Business & Management Test: Business Strategy Part- II
Questions and Answers
- 1.
___________ diversification is when a firm enters a different business that has little horizontal interaction with other businesses of a firm.
- A.
Synergistic
- B.
Related
- C.
Horizontal
- D.
Unrelated
Correct Answer
D. UnrelatedExplanation
Unrelated diversification refers to when a firm enters a different business that has little horizontal interaction with other businesses of the firm. This means that the new business is not related or connected to the existing businesses of the firm. Unlike synergistic or related diversification, where the new business is connected to the existing businesses and can benefit from synergies or shared resources, unrelated diversification involves entering a completely different industry or market with no significant interaction or synergy with the existing businesses.Rate this question:
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- 2.
Which of the following is not an input process to develop forecasts?
- A.
Environmental monitoring
- B.
Environmental scanning
- C.
Competitor intelligence
- D.
Stakeholder management
Correct Answer
D. Stakeholder managementExplanation
Stakeholder management is not an input process to develop forecasts. Stakeholder management refers to the identification, analysis, and engagement of individuals or groups who have an interest or influence in a project or organization. It involves understanding their needs, expectations, and concerns and managing relationships with them. While stakeholder management is important for overall project success, it does not directly contribute to the development of forecasts. On the other hand, environmental monitoring, environmental scanning, and competitor intelligence are all input processes that provide valuable information and data to develop accurate forecasts.Rate this question:
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- 3.
There are multiple challenges associated with making effective e-teams. Which of the following is not a challenge?
- A.
The physically dispersed team is susceptible to the risk factors that can create process loss.
- B.
E-teams can be effective in generating social capital.
- C.
Process losses result from identification and combination activities.
- D.
Some collective energy, time, and effort must be devoted to dealing with team inefficiencies.
Correct Answer
B. E-teams can be effective in generating social capital. -
- 4.
The Dodd-Frank Wall Street Reform and Consumer Protection Act require companies to disclose whether any tin, tantalum, tungsten or gold in their supply chain is connected to violent militia groups in the Congo or nine surrounding countries, including Angola, Rwanda, and Sudan. This is an example of which segment of the general environment?
- A.
Demographic
- B.
Political and legal
- C.
Sociocultural
- D.
Economic
Correct Answer
B. Political and legalExplanation
The given statement describes a requirement imposed by the Dodd-Frank Wall Street Reform and Consumer Protection Act, which is a political and legal regulation. This regulation mandates companies to disclose any connection between tin, tantalum, tungsten, or gold in their supply chain and violent militia groups in the Congo and surrounding countries. Therefore, this requirement falls under the political and legal segment of the general environment.Rate this question:
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- 5.
Creativity and problem-solving ability are considered to be part of _________ capital.
- A.
Physical
- B.
Social
- C.
Emotional
- D.
Human
Correct Answer
D. HumanExplanation
Creativity and problem-solving ability are considered to be part of human capital because they are skills and abilities that individuals possess and can contribute to their productivity and success in various fields. Human capital refers to the knowledge, skills, and abilities that individuals acquire through education, training, and experience, which can be used to generate economic value. Creativity and problem-solving are important components of human capital as they enable individuals to come up with innovative solutions, think critically, and adapt to changing circumstances, ultimately contributing to personal and professional growth.Rate this question:
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- 6.
New knowledge involves the continual interaction between __________ and __________ knowledge.
- A.
Theoretical; practical
- B.
Detailed; tacit
- C.
Intellectual; pragmatic
- D.
Tacit; explicit
Correct Answer
D. Tacit; explicitExplanation
New knowledge involves the continual interaction between tacit and explicit knowledge. Tacit knowledge refers to the knowledge that is difficult to articulate or transfer to others, such as personal experiences or intuition. On the other hand, explicit knowledge is formal and can be easily communicated, such as facts or theories. The interaction between these two types of knowledge is necessary for the creation and application of new knowledge. Tacit knowledge provides the foundation and context for understanding, while explicit knowledge allows for the sharing and dissemination of information.Rate this question:
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- 7.
It is anticipated that the worldwide shortage of highly skilled, college-educated workers will increase significantly by 2020, according to research by McKinsey Global Institute. Some companies are going as far as to redefine the jobs of their experts and are transferring some of their tasks to lower-skilled people inside and outside of their companies. By redefining these _________ knowledge jobs, they address _____________ shortages and _____________ costs while enhancing job satisfaction.
- A.
High-value; skill; lower
- B.
High-value; personnel; increase
- C.
Low-value; monetary; decrease
- D.
High-value; skill; increase
Correct Answer
A. High-value; skill; lowerExplanation
By redefining these high-value knowledge jobs, companies address skill shortages and lower costs while enhancing job satisfaction. This means that companies are redefining the roles of their highly skilled workers and transferring some tasks to lower-skilled individuals. This helps to alleviate the shortage of highly skilled workers while also reducing costs for the company. Additionally, by allowing highly skilled workers to focus on more complex tasks, it can increase job satisfaction for these individuals.Rate this question:
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- 8.
Internal development may be time consuming and, therefore, firms may forfeit the benefits of speed that growth through __________ and __________ can provide.
- A.
Mergers; joint ventures
- B.
Strategic alliances; joint ventures
- C.
Strategic alliances; mergers
- D.
Mergers; acquisitions
Correct Answer
D. Mergers; acquisitionsExplanation
Internal development refers to a company's efforts to grow and expand its business organically, through activities such as research and development, product innovation, and market penetration. However, this process can be time-consuming, as it requires significant investment, resources, and expertise. On the other hand, mergers and acquisitions offer a faster way for firms to achieve growth by combining their resources, capabilities, and market presence. By acquiring or merging with another company, firms can quickly gain access to new markets, technologies, products, and customers, thereby accelerating their growth and potentially outpacing competitors. Therefore, firms may forfeit the benefits of speed that growth through mergers and acquisitions can provide if they solely rely on internal development.Rate this question:
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- 9.
The hierarchy of organizational goals is in the following order (least specific to most specific):
- A.
Vision statements, mission statements, strategic objectives.
- B.
Mission statements, strategic objectives, vision statements.
- C.
Vision statements, strategic objectives, mission statements.
- D.
Mission statements, vision statements, strategic objectives.
Correct Answer
A. Vision statements, mission statements, strategic objectives.Explanation
The correct answer is vision statements, mission statements, strategic objectives. This hierarchy is based on the level of specificity and the overall direction of the organization. Vision statements provide a broad and overarching goal or purpose for the organization. Mission statements are more specific and outline the organization's core values, target audience, and primary objectives. Strategic objectives are the most specific and outline the specific actions and goals that need to be achieved to fulfill the mission and vision of the organization. Therefore, vision statements come first to set the overall direction, followed by mission statements to provide more specific guidance, and finally strategic objectives to outline the specific actions needed to achieve the mission and vision.Rate this question:
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- 10.
All of the following are examples of socially complex organizational phenomena except
- A.
Complex physical technology
- B.
The culture of a firm.
- C.
Leadership and trust
- D.
Interpersonal relations among managers of a firm.
Correct Answer
A. Complex physical technologyExplanation
Complex physical technology is not an example of a socially complex organizational phenomenon because it refers to the physical machinery, equipment, or tools used in an organization, which do not involve social interactions or relationships between individuals. Socially complex organizational phenomena typically involve the interactions, relationships, and dynamics between people within an organization, such as the culture, leadership, trust, and interpersonal relations among managers.Rate this question:
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- 11.
In contrast to the vision of an organization, its mission should
- A.
Encompass both the purpose of the company as well as the basis of competition.
- B.
Be shorter in length.
- C.
Be less detailed.
- D.
Encompass all the major rules and regulations of the corporate work force.
Correct Answer
A. Encompass both the purpose of the company as well as the basis of competition.Explanation
The mission of an organization should encompass both the purpose of the company and the basis of competition because it serves as a guiding statement that outlines the overall goals and objectives of the organization. It defines what the organization aims to achieve and how it plans to differentiate itself from competitors. By including both the purpose and basis of competition in the mission, the organization ensures that its direction and focus are clear, allowing it to align its strategies and resources accordingly. This helps in setting a clear path for the organization's success and enables stakeholders to understand and support its mission.Rate this question:
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- 12.
Which one of the following statements is an example of how to improve perceptual acuity?
- A.
A CEO meets with the company management team regularly to analyze current world events and their potential impact on the company.
- B.
Outsiders are brought in to the board meeting to critique the company strategy, which considers the new information in its potential revamping of the strategy.
- C.
A CEO meets with direct competitors to analyze current industry trends. The CEOs share their conclusions with their respective companies.
- D.
A CEO meets with other CEOs of non-competing companies to examine the world from multiple perspectives and then shares the results with his own management team.
Correct Answer
C. A CEO meets with direct competitors to analyze current industry trends. The CEOs share their conclusions with their respective companies.Explanation
The statement "A CEO meets with direct competitors to analyze current industry trends. The CEOs share their conclusions with their respective companies" is an example of how to improve perceptual acuity. By meeting with direct competitors and analyzing industry trends, the CEO gains a deeper understanding of the market and can make more informed decisions for their own company. Sharing the conclusions with their respective companies allows for a broader perspective and helps in identifying potential opportunities and threats in the industry. This practice enhances the CEO's perceptual acuity by expanding their awareness and understanding of the competitive landscape.Rate this question:
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- 13.
_________ is the network of relationships that individuals have throughout the organization.
- A.
Human capital
- B.
Social capital
- C.
Tacit knowledge
- D.
Intellectual capital
Correct Answer
B. Social capitalExplanation
Social capital refers to the network of relationships that individuals have throughout the organization. It encompasses the social connections, trust, and cooperation among individuals within a company. This network of relationships is crucial for effective communication, collaboration, and knowledge sharing, which ultimately contribute to the overall success and performance of the organization.Rate this question:
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- 14.
In the general environment, many relationships exist among the various elements. General environmental trends can have positive and negative impacts on various industries. For example, the aging population might have a ______ impact on the health care industry and a ______ impact on the baby product industry. These are called _____________ impacts.
- A.
Negative; positive; sociocultural
- B.
Positive; negative; demographic
- C.
Negative; positive; demographic
- D.
Positive; negative; technological
Correct Answer
B. Positive; negative; demographicExplanation
The aging population can have a positive impact on the health care industry because it creates a higher demand for medical services and products. On the other hand, it can have a negative impact on the baby product industry because there will be a decrease in the number of potential customers for baby products. These impacts are referred to as demographic impacts because they are related to changes in the population's characteristics and composition.Rate this question:
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- 15.
A firm that takes on too much long-term debt to finance operations will see an immediate impact on its indicators of _______ financial leverage.
- A.
Long-term
- B.
Short-term
- C.
Comparable
- D.
Relative
Correct Answer
A. Long-termExplanation
If a firm takes on too much long-term debt to finance its operations, it will see an immediate impact on its indicators of long-term financial leverage. This means that the firm's long-term debt levels will increase, which can have a negative effect on its financial health and stability. It may lead to higher interest expenses, reduced profitability, and increased financial risk for the firm in the long run.Rate this question:
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- 16.
In the __________ stage of the industry life cycle, there are many segments, competition is very intense, and the emphasis on process design is high.
- A.
Decline
- B.
Maturity
- C.
Introduction
- D.
Growth
Correct Answer
B. MaturityExplanation
In the maturity stage of the industry life cycle, there are many segments, competition is very intense, and the emphasis on process design is high. This is because in the maturity stage, the industry has already established itself and reached a stable level of growth. As a result, there are multiple segments within the industry, each with its own competitors. The competition becomes intense as companies fight for market share. Additionally, in order to stay competitive, companies in the maturity stage often focus on improving their processes and efficiency to maximize their profits.Rate this question:
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- 17.
Stakeholders are
- A.
Creditors who hold a lien on the assets of the organization.
- B.
Attorneys and their clients who sue the organization.
- C.
Individuals, groups, and organizations who have a stake in the success of the organization.
- D.
A new way to describe stockholders.
Correct Answer
C. Individuals, groups, and organizations who have a stake in the success of the organization.Explanation
The correct answer is "individuals, groups, and organizations who have a stake in the success of the organization." This answer accurately defines stakeholders as individuals, groups, or organizations who have an interest or investment in the success of the organization. This can include employees, customers, suppliers, shareholders, and other parties who may be affected by the organization's actions or outcomes. The answer also aligns with the commonly accepted definition of stakeholders in business and management contexts.Rate this question:
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- 18.
Managers should do more than focus on short-term financial performance. One concept that helps managers do this is stakeholder symbiosis. This means that
- A.
All stakeholders want to maximize shareholder returns.
- B.
One can only gain at the expense of someone else.
- C.
Stakeholders are dependent on each other for their success.
- D.
Stakeholders look out for their individual interests.
Correct Answer
C. Stakeholders are dependent on each other for their success.Explanation
The concept of stakeholder symbiosis suggests that stakeholders are dependent on each other for their success. This means that the success of one stakeholder group is intertwined with the success of other stakeholder groups. It emphasizes the idea that all stakeholders, including shareholders, employees, customers, suppliers, and the community, have a mutual interest in the long-term success and sustainability of the organization. By recognizing and managing these interdependencies, managers can create value for all stakeholders and achieve long-term success for the organization.Rate this question:
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- 19.
Portfolio management frameworks, such as the BCG matrix, share which of the following characteristics?
- A.
Position in the matrix suggests a need for sharing synergies.
- B.
They are most helpful in helping businesses develop types of competitive advantage.
- C.
Businesses are plotted on a 3-dimensional grid.
- D.
Grid dimensions are based on external environments and internal capabilities-market positions.
Correct Answer
D. Grid dimensions are based on external environments and internal capabilities-market positions.Explanation
Portfolio management frameworks, such as the BCG matrix, are based on grid dimensions that represent the external environments and internal capabilities-market positions of businesses. This means that the positioning of businesses in the matrix is determined by their market positions and their ability to compete in the external environment. This information helps businesses identify their strengths and weaknesses and make informed decisions about resource allocation and strategic planning. It does not suggest a need for sharing synergies or help businesses develop types of competitive advantage.Rate this question:
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- 20.
The text discusses three areas a firm must be concerned with to keep their best and brightest employees from leaving. These include all the following except
- A.
Developing
- B.
Hiring/selecting
- C.
Retaining
- D.
Sorting/absorping
Correct Answer
D. Sorting/absorpingExplanation
The text discusses three areas a firm must be concerned with to keep their best and brightest employees from leaving. These areas include developing, hiring/selecting, and retaining. Sorting/absorbing is not mentioned in the text as one of the areas a firm needs to be concerned with to retain their employees.Rate this question:
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- 21.
Managers must commit to a _________ use of the balanced scorecard if they expect sustained performance.
- A.
Rapid
- B.
Interim
- C.
Long-term
- D.
Short-term
Correct Answer
C. Long-termExplanation
Managers must commit to a long-term use of the balanced scorecard if they expect sustained performance. This means that they need to adopt a strategic and continuous approach to using the balanced scorecard, rather than viewing it as a short-term or temporary solution. By committing to a long-term use, managers can effectively track and measure performance over time, identify areas for improvement, and make informed decisions to drive sustained success.Rate this question:
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- 22.
Primark, a fashion retailer, has found a way to keep its cost structure lower than its rivals by leveraging streamlined logistics, a low marketing budget, and negotiating bargain prices from its suppliers. They are using a(n) ______________ strategy.
- A.
Focus
- B.
Overall cost leadership
- C.
Broad differentiation
- D.
Differentiation
Correct Answer
B. Overall cost leadershipExplanation
Primark's strategy of keeping its cost structure lower than its rivals by leveraging streamlined logistics, a low marketing budget, and negotiating bargain prices from its suppliers indicates an overall cost leadership strategy. This means that Primark focuses on providing products at the lowest possible cost while still maintaining acceptable quality. By doing so, they aim to attract price-sensitive customers and gain a competitive advantage in the market.Rate this question:
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- 23.
Which is considered a force in the five-forces model?
- A.
Rivalry among competing firms
- B.
Increased deregulation in an industry
- C.
The threat of government intervention
- D.
Recent technological innovation
Correct Answer
A. Rivalry among competing firmsExplanation
The correct answer is rivalry among competing firms. In the five-forces model, this force refers to the level of competition and rivalry between firms operating in the same industry. It includes factors such as price competition, product differentiation, marketing strategies, and overall intensity of competition. This force is important because it affects the profitability and sustainability of firms in the industry. Increased rivalry can lead to lower prices, reduced profit margins, and the need for firms to constantly innovate and differentiate themselves to stay competitive.Rate this question:
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- 24.
Primary value chain activities that involve the effective layout of receiving dock operations (inbound logistics) and support value chain activities that include expertise in process engineering (technology development) characterize which generic strategy?
- A.
Differentiation focus
- B.
Stuck-in-the-middle
- C.
Differentiation
- D.
Overall cost leadership
Correct Answer
D. Overall cost leadershipExplanation
The correct answer is overall cost leadership. This strategy focuses on reducing costs throughout the value chain, including inbound logistics and process engineering. By effectively managing receiving dock operations and utilizing expertise in process engineering, a company can streamline operations and minimize costs, allowing them to offer products or services at a lower price compared to competitors. This strategy aims to attract a broad market by providing affordable products or services while maintaining acceptable levels of quality.Rate this question:
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- 25.
An organization is responsible to many different entities. In order to meet the demands of these groups, organizations must participate in stakeholder management. Stakeholder management means that
- A.
Interests of the stockholders are not the only interests that matter.
- B.
All stakeholders receive financial rewards.
- C.
Stakeholders and managers inevitably work at cross-purposes.
- D.
Stakeholders are second in importance to the stockholders.
Correct Answer
A. Interests of the stockholders are not the only interests that matter.Explanation
Stakeholder management means that the organization recognizes that the interests of the stockholders are not the only interests that matter. It involves considering and addressing the needs and concerns of all stakeholders, including employees, customers, suppliers, communities, and the environment. By taking into account the diverse interests of these groups, organizations can strive for a more balanced and sustainable approach to decision-making and ensure long-term success.Rate this question:
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- 26.
The primary aim of strategic management at the business level is
- A.
Achieving a low-cost position.
- B.
Maximizing differentiation of products and/or services.
- C.
Maximizing risk to return trade-offs through diversification.
- D.
Achieving competitive advantage.
Correct Answer
D. Achieving competitive advantage.Explanation
The primary aim of strategic management at the business level is achieving competitive advantage. This means that the organization wants to position itself in a way that allows it to outperform its competitors and gain a superior market position. This can be achieved through various means such as offering unique products or services, having a lower cost structure, or effectively targeting a specific market segment. By achieving competitive advantage, the organization can secure long-term success and profitability.Rate this question:
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- 27.
In making the decision to enter the pharmaceutical industry, a company would not need to consider which of the following?
- A.
Comparisons with non-competitors
- B.
Historical comparisons
- C.
Comparisons with industry norms
- D.
Comparisons with key competitors
Correct Answer
A. Comparisons with non-competitorsExplanation
When considering entering the pharmaceutical industry, a company would not need to consider comparisons with non-competitors. This is because non-competitors are not directly involved in the same industry and therefore their performance or practices may not be relevant or comparable to the company's decision-making process. The focus should be on historical comparisons, industry norms, and comparisons with key competitors who are directly involved in the same market and can provide valuable insights for strategic decision-making.Rate this question:
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- 28.
The balanced scorecard provides top managers with a __________ view of the business.
- A.
Detailed and complex
- B.
Fast but comprehensive
- C.
Long-term financial
- D.
Simple and routine
Correct Answer
B. Fast but comprehensiveExplanation
The balanced scorecard provides top managers with a fast but comprehensive view of the business. This means that it allows them to quickly assess the overall performance of the organization while also providing detailed information on various aspects of the business. This enables managers to make informed decisions and take necessary actions in a timely manner. The balanced scorecard combines both speed and comprehensiveness, making it a valuable tool for top managers.Rate this question:
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- 29.
Effectiveness is often defined as
- A.
Doing things right.
- B.
Stakeholder satisfaction.
- C.
Productivity enhancement.
- D.
Doing the right thing
Correct Answer
D. Doing the right thingExplanation
The correct answer is "doing the right thing" because effectiveness is commonly understood as the ability to achieve the desired outcome or goal. By doing the right thing, individuals or organizations are able to make decisions and take actions that align with their objectives and produce the intended results. This approach emphasizes the importance of making ethical and informed choices, rather than simply focusing on efficiency or following established processes.Rate this question:
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- 30.
The effective management of diversity can enhance the social responsibility goals of an organization. Other areas where sound management of diverse workforces can improve the effectiveness of an organization and its competitive advantages include all but one of the following
- A.
Marketing
- B.
Resource acquisition
- C.
Problem creation
- D.
Organizational flexibility
Correct Answer
C. Problem creationExplanation
The effective management of diversity can enhance the social responsibility goals of an organization because it promotes inclusivity and fairness, which are important aspects of social responsibility. In addition, managing diverse workforces can improve the effectiveness of an organization and its competitive advantages in areas such as marketing, resource acquisition, and organizational flexibility. However, problem creation is not one of the areas where sound management of diverse workforces can improve effectiveness. This suggests that managing diversity does not contribute to creating problems within an organization, but rather helps to address and overcome them.Rate this question:
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- 31.
Firms that choose to diversify through internal development must develop _________ that allow them to move __________ from initial opportunity recognition to market introduction.
- A.
Capabilities; quickly
- B.
Strategies; slowly
- C.
Strategies; quickly
- D.
Capabilities; slowly
Correct Answer
A. Capabilities; quicklyExplanation
Firms that choose to diversify through internal development must develop capabilities that allow them to move quickly from initial opportunity recognition to market introduction. This means they need to have the necessary skills, resources, and expertise to efficiently and effectively bring new products or services to the market. By developing these capabilities, firms can minimize the time it takes to capitalize on new opportunities and gain a competitive advantage.Rate this question:
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- 32.
Top executives can use email effectively for all of the following except
- A.
Updates on company strategy.
- B.
Overview of the executive work for the month.
- C.
Executive perspectives on key issues.
- D.
Updates on corporate intelligence.
Correct Answer
D. Updates on corporate intelligence.Explanation
Top executives can use email effectively for updates on company strategy, providing an overview of their work for the month, and sharing their perspectives on key issues. However, updates on corporate intelligence may not be suitable for email communication as it involves sensitive and confidential information that may be better discussed in person or through secure channels.Rate this question:
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- 33.
The management of intellectual property involves all of the following except
- A.
Converting explicit knowledge to tacit knowledge.
- B.
Patents.
- C.
Contracts with confidentiality and non-compete clauses.
- D.
Copyrights and trademark.
Correct Answer
A. Converting explicit knowledge to tacit knowledge.Explanation
The management of intellectual property involves various strategies and tools to protect and capitalize on intellectual assets. This includes obtaining patents, establishing contracts with confidentiality and non-compete clauses, and securing copyrights and trademarks. However, converting explicit knowledge to tacit knowledge is not a part of the management of intellectual property. This process refers to the transformation of documented or codified knowledge into practical or experiential knowledge, which is beyond the scope of intellectual property management.Rate this question:
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- 34.
Data Analytics are being used by corporations to understand their customer purchasing patterns. This is an example of which segment of the general environment?
- A.
Political and legal
- B.
Economic
- C.
Technological
- D.
Demographic
Correct Answer
C. TechnologicalExplanation
Data analytics being used by corporations to understand customer purchasing patterns falls under the technological segment of the general environment. This is because data analytics relies on technology and advanced tools to collect, analyze, and interpret large amounts of data. It involves the use of algorithms, statistical models, and machine learning techniques to uncover patterns and insights from the data. By leveraging technology, corporations can gain valuable insights into customer behavior and preferences, which can inform their decision-making and marketing strategies.Rate this question:
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- 35.
The vision and mission statements of a company set the overall direction of the organization. Strategic objectives serve what role?
- A.
Are a shorter version of the mission statement
- B.
Modify the mission statement
- C.
Operationalize the mission statement
- D.
Are only clarified by the board of directors
Correct Answer
C. Operationalize the mission statementExplanation
Strategic objectives serve the role of operationalizing the mission statement. While the vision and mission statements set the overall direction of the organization, strategic objectives provide specific and measurable goals that help translate the mission into actionable steps. These objectives outline the key priorities and actions that need to be taken to achieve the mission and guide the organization's strategic planning and decision-making processes. Therefore, strategic objectives play a crucial role in turning the mission statement into practical and achievable outcomes.Rate this question:
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- 36.
Rivals would find it difficult to challenge Atlas Door in the short run because of
- A.
Weak customer loyalty.
- B.
Low buyer switching costs.
- C.
High barriers to entry.
- D.
High threat of substitution.
Correct Answer
C. High barriers to entry.Explanation
High barriers to entry refers to the obstacles or challenges that new competitors would face when trying to enter a particular market. In the case of Atlas Door, these barriers could include factors such as strong brand recognition, established customer base, proprietary technology or patents, economies of scale, or significant capital requirements. These barriers make it difficult for new competitors to enter the market and pose a challenge to Atlas Door in the short run. Weak customer loyalty, low buyer switching costs, and high threat of substitution do not directly address the difficulty of challenging Atlas Door in the short run.Rate this question:
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- 37.
The four key attributes of strategic management include all of the following except
- A.
Emphasis on the attainment of short-term objectives.
- B.
Recognizing the trade-offs between effectiveness and efficiency.
- C.
Incorporating both short-term and long-term perspectives.
- D.
Including multiple stakeholder interests in decision making.
Correct Answer
A. Emphasis on the attainment of short-term objectives.Explanation
The given answer, "emphasis on the attainment of short-term objectives," is the correct answer because the question asks for an attribute that is not included in the four key attributes of strategic management. The other three options, recognizing trade-offs between effectiveness and efficiency, incorporating both short-term and long-term perspectives, and including multiple stakeholder interests in decision making, are all key attributes of strategic management.Rate this question:
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- 38.
Research shows that which one of the following is not a strategy used by firms engaged in successful turnarounds?
- A.
Selective product and market pruning
- B.
Piecemeal productivity improvements
- C.
Asset and cost surgery
- D.
Global expansion
Correct Answer
D. Global expansionExplanation
Successful turnarounds typically involve strategies such as selective product and market pruning, piecemeal productivity improvements, and asset and cost surgery. However, global expansion is not typically considered a strategy used by firms engaged in successful turnarounds. This is because global expansion requires significant investment and resources, which may not be feasible or beneficial for a company that is trying to recover from financial difficulties. Instead, successful turnarounds focus on improving internal operations and streamlining the business before considering expansion into new markets.Rate this question:
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- 39.
Polaris, a manufacturer of snowmobiles, motorcycles, watercraft, and off-road vehicles, shares manufacturing operations across its businesses. It also has a corporate research and development facility and staff departments that support all the Polaris operating divisions. This is an example of creating value by using
- A.
Related diversification to acquire parenting, restructuring, and financial synergies through corporate restructuring and parenting.
- B.
Unrelated diversification to acquire financial synergies through portfolio management.
- C.
Related diversification to acquire market value by leveraging core competencies.
- D.
Related diversification to acquire economies of scope by sharing.
Correct Answer
D. Related diversification to acquire economies of scope by sharing.Explanation
The given scenario describes how Polaris, a company that manufactures various types of vehicles, shares its manufacturing operations across its businesses. This strategy of sharing resources and operations is an example of related diversification, where the company leverages its core competencies in different markets to acquire economies of scope. By sharing manufacturing operations, Polaris can achieve cost savings, efficiency, and synergies between its different divisions, ultimately creating value for the company.Rate this question:
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- 40.
Which of the following is not an example of organizational capabilities?
- A.
Reputation with customers for quality and reliability
- B.
Innovativeness of products and services
- C.
Outstanding customer service
- D.
Ability to hire, motivate, and retain human capital
Correct Answer
A. Reputation with customers for quality and reliabilityExplanation
Reputation with customers for quality and reliability is an example of organizational capabilities. Organizational capabilities refer to the unique skills, resources, and competencies that an organization possesses, allowing it to achieve its strategic goals and gain a competitive advantage. Reputation with customers for quality and reliability is a valuable capability that can differentiate a company from its competitors and attract more customers. It reflects the organization's ability to consistently deliver high-quality products or services, which enhances customer satisfaction and loyalty.Rate this question:
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- 41.
Harley-Davidson markets motorcycles, clothes, toys, and restaurants. It uses its strong ________, which is __________.
- A.
Brand image; a tangible resource
- B.
Financial position; an intangible resource
- C.
Brand image; an intangible resource
- D.
Technological resources; an intangible resource
Correct Answer
C. Brand image; an intangible resourceExplanation
Harley-Davidson markets a range of products including motorcycles, clothes, toys, and restaurants. The company's strong brand image plays a crucial role in its marketing strategy. A brand image refers to the perception and reputation that consumers have of a particular brand. It is intangible because it cannot be physically touched or measured. In the case of Harley-Davidson, its brand image represents qualities such as freedom, rebellion, and a sense of adventure, which attracts customers and sets the company apart from its competitors. This intangible resource is a valuable asset for Harley-Davidson as it helps to differentiate its products and build customer loyalty.Rate this question:
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- 42.
Learning organizations permit the entire organization to benefit from ____________ talents.
- A.
Internal and collective
- B.
Individual and collective
- C.
Internal and external
- D.
External and individual
Correct Answer
B. Individual and collectiveExplanation
Learning organizations allow both individual and collective talents to contribute and benefit the entire organization. This means that not only do individuals have the opportunity to showcase their unique skills and abilities, but they also have the chance to collaborate and work together as a team. By harnessing both individual strengths and the power of collective intelligence, learning organizations can maximize their potential and drive innovation, growth, and success.Rate this question:
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- 43.
Factors that directly affect the merger and acquisition environment include all the following except
- A.
Currency fluctuations.
- B.
Managerial styles
- C.
Level of optimism about the future.
- D.
General economic conditions.
Correct Answer
B. Managerial stylesExplanation
The given question asks for a factor that does not directly affect the merger and acquisition environment. All the options provided are factors that can have a direct impact on mergers and acquisitions, except for managerial styles. Managerial styles refer to the way in which managers make decisions and lead their teams, which may indirectly influence the success of a merger or acquisition but may not have a direct impact on the overall environment. Therefore, the correct answer is managerial styles.Rate this question:
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- 44.
Wall Street executives have received excessive bonus pay in the past. This concerns which of the following stakeholder groups most directly?
- A.
Government
- B.
Creditors
- C.
Stockholders
- D.
Suppliers
Correct Answer
C. StockholdersExplanation
The excessive bonus pay received by Wall Street executives directly concerns the stockholders. Stockholders are the individuals or entities who own shares in a company and therefore have a financial stake in its performance. When executives receive excessive bonus pay, it can negatively impact the company's profitability and ultimately the value of the stockholders' investments.Rate this question:
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- 45.
Research published in Personnel Psychology shows that older workers are slightly more willing to implement organizational changes than younger workers. This is an example of which segment of the general environment?
- A.
Sociocultural
- B.
Political and legal
- C.
Economic
- D.
Demographic
Correct Answer
A. SocioculturalExplanation
The research findings suggest that older workers are more open to implementing organizational changes compared to younger workers. This indicates a sociocultural aspect of the general environment, as it pertains to the social and cultural factors influencing individuals' attitudes and behaviors in the workplace.Rate this question:
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- 46.
Which of the following is not a downside of portfolio models used to assist a firm in balancing its portfolio of businesses?
- A.
Portfolio models compare SBUs on only two dimensions under the assumption that these are the only factors that matter.
- B.
The evaluation process risks becoming mechanical and oversimplified.
- C.
Portfolio models view each SBU as a stand-alone entity.
- D.
Portfolio models rely on loose rules regarding resource allocation across the SBUs.
Correct Answer
D. Portfolio models rely on loose rules regarding resource allocation across the SBUs.Explanation
The given answer states that portfolio models rely on loose rules regarding resource allocation across the SBUs. This means that portfolio models do not provide clear guidelines or specific criteria for allocating resources to different strategic business units (SBUs). This can lead to inconsistent and arbitrary allocation decisions, which may not effectively optimize the overall portfolio of businesses.Rate this question:
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- 47.
Which of the following would be an entry barrier?
- A.
Large economies of scale
- B.
Easy access to raw materials
- C.
Low switching costs
- D.
Low capital requirements
Correct Answer
A. Large economies of scaleExplanation
Large economies of scale can act as an entry barrier because they allow established companies to produce goods or services at a lower cost per unit compared to new entrants. This cost advantage makes it difficult for new competitors to enter the market and compete effectively. Established companies can achieve economies of scale through factors such as bulk purchasing, efficient production processes, and widespread distribution networks. As a result, new entrants may struggle to match the cost efficiency and competitiveness of established players, making it challenging for them to enter and succeed in the market.Rate this question:
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- 48.
Mass customization permits companies to manufacture unique products in relatively _________ quantities at ______ costs.
- A.
Large; lower
- B.
Large; higher
- C.
Small; higher
- D.
Small; lower
Correct Answer
D. Small; lowerExplanation
Mass customization allows companies to produce unique products in smaller quantities at lower costs. This is because mass customization combines the benefits of mass production (lower costs due to economies of scale) with the advantages of customization (meeting individual customer needs and preferences). By producing in smaller quantities, companies can reduce inventory and waste, while lower costs are achieved through efficient production processes and supply chain management. This approach enables companies to offer personalized products without incurring high production expenses.Rate this question:
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- 49.
An important implication of the balanced scorecard approach is that
- A.
Gains in financial performance must come at a cost of employee satisfaction.
- B.
Managers should not look at their job as primarily balancing stakeholder demands.
- C.
Managers need to recognize that satisfaction of stockholder demands is their primary job.
- D.
The emphasis on customer satisfaction and financial goals are only a means to that end.
Correct Answer
B. Managers should not look at their job as primarily balancing stakeholder demands.Explanation
The correct answer implies that managers should not view their job as primarily balancing stakeholder demands. This suggests that the balanced scorecard approach encourages managers to consider a broader range of factors beyond just stakeholder demands, such as customer satisfaction and financial goals. By focusing on a balanced set of metrics, managers can ensure that they are not solely prioritizing the needs of stakeholders, but also considering the needs of other important stakeholders, such as customers and employees. This approach promotes a more holistic and comprehensive view of managerial responsibilities.Rate this question:
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- 50.
Mary Stinson was required to take over a project after the entire team left the company. She was able to reconstruct what the team had accomplished through reading emails exchanged by the members of the team. This is an example of
- A.
Using tacit knowledge.
- B.
Using replicated knowledge.
- C.
Using explicit knowledge.
- D.
Inefficient use of information management.
Correct Answer
C. Using explicit knowledge.Explanation
Mary Stinson's ability to reconstruct the project by reading emails exchanged by the team members indicates that she was able to access and understand the explicit knowledge contained in those emails. Explicit knowledge refers to knowledge that is codified and can be easily documented, shared, and transferred. In this case, the emails serve as a form of explicit knowledge that Mary was able to utilize to understand and continue the project.Rate this question:
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Mar 22, 2023Quiz Edited by
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Jun 06, 2020Quiz Created by
Duke Cunningham
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