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
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
