Question Set 1?

It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout.
Value-creating primary activities include
    1. Value-creating primary activities include:
      1. purchasing raw materials and supplies
      2. developing an appropriate corporate structure
      3. selecting appropriate distribution channels
      4. planning corporate strategy and setting goals
  1.  

                 2. Which of the following tools can help identify and build core competencies?

      1. Scanning and the four criteria of sustainable competitive advantage
      2. Porter’s five forces model and internal analysis
      3. Porter’s five forces model and value chain analysis
      4. Value chain analysis and the four criteria of sustainable competitive advantage

                 3. The three conditions that characterise difficult managerial decisions concerning resources, capabilities and core competencies are:

      1. uncertainty, complexity and interorganisational conflicts
      2. uncertainty, value and availability of resources
      3. imitability, complexity and interorganisational conflicts
      4. complexity, rarity and capacity

                4. When rival firms compete aggressively by trying to attract competitors’ customers, this might be an indication of:

      1. increasing economies of scale
      2. an industry with low exit barriers
      3. slow industry growth
      4. high bargaining power among buyers
  1.  

                5. Business-level strategies detail commitments and actions taken to provide value to customers and to gain competitive advantage by exploiting core competencies in:

      1. specific and individual product markets
      2. specific plant locations
      3. the selection of industries in which the firm will compete
      4. specific and individual functional departments

                6. Which one of the following is not a risk associated with the differentiation strategy?

      1. Counterfeits
      2. Price differential for the value becoming too large
      3. Processes becoming obsolete
      4. Narrowing of customer perceptions of the value of product differentiation

                7. The strategic management process is:

      1. a dynamic process involving the full set of commitments, decisions and actions related to a firm
      2. a set of activities that is guaranteed to prevent organisational failure
      3. a set of activities that have not been used successfully in the not-for-profit sector
      4. a process concerned with a firm’s resources, capabilities and competencies, but not with conditions in its external environment

               8. A firm that successfully implements the cost leadership strategy would expect:

      1. to focus on its own cost structure, but not its competitors’ cost structures
      2. to constantly face challenges from a steady stream of new entrants to the industry
      3. to compete based primarily on price
      4. to be able to fend off the challenge of product substitutes
  1.  

               9. Which of the following is a true statement about capabilities?

      1. Capabilities become weaker and less valuable through repetition and practice.
      2. Human capital is not a capability.
      3. Capabilities emerge quickly when resources interact.
      4. Capabilities derive from a firm’s capacity to deploy resources that have been integrated to achieve a desired end state.

                10. Strategic leaders are:

      1. the individuals and groups who have invested capital in a firm in the expectation of earning positive return on their investment
      2. people located in different parts of the firm using the strategic management process to help the firm reach its vision and mission
      3. the CEO and top-level managers of a firm
      4. people who are affected by a firm’s performance and who have claims on its performance
  1.  

                11. Which of the following is not a step in identifying profit pools?

      1. Estimate the size of the value-chain activity in the pool.
      2. Estimate the pool’s overall size.
      3. Reconcile the calculations.
      4. Define the pool’s boundaries.
      5. Estimate the pool’s effect on current activities.

                12. Suppliers are powerful when:

      1. they are in a highly fragmented industry
      2. they have credible threat of forward integration
      3. satisfactory substitutes are available
      4. they sell a commodity product
  1.  

                13. Generally speaking, product market stakeholders are satisfied when:

      1. a firm’s profit margin yields an above-average return to its capital market stakeholders
      2. a firm grounds its operations in the principles of the resource-based view of the firm rather than the principles of the I/O model
      3. the interests of a firm’s organisational stakeholders have been maximised
      4. a firm’s profit margin yields the lowest return to capital market stakeholders that is acceptable to them

                14. The likelihood that firms will enter an industry is a function which pair of factors?

      1. Diversity of customers and retaliation expected from incumbents
      2. Fragmentation of competition and diversity of customers
      3. Retaliation expected from incumbents and barriers to entry
      4. Barriers to entry and the number of incumbents

                15. The resource-based view of the firm:

      1. assumes that resources may not be mobile across firms
      2. calls for firms to focus on their homogeneous skills to compete against their rivals
      3. suggests that resources, rather than capabilities, are more closely linked with sustainable competitive advantage
      4. argues that the industry environment has a stronger influence on a firm’s ability to implement strategies successfully than the competitor environment

                16. Relative to tangible resources, intangible resources are:

      1. not the focus of strategic analysis
      2. more likely to be reflected on the firm’s balance sheet
      3. of less value to the firm
      4. more difficult for competitors to imitate

                 17. Which one of the following is not a component of competitor analysis?

      1. Assumptions
      2. Future objectives
      3. Market size
      4. Current strategy
  1.  

                18. The term economies of scale refers to the fact that as the:

      1. quantity of product produced in a given period increases, the cost of manufacturing each unit remains constant
      2. quantity of product produced in a given period increases, the cost of manufacturing each unit decreases
      3. quantity of product produced in a given period increases, the cost of manufacturing each unit increases
      4. physical size of the product gets larger, the costs of production become lower
  1.  

                19. The integration of a cost leadership strategy and a differentiation strategy will:

      1. lower a firm’s risks
      2. allow a firm to adapt more quickly
      3. not be used extensively in the future
      4. slow the ability of a firm to respond
  1.  

                20. Are three sources of strategic flexibility that facilitate the use of the integrated strategy.

      1. Computer information systems, total quality management systems and value chain analytical systems
      2. Total quality management systems, information networks and enterprise resource planning software systems
      3. Flexible manufacturing systems, value chain analytical systems and strategic management process systems
      4. Flexible manufacturing systems, information networks and total quality management systems

               21. The three conditions that characterise difficult managerial decisions concerning resources, capabilities and core competencies are:

      1. uncertainty, value and availability of resources
      2. imitability, complexity and interorganisational conflicts
      3. complexity, rarity and capacity
      4. uncertainty, complexity and interorganisational conflicts    

               22. Which of the following is a true statement about capabilities?

      1. Capabilities derive from a firm’s capacity to deploy resources that have been integrated to achieve a desired end state.
      2. Capabilities emerge quickly when resources interact.
      3. Human capital is not a capability.
      4. Capabilities become weaker and less valuable through repetition and practic

                23. A firm that successfully implements the cost leadership strategy would expect:

      1. to constantly face challenges from a steady stream of new entrants to the industry
      2. to compete based primarily on price
      3. to focus on its own cost structure, but not its competitors’ cost structures
      4. to be able to fend off the challenge of product substitutes
  1.  

               24. Value-creating primary activities include:

      1. purchasing raw materials and supplies
      2. selecting appropriate distribution channels
      3. planning corporate strategy and setting goals
      4. developing an appropriate corporate structure
  1.  

               25. Generally speaking, product market stakeholders are satisfied when:

      1. a firm’s profit margin yields an above-average return to its capital market stakeholders
      2. a firm’s profit margin yields the lowest return to capital market stakeholders that is acceptable to them
      3. a firm grounds its operations in the principles of the resource-based view of the firm rather than the principles of the I/O model
      4. the interests of a firm’s organisational stakeholders have been maximised
  1.  

               26. The resource-based view of the firm:

      1. calls for firms to focus on their homogeneous skills to compete against their rivals
      2. argues that the industry environment has a stronger influence on a firm’s ability to implement strategies successfully than the competitor environment
      3. assumes that resources may not be mobile across firms
      4. suggests that resources, rather than capabilities, are more closely linked with sustainable competitive advantage
  1.  

               27. Which one of the following is not a risk associated with the differentiation strategy?

      1. Narrowing of customer perceptions of the value of product differentiation
      2. Price differential for the value becoming too large
      3. Processes becoming obsolete
      4. Counterfeits

             28. Relative to tangible resources, intangible resources are:

      1. of less value to the firm
      2. more likely to be reflected on the firm’s balance sheet
      3. not the focus of strategic analysis
      4. more difficult for competitors to imitate

             29. Which one of the following is not a component of competitor analysis?

      1. Market size
      2. Assumptions
      3. Future objectives
      4. Current strategy

             30. Business-level strategies detail commitments and actions taken to provide value to customers and to gain competitive advantage by exploiting core competencies in:

      1. the selection of industries in which the firm will compete
      2. specific and individual functional departments
      3. specific plant locations
      4. specific and individual product markets

              31. Strategic leaders are:

      1. the individuals and groups who have invested capital in a firm in the expectation of earning positive return on their investment
      2. people who are affected by a firm’s performance and who have claims on its performance
      3. the CEO and top-level managers of a firm
      4. people located in different parts of the firm using the strategic management process to help the firm reach its vision and mission

              32. When rival firms compete aggressively by trying to attract competitors’ customers, this might be an indication of:

      1. increasing economies of scale
      2. an industry with low exit barriers
      3. high bargaining power among buyers
      4. slow industry growth

             33. The term economies of scale refers to the fact that as the:

      1. quantity of product produced in a given period increases, the cost of manufacturing each unit remains constant
      2. quantity of product produced in a given period increases, the cost of manufacturing each unit increases
      3. physical size of the product gets larger, the costs of production become lower
      4. quantity of product produced in a given period increases, the cost of manufacturing each unit decreases

              34. The strategic management process is:

      1. a dynamic process involving the full set of commitments, decisions and actions related to a firm
      2. a set of activities that is guaranteed to prevent organisational failure
      3. a process concerned with a firm’s resources, capabilities and competencies, but not with conditions in its external environment
      4. a set of activities that have not been used successfully in the not-for-profit sector

                35. Suppliers are powerful when:

      1. they are in a highly fragmented industry
      2. they sell a commodity product
      3. satisfactory substitutes are available
      4. they have credible threat of forward integration

                36. The likelihood that firms will enter an industry is a function which pair of factors?

      1. Retaliation expected from incumbents and barriers to entry
      2. Diversity of customers and retaliation expected from incumbents
      3. Fragmentation of competition and diversity of customers
      4. Barriers to entry and the number of incumbents

                37. When rival firms compete aggressively by trying to attract competitors’ customers, this might be an indication of:

      1. increasing economies of scale
      2. slow industry growth
      3. high bargaining power among buyers
      4. an industry with low exit barriers
  1.  

               38. Suppliers are powerful when:

      1. they sell a commodity product
      2. they are in a highly fragmented industry
      3. satisfactory substitutes are available
      4. they have credible threat of forward integration

               39. The strategic management process is:

      1. a set of activities that is guaranteed to prevent organisational failure
      2. a set of activities that have not been used successfully in the not-for-profit sector
      3. a dynamic process involving the full set of commitments, decisions and actions related to a firm
      4. a process concerned with a firm’s resources, capabilities and competencies, but not with conditions in its external environment
  1.  

              40. Business-level strategies detail commitments and actions taken to provide value to customers and to gain competitive advantage by exploiting core competencies in:

      1. specific plant locations
      2. specific and individual functional departments
      3. the selection of industries in which the firm will compete
      4. specific and individual product markets

              41. Which one of the following is not a component of competitor analysis?

      1. Market size
      2. Future objectives
      3. Current strategy
      4. Assumptions

              42. a firm that successfully implements the cost leadership strategy would expect:

      1. to compete based primarily on price
      2. to be able to fend off the challenge of product substitutes
      3. to constantly face challenges from a steady stream of new entrants to the industry
      4. to focus on its own cost structure, but not its competitors’ cost structures

              43. The resource-based view of the firm:

      1. suggests that resources, rather than capabilities, are more closely linked with sustainable competitive advantage
      2. argues that the industry environment has a stronger influence on a firm’s ability to implement strategies successfully than the competitor environment
      3. assumes that resources may not be mobile across firms
      4. calls for firms to focus on their homogeneous skills to compete against their rivals
  1.  

              44. Generally speaking, product market stakeholders are satisfied when:

      1. the interests of a firm’s organisational stakeholders have been maximised
      2. a firm grounds its operations in the principles of the resource-based view of the firm rather than the principles of the I/O model
      3. a firm’s profit margin yields an above-average return to its capital market stakeholders
      4. a firm’s profit margin yields the lowest return to capital market stakeholders that is acceptable to them

               45. Value-creating primary activities include:

      1. purchasing raw materials and supplies
      2. developing an appropriate corporate structure
      3. planning corporate strategy and setting goals
      4. selecting appropriate distribution channels

               46. Relative to tangible resources, intangible resources are:

      1. more difficult for competitors to imitate
      2. not the focus of strategic analysis
      3. more likely to be reflected on the firm’s balance sheet
      4. of less value to the firm

               47. Which one of the following is not a risk associated with the differentiation strategy?

      1. Processes becoming obsolete
      2. Price differential for the value becoming too large
      3. Counterfeits
      4. Narrowing of customer perceptions of the value of product differentiation

              48. Which of the following tools can help identify and build core competencies?

      1. Scanning and the four criteria of sustainable competitive advantage
      2. Porter’s five forces model and internal analysis
      3. Porter’s five forces model and value chain analysis
      4. Value chain analysis and the four criteria of sustainable competitive advantage

             49. Which of the following is a true statement about capabilities?

      1. Capabilities become weaker and less valuable through repetition and practice.
      2. Capabilities emerge quickly when resources interact.
      3. Capabilities derive from a firm’s capacity to deploy resources that have been integrated to achieve a desired end state.
      4. Human capital is not a capability.
  1.  

              50. The three conditions that characterise difficult managerial decisions concerning resources, capabilities and core competencies are:

      1. imitability, complexity and interorganisational conflicts
      2. uncertainty, value and availability of resources
      3. uncertainty, complexity and interorganisational conflicts
      4. complexity, rarity and capacity
  1.  

              51. The integration of a cost leadership strategy and a differentiation strategy will:

      1. not be used extensively in the future
      2. allow a firm to adapt more quickly
      3. lower a firm’s risks
      4. slow the ability of a firm to respond
  1.  

              52. Which of the following is not a step in identifying profit pools?

      1. Estimate the size of the value-chain activity in the pool.
      2. Reconcile the calculations.
      3. Estimate the pool’s overall size.
      4. Estimate the pool’s effect on current activities.
      5. Define the pool’s boundaries.
  1.     53. The term economies of scale refers to the fact that as the:
      1. quantity of product produced in a given period increases, the cost of manufacturing each unit remains constant
      2. quantity of product produced in a given period increases, the cost of manufacturing each unit increases
      3. quantity of product produced in a given period increases, the cost of manufacturing each unit decreases
      4. physical size of the product gets larger, the costs of production become lower

               54. Are three sources of strategic flexibility that facilitate the use of the integrated strategy.

      1. Computer information systems, total quality management systems and value chain analytical systems
      2. Total quality management systems, information networks and enterprise resource planning software systems
      3. Flexible manufacturing systems, information networks and total quality management systems
      4. Flexible manufacturing systems, value chain analytical systems and strategic management process systems

              55. Generally speaking, product market stakeholders are satisfied when:

      1. the interests of a firm’s organisational stakeholders have been maximised
      2. a firm’s profit margin yields the lowest return to capital market stakeholders that is acceptable to them
      3. a firm grounds its operations in the principles of the resource-based view of the firm rather than the principles of the I/O model
      4. a firm’s profit margin yields an above-average return to its capital market stakeholders

              56. The term economies of scale refers to the fact that as the:

      1. quantity of product produced in a given period increases, the cost of manufacturing each unit increases
      2. physical size of the product gets larger, the costs of production become lower
      3. quantity of product produced in a given period increases, the cost of manufacturing each unit remains constant
      4. quantity of product produced in a given period increases, the cost of manufacturing each unit decreases

                 57. Which one of the following is not a risk associated with the differentiation strategy?

  1.  
  1.  
  1.  
  1.  
      1. Narrowing of customer perceptions of the value of product differentiation
      2. Counterfeits
      3. Processes becoming obsolete
      4. Price differential for the value becoming too large

                58. Value-creating primary activities include:

      1. developing an appropriate corporate structure
      2. planning corporate strategy and setting goals
      3. selecting appropriate distribution channels
      4. purchasing raw materials and supplies

                59. Suppliers are powerful when:

      1. satisfactory substitutes are available
      2. they are in a highly fragmented industry
      3. they have credible threat of forward integration
      4. they sell a commodity product

                60. When rival firms compete aggressively by trying to attract competitors’ customers, this might be an indication of:

      1. high bargaining power among buyers
      2. increasing economies of scale
      3. slow industry growth
      4. an industry with low exit barriers

               61. Relative to tangible resources, intangible resources are:

      1. more likely to be reflected on the firm’s balance sheet
      2. of less value to the firm
      3. more difficult for competitors to imitate
      4. not the focus of strategic analysis
  1.  
  1.  
  1.  
  1.  
  1.  
  1.  
  1.  

              62. Which of the following is a true statement about capabilities?

      1. Capabilities become weaker and less valuable through repetition and practice.
      2. Capabilities emerge quickly when resources interact.
      3. Capabilities derive from a firm’s capacity to deploy resources that have been integrated to achieve a desired end state.
      4. Human capital is not a capability.
  1.  

               63. Suppliers are powerful when:

      1. satisfactory substitutes are available
      2. they sell a commodity product
      3. they have credible threat of forward integration
      4. they are in a highly fragmented industry

               64. Which one of the following is NOT one of the four essential elements of an organisation?

      1. Feedback.
      2. Inputs
      3. Outputs
      4. Transitions.

                65. The Uppsala model is credited as being a dynamic theory which effectively explains the process of internationalisation for corporations. The final step of the Uppsala model is best described as:

      1.  the final step is to evaluate the current activities of the company and gauge the similarities and differences to decide & commit resources to foreign operations
      2. the final step is resource commitment leading to change in current activities of the firm and the cycle can continue
      3. the final step is to gain Local market knowledge, that is, the customers, competitors, regulatory conditions
      4. the final step is the initial commitment of resources to foreign market
  1.  
  1.  

                66. In the western context, which of the following is NOT one of the personal characteristics expected from managers:

      1. a reluctance to adopt best-practices in the organisation
      2. Punctuality
      3. being inclusive of different perspectives
      4. building rapport with all key stakeholders

                67. the motivation for companies to expand abroad is primarily:

      1. to secure key supplies
      2. to seek out new markets
      3. to exploit economies of scale and scope
      4. All of the above

               68. One of the criticisms made of multi-national entities (MNEs) operating in developing countries is that they are responsible for “syphoning of scarce resources” which can lead to:

      1. a reduction in capital for internal development
      2. improved environmental management practices in the company
      3. a reduction in the number of protests from locals and workers
      4. improved occupational, health and safety practices in the company

               69. Multi-national enterprises (MNE) have been criticised by some theorists primarily because:

      1. they are often perceived to be against the national interest of the host country
      2. they often employ expatriates who lack cultural sensitivity and are ethnocentric
      3. they may dominate major industrial sectors and contribute to inflation
      4. they increase employment opportunities and provide foreign direct investment.
  1.  

               70. the concept of “Universalism” is best described as:

      1. the harmonisation of key management practices and procedures around the world
      2. the partnerships created between notable universities and business research bodies
      3. the use of moral relativism concepts to resolve universal ethical dilemmas and problems
      4. the moral assessment of conduct and social rules are based on fundamental principles that are applicable everywhere

                71. Which one of the following is NOT a means of internationalisation?

      1. Franchising arrangements with locals in target markets
      2. Entering into a joint venture arrangement with a local player in the host country.
      3. Making regular business trips to attend special conferences and product trade fairs.
      4. Purchasing a greenfield site in the host country to develop and build a new factory site.

               72. Parochialism is best described as which of the following:

      1. A mindset which is focussed on only achieving one pre-determined outcome to the exclusion of all others.
      2. Parochialism refers to having a narrow-minded approach, that is seeing the world solely through one’s own eyes.
      3. Parochialism refers to somebody who has never travelled beyond state or national borders
      4. A mindset which refuses to acknowledge the facts and scientifically proven evidence.