Management homework help.
- A highly capable brick and mortar electronics retailer with a loyal regional customer base (such as Fry’s) should adopt which of the following medium term strategies?
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“50% off” sale every month |
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Divest |
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Niche or harvest |
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Invest in R&D |
- Amazon’s strategy involves offering expanded variety but at very competitive prices. This is primarily achieved through
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Economies of scope |
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Focus on international markets |
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Economies of scale |
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Innovative products |
- Uber is an example of industry chaining in which of the following ways?
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Economies of scale for service providers |
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Economies of scope for customers |
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Improving access and reduced search costs for customers and service providers |
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Lower wages for service providers and lower prices for customers |
- Shareholder returns are primarily derived from
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Growth in share value and dividend payments |
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dividend payments only |
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Growth in company profits |
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Growth in the share value only |
- Strategy is defined best as:
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A unique value proposition supported by sound financial decisions |
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A unique value proposition supported by synergies in operations |
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A unique value proposition supported by aggressive marketing |
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A unique value proposition supported by a complex supply chain |
- The cost of attracting new customers is the highest with which of the following groups?
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Early adopters |
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Late majority |
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Laggards |
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Innovators |
- In the context of the Differentiation (Quality) vs Efficiency trade-off curve, the efficient frontier refers to:
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The company that provides maximum quality for a given cost |
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The company that provides minimum cost |
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The company that provides maximum quality |
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The company that maximizes efficiency |
- Nike hiring sports stars to be brand ambassadors is an example of which of the following mechanisms?
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Market development |
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Customer segmentation |
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Product development |
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Market penetration |
- Which of the following is an indication of strategic committment of a company in an industry
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Lowering wages of the workforce |
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Increased technology investment |
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Acquiring real-estate in an urban location of demand |
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Increased divident payments for two years in a row |
- A pharma company with a deep roster of capable engineers and scientists and that is the market leader is best advised to begin development of a new drug as:
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A partnership with smaller competitors |
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License its innovation from other laboratories |
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An independent venture |
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Smaller scale effort |
- The most valuable competency in the declining phase of an industry is:
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Resposiveness |
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Innovation |
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Efficiency |
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Quality |
- There is often limited capacity relative to demand in the early growth period of an industry because:
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Capacity is very expensive in the later stages of an industry |
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Only few companies have products or technologies in a budding industry |
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Prices tend to be low in the embryonic stage |
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Many companies compete for early advantage in an emerging industry |
- If the willingness to pay of a customer for an automobile is $18000, and the cost to produce that automobile is $14000, the consumer surplus is:
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Less that $4000 |
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$4000 |
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Cannot be determined with data provided |
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More than $4000 |
- A short term profit maximizing strategy for a monopoly would focus on:
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Giving slightly greater surplus than the competitor |
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Maximizing consumer surplus |
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Minimizing consumer surplus |
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Ensuring the lowest possible cost of the product |
- Which of the following companies best exemplifies broad cost leadership?
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WalMart |
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Toyota |
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Costco |
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Amazon |
- Tesla’s business model can be best described as:
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Electric vehicles and services for the technology savvy drivers with advanced engineering and in-house manufacturing |
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Electric vehicles and services for the technology savvy drivers with an outsourced model of design and manufacturing |
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Electric vehicles and services for the technology averse drivers with advanced engineering and in-house manufacturing |
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Electric vehicles and services for the budget conscious drivers with advanced engineering and in-house manufacturing |
- Network amplifiers are critical in establishing a standard (in a technology context) because:
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Higher end customers have a greater voice |
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Vertical integration is no longer a feasible option for most companies |
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Rate of adoption is a critical factor |
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Ease of use is paramount for any technology |
- Incumbents typically have a cost advantage as compared to new entrants becuase:
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Incumbents typically have a technogical edge compared to new entrants |
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Incumbents have deeper connections to government and regulatory bodies |
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Incumbents have greater fixed costs but lower variable relative to new entrants typically |
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Incumbent market shares lead to greater economies of scale |
- Porter’s Five forces helps with all of the following objectives except:
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Evaluate the attractiveness of an industry |
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Decide entry or exit from an industry |
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Evaluate the strengths and weaknesses of a firm |
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Evaluate opportunities and threats |
- In the context of the Differentiation (Quality) vs Efficiency trade-off curve, Amazon is best described as a company:
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Just below and to the left of the efficient frontier |
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On the same frontier but a different position compared to brick and mortar competitors |
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A company that values quality over price every single day |
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That has been a value innovator |
- Which of the following best describes a mission statement?
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An objective for a company to be debt free in 5 years |
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A children’s clothing store aiming to make a difference in their customer’s lives |
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An energy company wanting to be the most sustainable company on the planet |
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A car company wanting to change customers’ behavior into to a more sustainable lifestyle |
- According to the Mintzberg model of strategy development:
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Most unplanned strategies lead to failures on a global scale |
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Most realized strategies are serendipitous and in response to evolving markets |
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Startups often engage in planning emergent strategies |
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Most realized strategies are carefully planned and executed in advance |
- The most valuable competency in the embryonic phase of an industry is:
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Resposiveness |
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Efficiency |
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Innovation |
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Quality |
- Which of the following companies best exemplifies broad differentiation?
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Volkswagen |
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Amazon |
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WalMart |
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Costco |
- Which of the following provides longer term competitive advantage when it comes to efficiency:
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Experience effect |
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Economies of scale |
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Relentless focus on lowering labor related costs |
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Learning effect |
- An equation that best describes customer valuation is:
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Price/Quality |
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Quality/Procuct Price |
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Quality/Procuct Cost |
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Product Cost x Quality |
- The best possible context within which to apply Porter’s Five Forces model is for:
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Market segment |
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Industry |
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Sector |
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Strategic group |
- The biggest impediment to an industry’s consolidation is:
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Lack of scale economies |
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Lack of adequate demand |
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Poor management |
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Lack of skilled resources |
- The efficient frontier has a concave shape (i.e. a bulging shape) because:
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Greater levels of efficiency come at a steep cost but only for high-end segments |
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It costs progressively more for every increment in quality levels |
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Quality is free at lower levels of quality |
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There is a quadratic relationship between higher quality and efficiency |
- High-tech companies can be distinguished from low-tech companies primarily based on:
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Level of fixed cost committment |
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Higher price premiums for high-tech firms |
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Extent of digital or on-line business transactions |
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Price to earnings ratios |
- Subway restaurants is able lower variety related costs primarily through :
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Modular design of its service |
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Choosing franchise partners carefully |
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Extensive franchising |
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Allowing customers to customize their sandwich |
- Strategy formulation and execution is ultimately a service to:
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Customers |
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Shareholders |
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Employees |
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Government regulators |
- Effective marketing directly contributes to a firm’s efficiency objective by
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Reducing the cost of serving the average customer |
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Providing insight into customer expectations |
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Improving the market share among higher-end customers |
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Increasing the willingness to pay of customers |
- Which of the following companies best exemplifies focus differentiation?
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Costco |
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Amazon |
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Apple |
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WalMart |
- Which of the following companies best exemplifies a blue ocean strategy?
- A key feature of the cereal industry in recent years has been:
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National as opposed to global competition |
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Lower prices to attract customers |
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Fewer store brand competitors |
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Product proliferation |
- Which of the following best exemplifies a capability for a company?
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Low price |
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Supply chain management |
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Financial reserves |
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Ideal positioning |
- Absolute cost advantages for incumbents (over new entrants to an industry) typically derive from:
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Higher levels of experience |
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Control of inputs |
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Economies of scale from market share |
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All of the above |
- com is a great example of a company that has consistently delivered:
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Spectacular profit growth |
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Profits year over year |
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Above average return on investment |
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Above average share value appreciation |
- Costco’s strategy with respect to pricing of its products and services can best be described as:
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Ensuring the lowest total cost of the product within the market |
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Increasing consumer surplus no matter the segment or product |
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Reducing consumer surplus even at the expense of quality |
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Charging higher prices to boost marginal profits |
Management homework help