MGMT 4513 Final Exam 2025

Which of the following would be the most difficult to assess? A. The deficiency with which a firm utilizes its assets B. The liquidity position of a firm C. Market share growth D. The legitimacy and reputation of a firm - ANSWER-D. The legitimacy and reputation of a firm True or False A newly acquired business must always have products that are similar to the existing businesses' products to benefit from the corporation's core competence - ANSWER False A crash R&D program buy one firm cannot replicate a successful technology developed by another firm when research findings cumulate. This is an example of A. Social complexity B. Path dependency C. Physical uniqueness D. Casual ambiguity - ANSWER-B. Path dependency Although firm infrastructure is often viewed only as an overhead expense, it can become a source of competitive advantage. Examples include all of the following except; A. Marketing expertise increasing a firm's revenues and enabling it to enter new markets B. Negotiating and maintaining ongoing relations and regulatory bodies C. Effective information systems contributing significantly to a firm's overall cost leadership strategy D. Top management proving a key role in collaborating with important customers - ANSWER-A. Marketing expertise increasing a firm's revenues and enabling it to enter new markets A resource is valuable and rare but neither difficult to imitate nor without substitutes. This should enable the firm to attain A. No competitive advantage B. Competitive parity C. A sustainable competitive advantage D. A temporary competitive advantage - ANSWER-D. A temporary competitive advantage True or False Establishing a customer service hotline to handle customer complaints would be considered a primary activity in value chain analysis - ANSWER-True MGMT 4515 MGMT 4515 Which statement regarding competitive advantages is true? A. If several competitors pursue similar differentiation tactics, they may all be perceived as equals in the mind of the consumers B. With an overall cost leadership strategy, firms need not be concerned with parity on differentiation C. In the long run, a business with one or more competitive advantage is probably destined to earn normal profits D. Attaining multiple types of competitive advantage is a recipe for failure - ANSWER-A. If several competitors pursue similar differentiation tactics, they may al be perceived as equals in the mind of the consumers The downsides or limitations of mergers and acquisitions include all of the following except: A. Expensive premiums that are frequently paid to acquire a business B. Difficulties in integrating the activities and resources of the acquired firm into a corporation's on-going operations. C. It is a slow means to enter new markets and acquire skills and competences D. There can be many cultural issues that can doom an otherwise promising acquisition - ANSWER-C. It is a slow means to enter new markets and acquire skills and competences True or False Portfolio management should be considered as the primary basis for formulating corporate-level strategies - ANSWER-False It may be advantageous to vertically integrate when A. Various segregated specializations will be combined B. Lower transaction costs and improved coordination are vital and achievable through vertical integration C. Flexibility is reduced, providing a more stationary position in the competitive environment D. The minimum efficient scales of two corporations are different - ANSWER-B. Lower transaction costs and improved coordination are vital impound achievable through vertical integration Firms following a global strategy strive to offer __________ products and services as well as locate manufacturing, R&D, and marketing activities in ________ locations. A. A wide variety of; few B. Standardized; few C. A wide variety of; several D. Standardized; several - ANSWER-B. Standardized; few Which of the following types of international firms are most likely to benefit from a global strategy as opposed to a multi domestic strategy? A. Firms in industries that are expanding very rapidly MGMT 4515 MGMT 4515 B. Firms in industries that have value added by sales and marketing departments C. Firms in industries that have much value added in research and design or manufacturing D. Firms that compete in industries in which consumer preferences vary substantially in each country - ANSWER-C. Firms in industries that have much value added in research and design or manufacturing True or False A multi domestic strategy is the most appropriate strategy for International operations because it drives economies of scale as far as possible and provides a middle of the road product appealing to the largest number of consumers in every market - ANSWER False True or False Corporations with multiple foreign operations that act very independently of one another are following a multi domestic strategy - ANSWER-True A domestic corporation considering expanding into International markets for the first time will typically A. Consider licensing or franchising its operations B. Start off by implementing a wholly owned foreign subsidiary so it can maintain standards identical to those at home C. Form a joint venture with a reputable foreign producer D. Consider implementing a low risk/low control strategy such as exporting - ANSWER D. Consider implementing a low risk/low control strategy such as exporting Which of the following describes the most typical order of entry into foreign markets? A. Exporting, licensing, franchising, joint venture, and wholly owned subsidiary B. Exporting, franchising, licensing, joint venture, and wholly owned subsidiary C. Franchising, licensing, exporting, joint venture, and wholly owned subsidiary D. Licensing, exporting, franchising, joint venture, and wholly owned subsidiary - ANSWER-A. Exporting, licensing, franchising, joint venture, and wholly owned subsidiary Which of the following is NOT a disadvantage of licensing? A. Little control over the marketing of the products B. Licensees may develop a competitive product after the license expires C. Decreased potential returns D. The high costs of establishing manufacturing facilities - ANSWER-D. The high costs of establishing manufacturing facilities True or False The finance and R&D functions are emphasized in the differentiation strategy's functional structure - ANSWER-False True or False MGMT 4515 MGMT 4515 The functional structure is most appropriate for larger firms implementing a strategy that includes high levels of diversification - ANSWER-False True or False To properly execute strategic controls in firms using related diversification, the executives must have a deep understanding of each unit's business-level strategy - ANSWER-True True or False Internal competition for corporate resources is effective for companies with an unrelated diversification strategy, but dysfunctional for companies with a related strategy - ANSWER-True True or False Research has consistently shown that there is one best way to structure all organizations, regardless of competitive strategy - ANSWER-False The separation between a firm's owners and managers