Sm Exam - 2016-10-26

40 Questions | Total Attempts: 25

SettingsSettingsSettings
Please wait...
Sm Exam - 2016-10-26

.


Questions and Answers
  • 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

Back to Top Back to top