MGMT 4900 EXAM QUESTIONS & ANSWERS
One sign that hotels are a Red Ocean market is that hotels are known to take down
their name and logo and sell a property to competitor who will then simply attach its logo
to the building - Answer -True
To compete in the luxury hotel market, citizen M created a 6-Star hotel classification -
Answer -False (own classification)
Evaluate the following statement: Strategic leaders should always try to pursue a blue
ocean strategy because it is the most complex, coveted, and most desirable strategy
that exists - Answer -I disagree firm should only pursue this strategy if they are able to
reconcile the trade-offs of each generic strategy
When a firm is able to successfully employ a blue ocean strategy, it will create a
competitive advantage by - Answer -differentiation
Which of the following scenarios would be characteristic of an entrepreneur? - Answer -
Rachel implemented a new and more efficient way to produce pottery
Which of the following is an example of social entrepreneurship? The committee
approved the new formula for an all-purpose cleaner because it - Answer -it cleaned as
well as other cleaners and used organic ingredients
Susan is the founder of the restaurant chain Right and Fresh. She ensures that the
products in her stores are ethically and responsibly sourced. Most products are
therefore 100 percent organic and all packaging is manufactured from recycled material.
Also, her company sources ingredients from farms within 100 miles from her locations.
Susan's belief is that her restaurants should be able to support the community at large.
Which of the following terms best describes Susan? - Answer -Social entrepreneur
A factor favoring the success of a new entrant pursuing disruptive innovation is that -
Answer -incumbent firms are slow to change
Incumbent firms prefer to focus on incremental innovations which reinforce their
established organizational structure and power distribution and avoid radical innovation
that could disrupt their existing power distribution. This is known as - Answer -
organizational inertia
Lauren is the CEO of TimeEx Inc. and is competing in an industry that is shifting due to
disruptive innovation. Which of the following strategies should she consider to most
appropriately respond to this disruptive innovation? - Answer -guard against the
disruptive innovation by protecting the low end of the market.
, Which of the following stakeholders of a company would most likely be responsible for
formulating a corporate strategy? - Answer -CEO
There are many reasons why firms need to grow. Which of the following reasons is
strongly influenced by economies of scale? - Answer -lowering costs
Which of the following motivations for business growth involves principal-agent
problems? - Answer -motivating managers
___ are best described as voluntary arrangements between firms that involve the
sharing of knowledge, resources, and capabilities with the intent of developing
processes, products, or services to lead to competitive advantage. - Answer -strategic
alliances
The several mechanisms in which strategic alliance can be governed - Answer --equity
alliances
-joint ventures
-non-equity alliances
Inity Inc. is a large conglomerate. The company's beverages strategic business unit
(SBU) has been recognized as a cash cow, and its tobacco SBU has been categorized
as a dog. Which of the following can be inferred from this scenario? - Answer -While
the market share of the company in the beverages industry will be high, the market
share in the tobacco industry will be low.
Using the Boston Consulting Group growth-share matrix, the managers of Fasehatice
International determined that their business unit devoted to personal health monitoring
devices was a star. Based on this finding, which of the following strategies is likely to
produce the best results? - Answer -Hold or invest
Condax Electronics relied on a large chain of consumer electronics stores to sell its
tablet computers, cell phones, and televisions and also to provide customer service and
technical support. However, that retailer outsourced its service departments, and
customers began to complain that they could not get reliable tech support for Condax
products. In response, Condax Electronics decided to set up its own tech support
department, and it also began to investigate opening its own brand-based retail stores.
What does this scenario best illustrate? - Answer -forward vertical integration
The fact that both Whole Foods (a high-end grocery store) and Aldi (an inexpensive
grocery store) have a competitive advantage in the grocery store industry is an
indication that - Answer -following the same generic business strategy can allow for two
firms competing in the same industry to have...
Which of the following examples uses a focused differentiation strategy? - Answer -a
cosmetics brand that offers superior skin lotion for sensitive skin priced at 100 dollars
per bottle
One sign that hotels are a Red Ocean market is that hotels are known to take down
their name and logo and sell a property to competitor who will then simply attach its logo
to the building - Answer -True
To compete in the luxury hotel market, citizen M created a 6-Star hotel classification -
Answer -False (own classification)
Evaluate the following statement: Strategic leaders should always try to pursue a blue
ocean strategy because it is the most complex, coveted, and most desirable strategy
that exists - Answer -I disagree firm should only pursue this strategy if they are able to
reconcile the trade-offs of each generic strategy
When a firm is able to successfully employ a blue ocean strategy, it will create a
competitive advantage by - Answer -differentiation
Which of the following scenarios would be characteristic of an entrepreneur? - Answer -
Rachel implemented a new and more efficient way to produce pottery
Which of the following is an example of social entrepreneurship? The committee
approved the new formula for an all-purpose cleaner because it - Answer -it cleaned as
well as other cleaners and used organic ingredients
Susan is the founder of the restaurant chain Right and Fresh. She ensures that the
products in her stores are ethically and responsibly sourced. Most products are
therefore 100 percent organic and all packaging is manufactured from recycled material.
Also, her company sources ingredients from farms within 100 miles from her locations.
Susan's belief is that her restaurants should be able to support the community at large.
Which of the following terms best describes Susan? - Answer -Social entrepreneur
A factor favoring the success of a new entrant pursuing disruptive innovation is that -
Answer -incumbent firms are slow to change
Incumbent firms prefer to focus on incremental innovations which reinforce their
established organizational structure and power distribution and avoid radical innovation
that could disrupt their existing power distribution. This is known as - Answer -
organizational inertia
Lauren is the CEO of TimeEx Inc. and is competing in an industry that is shifting due to
disruptive innovation. Which of the following strategies should she consider to most
appropriately respond to this disruptive innovation? - Answer -guard against the
disruptive innovation by protecting the low end of the market.
, Which of the following stakeholders of a company would most likely be responsible for
formulating a corporate strategy? - Answer -CEO
There are many reasons why firms need to grow. Which of the following reasons is
strongly influenced by economies of scale? - Answer -lowering costs
Which of the following motivations for business growth involves principal-agent
problems? - Answer -motivating managers
___ are best described as voluntary arrangements between firms that involve the
sharing of knowledge, resources, and capabilities with the intent of developing
processes, products, or services to lead to competitive advantage. - Answer -strategic
alliances
The several mechanisms in which strategic alliance can be governed - Answer --equity
alliances
-joint ventures
-non-equity alliances
Inity Inc. is a large conglomerate. The company's beverages strategic business unit
(SBU) has been recognized as a cash cow, and its tobacco SBU has been categorized
as a dog. Which of the following can be inferred from this scenario? - Answer -While
the market share of the company in the beverages industry will be high, the market
share in the tobacco industry will be low.
Using the Boston Consulting Group growth-share matrix, the managers of Fasehatice
International determined that their business unit devoted to personal health monitoring
devices was a star. Based on this finding, which of the following strategies is likely to
produce the best results? - Answer -Hold or invest
Condax Electronics relied on a large chain of consumer electronics stores to sell its
tablet computers, cell phones, and televisions and also to provide customer service and
technical support. However, that retailer outsourced its service departments, and
customers began to complain that they could not get reliable tech support for Condax
products. In response, Condax Electronics decided to set up its own tech support
department, and it also began to investigate opening its own brand-based retail stores.
What does this scenario best illustrate? - Answer -forward vertical integration
The fact that both Whole Foods (a high-end grocery store) and Aldi (an inexpensive
grocery store) have a competitive advantage in the grocery store industry is an
indication that - Answer -following the same generic business strategy can allow for two
firms competing in the same industry to have...
Which of the following examples uses a focused differentiation strategy? - Answer -a
cosmetics brand that offers superior skin lotion for sensitive skin priced at 100 dollars
per bottle
