Question 1

A firm can create uniqueness by:&#10;A)Implementing complementary services.&#10;B)the quality of inputs.&#10;C)the brand and extensions.&#10;D)All of the above.

Accepted Answer

All of the above choices contribute to creating uniqueness for a firm. Complementary services can enhance the value of the core product or service, quality inputs can improve the performance and reliability of the final product, and brand and extensions can provide a distinct identity and recognition in the market. All these factors together make a business stand out from its competitors and create a competitive advantage.

Question 2

Industry attractiveness can be measured by:&#10;A)Market size&#10;B)Growth rate&#10;C)Profitability&#10;D)All of the above

Accepted Answer

Industry attractiveness can be measured by multiple factors, including market size, growth rate, and profitability. Therefore, the best choice is D, which includes all of the above.

Question 3

The parenting advantage can be described as:&#10;A)Creating more value for business units under corporate banner.&#10;B)The ability to diversify into new markets with new products.&#10;C)An increased complexity in the organizational structure.&#10;D)None of the above.

Accepted Answer

The parenting advantage refers to the value added to business units or companies by the parent corporation, beyond what they could achieve independently. This includes providing resources, capabilities, or a strategic direction that enhances the overall performance and competitiveness of the business units under its umbrella.

Question 4

When analyzing cost, companies tend to do all of the following except:&#10;A)Look at cost position relative to competitors.&#10;B)Adopt process improvement methodologies.&#10;C)Benchmark against economic indicators.&#10;D)Identify ways to improve cost position.

Accepted Answer

Companies tend to analyze cost by looking at their cost position relative to competitors, adopting process improvement methodologies, and identifying ways to improve cost position. Benchmarking against economic indicators is not a common practice when analyzing cost.

Question 5

Choosing the optimal vertical relationship requires considering:&#10;A)Resources, capabilities, and strategies&#10;B)Allocation of Risk&#10;C)Neither of the above&#10;D)All of the above

Accepted Answer

Choosing the optimal vertical relationship requires consideration of all factors mentioned in options A and B, including resources, capabilities, strategies, and the allocation of risk. These factors are important in determining the most effective way of coordinating activities between two firms, especially when it comes to managing costs, risks, and quality. By taking all of these factors into account, firms can work together to achieve shared goals, reduce inefficiencies, and increase value to customers.

Question 6

In the value chain, activities which support activities directly observable in the making and selling of a product are called _______________:&#10;A)Primary&#10;B)Secondary&#10;C)Tertiary&#10;D)Supportive

Accepted Answer

The answer of In the value chain, activities which support...

Question 7

A firm pursuing a low cost strategy would be most likely to:&#10;A)Diversify their product offerings.&#10;B)Take advantage of economies of scale.&#10;C)Pursue a cradle-to-cradle LCA model.&#10;D)Fully integrate the value chain.

Accepted Answer

Pursuing a low cost strategy means that the firm aims to produce goods or services at the lowest possible cost to make them accessible to price-sensitive customers. Taking advantage of economies of scale is one way to achieve this, as it involves producing large quantities of goods or services to spread fixed costs over a larger output, ultimately reducing the cost per unit. Diversifying product offerings, pursuing a cradle-to-cradle LCA model, and fully integrating the value chain may be useful strategies for other goals, but not necessarily for achieving a low cost strategy.

Question 8

Life Cycle Assessment (LCA) systems can be described by all of the following except:&#10;A)Cradle-to-customer&#10;B)Cradle-to-cradle&#10;C)Cradle-to-grave&#10;D)Cradle-to-gate

Accepted Answer

Cradle-to-customer is not a standard term used in Life Cycle Assessment (LCA) systems. LCA typically includes cradle-to-gate, cradle-to-grave, and cradle-to-cradle approaches.

Question 9

Firms diversify in _______________________ to substitute for a lack of efficiencies.&#10;A)Established Markets&#10;B)Competitive Markets&#10;C)Emerging Markets&#10;D)Isolated Markets

Accepted Answer

Firms diversify in emerging markets to substitute for a lack of efficiencies. In emerging markets, the competition is low and the demand for goods is high, enabling firms to secure a foothold quickly. This allows them to compensate for the lack of efficiencies they face in the more established markets.

Question 10

Criticism for strategic planning includes:&#10;A)Emphasizes execution rather than strategic formulation.&#10;B)Planners push subjective judgments to increase buy-in.&#10;C)Often preoccupied with business level plans.&#10;D)Often do not take enough time

Accepted Answer

Strategic planning is often criticized for being too focused on business-level plans, which can lead to neglecting broader strategic issues and long-term vision.

Deck 7: Business Strategy and Corporate Strategy