MBA 705: Exam 2 questions and
answers
Modifying the structure of the organization and/or the business model to improve
competitiveness is consistent with
A. the low-cost strategy.
B. the focus strategy.
C. the differentiation strategy.
D. the low-cost-differentiation strategy. ✔✔D. Modifying the structure of the
organization and/or the business model to improve competitiveness is referred to
as structural innovation and is consistent with the combination strategy.
Analyzers
A. seek first-mover advantages.
B. control a distinct segment of the market.
C. display some of the characteristics of both prospectors and defenders.
D. none of the above ✔✔C. The analyzer strategy has been called a hybrid
approach of the prospector and defender types.
Emerging markets are often more attractive than developed ones because
A. competition is not as intense.
B. consumer incomes in emerging markets are not a concern.
C. the infrastructure in emerging markets is already developed.
,D. none of the above ✔✔A. Because emerging markets are not yet fully
developed, competition is not as intense as in developed marketsSocial Forces
✔✔-Societal values
-Trends
-Traditions
-Religious practices
-Concern for the environment
Social Forces Case #1 Eating Habits ✔✔-Consumers "super size" at record rates
while demanding healthier foods.
-Many fast food restaurants have been "supersizing" their meal combinations by
adding extra fries and larger drinks, while at the same time expanding alternatives
for items such as grilled chicken sandwiches and salads
Social Forces Case #2 Automobiles ✔✔Contrary to demand patterns in other parts
of the world, demand for large vehicles remains strong in the U.S. amidst cries for
greater fuel economy.
Social Forces: Global Concerns ✔✔-Firms operating in multiple countries must
address multiple sets of social forces.
-Social forces are influenced by national culture, the generally accepted values,
traditions, and patterns of behavior in a society. Firms should recognize these
cultural differences.
,-Some firms struggle because their managers consciously refer to their own
cultural values as a standard of judgment, a phenomenon known as the self-
reference criterion.
Technological Forces ✔✔-Scientific improvements & innovations
-The Internet is arguably the most pervasive technological force affecting most
industries.
The World is Flat (Thomas Friedman, 2005) ✔✔During the dot-com bubble of the
late 1990s, telecommunications firms laid fiber optic cables across the oceans to
connect the U.S. with China and India.
Since the dot-com bust, these cables have provided high quality, low cost contact
with developing nations, "leveling the playing field."
"Any activity that can be digitized and moved around will get moved around."
Strategy and The Internet ✔✔-Has the Internet created new business models or
just altered the old ones?
-Although the Internet plays a substantial role, critics challenge the notion that
"new business models" are needed to compete in the "new economy." Michael
, Porter and others argue that the market forces that governed the traditional
economy have not disappeared in the Internet economy.
Disaggregation & Reaggregation ✔✔-Large firms exist because they can perform
most tasks—raw material procurement, production, human resource
management, sales, and so forth—more efficiently than they would otherwise be
performed if they were "outsourced" to the open market.
-Today, many progressive firms have "disaggregated" by no longer perform all of
their functional activities, but instead "reaggregate" by searching for partners who
can perform some of the activities more efficiently.
Strategic Dimensions of the Internet ✔✔-The Internet has influenced strategic
management in very specific ways.
-Contrary to early expectations, the Internet has not always generated greater
profits for businesses. Consumers have benefitted immensely.
-Five Strategic Dimension of the Internet are addressed in the following slides.
Dimension #1: Movement toward information symmetry- ✔✔Typical markets are
characterized by information asymmetry, whereby sellers control key information
that is not available to buyers. The Internet promotes information symmetry,
whereby buyers and sellers share information.
answers
Modifying the structure of the organization and/or the business model to improve
competitiveness is consistent with
A. the low-cost strategy.
B. the focus strategy.
C. the differentiation strategy.
D. the low-cost-differentiation strategy. ✔✔D. Modifying the structure of the
organization and/or the business model to improve competitiveness is referred to
as structural innovation and is consistent with the combination strategy.
Analyzers
A. seek first-mover advantages.
B. control a distinct segment of the market.
C. display some of the characteristics of both prospectors and defenders.
D. none of the above ✔✔C. The analyzer strategy has been called a hybrid
approach of the prospector and defender types.
Emerging markets are often more attractive than developed ones because
A. competition is not as intense.
B. consumer incomes in emerging markets are not a concern.
C. the infrastructure in emerging markets is already developed.
,D. none of the above ✔✔A. Because emerging markets are not yet fully
developed, competition is not as intense as in developed marketsSocial Forces
✔✔-Societal values
-Trends
-Traditions
-Religious practices
-Concern for the environment
Social Forces Case #1 Eating Habits ✔✔-Consumers "super size" at record rates
while demanding healthier foods.
-Many fast food restaurants have been "supersizing" their meal combinations by
adding extra fries and larger drinks, while at the same time expanding alternatives
for items such as grilled chicken sandwiches and salads
Social Forces Case #2 Automobiles ✔✔Contrary to demand patterns in other parts
of the world, demand for large vehicles remains strong in the U.S. amidst cries for
greater fuel economy.
Social Forces: Global Concerns ✔✔-Firms operating in multiple countries must
address multiple sets of social forces.
-Social forces are influenced by national culture, the generally accepted values,
traditions, and patterns of behavior in a society. Firms should recognize these
cultural differences.
,-Some firms struggle because their managers consciously refer to their own
cultural values as a standard of judgment, a phenomenon known as the self-
reference criterion.
Technological Forces ✔✔-Scientific improvements & innovations
-The Internet is arguably the most pervasive technological force affecting most
industries.
The World is Flat (Thomas Friedman, 2005) ✔✔During the dot-com bubble of the
late 1990s, telecommunications firms laid fiber optic cables across the oceans to
connect the U.S. with China and India.
Since the dot-com bust, these cables have provided high quality, low cost contact
with developing nations, "leveling the playing field."
"Any activity that can be digitized and moved around will get moved around."
Strategy and The Internet ✔✔-Has the Internet created new business models or
just altered the old ones?
-Although the Internet plays a substantial role, critics challenge the notion that
"new business models" are needed to compete in the "new economy." Michael
, Porter and others argue that the market forces that governed the traditional
economy have not disappeared in the Internet economy.
Disaggregation & Reaggregation ✔✔-Large firms exist because they can perform
most tasks—raw material procurement, production, human resource
management, sales, and so forth—more efficiently than they would otherwise be
performed if they were "outsourced" to the open market.
-Today, many progressive firms have "disaggregated" by no longer perform all of
their functional activities, but instead "reaggregate" by searching for partners who
can perform some of the activities more efficiently.
Strategic Dimensions of the Internet ✔✔-The Internet has influenced strategic
management in very specific ways.
-Contrary to early expectations, the Internet has not always generated greater
profits for businesses. Consumers have benefitted immensely.
-Five Strategic Dimension of the Internet are addressed in the following slides.
Dimension #1: Movement toward information symmetry- ✔✔Typical markets are
characterized by information asymmetry, whereby sellers control key information
that is not available to buyers. The Internet promotes information symmetry,
whereby buyers and sellers share information.
