question: all of these statements relate to the scope of the firm.
ANSWER
the firm's market share
Question 8.
True/False: In the porter 5 forces model, the stronger the force, the greater the downward pressure on
the industry average profits.
ANSWER
True
Question 9.
Considering the two growth strategies suggested above -- the Alabama Woods and the National
Timber company -- which one would be best described as an organic strategy?
- Alabama Woods
- National Timber
- Both are organic strategies
- neither are organic strategies
ANSWER
neither are organic strategies
Question 10.
Using Ansoff's Matrix match a tactic to a Business Level growth strategy. Each net correct answer
counts 1/2 point each. Some answer(s) may be used more than once.
- Extending a product line by adding a new version to an existing product line
ANSWER
Product Development
LATEST ACTUAL VERIFIED QUESTIONS & CORRECT
ANSWERS
Question 1.
Match the framework to the characteristic or purpose that best describes it:
Focused on macro-factors that impact entire industries
ANSWER
PESTEL
Question 2.
George is considering acquiring Alabama Woods. Like The North Georgia Products SBU, Alabama
Woods, sells lumber specifically milled for barns and other farm related out buildings directly to its
customers through a company owned store in Muscle Shoals (Alabama); near the Mississippi state line.
Unlike North Georgia products, Alabama woods also sell product through its robust eCommerce
website. George is considering buying Alabama Woods but running it as a separate SBU. The firm
would not be consolidated into a single SBU with North Georgia Products; instead, the Georgia
Lumber Company would be run as 3 SBUs with a corporate "umbrella". Alabama Woods would
continue to focus its physical store on its Alabama customers while extending its eCommerce
capabilities to the Georgia Lumber Company to service North Georgia Products retail customers. That
said, the eCommerce capabilities are not a driver nor is it an important p
ANSWER
concentration
Question 3.
Match the framework to the characteristic or purpose that best describes it:
When a firm purchases its own distributor
ANSWER
Forward integration
,Question 4.
Which of the following Porter "generic" strategies creates competitive advantage by creating a larger
"wedge" between firm const (C) and the value (v) created for the customer than it does its direct
competitors?
- differentiation
- cost leadership
- both a and b are true
- neither a or b are true
ANSWER
both a and b are true
Question 5.
All of the following below are drivers that can create a differentiation advantage and a greater
willingness to pay except one. Select the one that does not belong on the list:
- brand
- existence of complements
- economies of scale
- customer experience
- product features
- product performance
ANSWER
economies of scale
Question 6.
Concluding the Georgia Lumber Company, George has been approached by entrepreneur who has
been successful in the business of installing solar energy panels on the roofs of rural barns in the
North and Central Georgia farm belt. The entrepreneur has offered to sell a controlling interest in his
company to the Georgia Lumber Company in exchange for cash and the opportunity to stay on and
continue to run the solar panel installation company. The company would continue to be run
autonomously as a subsidiary of the Georgia Lumber Company and the Georgia Lumber Company
would be entitled to 80% of the company's profits. Although there would be no synergies between the
solar SBU and the other SBUs George still likes the idea and believes that solar power could be a large
growth area for the firm. If the Georgia Lumber Company decided to pursue this opportunity, this
strategy would be best described as an example of _________
ANSWER
unrelated diversification
, Question 7.
Which ONE of the following is not considered to be a component of the scope of a firm.
- the variety of products and services offered
- the extent of control the firm chooses to exercise over the industry's value chain
- the locations (geographies) in which the firm operates and sells
- the firm's market share
- Bogus question: all of these statements relate to the scope of the firm.
ANSWER
the firm's market share
Question 8.
True/False: In the porter 5 forces model, the stronger the force, the greater the downward pressure on
the industry average profits.
ANSWER
True
Question 9.
Considering the two growth strategies suggested above -- the Alabama Woods and the National
Timber company -- which one would be best described as an organic strategy?
- Alabama Woods
- National Timber
- Both are organic strategies
- neither are organic strategies
ANSWER
neither are organic strategies
Question 10.
Using Ansoff's Matrix match a tactic to a Business Level growth strategy. Each net correct answer
counts 1/2 point each. Some answer(s) may be used more than once.
- Extending a product line by adding a new version to an existing product line
ANSWER
Product Development
