一百三; 500561RR - Cra鮎ng a Strategy
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Questions l to 20: Select the best answer to eaCh question. Note that a question and ltS anSWerS may be spllt aCrOSS a Page
eak, SO be sure that you have seen the entire question and all the answers before choosing an answer.
1. What sets a multinational diversification strategy apart from other diversification strategleS IS
A. a diversity of businesses and a diversity of national markets.
B. the presence of extra degrees of strategic fit and more economies of scope.
c. the potentia皿faster growth, higher rates of profitability’and more pro卸sanct血es.
D. the potential to have a higher degree of technoIogical expertise.
2. Strategic fit between two or more businesses exists when one or more aCtivities comprising thei
espective value chains present oppo血nities
A. to prevent the transfer of expertise or tec血oIogy or capabilities from one business to another.
B. to independently preserve commOn
and names from cross-business usage.
c壷r cross-business co11aboration to build valuable new resource Strengths and competitive capabilities.
D. to increase costs by combining the perfomance of the related value chain activities of different businesses.
3. The biggest risk of empIoying an outsourcing strategy lS
A. causing the company to become paftially integrated instead of being肌y integrated.
B. putting the company in the position ofbeing a late mover instead of an early mover・
c. farming out the wrong activities and hollowing out capabilities that contribute fundamentally to the軸s competitiveness and
market success.
D. hurting a company-s R&D capability.
4. Which of the following is a main disadvantage of pursulng an eXPOrt Strategy?
A. It may be di縦cultto manage in multiple countries.
B. There・s a risk ofsharing valuable know-how to forelgn COmPanies.
c. It becomes vulnerable when the costs ofshipping the products are high.
D. It-s sIow to implement across different foreign countries・
5. Which one ofthe fo11owing is a key element of integrated social-COntraCtS theory?
A. Universal ethical noms always take precedence over local ethical noms.
B. Bribes and kickbacks aren-t considered part of the theory since they aren't universa11y bamed.
c. Integrated social-COntraCtS theory r垂cts the slippery sIope of ethical relativism and em
aces ethical universalism.
D. Ethical principles at the country level outweigh universal principles.
6. Diversification should be considered when a company
A. has run out of ways to achieve a distinctive competence in its present business.
B. is under the gun to create a more attractive and cost-e飾cient value chain.
C. lacks sustainable competitive advantage in its present business.
D. begins to encounter diminishing growth prospects in its mainstay business.
7. Evaluating a diversified company-s corporate strategy and critiquing the pluses and minuses of its
usiness lineup invoIves
A. perfoming a SWOT analysis of each industry ln Which the fim has a business interest・
B・ eValuating the strategic fits and resource fits among the various sister businesses and deciding what priority to glVe eaCh ofthe
company's business units in allocating resources・
C. applying the cost-Ofentry test, the better-Offtest, the profitability test, and the shareholder value test to each business and
industry represented in the company-s business portfolio.
D. looking at each industry仙siness to detemine how many profitable strategic groups the company has diversified into.
8. A company-s biggest vulnerability in empIoying a best-COSt PrOVider strategy is
A. getting trapped in a pnce war with low-COSt leaders.
B. being timid in cu血g its prices far enough below high-end differentiators to win away many oftheir customers.
C. relying too heavily on outsourcing.
D. getting squeezed between the strategies of fims empIoying low-COSt PrOVider strategies and high-end di鵬rentiation strategleS.
9. The primary reasons that companies opt to expand into foreign markets are to
A・ aVOid having to empIoy an export strategy, aVOid the threat of cross-market subsidization from rivals, and enable the use of a
global strategy instead of a multidomestic strategy.
B. boost retums on investment,
oaden their product lines, aVOid tari鯖i and trade restrictions, and escape dealing with strong
c. grow sales faster than the industry average, reduce the competitive threats from rivals, and open up more oppo血1ities to
enter into strategic a11iances・
D・ gain access to new customers, aChieve lower costs’e血ance the company's competitiveness’CaPitalize on core competencies,
and spread business risk across a wider market base.
10. The competitive strategy of a fim pursulng a一一think global, aCt local一一approach to strategy-making
A. usually invoIves cross-Subsidizing the prices in those markets where there are slgnificant country-tO-COuntry diiferences in the
product attributes in which customers are most interested.
B. is essentially the same in all country markets where it competes, but may nonetheless give local managers room to make mino
variations where needed to better satisfy local buyers and to be備er match local market conditions.
C. entails little or no strategy coordination across countries.
D. invoIves se11ing a mostly standardized product worldwide, but varying a company-s use of distribution channels and marketing
approaches to accommodate local market conditions.
11. Why do companies decide to enter a foreign market?
A. To concentrate risk within a
oader base of countries, eSPeCia11y when sales are down in one area and the company can
undermine sales elsewhere
B. To decrease the rate at which they accunulate experience and move up the leaming curve
C. To raise input costs through greater pooled purchasing powe
D・ To capture economies of scale in product development, manufacturing, Or marketing
12. A focused low-COSt Strategy Seeks to achieve competitive advantage by
A. perfoming the primary value-Chain activities at a lower cost per unit than can the industry's Iow-COSt leaders.
B. dominating more market niches in the industry via a lower cost and a lower price than any o血er rival・
C. serving buyers in the target market niche at a lower cost and lower price than rivals.
D. outmatching competitors in offering niche members an absolute rock-bottom prlCe・
13. In which of the following cases are late-mOVer advantages (or first-mOVer disadvantages) not likely to
arise?
A・ When the costs ofpioneemg are much higher than being a follower and only negligible leaming/experience benefits accrue to
the pIOnee
B. when the pioneerIs products are somewhat primitive and are easily bested by late movers
C. when the marketplace is skeptical about the bene卸s of a new technoIogy or product being pioneered by a first-mOVe
D. when oppo血nities exist for a blue-OCean Strategy tO invent a new industry or distinctive market segment that creates
altogether new demand
14. Multinational companies that fo血id the payme加of
ibes and kickbacks in their codes of ethical
conduct and that are serious about enforcing this prohibition
A. face a particularly vexlng PrOblem of losing business to competitors that have no scruples-an OutCOme that penalizes ethical
COmPanies and company persomel.
B. are generally advocates of the ethical relativism schooI of thought.
C. are out-Of-SteP With business reality given that the preponderance of company managers are immoral・
D. are mlSguided in their efforts because
ibes and kickbacks are rea11y no different宜om tipping for service at restaurants as
you pay for a service rendered・
15. Which of the following actions is typically the strategic impetus for forward-Vertical integration?
A. Being able to control the wholesale
etail portion of the industry value chain
B. Fewer disruptions in the delivery ofthe company-s products to end-uSerS
C. Gaining better access to end-uSerS and better market visibility
D. A11owing the fim access to greater economies of scale
16. The advantages of using an export strategy to build a customer base in foreign markets include
A. minimizing risk and capital requirements.
B. being cheaper and more cost effective than a multico皿try Strategy.
C. being cheaper and more cost effective than licensmg and franchising.
D. minimizing shipping costs and the effects of fluctuating exchange rates.
17. A strategy to be the industlys overa11 low-COSt PrOVider isn’t particularly well matched to the market
Situation when
A・ there are few ways to achieve differentiation that have value to buyers.
B. buyers have widely varylng needs and special requlrementS and the prlCeS Of substitute products are relatively high.
C・ Price competition is especially vigorous.
D. the offerings of rival firms are essentially identical’Standardized, COrmOdity-1ike products.
18. The best strategic options for a local company m COmPeting against global cha11engers include
A. usmg its understanding of local customer preferences to create customized products or services’tranSfe
ing the company's
expertise to cross-border markets, and/or using acquisitions and rapid growth strategies to defend against expansion-minded
multinationals.
B. export strategies, entering into alliances and/or joint ventures with one or more foreign companies having globally competitive
Strengths, and/or cross-border transfer strategies.
C. export strategiesJicensing strategies, franchising strategies, and cross-market coordination strategies.
D. locating buyer-related activities, SuCh as sales, advertising, Or teChnical assistance, CIose to buyers.
19. While there are many routes to competitive advantage, the two biggest factors that distinguish one
COmPetitive strategy宜om another are
A. whether a company can offer the lowest possible prlCeS and whether the company can get the best suppliers in the market.
B・ Whether a company can achieve lower costs than rivals and whether the company lS PurSuing the industry-s sales and market
share leader-s role.
C. whether a company can build a
and name and an image that buyers trust.
D. whether a company-s target market is
oad or na
ow and whether the company lS PurSulng a low cost or differentiation
Strategy.
20. The chief difference between a low-COSt PrOVider strategy and a focused low-COSt Strategy is
A. the size ofthe buyer group to which a company is trying to appeal・
B・ Whether the product is strongly diiferentiated or weakly differentiated from rivals.
C. the degree of bargamlng POWer that buyers have.
D. the type of value chain being used to achieve a low-COSt COmPetitive advantage・
End of exam
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Exam: 500562RR - Executing the Strategy
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Questions l to 20: Select the best answer to each question. Note that a question and its answers may be split across a page
eak, SO be sure that you have seen the entire question and all the answers before chooslng an anSWer.
1. A strong corporate culture
A. isn-t particularly well-Suited to building strong core competencies and competitive capabilities・
B. is usua11y created by prescribing a comprehensive set ofpolicies, PrOCedures, and best practices for empIoyees to follow.
C. promotes good strategy execution when the cultural noms are a good fit with the strategy and hurts execution when the
Cultural noms are a poor fit.
D. helps promote imovative behavior among employees and rapid adaptation to market-driven and customer-driven changes・
2・ The statistical thinking underlying Six