MGMT 478 EXAM 2 QUESTIONS & ANSWERS
A collaborative advantage is created by
A. Diversification
B. Acquisition
C. Strategic alliance
D. Internal development - answer -c. Strategic alliance
When a firm is able to sell its products above the existing competitive level and/or
reduce the costs of primary and support activities below the existing level
A. Market power
B. Financial economies
C. Economies of scale
D. Value added strategy - answer -a. Market power
Forward integration exists when a company
A. Competes with its own sbus
B. Produces its own inputs
C. Owns its own source of distribution
D. Reduces the costs of support activities - answer -c. Owns its own source of
distribution
Cost savings a firm creates by successfully sharing or transferring one or more of its
corporate level competencies - answer -economies of scope
Financial economies are cost savings realized through
A. Vertical integration
B. Improved allocations of financial resources inside and/or outside the firm
C. Transferring one or more core competencies
D. Conducting business through e-commerce - answer -b. Improved allocations of
financial resources inside and/or outside the firm
Alfred chandler proposed that firms grow in a predictable fashion
A. Volume, geography, spatial diversification, integration
B. Geography, product lines, integration, differentiation
C. Volume, geography, integration, product or market diversification
D. Volume, geography, integration, corporate structure - answer -c. Volume,
geography, integration, product or market diversification
, A strategy where the target firm does not solicit the acquiring firm's bid - answer -
takeover
Which of the following is not a benefit of the m-form
A. Improves the allocation of resources
B. Motivates
C. Fosters specific specialization
D. Simplifies control - answer -c. Fosters specific specialization
Simple reporting relationships, strong focus on process improvements, few
organizational layers in the decision making structure, centralized corporate staff, and
little emphasis on product r&d - these characteristics are focused on
A. Functional structure implementing differentiation strategy
B. Functional structure implementing cost leadership strategy
C. Sbu form of m-form structure implementing diversification strategy
D. Competitive form of m-form structure implementing unrelated diversification strategy
- answer -b. Functional structure implementing cost leadership strategy
Sbu, competitive, and cooperative are three variations of ________________ - answer
-m-form corporate level strategy
The acquisition of a firm in the same industry
A. Horizontal acquisition
B. Related acquisition
C. Vertical acquisition
D. Unrelated acquisition - answer -a. Horizontal acquisition
Boston consulting group matrix is comprised of two dimensions
A. Strategic controls; financial controls
B. Capabilities; core competencies
C. Market share; business growth
D. Cost; differentiation - answer -c. Market share; business growth
Liaison roles and task forces are types of
A. Strategic controls
B. Integrating mechanisms
C. Resource allocating mechanisms
D. Motivation mechanisms in corporate level strategies - answer -b. Integrating
mechanisms
A collaborative advantage is created by
A. Diversification
B. Acquisition
C. Strategic alliance
D. Internal development - answer -c. Strategic alliance
When a firm is able to sell its products above the existing competitive level and/or
reduce the costs of primary and support activities below the existing level
A. Market power
B. Financial economies
C. Economies of scale
D. Value added strategy - answer -a. Market power
Forward integration exists when a company
A. Competes with its own sbus
B. Produces its own inputs
C. Owns its own source of distribution
D. Reduces the costs of support activities - answer -c. Owns its own source of
distribution
Cost savings a firm creates by successfully sharing or transferring one or more of its
corporate level competencies - answer -economies of scope
Financial economies are cost savings realized through
A. Vertical integration
B. Improved allocations of financial resources inside and/or outside the firm
C. Transferring one or more core competencies
D. Conducting business through e-commerce - answer -b. Improved allocations of
financial resources inside and/or outside the firm
Alfred chandler proposed that firms grow in a predictable fashion
A. Volume, geography, spatial diversification, integration
B. Geography, product lines, integration, differentiation
C. Volume, geography, integration, product or market diversification
D. Volume, geography, integration, corporate structure - answer -c. Volume,
geography, integration, product or market diversification
, A strategy where the target firm does not solicit the acquiring firm's bid - answer -
takeover
Which of the following is not a benefit of the m-form
A. Improves the allocation of resources
B. Motivates
C. Fosters specific specialization
D. Simplifies control - answer -c. Fosters specific specialization
Simple reporting relationships, strong focus on process improvements, few
organizational layers in the decision making structure, centralized corporate staff, and
little emphasis on product r&d - these characteristics are focused on
A. Functional structure implementing differentiation strategy
B. Functional structure implementing cost leadership strategy
C. Sbu form of m-form structure implementing diversification strategy
D. Competitive form of m-form structure implementing unrelated diversification strategy
- answer -b. Functional structure implementing cost leadership strategy
Sbu, competitive, and cooperative are three variations of ________________ - answer
-m-form corporate level strategy
The acquisition of a firm in the same industry
A. Horizontal acquisition
B. Related acquisition
C. Vertical acquisition
D. Unrelated acquisition - answer -a. Horizontal acquisition
Boston consulting group matrix is comprised of two dimensions
A. Strategic controls; financial controls
B. Capabilities; core competencies
C. Market share; business growth
D. Cost; differentiation - answer -c. Market share; business growth
Liaison roles and task forces are types of
A. Strategic controls
B. Integrating mechanisms
C. Resource allocating mechanisms
D. Motivation mechanisms in corporate level strategies - answer -b. Integrating
mechanisms
