Sm Exam - 2016-10-26
.
- 1.Black swan events are extreme events that economic commentators and senior managers have long predicted
- A.
True
- B.
False
- 2.In recent years the global business environment:
- A.
Has been dominated by a “bull” market in technology stocks
- B.
Has been one of optimism and prosperity
- C.
Has been characterised by increasing levels of complexity and volatility
- D.
Has been characterised by economic depression and declining economic growth rates
- 3.Dynamic capabilities could be more valuable than fixed capabilities because:
- A.
Dynamism counts for a lot in business
- B.
They directly create new value added
- C.
They are harder to imitate
- D.
They can be used in many different industries
- 4.An ambidextrous organization is one which:
- A.
Manages both evolutionary and revolutionary change successfully
- B.
Operates successfully in more than industry sector
- C.
Successfully combines a differentiation and a cost leadership strategy
- D.
Answers b and c
- 5.Advantages are likely to accrue to accrue to a firm that is a first mover in a market where technical standards are important
- A.
True
- B.
False
- 6.Firms innovate because:
- A.
The human race is naturally inventive
- B.
Competitive advantages tend to erode over time – so new ones need to be found
- C.
Consumers are always looking for the next new gadget
- D.
It gets boring doing the same old things
- 7.Invention and innovation:
- A.
Are interchangeable terms- they mean the same
- B.
Are different, unrelated concepts
- C.
Are linked concepts and innovation is the commercialisation of invention
- D.
Largely a matter of personal opinion
- 8.The value created by an innovation is:
- A.
Shared equally among the players
- B.
Determined by customer loyalty
- C.
Captured by the player possessing the largest market share of the industry
- D.
Distributed amongst the various players involved in no certain way
- 9.The choice of a strategy to exploit innovation depends on two factors:
- A.
Luck and past experience in the industry
- B.
Characteristics of the innovation and a firm’s financial resources
- C.
Characteristics of the innovation and a firm’s resources and capabilities
- D.
The nature of the innovation, and how large the firm is
- 10.Michael Porter’s five forces model is a framework for analysing the factors that determine a firm’s competitive strategy
- A.
True
- B.
False
- 11.The starting point for industry analysis is:
- A.
Classifying the environmental influences by source
- B.
Classifying the environmental influences by proximity
- C.
Understanding the value of the product to customers and suppliers
- D.
Understanding the value of the product to customers, the intensity of competition and the bargaining power of producers relative to their suppliers
- 12.In Porter’s five forces framework, the term "industry attractiveness” refers to:
- A.
The appeal of the industry to a particular firm
- B.
Overall industry profitability
- C.
The extent to which the industry draws in new entrants
- D.
The potential for one firm to dominate the industry
- 13.For a manufacturer, access to distribution is a barrier to entry because:
- A.
New entrants face a disadvantage from retailers who are reluctant to carry their new products
- B.
Retailers have limited capacity of distribution to offer to new entrants
- C.
Retailers are risk-averse
- D.
Carrying new products induces fixed costs
- 14.Internationalization opens:
- A.
Borders for foreign workers
- B.
Doors for commercial spies
- C.
Domestic markets to foreign competitors
- D.
Answers a and c
- 15.Sheltered industries are protected from:
- A.
Imports
- B.
Imports and exports
- C.
Inward direct investment and imports
- D.
Direct and indirect inward investment
- 16.Porter’s national diamond identifies some factors that:
- A.
Determine a country’s competitive advantage for a sector
- B.
Determine a country’s national income
- C.
Determine the growth rate of a country’s national income
- D.
Determine the growth rate of its exports
- 17.International strategic alliances allow:
- A.
Governments to share national resources
- B.
Retailers to control their suppliers
- C.
Strong firms to dominate weak ones without having to buy them
- D.
Firms to share resources and capabilities
- 18.Multidomestic industries are those where internationalization occurs primarily through imports and exports
- A.
True
- B.
False
- 19.Porter’s national diamond framework identifies four factors that determine a company’s competitive advantage within a sector
- A.
True
- B.
False
- 20.Two mechanisms promote internationalization:
- A.
Inter-governmental bond borrowing, and inter-bank capital flows
- B.
Inter-bank capital flows and trade
- C.
Inter-bank capital flows and direct investment
- D.
Direct investment and trade
- 21.The resource-based view of the firm can be described as:
- A.
The outside-in approach
- B.
The inside-out approach
- C.
The positioning approach
- D.
The planning approach
- 22.When valuing a firm’s tangible resources:
- A.
We should take the historic cost book value
- B.
We must update historic cost assets to current cost (modern replacement cost) assets
- C.
We need to understand their potential for creating competitive advantage
- D.
We need to rely on the services of professional accountants
- 23.'Reputation' in the context of an organization's resources can provide competitive advantage because:
- A.
It is difficult to copy
- B.
It is based on word-of-mouth
- C.
It is essential for a firm to do business
- D.
It is easily destroyed by bad publicity
- 24.When firms develop organizational routines they are:
- A.
Seeking to liven up boring production manuals
- B.
Learning by doing
- C.
In the mature stage of an industry’s life cycle
- D.
In the declining stage of an industry’s life cycle
- 25.A capability that is “needed to play” is often referred to as:
- A.
A threshold resource
- B.
A unique resource
- C.
A threshold competence
- D.
A core competence
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