MGMT 4900 Quiz 2 Questions and Answers Already Passed Latest Update 2025-2026
How has Apple been able to sustain its competitive advantage in the smartphone industry?
A. by reducing its network effects
B. by targeting its new products and services toward laggards
C. by driving the price for the end user to zero
D. by regularly introducing incremental improvements in its products - Answers D. by regularly
introducing incremental improvements in its products
Which of the following is NOT characteristic of a red ocean strategy?
A. Beat the competition
B. Exploit existing demand
C. Align the whole system of a company's activities in pursuit of differentiation or low cost
D. Make the value cost tradeoff - Answers C. Align the whole system of a company's activities in
pursuit of differentiation or low cost
Lillypad Toys is a manufacturer of educational toys for children. Six months ago, the company's
research and development division came up with an idea for a unique touchscreen device that
can be used to introduce children to a number of foreign languages. Three months ago, the
company produced a working prototype, and last month the company successfully launched its
new device on the commercial market. What should Lillypad's managers prepare for next?
A. increased competition from imitators
B. a prolonged period of uncontested success
C. a sharp decline in demand for the product
D. a difficult struggle to move from invention to innovation - Answers A. increased competition
from imitators
Which of the following is an example of an external transaction cost?
A. the cost of setting up a production unit
,B. the cost of searching for a contract manufacturer
C. the cost of recruiting and retaining employees
D. the cost of maintaining plant and machinery - Answers B. the cost of searching for a contract
manufacturer
Edna Gomez is the founder of the restaurant chain Good and Green. She ensures that the
products in her stores are ethically and responsibly sourced. Most products are therefore 100
percent organic and all packaging is manufactured from recycled material. Also, her company
sources ingredients from farms within 100 miles from her locations. Edna's belief is that her
restaurants should be able to support the community at large. Which of the following terms best
describes Edna Gomez?
A. headhunter
B. category captain
C. social entrepreneur
D. trade creditor - Answers C. social entrepreneur
Horizontal integration may yield disappointing financial results because:
A. The acquiring firm failed to achieve or realize synergies between the two companies
B. The acquiring firm paid too high a premium for the target (acquired) firm
C. The executive teams of each firm do not like each other
D. A & B
E. None of the above - Answers D. A & B
A strategic alliance differs from a joint venture in that a strategic alliance:
A. occurs when goods and services offered by two or more organizations under different brands
are located
very close to each other.
B. is a cooperative arrangement that involves two or more organizations sharing only control of
the
, operations.
C. is a cooperative arrangement between two or more organizations that does not involve the
creation of a
new entity.
D. refers to a blending of competition and cooperation between two firms.
E. is a cooperative arrangement that involves two or more organizations, each contributing to
the creation
of a new entity.A. - Answers C. is a cooperative arrangement between two or more
organizations that does not involve the creation of anew entity.
While cell phones with holographic keyboards are currently in the introduction stage of the
industry life cycle, tablet computers are in the growth stage. In the context of this scenario,
which of the following statements is true?
A. The industry for cell phones with holographic keyboards will face greater competition than
the tablet industry.
B. While the industry for cell phones with holographic keyboards will focus more on product
innovation, the tablet industry will focus more on process innovation.
C. While the industry for cell phones with holographic keyboards can reap the benefits of
economies of scale, the tablet industry will experience no such benefits.
D. The industry for cell phones with holographic keyboards will face price competition, whereas,
in the tablet industry, the mode of competition will be non-price. - Answers B. While the industry
for cell phones with holographic keyboards will focus more on product innovation, the tablet
industry will focus more on process innovation.
A multidivisional structure can be costly because, when a company has seven divisions like GE
that each require special skills and knowledge, it can reduce a company's profit margin. In GE's
case, departments devoted to important aspects of public relations, business development,
legal, global research, human resources, and finance are maintained centrally to provide
services to all seven divisions. This creates ________ and saves money.
A. opportunities
B. accessibility
How has Apple been able to sustain its competitive advantage in the smartphone industry?
A. by reducing its network effects
B. by targeting its new products and services toward laggards
C. by driving the price for the end user to zero
D. by regularly introducing incremental improvements in its products - Answers D. by regularly
introducing incremental improvements in its products
Which of the following is NOT characteristic of a red ocean strategy?
A. Beat the competition
B. Exploit existing demand
C. Align the whole system of a company's activities in pursuit of differentiation or low cost
D. Make the value cost tradeoff - Answers C. Align the whole system of a company's activities in
pursuit of differentiation or low cost
Lillypad Toys is a manufacturer of educational toys for children. Six months ago, the company's
research and development division came up with an idea for a unique touchscreen device that
can be used to introduce children to a number of foreign languages. Three months ago, the
company produced a working prototype, and last month the company successfully launched its
new device on the commercial market. What should Lillypad's managers prepare for next?
A. increased competition from imitators
B. a prolonged period of uncontested success
C. a sharp decline in demand for the product
D. a difficult struggle to move from invention to innovation - Answers A. increased competition
from imitators
Which of the following is an example of an external transaction cost?
A. the cost of setting up a production unit
,B. the cost of searching for a contract manufacturer
C. the cost of recruiting and retaining employees
D. the cost of maintaining plant and machinery - Answers B. the cost of searching for a contract
manufacturer
Edna Gomez is the founder of the restaurant chain Good and Green. She ensures that the
products in her stores are ethically and responsibly sourced. Most products are therefore 100
percent organic and all packaging is manufactured from recycled material. Also, her company
sources ingredients from farms within 100 miles from her locations. Edna's belief is that her
restaurants should be able to support the community at large. Which of the following terms best
describes Edna Gomez?
A. headhunter
B. category captain
C. social entrepreneur
D. trade creditor - Answers C. social entrepreneur
Horizontal integration may yield disappointing financial results because:
A. The acquiring firm failed to achieve or realize synergies between the two companies
B. The acquiring firm paid too high a premium for the target (acquired) firm
C. The executive teams of each firm do not like each other
D. A & B
E. None of the above - Answers D. A & B
A strategic alliance differs from a joint venture in that a strategic alliance:
A. occurs when goods and services offered by two or more organizations under different brands
are located
very close to each other.
B. is a cooperative arrangement that involves two or more organizations sharing only control of
the
, operations.
C. is a cooperative arrangement between two or more organizations that does not involve the
creation of a
new entity.
D. refers to a blending of competition and cooperation between two firms.
E. is a cooperative arrangement that involves two or more organizations, each contributing to
the creation
of a new entity.A. - Answers C. is a cooperative arrangement between two or more
organizations that does not involve the creation of anew entity.
While cell phones with holographic keyboards are currently in the introduction stage of the
industry life cycle, tablet computers are in the growth stage. In the context of this scenario,
which of the following statements is true?
A. The industry for cell phones with holographic keyboards will face greater competition than
the tablet industry.
B. While the industry for cell phones with holographic keyboards will focus more on product
innovation, the tablet industry will focus more on process innovation.
C. While the industry for cell phones with holographic keyboards can reap the benefits of
economies of scale, the tablet industry will experience no such benefits.
D. The industry for cell phones with holographic keyboards will face price competition, whereas,
in the tablet industry, the mode of competition will be non-price. - Answers B. While the industry
for cell phones with holographic keyboards will focus more on product innovation, the tablet
industry will focus more on process innovation.
A multidivisional structure can be costly because, when a company has seven divisions like GE
that each require special skills and knowledge, it can reduce a company's profit margin. In GE's
case, departments devoted to important aspects of public relations, business development,
legal, global research, human resources, and finance are maintained centrally to provide
services to all seven divisions. This creates ________ and saves money.
A. opportunities
B. accessibility
