WPC 470 ASU Exam Questions with
Latest Update
When firms are purchased in the same industry, this is known as: - Answer-horizontal
acquisition
Effectively using executive compensation as a governance mechanism is particularly
challenging for firms implementing _____ strategies. - Answer-international
By sharing resources and knowledge between units and network partners across
country borders, firms learn how to create - Answer-synergy
Which of the following criterion is most likely to be used to measure the success of a
small, new company, Hippolite Mud Resort, which opened six months ago? - Answer-
Speed of growth
An appropriate guideline for competitor intelligence practices includes which of the
following? - Answer-Respect the principles of common morality.
Managing the business units of a geographically diverse multinational firm requires skill,
not only in managing a _____ set of businesses, but also coordinating _____ points of
view emerging from businesses located in countries and regions. - Answer-
decentralized; diverse
All of the following are value-creating reasons for diversification EXCEPT: - Answer-risk
reduction for the firm
Ted is one of the production managers at Agritech Industries. He feels that changes to
products are disruptive to the production procedures that are currently in place. In
general, therefore, Ted views innovations as threats. Ted lacks: - Answer-an
entrepreneurial mind-set.
Which of the following is a reason why it can be difficult for boards of directors to
effectively assess top-level managers' decisions on a regular basis? - Answer-Typically,
the effects of top-level managers' decisions are stronger on the firm's long-term
performance than its short-term performance.
International corporate-level strategy focuses on the scope of a firm's operations
through _____ diversification. - Answer-geographic
A company that pursues a diversifying strategic alliance might be motivated by the
desire to: - Answer-enter a new market.
, What is the determinant of national advantage that fosters the growth of certain
industries and varies greatly from nation to nation? - Answer-Firm strategy, structure,
and rivalry
Which of the following is one of the most effective strategic leadership styles? - Answer-
Transformational leadership
When creating value through internal innovation processes, which of the following is
important for promoting integrated new product design ideas? - Answer-Cross-
functional product teams
A firm should analyze the internal organization to identify its strengths and weaknesses
as reflected by all of the following EXCEPT: - Answer-competitors' capabilities
When a company has a homogeneous top management team and external CEO
succession, which of the following situations will result? - Answer-An ambiguous
situation where there is potential for a change in the top management team and the
strategy
While U.S. firms use downscoping as a restructuring strategy, - Answer-many Asian
and Latin American conglomerates have also chosen to downscope.
Which of the following statements about a flexible manufacturing system (FMS) is NOT
true? - Answer-An FMS allows a manufacturer to connect with its suppliers, distributors,
and customers, which enables it to satisfy customer expectations in terms of product
quality and delivery speed.
_____ is change resulting from selecting and implementing a firm's strategies. - Answer-
Strategic change
Hypercompetition is a condition of rapidly escalating competition based on all of the
following EXCEPT: - Answer-competition to produce a competitive advantage based on
economies of scale.
People buy products from Soco Outfitters because it is a brand name they know and
trust. Soco's costly-to-imitate capabilities arise from: - Answer-a historical source.
What is likely the most prominent function in headquarters for an SBU M-form
structure? - Answer-Strategic planning
Which of the following is an assumption of the resource-based model? - Answer-
Resources and capabilities are not highly mobile across firms.
As one element of the relationship between structure and strategy: - Answer-structure
flows from selection of the firm's strategy.
Latest Update
When firms are purchased in the same industry, this is known as: - Answer-horizontal
acquisition
Effectively using executive compensation as a governance mechanism is particularly
challenging for firms implementing _____ strategies. - Answer-international
By sharing resources and knowledge between units and network partners across
country borders, firms learn how to create - Answer-synergy
Which of the following criterion is most likely to be used to measure the success of a
small, new company, Hippolite Mud Resort, which opened six months ago? - Answer-
Speed of growth
An appropriate guideline for competitor intelligence practices includes which of the
following? - Answer-Respect the principles of common morality.
Managing the business units of a geographically diverse multinational firm requires skill,
not only in managing a _____ set of businesses, but also coordinating _____ points of
view emerging from businesses located in countries and regions. - Answer-
decentralized; diverse
All of the following are value-creating reasons for diversification EXCEPT: - Answer-risk
reduction for the firm
Ted is one of the production managers at Agritech Industries. He feels that changes to
products are disruptive to the production procedures that are currently in place. In
general, therefore, Ted views innovations as threats. Ted lacks: - Answer-an
entrepreneurial mind-set.
Which of the following is a reason why it can be difficult for boards of directors to
effectively assess top-level managers' decisions on a regular basis? - Answer-Typically,
the effects of top-level managers' decisions are stronger on the firm's long-term
performance than its short-term performance.
International corporate-level strategy focuses on the scope of a firm's operations
through _____ diversification. - Answer-geographic
A company that pursues a diversifying strategic alliance might be motivated by the
desire to: - Answer-enter a new market.
, What is the determinant of national advantage that fosters the growth of certain
industries and varies greatly from nation to nation? - Answer-Firm strategy, structure,
and rivalry
Which of the following is one of the most effective strategic leadership styles? - Answer-
Transformational leadership
When creating value through internal innovation processes, which of the following is
important for promoting integrated new product design ideas? - Answer-Cross-
functional product teams
A firm should analyze the internal organization to identify its strengths and weaknesses
as reflected by all of the following EXCEPT: - Answer-competitors' capabilities
When a company has a homogeneous top management team and external CEO
succession, which of the following situations will result? - Answer-An ambiguous
situation where there is potential for a change in the top management team and the
strategy
While U.S. firms use downscoping as a restructuring strategy, - Answer-many Asian
and Latin American conglomerates have also chosen to downscope.
Which of the following statements about a flexible manufacturing system (FMS) is NOT
true? - Answer-An FMS allows a manufacturer to connect with its suppliers, distributors,
and customers, which enables it to satisfy customer expectations in terms of product
quality and delivery speed.
_____ is change resulting from selecting and implementing a firm's strategies. - Answer-
Strategic change
Hypercompetition is a condition of rapidly escalating competition based on all of the
following EXCEPT: - Answer-competition to produce a competitive advantage based on
economies of scale.
People buy products from Soco Outfitters because it is a brand name they know and
trust. Soco's costly-to-imitate capabilities arise from: - Answer-a historical source.
What is likely the most prominent function in headquarters for an SBU M-form
structure? - Answer-Strategic planning
Which of the following is an assumption of the resource-based model? - Answer-
Resources and capabilities are not highly mobile across firms.
As one element of the relationship between structure and strategy: - Answer-structure
flows from selection of the firm's strategy.
