MGT 4201: Strategy and Business Policy

Final Examination
Student Name: Student ID:
(For uestions 1!20" #lease tic$ t%e rig%t ans&er' For uestions 21!2(" #lease )rie*ly narrate your ans&ers'+

Q1: Which of the following is an example of a mission statement? a. Diversif product line to appeal to more people. !. Increase sales ! 1"# over last ear. c. $a highest salaries to %eep high &ualit emplo ees. d. Develop and sell &ualit appliances worldwide. e. Divide a sales region into a group of sales districts. Q'. (usiness strateg focuses on a. ensuring that the compan maintains the existing mar%et share that it has historicall en)o ed. !. improving the competitive position of a corporation*s products or services within the industr or mar%et segment served. c. providing ade&uate shareholders* return on investment. d. preventing the competition from gaining a competitive edge ! undermining their mar%eting plan. e. recovering the competitive lead ! using all availa!le resources that the compan can provide. Q+: Which of the following is an example of a compan o!)ective? a. Diversif product line to appeal to more people. !. Increase sales ! 1"# over last ear. c. $a highest salaries to %eep high &ualit emplo ees. d. Develop and sell &ualit appliances worldwide. e. Divide a sales region into a group of sales districts. Q,. -ccording to the $orter model. a low force can !e regarded as a/n0 a. !. c. d. e. !enefit. opportunit . advantage. threat. ris%.

Q1. Which method of managing disparate cultures is the most common and most destructive method of dealing with two different cultures !ecause one compan imposes its demands at the expense of another compan *s culture? a. !. c. d. e. separation deculturation integration assimilation segmentation 1

Q2. - sugar compan worried that consumers ma !u artificial sweetener instead of sugar is concerned a!out the a. threat of new entrants. !. rivalr among existing firms. c. threat of su!stitute products. d. !argaining power of suppliers. e. !argaining power of !u ers. Q3: Which strateg specifies the firm*s overall direction in terms of its general orientation toward growth. the industries or mar%ets in which it competes. and the manner in which it coordinates activities and transfers resources among !usiness units? a. !. c. d. e. corporate functional divisional organi4ational !usiness

Q5. Which of the following is N67 descriptive of the 8!argaining powers of !u ers?8 a. 9hanging suppliers costs ver little. !. -lternative suppliers are plentiful !ecause of standardi4ation. c. 7he purchased product represents a high percentage of !u er*s costs. d. 7he !u er !u s in large proportion of seller*s product or service. e. 7he product earns high profits and is ver insensitive to costs and service differences. Q:. 7he a!ilit for Ni%e to manufacture its own shoes and then !uild;open stores for sales and distri!ution is an example of a. !. c. d. e. forward integration. hori4ontal integration. !ac%ward integration. transferred integration. mass integration.

Q1". Which structure simultaneousl com!ines functional and product forms at the same level of the organi4ation? a. strategic !usiness units !. functional structure c. networ% structure d. divisional structure e. matrix structure Q11. Which t pe of structure ena!les a compan to tailor products to regional differences and to achieve regional coordination? a. !. c. d. e. geographic<area structure networ% structure product<group structure international structure functional structure

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Q 1'. -ccording to $orter. the competitive strateg that reflects the a!ilit to provide uni&ue and superior values to the !u er in terms of product &ualit . special features. or after<sale service is called a. competitive scope !. differentiation c. concentration d. diversification e. lower cost. Q 1+. Which of $orter*s competitive strategies recommends that a compan emphasi4e a particular !u er group or geographic mar%et and attempts to see% a cost advantage in its targeted segment? a. differentiation !. cost leadership c. differentiation focus d. competitive advantage e. cost focus Q1,. 7he rate at which a firm=s underl ing resources. capa!ilities. or core competencies can !e duplicated ! others is called a. replica!ilit . !. transparenc . c. imita!ilit . d. dura!ilit . e. transfera!ilit . Q11. 7he t pe of mar%eting strateg in which a compan captures a larger share of an existing mar%et for current products through mar%et saturation or mar%et penetration or develops new mar%ets for current products is called a. mar%et development. !. push strateg . c. product development. d. pull strateg . e. s%imming the cream. Q12. Which of the following is N67 a goal of financial strategies? a. >xamine the financial implication of corporate and !usiness level strategic options and identif the !est financial course of action. !. $rovide the corporation with the appropriate financial structure and funds to achieve its overall o!)ectives. c. Institute a new product development plan to generate profit potential. d. $rovide competitive advantage through a lower cost of funds and a flexi!le a!ilit to raise capital to support a !usiness strateg . e. -ttempt to maximi4e the financial value of the firm. Q13. 7he evaluation of alternative strategies and selection of the !est alternative is referred to as a. alternative generation. !. strategic implementation. c. strategic choice. d. strategic selection. e. evaluation.

Q15. Which method of managing disparate cultures involves one organi4ation*s domination over another willing organi4ation? a. !. c. d. e. separation deculturation integration assimilation segmentation

Q1:. Which of the following is an example of a mar%eting functional strateg ? a. 7o increase profits ! 1"#. !. 7o maximi4e shareholders wealth. c. 7o achieve overall cost leadership. d. 7o diversif into related mar%ets. e. 7o manipulate advertising expenditures to emphasi4e mar%et 8pull8 over 8push.8 Q'". Which t pe of pricing attempts to hasten mar%et development and offers the pioneer the opportunit to utili4e the experience curve to gain mar%et share and dominate the industr ? a. !. c. d. e. demand pricing competitive pricing s%im pricing penetration pricing loss<leader pricing

Q '1: What is the difference !etween !usiness strateg and functional strateg ? ?ive two example of each strateg . /10

Q '': What is SW67 anal sis? $lease identif two items;factors in each area of SW67 anal sis for @IA>$. /10

Q'+. What is the matrix structure? Identif at least two conditions when ou could suggest matrix structure for a large corporation.

Q',: >xplain the differences !etween vertical and hori4ontal expansion strateg . ?ive two examples for each expansion strateg . /'0

Q'1. What is a focus strateg ? When it could !e used successfull ? ?ive three examples.

Q '2. What is a differentiation strateg ? Narrate the ris%s associated with following a differentiation strateg /at least three situations0?