MGT 8803 STRATEGY FINAL EXAM
TESTED QUESTIONS AND COMPLETE SOLUTIONS
Question 1.
Fragmented industries tend to be ___ profitable than consolidated ones.
ANSWER
Less
Question 2.
Value Chain Analysis
ANSWER
Allows management to view activities and processes end-to-end , identifying opportunities for
improvement and understanding how integrated subsystems create competitive advantage
Question 3.
What is the productivity frontier?
ANSWER
The best possible strategic positions that a firm can take relating to value and low cost. The
frontier is drawn as a concave curve
Question 4.
Resource-Based View (RBV) of Competitive Advantage
ANSWER
Stresses the firm's asset base (tangible and intangible) as the source for creating competitive
advantage.... It is considered more feasible to exploit external opportunities using existing
resources in a new way than acquiring new capabilities for each opportunity
,Question 5.
Turnaround strategy
ANSWER
a strategy that reverses a firm's decline in performance and returns it to growth and
profitability
Question 6.
Red Ocean Strategy
ANSWER
Compete in existing market space; beat the competition; exploit existing demand; make the
value-cost trade-off; align the whole system of a firm's activities with its strategic choice of
differentiation or low cost.
Question 7.
3 main types of "grand" strategies
ANSWER
Growth, stability, renewal
Question 8.
How is performance typically measured?
ANSWER
financial metrics like economic profits, value creation, or total shareholder returns
Question 9.
Socio-cultural environmental factors
ANSWER
Demographics, lifestyle trends, cultural values, attitudes
, Question 10.
T or F: high market growth rates result in fierce competitive rivalry
ANSWER
False
Question 11.
T or F: Competitive advantage is always judged relative to other competitors or to the industry
average.
ANSWER
Question 12.
The end results of decisions and tradeoffs made by management in formulating strategy.
ANSWER
Business Model
Question 13.
In a "red ocean" competition is ___ and profit margins ___.
ANSWER
(1) intense
(2) low
Question 14.
Risks associated with a Blue Ocean Strategy
ANSWER
-long adoption period
-being overtaken by rivals
TESTED QUESTIONS AND COMPLETE SOLUTIONS
Question 1.
Fragmented industries tend to be ___ profitable than consolidated ones.
ANSWER
Less
Question 2.
Value Chain Analysis
ANSWER
Allows management to view activities and processes end-to-end , identifying opportunities for
improvement and understanding how integrated subsystems create competitive advantage
Question 3.
What is the productivity frontier?
ANSWER
The best possible strategic positions that a firm can take relating to value and low cost. The
frontier is drawn as a concave curve
Question 4.
Resource-Based View (RBV) of Competitive Advantage
ANSWER
Stresses the firm's asset base (tangible and intangible) as the source for creating competitive
advantage.... It is considered more feasible to exploit external opportunities using existing
resources in a new way than acquiring new capabilities for each opportunity
,Question 5.
Turnaround strategy
ANSWER
a strategy that reverses a firm's decline in performance and returns it to growth and
profitability
Question 6.
Red Ocean Strategy
ANSWER
Compete in existing market space; beat the competition; exploit existing demand; make the
value-cost trade-off; align the whole system of a firm's activities with its strategic choice of
differentiation or low cost.
Question 7.
3 main types of "grand" strategies
ANSWER
Growth, stability, renewal
Question 8.
How is performance typically measured?
ANSWER
financial metrics like economic profits, value creation, or total shareholder returns
Question 9.
Socio-cultural environmental factors
ANSWER
Demographics, lifestyle trends, cultural values, attitudes
, Question 10.
T or F: high market growth rates result in fierce competitive rivalry
ANSWER
False
Question 11.
T or F: Competitive advantage is always judged relative to other competitors or to the industry
average.
ANSWER
Question 12.
The end results of decisions and tradeoffs made by management in formulating strategy.
ANSWER
Business Model
Question 13.
In a "red ocean" competition is ___ and profit margins ___.
ANSWER
(1) intense
(2) low
Question 14.
Risks associated with a Blue Ocean Strategy
ANSWER
-long adoption period
-being overtaken by rivals
