Strategic Management (B&M) - RUG - Practice exam (3)


Questions

Question 1

Michael Porter argued that when analyzing opportunities and threats, managers should pay particular attention to five forces that are the major threats that an organization will encounter. Which of the following forces would be affected by your customers' loyalty to your products?

  1. The level of rivalry among organizations in an industry

  2. The potential for entry into an industry

  3. The power of suppliers

  4. Substitute products

Question 2

Which of the following best describes the concept of the learning curve?

  1. Time-to-market decreases as a function of the number of innovations developed.

  2. Technical performance increases in an S-shaped curve as a function of effort.

  3. The ability to learn is normally distributed across firms (i.e., a bell-shaped curve).

  4. Cost per unit drops as a function of the cumulative output (total number of units produced).

Question 3

The competition among firms in the same strategic group will be ________ between firms belonging to different strategic groups even if they sell similar products or services.

  1. similar in intensity to that

  2. more intense than that

  3. less intense than that

  4. variable in intensity than that

Question 4

An independent group of suppliers, such as farmers, gather to form a cooperative in order to sell their products to buyers directly, replacing their previous distributor. This is an example of

  1. forward integration.

  2. backward integration.

  3. threat of substitute products.

  4. threat of entry.

Question 5

Which of Porter’s generic strategies is associated with a narrow market scope and commodity products?

  1. Cost focus

  2. Differentiation focus

  3. Cost differentiation

  4. Differentiation

Question 6

Which of the following is true regarding a differentiation strategy?

  1. A firm selects a unique position on one or more attributes (dimensions) that are important to buyers in general.

  2. A corporation is split into a number of different strategic business units (SBUs).

  3. A single firm develops a broad portfolio of products targeting a number of different markets.

  4. A firm identifies the needs of a specific group of buyers and tailors its strategy to serve that group to the exclusion of other groups.

Question 7

The term 'stuck in the middle':

  1. means that the firm's cost structure is not low enough to allow it to attractively price its products and that its products are not sufficiently differentiated to create value for its target customer.

  2. indicates that the customers of the firm are willing to pay only a mid-range price for the product.

  3. means adhering to a middle of the road strategy in the face of negative outcomes.

  4. reflects the fact that the customers of the firm have only moderate expectations regarding product quality.

Answers

Question 1

B

If your customers are loyal to your products, it would be difficult for potential entrants to enter in the market. The loyalty comes from the perception that your products are different from your competitors. This means that you have adopted a differentiation strategy

Question 2

D

While you accumulate more experience through producing the same item several times, you will find ways to produce the same item more efficiently.

Question 3

B

Rivalry can be best understood within strategic groups. This means competing against direct rivals (the other firms within that same strategic group). Outside firms there are other firms willing to enter the strategic group if there is economic advantage there. Mobility barriers are keeping outside groups from entering.

Question 4

A

Vertical integration is an important determinant of the bargaining power of suppliers or customers. Backward integration refers to the acquisition of the firm by any of our customers, or firm’s acquisition of any of its suppliers. On the other hand, forward integration basically refers to the acquisition of the firm by its suppliers. So, in the context of Porter’s five forces analysis, the threat of integration changes the bargaining power of the different forces.

Question 5

A

Cost leadership and differentiation are the two basic competitive strategies. The other important dimension here is market scope. One could select a market or a segment of that particular market. Selecting a market segment means choosing a focus strategy. This focus strategy can in its own right be build upon cost or differentiation. Within commodity product competition is only possible to achieve a competitive advantage through cost leadership. Cost Focus is the combination of cost leadership and a narrow scope.

Question 6

A

  • Option B is about different strategies, not differentiation strategy.

  • Option D is about a focus strategy, and therefore obviously not about differentiation strategy.

  • Option C is about segmentation. This is different from a differentiation strategy.

Question 7

A

The term Stuck in the Middle means that there is no clear competitive strategy: An undefined strategy inbetween cost leadership and differentiation.

Access: 
Public
Check more of this topic?
Work for WorldSupporter

Image

JoHo can really use your help!  Check out the various student jobs here that match your studies, improve your competencies, strengthen your CV and contribute to a more tolerant world

Working for JoHo as a student in Leyden

Parttime werken voor JoHo

Image

This content is also used in .....

Practice exams Strategic Management - RUG

Strategic Management (B&M) - RUG - Practice exam (1)

Strategic Management (B&M) - RUG - Practice exam (1)


Questions

Question 1

According to Mintzberg (2.4 Decision-making: It's not what you think), which decision-making approach is associated with organizational behavior, Karl Weick, and the following process: enactment => selection => retention ?

  1. Doing first
  2. Being first
  3. Thinking first
  4. Seeing first

Question 2

Which approach claims that powerful people with the firm prevent learning in order to maintain their own power base?

  1. Knowledge-based view
  2. Institutionalism
  3. Communities of practice
  4. Neo-institutionalism

Question 3

In the context of efficient production and plant size, indivisibility means that:

  1. economies of scope require certain combinations of products to be produced together.
  2. co-specialized assets that must be kept together.
  3. the slope of the learning curve will be much steeper initially.
  4. an input cannot be scaled down below a minimum size, and can only be scaled up in multiples of that size.

Question 4

In Prospect theory, the relationship between outcomes and the value of those outcomes is drawn as:

  1. A straight line
  2. An S-shaped curve
  3. A U-shaped curve
  4. An inverted U-shaped (bell) curve

Question 5

In the Turnbell report, which type of risk is associated with the following issues: loss of key people, succession problems and reputation damage?

  1. Compliance risk
  2. Operational risk
  3. Strategic risk
  4. Financial risk

Question 6

Which of Porter’s generic strategies is associated with a narrow market scope and commodity products?

  1. Cost focus
  2. Differentiation focus
  3. Cost differentiation
  4. Differentiation

Question 7

Which of the following is not true about strategic groups?

  1. Firm profits are very similar within groups, and very different across groups.
  2. Groups differ in terms of how much the firms compete within the group.
  3. Groups differ in terms of the amount of bargaining power they have with customers and/or suppliers.
  4. Some groups might be more affected by substitute products than other groups.

Question 8

According to Mintzberg (Decision-making: It's not what you think), which decision-making approach is most appropriate when many elements have to be combined into creative solutions, commitment on those solutions is key, and communication across boundaries is essential?

  1. Doing first
  2. Being first
  3. Seeing first
  4. Thinking first

Question 9

Which of the following is the most effective way to transfer tacit knowledge to new workers?

  1. They should attend university courses covering that topic.
  2. They should read a report in which an expert in the firm has written down all the key points.
  3. They should work as an apprentice with frequent and close contact with an expert.
  4. They should read technical journals and trade publications on that issue.

Question 10

Which organizational structure enables business managers to maximize economies of specialization, by allowing them to focus on their products and markets,.....read more

Access: 
Public
Strategic Management (B&M) - RUG - Practice exam (2)

Strategic Management (B&M) - RUG - Practice exam (2)


Questions

Question 1

Which characteristics describe monopolistic or imperfect competition?

  1. Some to vary few firms, high differentiation of products

  2. Some to vary few firms, low differentiation of products

  3. Many firms, no differentiation of products

  4. Many firms, some differentiation of products

Question 2

According to the lectures, which of the following best describes the relationship between Porter’s Five Forces analysis and the PEST analysis?

  1. A PEST analysis focuses on process issues while a Five Forces analysis focuses on content issues.

  2. A Five Forces analysis describes the industry (i.e., the micro-economic environment) that the firm is in, while a PEST describes the broader (macro-economic) environment that the industry is in

  3. A Five Forces analysis describes the external environment, while PEST analysis describes the internal environment of the firm

  4. The findings from a Five Forces analysis provide the input (the data) for a PEST analysis

Question 3

According to the lecture on organizational learning, which term refers to key individuals or interest groups using their power to prevent change and maintain the status quo?

  1. Co-evolutionism

  2. Institutionalism

  3. Neo-institutionalism

  4. Isomorphism

Question 4

What strategic options in decision-making are available to organizations that have a low knowledge of new markets, but have high capabilities?

  1. No options

  2. Trade options

  3. Bounded options

  4. Full set of options

Question 5

Imagine an SBU within a corporate portfolio that has the second largest market share in a mature market. According to the lecture on the BCG-matrix, this SBU would be a:

  1. Dog

  2. Questionmark

  3. Cash cow

  4. Star

Question 6

Henderson and Clark (1990) review two kinds of dynamic processes in modular systems: modular innovation and architectural innovation. Which statement(s) is (are) true?

I Modular innovation retains the architecture of the network, including its joints, but modifies the modules. The changes occur in innovations and improvements of the modular components.

II In architectural innovation, the modules are largely unchanged, but the architecture that connects them (the jointing system) is changed. The speed of innovation can be fast, as a key part of the system, the modular structure, is retained. New joints between these modules are installed.

  1. Only statement I is true

  2. Only statement II is true

  3. Both statements are true

  4. Both statements are false

Question 7

Which statement(s) is (are) true with regard to decision-making?

I Planning facilitates decision makers in analyzing and codifying what appear initially as complex problems. Planning processes help decision makers identify key performance indicators by which.....read more

Access: 
Public
Strategic Management (B&M) - RUG - Practice exam (3)

Strategic Management (B&M) - RUG - Practice exam (3)


Questions

Question 1

Michael Porter argued that when analyzing opportunities and threats, managers should pay particular attention to five forces that are the major threats that an organization will encounter. Which of the following forces would be affected by your customers' loyalty to your products?

  1. The level of rivalry among organizations in an industry

  2. The potential for entry into an industry

  3. The power of suppliers

  4. Substitute products

Question 2

Which of the following best describes the concept of the learning curve?

  1. Time-to-market decreases as a function of the number of innovations developed.

  2. Technical performance increases in an S-shaped curve as a function of effort.

  3. The ability to learn is normally distributed across firms (i.e., a bell-shaped curve).

  4. Cost per unit drops as a function of the cumulative output (total number of units produced).

Question 3

The competition among firms in the same strategic group will be ________ between firms belonging to different strategic groups even if they sell similar products or services.

  1. similar in intensity to that

  2. more intense than that

  3. less intense than that

  4. variable in intensity than that

Question 4

An independent group of suppliers, such as farmers, gather to form a cooperative in order to sell their products to buyers directly, replacing their previous distributor. This is an example of

  1. forward integration.

  2. backward integration.

  3. threat of substitute products.

  4. threat of entry.

Question 5

Which of Porter’s generic strategies is associated with a narrow market scope and commodity products?

  1. Cost focus

  2. Differentiation focus

  3. Cost differentiation

  4. Differentiation

Question 6

Which of the following is true regarding a differentiation strategy?

  1. A firm selects a unique position on one or more attributes (dimensions) that are important to buyers in general.

  2. A corporation is split into a number of different strategic business units (SBUs).

  3. A single firm develops a broad portfolio of products targeting a number of different markets.

  4. A firm identifies the needs of a specific group of buyers and tailors its strategy to serve that group to the exclusion of other groups.

Question 7

The term 'stuck in the middle':

  1. means that the firm's cost structure is not low enough to allow it to attractively price its products and that its products are not sufficiently differentiated to create value for its target customer.

  2. indicates that the customers of the firm are willing to pay only a mid-range price for the product.

  3. .....read more
Access: 
Public
Strategic Management (B&M) - RUG - Practice exam (4)

Strategic Management (B&M) - RUG - Practice exam (4)


Questions

Question 1

Which one of Porter’s 5 forces would be most directly affected if an existing firm in that niche threatens to engage
in vertical integration?

  1. Pressure from substitutes
  2. Barriers to entry
  3. Supplier power
  4. Intensity of rivalry

Question 2

Regarding the statement “patents protect innovation better than any other mechanism":

  1. a century of evidence shows this is true.
  2. no one can confirm or disprove this statement.
  3. is true for process innovation, but not product innovation.
  4. evidence shows that this is not true in most industries.

    Question 3

    In the material from Lecture 1, Rumelt gives four criteria for evaluating a strategy. Which criterion has to do with
    making sure that the strategy does not overwhelm the available resources?

    1. Consonance
    2. Feasibility
    3. Consistency
    4. Advantage

    Question 4

    The key insight from the “prisoners’ dilemma” game is:

    1. competitive behavior can create an outcome that is inferior for all involved in a situation.
    2. the principle of “honor among thieves” is inapplicable either to thieves or to business executives.
    3. the inability to directly communicate always results in an inferior outcome.
    4. trust can play a critical role in creating favorable outcomes in both crime and business.

    Question 5

    According to the lecture, in Barney’s approach to the resource-based view, entry barriers can only provide a
    sustainable competitive advantage under which condition(s)?

    1. Resources must be homogeneously distributed across firms.
    2. Resources are perfectly mobile.
    3. All of the above.
    4. None of the above

    Question 6

    A well-known brand can provide a sustainable competitive advantage because:

    1. consumers will always pay a premium for a recognized brand.
    2. it can be protected by the law relating to trademarks.
    3. it protects a firm from scandals.
    4. it tends to be durable, loses value when transferred between firms, and is costly to replicate.

    Question 7

    Which of the following factors is NOT conducive to vertical integration [p.303] between two adjacent stages of
    production?

    1. Similarity of the optimum scale of production between the two stages
    2. Few companies at each of the two stages
    3. Stability in the technologies used at each stage
    4. Different organizational capabilities are required at each stage

      Question 8

      If an industry earns a return on capital in excess of its cost of capital:

      1. It will soon attracts the attention of governmental regulatory agencies.
      2. Workers will push for higher pay and benefits causing the level of profitability to fall.
      3. It will attract the attention of potential entrants and, unless protected by high barriers to entry, the return on capital will fall.
      4. Firms within the industry will over-invest causing the return on capital to fall.
        .....read more
      Access: 
      Public
      Strategic Management (B&M) - RUG - Additional practice questions

      Strategic Management (B&M) - RUG - Additional practice questions


      Questions

      Question 1

      The main factor causing the transition from corporate planning to strategic management was the work of Michael Porter and fellow academics at Harvard Business School.

      1. True
      2. False

      Question 2

      An intended strategy is a set of initial ethical intentions; an emergent strategy comprises actions or changes that emerge from the organization or its environment; and finally, the realized strategy is the set of strategic changes and actions that actually takes place.

      1. True
      2. False

      Question 3

      If a firm adjusts its strategy to ensure it is consistent with its external environment, it benefits from a:

      1. Strategic fit
      2. Strategic leadership
      3. Location within an attractive industry
      4. A license to operate

      Question 4

      To survive and prosper over the long run requires a firm to:

      1. Commit itself to growing its sales
      2. Be responsive to its external environment—including its social, political, and natural environment
      3. Pursue simultaneously strategies of low cost and differentiation
      4. Ensure the ethical conduct of executives

      Question 5

      The primary justification for the assumption that the primary goal of strategy is to maximize profits over the long term is:

      1. The fact that in today’s intensely competitive markets, firms must focus on profit maximization in order to survive
      2. The legal requirement on Boards of Directors to ensure that companies are operated in the interests of their shareholders
      3. In order to earn profits over the long run, firms must attend to the interests of all their stakeholders
      4. Shareholders will oust CEOs that are not effective at maximizing profits.

      Question 6

      Maximizing enterprise value and maximizing shareholder value are linked because:

      1. Enterprise value and shareholder value are the same thing
      2. Shareholder value is calculated by adding debt and other non-equity financial claims to the DCF value of the firm
      3. Shareholder value is calculated by subtracting debt and other non-equity financial claims from the enterprise value of the firm
      4. It is obvious that they must be linked

      Question 7

      In formulating strategies under uncertainty, real option analysis is a valuable strategic tool because:

      1. It allows firms to create value from flexibility and a wider range of growth opportunities
      2. It can assist firms in using complex financial derivatives to hedge risk
      3. It allows firms to make investment decisions without the need to forecast cash flows long into the future
      4. It renders obsolete most conventional tools and techniques of strategy analysis.

      Question 8

      The level of profit in an industry is determined almost entirely by the value of products to customers.

      1. True
      2. False

      Question 9

      Niche markets are often highly profitable for incumbents because they can often be dominated by a single firm.

      1. True
      2. False
      3. .....read more
      Access: 
      Public
      Strategic Management: Samenvattingen, uittreksels, aantekeningen en oefenvragen - RUG

      Strategic Management: Samenvattingen, uittreksels, aantekeningen en oefenvragen - RUG

      • In deze bundel worden o.a. samenvattingen, oefententamens en collegeaantekeningen gedeeld voor het vak Strategic Management voor de opleiding Bedrijfskunde, jaar 2 aan de Rijksuniversiteit Groningen.
      • Voor een compleet overzicht van de door JoHo aangeboden samenvattingen & studiehulp en de beschikbare geprinte samenvattingen voor het vak Operations Management ga je naar de Business & Economics worldwide: learn, study or share - Starting page
      Follow the author: Business and Economics Supporter
      More contributions of WorldSupporter author: Business and Economics Supporter:
      Check how to use summaries on WorldSupporter.org


      Online access to all summaries, study notes en practice exams

      Using and finding summaries, study notes en practice exams on JoHo WorldSupporter

      There are several ways to navigate the large amount of summaries, study notes en practice exams on JoHo WorldSupporter.

      1. Starting Pages: for some fields of study and some university curricula editors have created (start) magazines where customised selections of summaries are put together to smoothen navigation. When you have found a magazine of your likings, add that page to your favorites so you can easily go to that starting point directly from your profile during future visits. Below you will find some start magazines per field of study
      2. Use the menu above every page to go to one of the main starting pages
      3. Tags & Taxonomy: gives you insight in the amount of summaries that are tagged by authors on specific subjects. This type of navigation can help find summaries that you could have missed when just using the search tools. Tags are organised per field of study and per study institution. Note: not all content is tagged thoroughly, so when this approach doesn't give the results you were looking for, please check the search tool as back up
      4. Follow authors or (study) organizations: by following individual users, authors and your study organizations you are likely to discover more relevant study materials.
      5. Search tool : 'quick & dirty'- not very elegant but the fastest way to find a specific summary of a book or study assistance with a specific course or subject. The search tool is also available at the bottom of most pages

      Do you want to share your summaries with JoHo WorldSupporter and its visitors?

      Quicklinks to fields of study (main tags and taxonomy terms)

      Field of study

      Comments, Compliments & Kudos:

      Add new contribution

      CAPTCHA
      This question is for testing whether or not you are a human visitor and to prevent automated spam submissions.
      Image CAPTCHA
      Enter the characters shown in the image.
      Check related topics:
      Activities abroad, studies and working fields
      Institutions and organizations
      Access level of this page
      • Public
      • WorldSupporters only
      • JoHo members
      • Private
      Statistics
      2177