MGT-490: Final Exam Question:

True/False:

1. Mergers and acquisitions are not part of the basic strategies. (T)
2. Low cost leadership means selling product in cheaper price and thereby attracting
customers. (F)
3. Having an edge in defending against competitive forces doesnt necessarily gives a company
competitive advantage. (F)
4. Differentiation strategy to provide better product buyers think is not worth a premium
price, yet competitive advantage. (F)
5. Successful low-cost producers do not invest extra amount of money aggressively even in
cost-savings. (F)
6. Becoming too fixated on reducing costs by ignoring buyer sensitivity to price is not
necessarily provider strategy.(F)
7. Incorporating product features/attributes that lower buyers low cost provider strategy. (F)
8. Over-differentiating product features is considered as a pitfall. (T)
9. First movers advantage goes, when to make a strategic move is always more crucial. (T)
10. To evaluate a diversified firm evaluation of industry attractiveness is more important than
the evaluation of the strength of business units. (T)
11. Unrelated diversification involves diversifying into business whose value chains possess
competent strategic fits (F)
12. Capturing the strategic fits makes related diversification a 1+1=3 phenomenon. (T)
13. Economies of scope steam from cross-business cost-saving opportunities. (T)
14. Diversification can fail when transferring resource capabilities to new business can be more
expensive than expected. (T)
15. Public accounting is the example of stagnant industry. (F)
Multiple Choice Questions:
16. _______ Components are there in Implementing and Executing strategy process? (d)

a) Monitoring

b) Leading

c) Working with others

d) All the above.

17. ________ of the following is not part of Five Generic Competitive Strategies? (c)

a) Leadership Strategy

b) Differentiation Strategy

c) Target Strategy

d) Provider Strategy.

18. _________ differentiation strategy is a powerful competitive approach when uniqueness can be
achieved in ways.

d) All of the above.

19. Which one of the following strategies _________? (a)

a) Overall low-cost provider strategy

b) Cooperative Strategy

c) Focused Differentiation Strategy

d) None of the above.

20. Developing unique capabilities to serve needs of target buyers segment _________ strategies? (c)

a) Differentiation Strategy

b) Best-Cost Provider Strategy

c) Focus/Niche Strategies

d) None of the above.

21. Challengers that vigorous retaliation is likely one of the_______? (d)

a) Liquidation Strategy

b) Offensive Strategy

c) Niche strategy

d) Defensive Strategy.

22. Which one of the following is not the feature of an Emerging? (c)

a) Proprietary Technology

b) Low entry barriers

c) Absence of scale economics

d) Buyers are first-time users.

23. Unrelated Diversification involves diversifying into _________? (a)

a) No strategic fit

b) Meaningful value chain relationship

c) Unifying strategic theme

d) All of the above.

24. Which one of the following is a strategies option__________? (d)

a) Exporting

b) Licensing

c) Franchising

d) All of the above.

25. Which one is the most conservative way to ________? (a)

a) Exporting

b) Licensing

c) Franchising

d) None of the above.

26. Which strategy is competing in a mature industry? (b)

a) Innovativeness

b) Expand internationally

c) Strong focus on cost benefit

d) Less flexible competitive capabilities.

27. Which one is the disadvantage of international strategic alliance_____? (b)

a) Joint research and technology sharing

b) Language and cultural barrier

c) Shared distribution facilities

d) None of the above.

28. When should Diversification be a priority? (a)

a) Strong competitive position, rapid market growth

b) Weak competitive position, rapid market growth

c) Strong competitive position, slow market growth

d) Weak competitive position, slow market growth.

29. Characteristics of an ideal vacant niche are EXCEPT _________? (D)

a) Growth potential

b) Hard for leaders to serve

c) Sufficient size to be profitable

d) Proven strategies.

30. Diversification is capable of increasing shareholder value___________ (d)

a) Industry of Entry Test

b) Cost of Entry Test

c) Better-off Test

d) All of the above.

31. Diversification might fail_______________? (d)

a) If strategic fit is not found

b) If resource transferring is not possible to be done

c) Best practices can be replicated

d) None of the above.

32. Which one in the following is not a strategic option __________? (d)

a) Invest and grow

b) Fortify and defend

c) Overhaul and reposition

d) Be reactive to the change.

33. Which factor is difficult for rivals to match? (b)

a) Convenience

b) Time consuming

c) Short deadlines

d) Low incentives.

34. Which strategy is not based on a companys market position? (a)

a) Well-known reputation

b) Industry leaders

c) Weak or crisis-ridden firms

d) Runner-up firms.

35. Strategy makes sense when ________?

a) Activities need to be performed close to buyers

b) Transportation cost is high

c) Protection from supply interruption is needed

d) Sizable scale of economies in performing activities.