MGMT 4513 Finals Practice Questions with
Correct Answers
Recent trends that might lead managers of multinational corporations (MNCs) not to adopt
a multi-domestic strategy for their operations would include all of the following except
A. international customers' needs, interests, and tastes are becoming increasingly
homogenized or similar.
B. consumers around the world are increasingly willing to trade off idiosyncratic
preferences in product features for lower prices.
C. flexible manufacturing trends have allowed a decline in the minimum volume required
to reach acceptable levels of production efficiency.
D. cultural globalization and technological standards diffusion across countries are
resulting in increased similarities in lifestyles and preferences in an increasing number
of countries around the world.
C
Competitiveness is usually enhanced by good implementation of diversification based on all
of the following reasons except:
A. Potential to share the inventory delivery system between the old and the new business
B. Potential to reduce the cost of manufacturing in the new business more than other
potential acquirers
C. Potential to overcome uncertainties in the future cash flows of a mature product line
with cash flows from a new product to protect value for shareholders
D. Potential to share managerial competences in the implementation of a particular
,technological development across otherwise different businesses
E. None of the other options in this set of answers.
C
High pressure for local adaptation combined with high pressure for lower costs would
suggest what type of international strategy?
A. international.
B. global.
C. multi-domestic.
D. transnational.
D
Units coordinate their activities with headquarters and with one another, units adapt to
special circumstances only they face, and the entire organization draws upon relevant
global resources for enhanced efficiencies. These are all attributes of which type of
strategy?
A. a global strategy
B. a transnational strategy
C. an international strategy
D. a multi-domestic strategy
B
Excessive focus on reduced risk might occur if an executive has been with the company for
a long time and his/her pay package has been dominated by:
A. salary
,B. bonus
C. stock options
D. benefits
C
The bargaining power of suppliers is enhanced under the following market condition:
A. no threat of forward integration
B. low differentiation of the suppliers' products
C. greater availability of substitute products
D. dominance by a few suppliers
D
High product differentiation is generally accompanied by
A. higher market share.
B. decreased emphasis on competition based on price.
C. higher profit margins and lower costs.
D. significant economies of scale.
B
An analysis of the economic segment of the external environment does NOT include
A. interest rates.
B. international trade.
C. the strength of the U.S. dollar.
D. the move toward a contingent work force.
, D
If an industry has high exit barriers and high entrance barriers, returns to the industry
should be
A. low and unstable.
B. low and stable.
C. high and unstable.
D. high and stable.
B
The three key types of firm factors that are central to the resource-based view of the firm
are:
A. tangible resources, intangible resources, and organizational structure.
B. culture, tangible resources, intangible resources.
C. tangible resources, intangible resources, and organizational capabilities.
D. tangible resources, intangible resources, and top management.
C
Which of the following is a risk (or pitfall) of cost leadership?
A. cost cutting may lead to the loss of desirable features
B. attempts to stay ahead of the competition may lead to unacceptable quality
C. cost differences increase as the market matures
D. producers are more able to withstand increases in suppliers' cost
B
Correct Answers
Recent trends that might lead managers of multinational corporations (MNCs) not to adopt
a multi-domestic strategy for their operations would include all of the following except
A. international customers' needs, interests, and tastes are becoming increasingly
homogenized or similar.
B. consumers around the world are increasingly willing to trade off idiosyncratic
preferences in product features for lower prices.
C. flexible manufacturing trends have allowed a decline in the minimum volume required
to reach acceptable levels of production efficiency.
D. cultural globalization and technological standards diffusion across countries are
resulting in increased similarities in lifestyles and preferences in an increasing number
of countries around the world.
C
Competitiveness is usually enhanced by good implementation of diversification based on all
of the following reasons except:
A. Potential to share the inventory delivery system between the old and the new business
B. Potential to reduce the cost of manufacturing in the new business more than other
potential acquirers
C. Potential to overcome uncertainties in the future cash flows of a mature product line
with cash flows from a new product to protect value for shareholders
D. Potential to share managerial competences in the implementation of a particular
,technological development across otherwise different businesses
E. None of the other options in this set of answers.
C
High pressure for local adaptation combined with high pressure for lower costs would
suggest what type of international strategy?
A. international.
B. global.
C. multi-domestic.
D. transnational.
D
Units coordinate their activities with headquarters and with one another, units adapt to
special circumstances only they face, and the entire organization draws upon relevant
global resources for enhanced efficiencies. These are all attributes of which type of
strategy?
A. a global strategy
B. a transnational strategy
C. an international strategy
D. a multi-domestic strategy
B
Excessive focus on reduced risk might occur if an executive has been with the company for
a long time and his/her pay package has been dominated by:
A. salary
,B. bonus
C. stock options
D. benefits
C
The bargaining power of suppliers is enhanced under the following market condition:
A. no threat of forward integration
B. low differentiation of the suppliers' products
C. greater availability of substitute products
D. dominance by a few suppliers
D
High product differentiation is generally accompanied by
A. higher market share.
B. decreased emphasis on competition based on price.
C. higher profit margins and lower costs.
D. significant economies of scale.
B
An analysis of the economic segment of the external environment does NOT include
A. interest rates.
B. international trade.
C. the strength of the U.S. dollar.
D. the move toward a contingent work force.
, D
If an industry has high exit barriers and high entrance barriers, returns to the industry
should be
A. low and unstable.
B. low and stable.
C. high and unstable.
D. high and stable.
B
The three key types of firm factors that are central to the resource-based view of the firm
are:
A. tangible resources, intangible resources, and organizational structure.
B. culture, tangible resources, intangible resources.
C. tangible resources, intangible resources, and organizational capabilities.
D. tangible resources, intangible resources, and top management.
C
Which of the following is a risk (or pitfall) of cost leadership?
A. cost cutting may lead to the loss of desirable features
B. attempts to stay ahead of the competition may lead to unacceptable quality
C. cost differences increase as the market matures
D. producers are more able to withstand increases in suppliers' cost
B
