Hewlett Packard licences some of its intellectual property through strategic alliances. Which of following is correct
This is an equity strategic alliances because licensing does not involve the creation of a new company, but does involve an equity commitment
Disney’s ABC and Google’s YouTube formed an Alliance that will allow Disney to advertise movies and products by showing short clips. The type of alliance is classified as a — Alliance
synergistic
Of the value neutral incentives to diversify all of the following are internal form incentive except
Stricter interpretation of antitrust laws
In fast cycle markets companies rely on __ engine of growth
Lower cost
Customer service
Internet marketing
Innovation 《《
Examples of intangible resources that a company has are
Goodwill And extend image
Which of the following true statement about organisational structures for implementing business level strategies
An Integrated cost leadership/ differentiation strategy requires a multi divisional structure using high formalization centralised decision making and vertical coordination
Walt Disney company and Johnson and Johnson are examples of Companies successfully used related diversification
Activities and transferring core competencies
Globalisation has led to
Higher product quality
A company in our industry is least likely to make use of patents and copyrights
Fast cycle market
In the context of BCG Matrix products that have a small share of a fast growing market are
—
Innovation microprocessor maker Intel often — its own product before competition*
Market
Replicates
Cannibalises
Re engineers <<
Which one of the following is not component of competitor analysis
Market Size
Which one of the following is not component of competitor analysis
Comparing our goals to that of the competitor
An increase in the value of the Rupee — Indian firms Exports
Help
Nokia and Intel have specific goals in the development of new products to support
Induced strategic behaviour
Till early 1990 Bajaj producer of scooters in India had obtained
Higher Margin, large product portfolio
The benefits of being a first mover can be substantial especially in a
Fast cycle
A firm’s mission
Intended to emotionally inspire employees and other stakeholders
Manufacturer of jewellery imitates the style of a popular and expensive brand using manufactured stones
Threat by the cost leader
With 75% of the coming from tobacco business and rest from agri
Dominant business diversification strategy
Which of the following is not an attribute of a successful acquisition
investment advertising and image building are made quickly
Wal Mart effective strategy/structure configuration is
Cost leadership/functional
A restaurant developed the new appetizer that is a hit with customers
All of these are met
— Is not found in fast cycle markets
Patents and copyrights
Which of these refers to a special type of acquisition strategy where in the target didn’t select the acquiring
Takeover
The decision of what entry board to use is primarily based on all of the following factors except
country’s situation and government policies
Manufacturer of speciality jams and jellies has decided to Ally itself
Vertical complementary
Which of the following is not a value creating activity to control overhead and production cost
A successful _ innovation will be less risky but less profitable than a successful _ innovation
Incremental, radical
The resources based view of the firm
Emphasizes that sustainable competitive advantage can be based on resources
One of the primary reasons for failure of cross border strategic alliances is
The incompatibility of the partners
Products developed through _ are often offered at a lower prices without as many features then products developed through _
Imitation, innovation
The best organisation structure to use
In the Cooperative form
The BCG matrix separates businesses into four categories based upon
How profitable the business is, size of the market share
__ Strategy is a corporate level strategy that minimizes risk by diversifying investment among various business and product
Diversification
Ambrose is a scientist working for a company
Ambrose is a key employee in the firm’s primary business
Selecting the organisational structure and controls that effectively implement
Firms must be flexible while retaining a degree of stability
Cost leadership Strategy targets the industries
Most typical
An organisation __ is composed of the key individual
Top management team
A team which is used to describe how rapidly consistently new
Perceptual innovation
A well-known Portfolio strategy Toot that manager’s use to decide how to invest
BCG matrix
which one of the following is not component of general external environment
ethical environment
Analysing income distribution in India for analysis of business environment world
Wage Differential between male and female employees working for a large manufacturer
In the airline industry consolidation among fuel providers serving airport facility
Any increase in switching cost because the airlines have no choice but to use
Global corporate level strategy assumes
More standardization of products across country markets
Suppliers are powerful when
They offer a credible threat of Forward integration
Internal analysis enables a firm to determine what the company
Can do
One means that is considered to improve the effectiveness of outsider directors is
Requiring outside directors to own significant equity Stakes in the firm
One method of facilitating the transfer of competencies between firms is to
Transfer key people into new management positions
Business level strategies are concerned specially
Creating differences between the firm positions and the competitors
Primary responsibility of development of strategic visions and Mission of organisation is
Ceo
Types of complementary strategic alliances are
Vertical and Horizontal
Which of the following is true
Strategy has a More important influence on structure than structure has on strategy
All competitive advantages do not accrue to large size firms
Are more likely to have organisational stack
When Rival firms complete address avli by trying to attract competitors
Slow industry growth
Fastest and Easiest way for a firm to diversity its sports portfolio is through
it is difficult and time intensive for companies to develop products that differ from their current product line
Research shows that because of its economic importance and individual motives, entreprenual activity is __ across the globe
Increasing
Golden lotus, an exercise club targeting healthy individuals over 50
Power of customer buyers
Companies that are following __ strategy try to improve the way in which they sell the same product
Diversification
Moon flower cosmetics company executive are aware that the Asian customer base is interested
Joint venture
Firms in emerging economies may want to form strategic alliances for developing countries because
It gains the foreign firm Technology
Big Bazaar’s net profit increased from 2.2 % in 2008-2009 to 3% in 2009-2010 despite recession and a consequent drop in sales by 1%
Cost leadership
Buyers are powerful when
Switching cost are low
Total profits earned in an industry at a points along the value chain are called as
Profit pool
__ are individuals acting independently or as part of an organisation who see an opportunity
Entrepreneurs
Choose the best option. An industry is a group or firms producing products that are
Close substitutes
Which of the following is not a value creating activity associated with differentiation
Emphasis on product quality
Which of the following is not an entry barrier to an industry
Bargaining power of suppliers
The decision of what entry mode to use is primary
Country’s situation and government policies
Which among the following firm demonstrates focus differentiation strategy
Rolex
Choose the best option scanning monitoring forecasting assessing
External environment analysis
Cross functional work team is having difficulties in operating smoothly
Formality of structure
higher efficiencies as a result of the experience of firm gains through higher cumulative production is
Experience curve effect
A strategic group is not
Companies in the industry against which the top managers compare, evaluate
Zimmer centrepulse is the world’s largest producer of the replacement hips and knees
Demography
The following firms are example of unrelated diversification strategy except
Nestle
Following will increase the probability that lower level manager will become a successful
Training and development programs
All the Sears website customers can chat online with customer service representatives
Social marketing
Embedded knowledge is difficult to transfer because
It is usually informal and not documented
The means of entry into International markets that offer the greatest control
Greenfield Ventures
Firms in the standard cycle market may form alliances in order to
Capture economies of scale
Reliance has forayed from Textiles business to fabrics to chemicals. This is an example of
Backward vertical integration
Integrated set of actions designed to produce or deliver goods or services related to that of competitors is called
Cost leadership
All of the following are characteristics of the global economy except
The increased use of tariffs to protect industries
Ethical practices to understand and anticipate strategies of Rival firms include
Attending trade fairs
Company wika Enterprises, a Sports goods Company has a Sport Club comprising of its customers
Increased richness of customer relationship
The best multi divisional organisational structure to use
Depends on the degree of diversification
Between 2014 and 2017, Reliance Industries invested around $5 billion on projects
Backward diversification
Shekhar is the son of very prominent Fortune 500 CEO 15 credited Shekhar
High Social Low human
Which of the following is not one of the primary reasons pharmaceuticals firms use
Extending patent rights on developed pharmaceuticals
Walmart acquired 77% stake in Flipkart for 516 billion in 2016 this is an example of
Horizontal acquisition
Resources that are difficult and costly to change are
Intangible resources
Which one of the following is the most critical measure of customer satisfaction
Customer satisfaction scores
The resources and capabilities that serve as a source of competitive advantage for a firm over its rival are called
Core competences
__ is the purchase of value creating activity from an external supplier
Outsourcing
CVC’s recent merger with caremark, a large manager
Virtual integration market power
Which Type of diversification is most likely to create financial economies
unrelated
Corporate governance revokes relationship between
Shareholders and managers*
Choose the best option globalisation of business markets has resulted in
Opportunity As well as threat to a firm
Successfully creating innovation through internal means requires
Acquisitions of innovative firms
That value of an existing technology and create new market is known as
Disruptive technologies
Omicorn artificial intelligence has a core competency of being able to respond to competitors
speed
A multidomestic corporate level strategy is one in which
The firm customers product for IIT in which competitors
Internal Corporate venturing does not involve
Autonomous strategic behaviour
All of the following are tangible resources except
Firm’s reputation
Competitive advantage is not sustainable for a long time in a
Fast cycle market
Customers __ of business level strategies
Are the Foundation
Which of the following is not a reason for acquisition
Liquidation
A manager in your company is proposing the acquisition of Taylor company
The acquisition of Taylor should be primarily for defensive rather than strategic reasons.
Longer
Shorter <<
Consistent
Non important
Case study
Assume that Disney can benefit operations and corporate
Ability to manage creativity and service excellence
What level and type of diversification best characterized Disney in the 1970’s
Dominant business
What level and type of diversification best characterized Disney at the beginning of 21st century
Related Constrained
Disney offered new products such as Sports franchisees. TV Networks ESPN in 21st century. This decision with
Rational
CEO of Icon image associate wishes to radically change the corporate culture of the firm
The members of the board of the directors
All of the following statements are true about the use of Defence tactics by the target firm during a hostile takeover except
Defence tactics make the cost of takeover lower
Panera bread develops and produces its old dough based products but it works with manufacturing partners to create a new soups. Panera bread is therefore
Pursuing innovation through both internal and cooperative strategies
Sukhdev, the CEO of dictionary has been paid a lump sum amount into three years salary because dictionary has been bought in a hostile takeover by its main competitor. Sukhdev received
Golden parachute
A __ is the capacity for a set of resources to perform a task or activity in an integrative manner
capability
Disney suffered lawsuits in France at Disneyland Paris as a result of the lack of fit between its transferred personal and the French employees charged to enact them. This is an example of
The Liability of foreignness
Selecting the organisational structure and controls that effectively implement The Chosen strategy is a challenge for managers because
Firms must be flexible while retaining a degree of stability
The benefits of a simple organisational structure include all of the following except
No need for sophisticated information systems
Managerial employment risk is the
Manager’s risk of job loss, loss of compensation and/or loss of reputation
The board of directors for indipop inc is searching for a new CEO. The firm is in need of new directions after suffering several years of declining performance and increasingly demoralized management and employees decided it needs a CEO who can be a transformational leader. To the specific and the board needs to identify applicants who have
Excellent analytical skills
Which of the following factors most encourages stability in a firm’s strategy
Internal CEO succession and a homogeneous top management team
Choose the incorrect statement
Outsourcing and building effective vendor relationships are not value chain activities
Successfully creating innovations through internal means requires
Significant Spending on R&D*
Zara has Pioneer cheap chic in clothing apparel. Zara offers current and desirable fashion goods at relatively low prices
Integrated cost leadership/differentiation
The board of directors of Cyberscope Inc is designing a stock option plan for its CEO that will motivate the CEO to increase the market value of the firm. consequently the board is
Setting the option strike price substantially higher than the current stock price
In 2007 Hindalco company acquired the Canadian company novelis (the production of flat rolled aluminium products)
Merger
The integrated cost leadership/differentiation strategy is difficult to implement mostly because
a. different primary and support activities are emphasized when using cost leadership and differentiation strategies.
b. this strategic approach demands more flexibility than most firms can manage.
c. the dual reporting relationships required for this strategy slow organizational decision-making.
d. the cost leadership strategy requires less structured job roles than does the differentiation strategy.
The __________ structure is best for implementing the related constrained diversification strategy.
a. functional
b. competitive form of the multidivisional
c. SBU form of the multidivisional
d. cooperative form of the multidivisional
The BEST multidivisional structure to use
a. is the competitive form.
b. is the SBU form.
c. is the cooperative form.
d. depends on the degree of diversification.
trategic Focus, Cisco used the ____________ structure to implement its ___________ strategy.
a. functional; cost leadership.
b. SBU form of the multidivisional; related linked
c. cooperative form of the multidivisional; related linked
d. cooperative form of the multidivisional; related constrained
The cooperative multidivisional firm
a. establishes profit centers based on products or markets.
b. has a flat organizational structure which broadens jobs and empowers workers.
c. is a structure organized around both functional specialization and business projects.
d. is a structure requiring heavy use of horizontal integrative devices.
Which of the following is a TRUE statement about implementing corporate-level strategies and effective organizational structures?
a. Firms pursuing a related-linked strategy should implement a competitive structure with a competitive culture and centralized strategic planning activities.
b. Firms pursuing an unrelated diversification strategy should use an SBU structure with a small corporate staff, emphasize the R&D function, and integrate divisions to achieve synergies.
c. Firms pursuing a related-linked strategy should use an SBU structure, emphasize interdependence among divisions, and manage the strategic planning function from the central office.
d. Firms pursuing a related-constrained strategy should implement a cooperative structure, use integrative devices to link divisions, centralize the R&D function, and emphasize sharing.
The heavy use of integrative mechanisms in the ____ multidivisional organizational structure is intended to achieve ____.
a. cooperative; economies of scope
b. competitive; cost efficiencies
c. functional; sensitivity to cultural diversity
d. SBU; quick response to local customer needs
A firm pursuing a related-constrained diversification strategy would typically need all of the following EXCEPT
a. centralization of some organizational functions for the sake of coordination.
b. frequent, direct contact between division managers.
c. division managers’ rewards based on division financial performance.
d. temporary teams or task forces formed around specific projects.
A private university is made up of various “schools,” such as the School of Journalism, the School of Business, the School of Law, the School of Arts and Sciences, and so forth. The university is experiencing some financial problems and the top administration has decided to have each school of the university become a profit center. This scheme is somewhat parallel to the organizational ____ structure.
a. network
b. strategic business unit multidivisional
c. functional
d. matrix
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