BUS Strategic Management EXAM !!! Urgent!!!
need it done now ,if you can get a A on exam , i will give you tips
1. A highly capable brick and mortar electronics retailer with a loyal regional customer base (such as Fry’s) should adopt which of the following medium term strategies?
|
“50% off” sale every month |
|
Divest |
|
Niche or harvest |
|
Invest in R&D |
2.
Amazon
‘s strategy involves offering expanded variety but at very competitive prices. This is primarily achieved through
|
Economies of scope |
|
|
Focus on international markets |
|
|
Economies of scale |
|
|
Innovative products |
3.
Uber
is an example of industry chaining in which of the following ways?
|
Economies of scale for service providers |
|
Economies of scope for customers |
|
Improving access and reduced search costs for customers and service providers |
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Lower wages for service providers and lower prices for customers |
4. Shareholder returns are primarily derived from
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Growth in share value and dividend payments |
|
dividend payments only |
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Growth in company profits |
|
Growth in the share value only |
5. Strategy is defined best as:
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A unique value proposition supported by sound financial decisions |
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A unique value proposition supported by synergies in operations |
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A unique value proposition supported by aggressive marketing |
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A unique value proposition supported by a complex supply chain |
6. The cost of attracting new customers is the highest with which of the following groups?
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Early adopters |
|
Late majority |
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Laggards |
|
Innovators |
7. In the context of the Differentiation (
Quality
) vs
Efficiency
trade-off curve, the efficient frontier refers to:
|
The company that provides maximum quality for a given cost |
|
The company that provides minimum cost |
| The company that provides maximum quality |
|
The company that maximizes efficiency |
8. Nike hiring sports stars to be brand ambassadors is an example of which of the following mechanisms?
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Market development |
|
Customer segmentation |
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Product development |
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Market penetration |
9. Which of the following is an indication of strategic committment of a company in an industry
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Lowering wages of the workforce |
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Increased technology investment |
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Acquiring real-estate in an urban location of demand |
|
Increased divident payments for two years in a row |
10. A pharma company with a deep roster of capable engineers and scientists and that is the market leader is best advised to begin development of a new drug as:
|
A partnership with smaller competitors |
|
License its innovation from other laboratories |
|
An independent venture |
|
Smaller scale effort |
11. The most valuable competency in the declining phase of an industry is:
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Resposiveness |
|
|
Innovation |
|
| Efficiency | |
| Quality |
12. There is often limited capacity relative to demand in the early growth period of an industry because:
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Capacity is very expensive in the later stages of an industry |
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Only few companies have products or technologies in a budding industry |
|
Prices tend to be low in the embryonic stage |
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Many companies compete for early advantage in an emerging industry |
13. If the willingness to pay of a customer for an automobile is $18000, and the cost to produce that automobile is $14000, the consumer surplus is:
|
Less that $4000 |
| $4000 |
|
Cannot be determined with data provided |
|
More than $4000 |
14. A short term profit maximizing strategy for a monopoly would focus on:
|
Giving slightly greater surplus than the competitor |
|
Maximizing consumer surplus |
|
Minimizing consumer surplus |
|
Ensuring the lowest possible cost of the product |
15. Which of the following companies best exemplifies broad cost leadership?
|
WalMart |
|||
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Toyota |
|||
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Costco |
|||
| Amazon |
16.
Tesla
‘s business model can be best described as:
|
Electric vehicles and services for the technology savvy drivers with advanced engineering and in-house manufacturing |
|
Electric vehicles and services for the technology savvy drivers with an outsourced model of design and manufacturing |
|
Electric vehicles and services for the technology averse drivers with advanced engineering and in-house manufacturing |
|
Electric vehicles and services for the budget conscious drivers with advanced engineering and in-house manufacturing |
17. Network amplifiers are critical in establishing a standard (in a technology context) because:
|
Higher end customers have a greater voice |
|
Vertical integration is no longer a feasible option for most companies |
|
Rate of adoption is a critical factor |
|
Ease of use is paramount for any technology |
18. Incumbents typically have a cost advantage as compared to new entrants becuase:
|
Incumbents typically have a technogical edge compared to new entrants |
|
Incumbents have deeper connections to government and regulatory bodies |
|
Incumbents have greater fixed costs but lower variable relative to new entrants typically |
|
Incumbent market shares lead to greater economies of scale |
19. Porter’s Five forces helps with all of the following objectives except:
|
Evaluate the attractiveness of an industry |
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Decide entry or exit from an industry |
|
Evaluate the strengths and weaknesses of a firm |
|
Evaluate opportunities and threats |
20. In the context of the Differentiation (Quality) vs Efficiency trade-off curve, Amazon is best described as a company:
|
Just below and to the left of the efficient frontier |
|
On the same frontier but a different position compared to brick and mortar competitors |
|
A company that values quality over price every single day |
|
That has been a value innovator |
21. Which of the following best describes a mission statement?
|
An objective for a company to be debt free in 5 years |
|
A children’s clothing store aiming to make a difference in their customer’s lives |
|
An energy company wanting to be the most sustainable company on the planet |
|
A car company wanting to change customers’ behavior into to a more sustainable lifestyle |
22. According to the Mintzberg model of strategy development:
|
Most unplanned strategies lead to failures on a global scale |
|
Most realized strategies are serendipitous and in response to evolving markets |
|
Startups often engage in planning emergent strategies |
|
Most realized strategies are carefully planned and executed in advance |
23. The most valuable competency in the embryonic phase of an industry is:
24. Which of the following companies best exemplifies broad differentiation?
|
Volkswagen |
25. Which of the following provides longer term competitive advantage when it comes to efficiency:
|
Experience effect |
|
Relentless focus on lowering labor related costs |
|
Learning effect |
26. An equation that best describes customer valuation is:
|
Price/Quality |
|
Quality/Procuct Price |
|
Quality/Procuct Cost |
|
Product Cost x Quality |
27. The best possible context within which to apply Porter’s Five Forces model is for:
|
Market segment |
|
Industry |
|
Sector |
|
Strategic group |
28. The biggest impediment to an industry’s consolidation is:
|
Lack of scale economies |
|
Lack of adequate demand |
|
Poor management |
|
Lack of skilled resources |
29. The efficient frontier has a concave shape (i.e. a bulging shape) because:
|
Greater levels of efficiency come at a steep cost but only for high-end segments |
|
It costs progressively more for every increment in quality levels |
|
Quality is free at lower levels of quality |
|
There is a quadratic relationship between higher quality and efficiency |
30. High-tech companies can be distinguished from low-tech companies primarily based on:
|
Level of fixed cost committment |
|
Higher price premiums for high-tech firms |
|
Extent of digital or on-line business transactions |
|
Price to earnings ratios |
31. Subway restaurants is able lower variety related costs primarily through :
|
Modular design of its service |
|
Choosing franchise partners carefully |
|
Extensive franchising |
|
Allowing customers to customize their sandwich |
32. Strategy formulation and execution is ultimately a service to:
|
Customers |
|
Shareholders |
|
Employees |
|
Government regulators |
33. Effective marketing directly contributes to a firm’s efficiency objective by
|
Reducing the cost of serving the average customer |
|
Providing insight into customer expectations |
|
Improving the market share among higher-end customers |
|
Increasing the willingness to pay of customers |
34. Which of the following companies best exemplifies focus differentiation?
|
Apple |
35. Which of the following companies best exemplifies a blue ocean strategy?
|
Fedex |
| Tesla |
| Uber |
36. A key feature of the cereal industry in recent years has been:
|
National as opposed to global competition |
|
Lower prices to attract customers |
|
Fewer store brand competitors |
|
Product proliferation |
37. Which of the following best exemplifies a capability for a company?
|
Low price |
|
Supply chain management |
|
Financial reserves |
|
Ideal positioning |
38. Absolute cost advantages for incumbents (over new entrants to an industry) typically derive from:
|
Higher levels of experience |
|
Control of inputs |
|
Economies of scale from market share |
|
All of the above |
39. Amazon.com is a great example of a company that has consistently delivered:
|
Spectacular profit growth |
|
Profits year over year |
|
Above average return on investment |
|
Above average share value appreciation |
40. Costco’s strategy with respect to pricing of its products and services can best be described as:
|
Ensuring the lowest total cost of the product within the market |
|
Increasing consumer surplus no matter the segment or product |
|
Reducing consumer surplus even at the expense of quality |
|
Charging higher prices to boost marginal profits |