BUAD 453 EXAM 2024 QUESTIONS
WITH CORRECT DETAILED ANSWERS
(100% CORRECT ANSWERS)
Which strategic decision by Charles Chocolates demonstrates vertical integration?
A digital storefront to sell product online
Purchasing cocoa beans from Brazilian farmers
Designing new packaging
Investing heavily in production improvement - Answer-A digital storefront to sell product
online
Consider a scenario of Charles Chocolates looking to negotiate contracts with ethically
sourced cocoa bean growers. If Steve Parkland reminds the sourcing manager that this
type of bean is an important competitive advantage to Charles Chocolates and there is
increasing difficulty writing these contracts because transactions happen frequently and
there is high demand for these beans from competitors. Given this description and
referencing figure 17.1 in Strategy in 3D, what should the sourcing manager
recommend.
Forward Integrate
Integration is Not Needed
Horizontally Integrate
Vertically Integrate - Answer-Vertically Integrate
In the Monday "all-hands" meeting, Steve Parkland announces that the board has
approved the hiring of a VP of Product Development who will report directly to Parkland
and join in the third quarter of that year. Referencing the organizational chart on page 8
of the case, how will this strategic decision benefit the company?
No clear benefit
Reward Mary Bird with additional managerial responsibility
More layers of management is always better
Rebalance the organizational chart - Answer-Rebalance the organizational chart
Select the best answer that fills in the blanks correctly: The _______ negotiating power
of suppliers to the meal-kit industry, the more influence they have to increase the
supplier's prices and extract profits, which ______ the profitability potential within the
meal-kit industry.
weaker; increases
stronger; increases
, stronger; decreases
weaker; decreases - Answer-stronger; decreases
Using the Porter's Five Forces framework, which of the descriptions below is an
accurate assessment of the rivalry between existing competitors in the subscription-
based meal kit delivery industry?
Low intensity of rivalry: Highly differentiated products, low growth, strong brand loyalty,
expensive for consumers to switch between competitors
High intensity of rivalry: Easy for buyers to switch between competitors, low barriers for
competitors to enter the industry, many substitutes to the meal-kit industry
Low intensity of rivalry: High fixed costs, overcapacity of production, no substitute
products, difficult for competitors to enter the industry - Answer-High intensity of rivalry:
Easy for buyers to switch between competitors, low barriers for competitors to enter the
industry, many substitutes to the meal-kit industry
Low switching costs between competitors increases the strength of the "Threat of new
entrants" force.
True
False - Answer-True
When companies within the same industry have similar strategies with similar resources
or have similar business models, these companies are said to belong to the same
_________.
Tactical group
Strategic group
Substitutes group - Answer-Strategic group
Which of the following analytical frameworks is best to asses whether Blue Apron has
any sustained competitive advantages that can be leveraged to address the firm's
strategic challenge?
Value Chain Analysis
Financial Performance Analysis
VRIO Analysis
S-curve/Industry Life Cycle Analysis - Answer-VRIO Analysis
The two biggest forces that affect a firm's decision on whether or not to vertically
integrate are (choose two answers):
The target firm or asset's relevance to the acquiring firm's competitive advantage.
The complexity of writing a contract for the use of this asset or firm.
The target firm's vision and values.
WITH CORRECT DETAILED ANSWERS
(100% CORRECT ANSWERS)
Which strategic decision by Charles Chocolates demonstrates vertical integration?
A digital storefront to sell product online
Purchasing cocoa beans from Brazilian farmers
Designing new packaging
Investing heavily in production improvement - Answer-A digital storefront to sell product
online
Consider a scenario of Charles Chocolates looking to negotiate contracts with ethically
sourced cocoa bean growers. If Steve Parkland reminds the sourcing manager that this
type of bean is an important competitive advantage to Charles Chocolates and there is
increasing difficulty writing these contracts because transactions happen frequently and
there is high demand for these beans from competitors. Given this description and
referencing figure 17.1 in Strategy in 3D, what should the sourcing manager
recommend.
Forward Integrate
Integration is Not Needed
Horizontally Integrate
Vertically Integrate - Answer-Vertically Integrate
In the Monday "all-hands" meeting, Steve Parkland announces that the board has
approved the hiring of a VP of Product Development who will report directly to Parkland
and join in the third quarter of that year. Referencing the organizational chart on page 8
of the case, how will this strategic decision benefit the company?
No clear benefit
Reward Mary Bird with additional managerial responsibility
More layers of management is always better
Rebalance the organizational chart - Answer-Rebalance the organizational chart
Select the best answer that fills in the blanks correctly: The _______ negotiating power
of suppliers to the meal-kit industry, the more influence they have to increase the
supplier's prices and extract profits, which ______ the profitability potential within the
meal-kit industry.
weaker; increases
stronger; increases
, stronger; decreases
weaker; decreases - Answer-stronger; decreases
Using the Porter's Five Forces framework, which of the descriptions below is an
accurate assessment of the rivalry between existing competitors in the subscription-
based meal kit delivery industry?
Low intensity of rivalry: Highly differentiated products, low growth, strong brand loyalty,
expensive for consumers to switch between competitors
High intensity of rivalry: Easy for buyers to switch between competitors, low barriers for
competitors to enter the industry, many substitutes to the meal-kit industry
Low intensity of rivalry: High fixed costs, overcapacity of production, no substitute
products, difficult for competitors to enter the industry - Answer-High intensity of rivalry:
Easy for buyers to switch between competitors, low barriers for competitors to enter the
industry, many substitutes to the meal-kit industry
Low switching costs between competitors increases the strength of the "Threat of new
entrants" force.
True
False - Answer-True
When companies within the same industry have similar strategies with similar resources
or have similar business models, these companies are said to belong to the same
_________.
Tactical group
Strategic group
Substitutes group - Answer-Strategic group
Which of the following analytical frameworks is best to asses whether Blue Apron has
any sustained competitive advantages that can be leveraged to address the firm's
strategic challenge?
Value Chain Analysis
Financial Performance Analysis
VRIO Analysis
S-curve/Industry Life Cycle Analysis - Answer-VRIO Analysis
The two biggest forces that affect a firm's decision on whether or not to vertically
integrate are (choose two answers):
The target firm or asset's relevance to the acquiring firm's competitive advantage.
The complexity of writing a contract for the use of this asset or firm.
The target firm's vision and values.
