Question    QUESTION 1 1 points Saved

 

QUESTION 1 1 points Saved

Apple is considering backward integration into manufacture of their products. Currently Foxconn in China handles most of their manufacturing but Apple has some concerns about quality.

Apple operates in a high tech industry where products change rapidly. Should they backward integrate and why?

A. Yes, it will weaken the power of suppliers.

B. No, Foxconn can do it better.

C. Yes, they will become more profitable.

D. No, they will have less flexibility to adapt their products.

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QUESTION 2 1 points Saved

How does vertical integration compare with outsourcing?

A.

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Vertical integration and outsourcing both allow the company to focus more on core competencies.

D. Vertical integration and outsourcing both allow the company to reduce risk exposure to changing technology.

QUESTION 3 1 points Saved

You want to sell shoes in Indonesia where they have high import duties that make your products 33% more costly however there

is no charge for locally produced products. The country favors partnerships with local businesses and has a highly skilled workforce. What is your best entry strategy?

A. Franchising B. Greenfield C. Exporting

D. Strategic alliance

QUESTION 4 1 points Saved

India has become a popular place to move information technology functions to because of their large highly skilled IT workforce. Companies keep their IT functions in a few locations. What is the most likely reason?

A. India has superior resources.

B. The cost of IT is lower.

C. There is a steep learning curve.

D. Buyer related activities must take place close to the market.

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QUESTION 5 1 points Saved

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Centralized organizations adapt more quickly.

C. Frontline workers lack critical knowledge for work decisions.

D. Decentralized organizations make it too easy to place blame.

QUESTION 6 1 points Saved

High uncertainty in competitive markets

A.

makes alliances among firms less attractive because the markets’ profits are lower.

B. encourages firms to form alliances to share risks.

C. erodes alliances because uncertainty motivates opportunistic behaviors by alliance partners.

D. increases the number of alliances because uncertainty leads to synergy.

QUESTION 7 1 points Saved

In France, fine dressmaking and tailoring have been a tradition predating Queen Marie Antoinette. Cloth manufacturers, design schools, craft apprenticeship programs, modeling agencies, and so forth; all exist to supply the clothing industry. This is an example of

A. outsourcing

B. strategic alliances

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D. complementary industries

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Nickelodeon and Nick Jr. and Walt Disney’s Company’s Disney Channel. From the perspective of Comcast Corp., it is most likely to be:

A. Horizontal non-equity, uncertainty reduction business-level, diversifying corporate-level strategic alliance.

B. Vertical equity, competition reduction business-level, licensing corporate-level strategic alliance.

C. Vertical non-equity, complementary business-level, diversifying corporate-level strategic alliance.

D. Horizontal non-equity, competition response business- level, synergistic corporate-level strategic alliance.

QUESTION 9 1 points Saved

Glorietta Manufacturing specializes in making luxury leather goods from exotic skins, such as snake, lizard, and alligator. In the last few years it has been increasingly difficult to obtain high quality, unblemished alligator skins. Its main source of alligator skins, Gator- Rama Ranch, has a number of other customers. So, Glorietta’s management has decided to enter acquisition negotiations with Gator- Rama in order to gain control over Gator-Rama’s output. This is an example of a

A. vertical acquisition

B. hostile takeover

C. merger

D. horizontal acquisition

QUESTION 10 1 points Saved

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Revlon, best known as a cosmetics manufacturer also makes bath

products, sunscreen and other non cosmetics. Approximately 76% of their revenue comes from their cosmetics. Further, Revlon receives

42% of their revenues from international sales. They operate wholly owned subsidiaries in Australia, South Africa, and the United

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C. dominant business, Greenfield strategy

D. related linked diversification, acquisition international strategy

QUESTION 11 1 points Saved

Dow Corning Corp was incorporated in 1943 by Dow Chemicals and Corning Glass Works with the purpose of developing polymers and materials based on silicon chemistry. This company operates overseas through its wholly owned subsidiaries through which it also conducts sales. The alliance and global strategies are most likely

A. equity venture, global strategy

B. Joint venture, transnational strategy

C. Joint venture, international strategy

D. non-equity, multidomestic strategy

QUESTION 12 1 points Saved

Pinnacle Inc. makes video editing hardware for the television and movie industries. Their business comes primarily from the United States but they want to engage in foreign direct investment in India. Unfortunately, this industry is not well developed in India and the Indian labor force is not familiar with this type of manufacturing. Pinnacle’s best choice is

A. Acquisition

B. Multidomestic strategy

C. Strategic alliance

D. Greenfield venture

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QUESTION 13 1 points Saved

Your company has recently developed a patented process that safely

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exporting B. alliance C. licensing

D. acquisition

QUESTION 14 1 points Saved

Toyota matched their corporate strategy to produce reasonably priced high reliability vehicles using just in time inventory management in which necessary components were not acquired until needed. They also developed the philosophy of kaizen or continuous improvement in which all employees participate in finding production improvements.

A. Toyota is involved in process innovation and corporate entrepreneurship.

B. Toyota is engaged in radical innovation through corporate entrepreneurship and internal innovation.

C. Toyota is engaged in incremental innovation through internal innovation.

D. Toyota is developing an disruptive innovation through their corporate culture.

QUESTION 15 1 points Saved

Tata motors in India recently acquired Jaguar and Land Rover from Ford for 1.7 billion dollars. The price was considerably lower than the price Ford had paid for these companies originally. These acquisitions allow Tata to grow quickly and gain access to luxury markets. Which is NOT a reason for the acquisition?

A. Gain market share.

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Learn from the design and engineering expertise of

Jaguar and Land Rover engineers.

C. Develop new markets.

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Coca Cola is divided into five international divisions: Eurasia and Africa, Europe, North America, Latin America, and Pacific. They make over 3500 beverage products and 80% of their revenue comes from their beverage division. Their diversification and international strategy are:

Related constrained and multidomestic.

Related linked and transnational.

Related linked and global.

Dominant business and multidomestic.

QUESTION 17 1 points Saved

Revlon, best known as a cosmetics manufacturer also makes bath products, sunscreen and other non cosmetics. Approximately 69% of their revenue comes from their cosmetics. Further, Revlon receives 42% of their revenues from international sales. They operate wholly owned subsidiaries in Australia, South Africa, and the United Kingdom. Revlon can best be described as

A. Related constrained/licensing

B. related linked/Greenfield

C. unrelated diversification/franchising

D. dominant business/turnkey

QUESTION 18 1 points Saved

Goldman Sachs likes to acquire firms that they believe are undervalued. They hire a management team to oversee the acquisitions operations and make improvements to the new

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acquisition is strong, they sell it off at a profit. This is an example of:

A. Unrelated diversification

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QUESTION 19 1 points Saved

You are contemplating opening a manufacturing plant in Nigeria. Labor is relatively cheap and you would have access to the African market through your presence on the continent. However, Nigeria has experienced government instability. Bribery has become a way of getting things done and the government has taken over three companies in the last ten years. You should:

A. Franchise.

B. Choose an alliance entry strategy with a company already based in Nigeria to gain access to local knowledge.

C. Choose an acquisition entry strategy to gain access to local knowledge.

D. Choose a Greenfield venture so that you will have control.

QUESTION 20 1 points Saved

Your company has recently developed a patented process that safely and cheaply makes pharmaceutical grade vitamins. You would like to expand your business overseas and are trying to decide on the best option. Labor is relatively cheap overseas and most countries are happy to see foreign direct investment by American companies. Your products are basically the same for everyone since vitamins have value to people throughout the world. You would like to retain control over your operations however since the process is proprietary. Your best strategy and entry options are:

A. Multidomestic/Acquisition.

B. Transnational/Acquisitions.

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C. Multidomestic/Alliance.

D. Global-Standardization/Greenfield.

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military and rescue operations, he started a new venture where he could customize these flying drone cameras to fit the specific needs of the buyers and sell them. Joe can be best described as a(n)

A. entrepreneur. B. early adopter. C. inventor.

D. technology enthusiast.

QUESTION 22 1 points Saved

Which of the following is a competitive benefit experienced by the first mover firm in an industry?

A. The first mover may be able lock in key suppliers.

B. The first mover will be able to achieve a less steep learning curve.

C. The first mover will not need to find distribution networks.

D. The first mover will be able to reduce the switching costs.

QUESTION 23 1 points Save Answer

Jane Doe is the founder of a chain of coffee shops. She pays a fair price for her coffee beans even though she could pay less and uses some of the money to build roads and hospitals in poor regions where the beans come from. Jane’s belief is that her company should be

able to support the community at large. Which of the following terms best describes Georgia Ray?

A. entrepreneurial mindset

B. inventor

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social entrepreneur

D. innovator

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They are seeking to stake out a strong strategic position.

B. There are only a few competitors in the holographic phones market.

C. Market size is moderate.

D. Process innovation is increasing.

QUESTION 25 1 points Save Answer

IMFriends is an instant messaging application for smartphones. New smartphone users find it easier to connect with friends and relatives through this mobile app when compared to other similar instant messaging applications. Hence, it has the largest user base in the industry. Thus, MFriendsapp’s value has increased primarily due to its

A. First mover advantages.

B. Network effects.

C. First mover disadvantages.

D. Disruptive innovation.

QUESTION 26 1 points Save Answer

Which of the following best illustrates a process innovation as opposed to product innovation?

A. a consumer electronics company launching holographic televisions.

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B. Aepapnled’sSuinbimtiailtrteolesaasvee oafnidposdusbm. it. Click Save All Answers to save all answers.

C. an automobile company using computer-aided design in its production.

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D.

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1 points Save Answer

While cell phones with holographic keyboards are currently in the introduction stage of the industry life cycle, tablet computers are in the growth stage. In the context of this scenario, which of the following statements is true?

A. The industry for cell phones with holographic keyboards will face greater competition than the tablet industry

B. While the industry for cell phones with holographic keyboards will focus on product innovation, the tablet industry will focus on process innovation.

C. The industry for cell phones with holographic keyboards will face price competition, whereas, in the tablet industry, the mode of competition will be non-price.

D. While the industry for cell phones with holographic keyboards can reap the benefits of economies of scale, the tablet industry will experience no such benefits.

QUESTION 28 1 points Save Answer

The compact disk (CD) industry is in the maturity phase of its industry life cycle. What conditions prevail for an industry in this stage?

A. The industry structure is an oligopoly with only a few large firms.

B. The mode of competition at this stage will be based on non- price factors.

C. The type of buyers at this stage will be early adopters.

D. The market growth is positive or high at this stage.

QUESTION 29 1 points Save Answer

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