LSE Strategic Management Final EXAM QUESTIONS WITH CORRECT ANSWERS.pdf

LSE Strategic Management Final
EXAM QUESTIONS WITH CORRECT
ANSWERS
DDFD3D7



"IfDaDcardDshowsDaDDDthenDitDhasDaD3DonDtheDotherDside"DWhichDdoDyouDturnDtoDproveDthis?



a.DDDFD3D7Db.DDDFD3Dc.DDD3

d.DFD3

e.DFD7

f.DDDF

g.DNoneDofDtheDaboveD-DCORRECTDANSWERSg.DNoneDofDtheDabove



WhichDofDtheseDConditionsDcanDexplainDStarbucksDprofits?



A.DBaristasDareDeasyDtoDhireDandDtrainDonDtheDjob

B.DWhenDaDconsumerDbuysDaDStarbucksDcoffee,Dhe/sheDbuysDanDentireDexperience

C.DStarbucksDhasDdevelopedDproprietaryDroastingDtechnology

D.DMostDotherDpopularDcaffeinatedDdrinksDhaveDdifferentDcharacteristicsD(e.g.,DfizzyDdrinks)

E.DAllDofDtheDaboveD(A,DB,DC,DD)

F.DOnlyDBDandDC

G.DOnlyDADandDDD-DCORRECTDANSWERSE.DAllDofDtheDaboveD(A,DB,DC,DD)



WhichDofDtheseDconditionsDcanDexplainDBristol-MyersDSquibbDProfits?



D A.DScientistsDareDdifficultDtoDhire

,B.DWhenDhospitalsDbuyDaDBMSDmedicine,DtheyDbuyDanDentireDservice

C.DBMSDhasDdevelopedDproprietaryDdrugDdiscoveryDtechnology

D.DFewDdiseasesDhaveDalternativeDtreatmentsDotherDthanDdrugs

E.DAllDofDtheDaboveD(A,DB,DC,DD)

F.DOnlyDBDandDC

G.DOnlyDADandDDD-DCORRECTDANSWERSE.DAllDofDtheDaboveD(A,DB,DC,DD)



DecompositionDofDProfitabilityD-
DCORRECTDANSWERSPortionDdueDtoDIndustryDFactorsD+DPortionDdueDtoDSourcesDofDCompetitiveDAd


vantageD=DFirmDProfitability



ImagineDtheDeconomyDpriorDtoD1850D(theDemergenceDofDrailroads).DHowDdifferentDwouldDyouDexp
ectDtheDprofitsDofDfirmsDtoDbe?DWhy?



A.DLargeDdifferencesDbecauseDsomeDfirmsDhadDaccessDtoDuniqueDnation-
wideDresourcesDandDsomeDdidDnot

B.DLargeDdifferencesDbecauseDmanagersDhadDlittleDunderstandingDofDhowDfirm-
levelDstrategyDworks

C.DSmallDdifferencesDbecauseDmostDfirmsDwereDconfinedDtoDlocalDmarketsDinDtheirDimmediacy

D.DSmallDdifferencesDbecauseDconsumersDwereDinsensitiveDtoDqualityD-
DCORRECTDANSWERSC.DSmallDdifferencesDbecauseDmostDfirmsDwereDconfinedDtoDlocalDmarketsDinDt


heirDimmediacy



WhichDmarketDdoesDFacebookDoperateDin?



A.DsocialDnetworking

B.DonlineDadvertisingD

C.DbothD-DCORRECTDANSWERSB.DonlineDadvertising

, RBVD-DCORRECTDANSWERSTheDResource-BasedDViewDofDtheDFirm



WhyDdoDweDcallDitDaD"view"DandDnotDaD"theory"DwithinDacademia?



A.DThereDisDnoDconsensusDamongDacademics

B.DItDmissesDtoDexplainDsomethingDthatDaDtheoryDwould

C.DAcademically,D"view"DandD"theory"DareDsynonymsD(likeDtheDtermsD"market"DandD"industry"Dwhi
chDareDacademicDsynonyms,DalthoughDusedDdifferentlyDinDpractice)D-
DCORRECTDANSWERSB.DItDmissesDtoDexplainDsomethingDthatDaDtheoryDwould




ReturnDonDEquityD(ROE)D-DCORRECTDANSWERS•DStartingDpoint,Dcomprehensive

•DIndicatesDhowDwellDmanagersDemployDtheDfundsDfromDtheDfirm'sDshareholdersDtoDgenerateDprofi
tsD(returns)



ROED=DNetDProfitsD/DShareholder'sDEquity



ReturnDonDAssetsD(ROA)D-
DCORRECTDANSWERS•DIndicatesDhowDmuchDprofitDtheDfirmDcanDgenerateDforDeachDpound/euro/et


c.DofDassetsDinvested

•DROEDwouldDbeDaffectedDbyDROADandDbyDtheDproportionDofDassetDbaseDtoDshareholders'Dinvestme
nt



ROA=DNetDprofitD/DTotalDassests



EquityDmultiplierD-DCORRECTDANSWERSTotalDassetsD/DEquity