Reference no: EM132230974
1. In what ways do the interests of a firm’s managers differ from the firm' s owners?
a. Managers spending firm money on managerial perks and managers avoiding risk.
b. Managers not spending enough on managerial perks and managers avoiding risk.
c. Managers spending some firm money on managerial perks and managerial risk seeking
d. Managers not spending enough on managerial perks and managerial risk seeking.
2. Which of the following is true of the value chain?
a. It is applicable to both manufacturing and service industries.
b. Products or services lose value as they move through the primary activities.
c. It has no relationship to cost leadership strategies
d. It has no relationship to differentiation strategies.
3. What strategy is a firm pursuing if it plans to produce a product at a low cost and sell that product to a narrow market at a price similar to competition?
a. Cost Leadership
b. Differentiated
c. Focused Cost Leadership
d. Focused Differentiation
4. What is awareness as a driver of competitive behavior?
a. An aspect completely unrelated to resource similarity or market commonality.
b. Competitors 'recognition of the need for excessive competition,
c. Competitors' recognition of mutual interdependence
d. An acknowledgment that an imitation move is the only alternative
5. What is the goal of analyzing the firm using the value chain?
a. The complete elimination of general administration
b. Ignoring ways to encourage customers to buy your | products,
c. Finding a way to perform your support functions without needing the primary activities
d. Finding ways to lower costs in the value chain to increase the margin.
6. Under what situation would a multidivisional structure make sense?
A small firm with relatively simple decisions
A large firm focused on running a single, highly differentiated business
A large firm focused on running a single business with a cost advantage
A large firm with multiple businesses as part of the Organization
7. What advantage might be created for a firm that makes large volume purchases?
a. It creates a differentiation advantage based upon product complexity
b-It creates a cost advantage based on low cost access to inputs
c- It creates a diseconomy of scale for the purchasing firm.
d. It allows for isomorphic strategies in the industry
8. Which of the following is not important when designing an a national structure
a. Decision making authority should be mostly concentrated at the top levels of the organization
b. Allowing information to flow through the organization efficiently
e. each person should only have one supervisor
d, Tasks should be subdivided to create efficiencies through the division of labor,
9. Policy choices affect a cost leadership strategy in what way
a- Policy choices are easily changed as the firm gets older.
b-Policy choices are not affected by the culture of the firm,
c, Policy choices are not a part of a cost leadership strategy
d. Policy choices create incentives to cut costs
10. What is true of differentiation?
a. Customers must either perceive or value a difference for an advantage to be created,
b. a difference must physically exist to create an advantage.
c. Bases of differentiation are limited only by creativity.
d. Firms can only differentiate using bricolage
11. A change in strategy can take what forms?
a. Increasing marketing efforts,
b. Introducing new products,
c. Creating tacit collusion
d. Finding new distribution channels
12. What is the role of the CEO in a multidivisional structure?
a. to focus on day to day issues at every level of the organization.
b- To manage conflicts between functional areas in each division.
c-to coordinate activities between the divisions in Ordered to achieve a competitive advantage
d- to personally create detailed strategic plans for each division of the organization and implement them,