MBA 705: Exam 3 questions and
answers
Which of the following could not be an example of a weakness?
A. product quality.
B. fierce competition.
C. human resources.
D. All of the above could be weaknesses. ✔✔B. Fierce competition comes from
outside of the organization and would be a threat, not a weakness.
Which type of alternative is always defensive in nature?
A. strength-opportunity.
B. strength-threat.
C. weakness-opportunity.
D. weakness-threat. ✔✔D. Weakness-threat alternatives are always defensive in
nature. Strength-opportunity alternatives are always offensive. Other alternatives
can be either offensive or defensive.Capital-Labor Substitution: ✔✔An
organization's ability to substitute labor for capital or vice versa as production
increases.
Experience Curve: ✔✔ncreases. Experience Curve: The reduction in per-unit costs
that occur as an organization gains experience producing a product or service.
,Functional Strategies: ✔✔The strategies pursued by each functional area of a
business unit, such as marketing, finance, or production.
Human Capital: ✔✔The sum of the capabilities of individuals in an organization.
Just-In-Time (JIT) Inventory System: ✔✔An inventory system, popularized by the
Japanese, in which suppliers deliver parts just at the time they are needed by the
buying organization to use in its production process.
Knowledge Management: ✔✔People and their skills and abilities (i.e., knowledge
capital) represent the only resource that cannot readily be reproduced by a firm's
competitors. Knowledge capital must be effectively leveraged if high-performing
firms are to remain as such over the long term.
Learning: ✔✔The increased efficiency that occurs when an employee performs a
task repeatedly.
Process R & D: ✔✔R & D activities that seek to reduce the costs of operations and
make them more efficient.
Product/Service R & D: ✔✔R & D activities directed toward improvements or
innovations in the quality or uniqueness of a company's outputs.
Total Quality Management (TQM): ✔✔A broad-based program designed to
improve product and service quality and to increase customer satisfaction by
, incorporating a holistic commitment to quality as seen through the eyes of the
customer.
Because functional strategies should be designed to support corporate and
business strategies, they should not be considered until corporate and business
strategies have been formulated.
True or False ✔✔False.
Although functional strategies are formulated after the corporate and business
strategies have already been established, one still needs to consider the
capabilities of the various functional areas when considering various corporate
and business strategic options.
The most appropriate means of securing funds likely depends on the corporate
and business strategies being pursued.
True or False ✔✔True.
Some forms of raising capital tend to be more effective than others, depending on
the strategy.
The reduction in per-unit costs that occurs as an organization gains experience
producing a product or service is known as economies of scale. Economies of scale
is one of the contributing factors to the experience curve.
answers
Which of the following could not be an example of a weakness?
A. product quality.
B. fierce competition.
C. human resources.
D. All of the above could be weaknesses. ✔✔B. Fierce competition comes from
outside of the organization and would be a threat, not a weakness.
Which type of alternative is always defensive in nature?
A. strength-opportunity.
B. strength-threat.
C. weakness-opportunity.
D. weakness-threat. ✔✔D. Weakness-threat alternatives are always defensive in
nature. Strength-opportunity alternatives are always offensive. Other alternatives
can be either offensive or defensive.Capital-Labor Substitution: ✔✔An
organization's ability to substitute labor for capital or vice versa as production
increases.
Experience Curve: ✔✔ncreases. Experience Curve: The reduction in per-unit costs
that occur as an organization gains experience producing a product or service.
,Functional Strategies: ✔✔The strategies pursued by each functional area of a
business unit, such as marketing, finance, or production.
Human Capital: ✔✔The sum of the capabilities of individuals in an organization.
Just-In-Time (JIT) Inventory System: ✔✔An inventory system, popularized by the
Japanese, in which suppliers deliver parts just at the time they are needed by the
buying organization to use in its production process.
Knowledge Management: ✔✔People and their skills and abilities (i.e., knowledge
capital) represent the only resource that cannot readily be reproduced by a firm's
competitors. Knowledge capital must be effectively leveraged if high-performing
firms are to remain as such over the long term.
Learning: ✔✔The increased efficiency that occurs when an employee performs a
task repeatedly.
Process R & D: ✔✔R & D activities that seek to reduce the costs of operations and
make them more efficient.
Product/Service R & D: ✔✔R & D activities directed toward improvements or
innovations in the quality or uniqueness of a company's outputs.
Total Quality Management (TQM): ✔✔A broad-based program designed to
improve product and service quality and to increase customer satisfaction by
, incorporating a holistic commitment to quality as seen through the eyes of the
customer.
Because functional strategies should be designed to support corporate and
business strategies, they should not be considered until corporate and business
strategies have been formulated.
True or False ✔✔False.
Although functional strategies are formulated after the corporate and business
strategies have already been established, one still needs to consider the
capabilities of the various functional areas when considering various corporate
and business strategic options.
The most appropriate means of securing funds likely depends on the corporate
and business strategies being pursued.
True or False ✔✔True.
Some forms of raising capital tend to be more effective than others, depending on
the strategy.
The reduction in per-unit costs that occurs as an organization gains experience
producing a product or service is known as economies of scale. Economies of scale
is one of the contributing factors to the experience curve.
