Reference no: EM133053047

MBAA 514 - STRATEGIC MANAGEMENT QUIZ

Question 1: In the fall of 2019, the U.S. began investigating the safety of American personal data held by TikTok. To protect its business, ByteDance, the corporate parent began to look at ways to separate TikTok from its Chinese operations. Which of the following strategic moves made the most sense given the situation at the time?

1. establish an office in Mountain View, California to oversee data management
2. look for a buyer
3. provide assurances to the Committee on Foreign Investment in the United States that American data was stored on servers in the U.S. with a backup in Singapore
4. create a European data Centre in Ireland where major technology companies such as Amazon, Facebook and Alphabet Inc's Google. are already located

Question 2: Home security and home automation systems have been identified as growth opportunities for Canada's telecommunications firms. For Telus to enter this business, which of the following options would seem to make the sense.

1. build a unique home security service
2. outsource the development of a home security service
3. enter into a strategic alliance with Rogers to use their home security system with Telus customers
4. acquire an existing home security service provider

Question 3: Medical service organizations often outsource certain activities such as housekeeping because

1. it costs too much to do this work in-house
2. it is hard to find enough workers to do the work
3. it will allow the organization to focus on core activities
4. the organization does not like doing housekeeping

Question 4: In August 2020, a California judge ruled that Uber and Lyft must classify their drivers as employees rather than independent contractors. The ruling is an example of the impact governments can have on a business. Which of the following statements best reflects what this ruling will mean for the two ride hailing firms?

1. Competition from other ride hailing services will keep the price of a ride the same for Uber and Lyft customers.
2. The two firms will threaten to withdraw from California.
3. Uber and Lyft are unlikely to appeal the ruling.
4. Uber and Lyft will increase the price of a ride to reflect the increased compensation for the driver.

Question 5: Manufacturing in the U.S. has been in decline for decades as multi-national firms moved their manufacturing operations offshore. There has been a shift recently to bring some of this manufacturing back to the U.S. What might be some of the reasons for this move to re-shoring?

1. complexity in the supply chains, decline in consumer spending in the developed world, economic pessimism
2. free trade, increasing cost of ocean transport, value of the $US dollar
3. rise of e-commerce, artificial intelligence, 5G networks
4. trade wars, unstable supply chains, poor product quality

Question 6: In 2020, as the world moved into a recession, firms that are pursuing a differentiation strategy might be tempted to switch to a cost leadership strategy as consumers reduce their spending and look for lower cost goods and services. The research suggests such a move is unlikely to be successful. What might be the reason for this?

1. the differentiators cost structure will not allow for this
2. such a move will confuse consumers
3. there can only be one cost leader in any industry
4. cost leaders have the advantage as this is their current strategy and they are good at it

Question 7: Walmart Inc. has three major organizational segments: Walmart U.S., Walmart International, and Sam's Club. Walmart International operates in 26 different countries through wholly owned and partially owned subsidiaries. What type of international strategy does Walmart appear to be using?

1. Global
2. Multi- domestic 
3. Import/export
4. Transnational

Question 8: Fast food restaurants in Canada often use mailer coupons, mobile apps and print coupons to entice consumers to visit their restaurants. Which of the following industry characteristics might explain this behaviour?

1. The industry is in the growth stage and demand is increasing.
2. The industry is in the decline stage and demand is also in decline
3. The industry is in the introductory stage and the products are not well known.
4. The industry is in the mature stage and the rate of market growth has slowed.

Question 09: When Vancouver Island University decided to set up a private high school for local and international students, the institution was adopting a ______strategy by entering a different market segment. This move is also an example of _________integration.

1. corporate. horizontal
2. consolidation, hierarchical
3. functional, disintegration
4. international, Vertical

Question 10: A firm that focuses on developing and retaining data analysts is using a ______value chain activity to provide a ______service.

1. positive, negative
2. secondary, differentiated
3. intermediate, functional
4. primary, cost

Question 11: The COVID-19 pandemic has accelerated the trend to a cashless society. Which of the following technology developments has made this move possible?

1. consumer preference for e-commerce
2. digital banking platforms
3. fear of handling paper money contaminated with COVID-19
4. increasing fees at ATM machines

Question 12: Shipping and receiving is considered a ______ value chain activity and if done well can provide a ________ advantage.

1. primary, cost
2. secondary, cost
3. seasonal, temporary
4. principal, diversified

Question 13: H&R Block is a popular Canadian tax preparer. While there are software packages that can provide much the same service, H&R Block will provide the customer with an instant refund. This practice is an example of a _______strategy?

1. Cost efficiency 
2. Focus
3. Differentiation
4. Generic

Question 14: The Ford Motor Company ranks third in the world in terms of the global market share at 5.8%, behind Toyota at 9.5% and the Volkswagen Group at 7.4%. Sales of new automobiles are fairly flat in the developed world but growing in the developing world. Competition in these new markets is fierce and diversified. To improve its position, Ford has chosen to reduce the number of vehicle platforms, upon which various models are built, from 27 to 5. Which of the following statements best explains why this move fits the situation facing the firm?

1. reduces production costs so better able to compete on the basis of price
2. the two brands that really matter are Ford and Lincoln which really only need one platform each
3. it completes the Ford Two x Two Plan introduced in 2008
4. it allows for the move to fully electric vehicles

Question 15: Craftsy.com was launched in 2010 as an online teaching platform. By 2015, it had 550 classes on offer and 5 million users. In 2018, Craftsy was sold to NBCUniversal and a subscription model was introduced. In May of 2020, NBCUniversal announced the site would close. Which of the following statements might explain why Craftsy failed as a business?

1. online teaching platforms have been replaced with DVDs
2. the management team lacked the necessary skills to make the venture successful
3. interest in handcrafts is on the decline in America
4. the competencies of the firm could be easily copied

Question 16: The value chain for the footwear industry has 6 elements: leather, design, assembly, exporting, buyers, and retailing. Where has Nike positioned itself on this value chain?

1. Design
2. Buyers
3. Leather
4. Exporting