ASU WPC 470 FINAL EXAM QUESTIONS & ANSWERS
1. Feran is the founder of an innovative "impromptu catering" business that provides
elegant, healthy party food and decorations on less than 24 hours' notice. The
company has grown by over 150 percent in the past year. Feran credits some of the
company's success to studying the strategies of prominent social entrepreneurs, such
as Wikipedia's Jimmy Wales. What can Feran do
to exemplify the social entrepreneurship model?: Provide free weekly catered meals for the
homeless
2. Which of the following is not true about the decline stage of an industry life cycle?:
The last consumer segment called "laggards" will finally enter the market
3. In the decline stage, which of the following strategies involves a reduction of
investments in product support?: harvest strategy
4. Canon was able to redesign the copying machine so that it didn't need
professional service—reliability was built directly into the machine, and the user could
replace parts, such as the cartridge. What Xerox had not envisioned was the possibility
that the components of the copying machine could be
put together in an altogether different way that was more user-friendly. This example
describes: architectural innovation
5. Which of the following businesses ismost susceptible to negative network effects?: Rite
Pics is a social media platform where users upload photos to the site and are matched with other users who
have taken similar photos
6. Funholding Inc. is a large multinational company owned by two partners, is active in
the petroleum, capital market, chemicals, steel, beverages, hospitality, airlines,
education, automobiles, and consumer electronics industries. The company has
multiple brands and a large product portfolio under its banner. Which of the following
1/7
, terms would best describe this company?: a conglomerate
7. Bob is the strategic business unit (SBU) CEO in charge of manufacturing cufflinks
for men's clothing. While the market he competes in is low growth, Bob's SBU's
earnings and cash flow are both ranked at high and stable. When examining Bob's
SBU through the Boston Consulting Group (BCG) matrix lens, we can conclude that
his SBU would be classified as a: cash cow
8. Danke Inc. is a diversified firm that creates more value than the cost that it incurs.
As a result, they are experiencing a diversification premium in their
2/7
1. Feran is the founder of an innovative "impromptu catering" business that provides
elegant, healthy party food and decorations on less than 24 hours' notice. The
company has grown by over 150 percent in the past year. Feran credits some of the
company's success to studying the strategies of prominent social entrepreneurs, such
as Wikipedia's Jimmy Wales. What can Feran do
to exemplify the social entrepreneurship model?: Provide free weekly catered meals for the
homeless
2. Which of the following is not true about the decline stage of an industry life cycle?:
The last consumer segment called "laggards" will finally enter the market
3. In the decline stage, which of the following strategies involves a reduction of
investments in product support?: harvest strategy
4. Canon was able to redesign the copying machine so that it didn't need
professional service—reliability was built directly into the machine, and the user could
replace parts, such as the cartridge. What Xerox had not envisioned was the possibility
that the components of the copying machine could be
put together in an altogether different way that was more user-friendly. This example
describes: architectural innovation
5. Which of the following businesses ismost susceptible to negative network effects?: Rite
Pics is a social media platform where users upload photos to the site and are matched with other users who
have taken similar photos
6. Funholding Inc. is a large multinational company owned by two partners, is active in
the petroleum, capital market, chemicals, steel, beverages, hospitality, airlines,
education, automobiles, and consumer electronics industries. The company has
multiple brands and a large product portfolio under its banner. Which of the following
1/7
, terms would best describe this company?: a conglomerate
7. Bob is the strategic business unit (SBU) CEO in charge of manufacturing cufflinks
for men's clothing. While the market he competes in is low growth, Bob's SBU's
earnings and cash flow are both ranked at high and stable. When examining Bob's
SBU through the Boston Consulting Group (BCG) matrix lens, we can conclude that
his SBU would be classified as a: cash cow
8. Danke Inc. is a diversified firm that creates more value than the cost that it incurs.
As a result, they are experiencing a diversification premium in their
2/7
