QUESTION 1

The term hypercompetition means that competitive intensity has increased and that
competition decreases over time.
new technology can help a company sustain a strong competitive advantage over time.
no single strategy can sustain a competitive advantage over time.
only radical innovations increase competitive advantage; incremental innovations will not increase competitive
advantage.
4 points
QUESTION 2
Each stage in the industry life cycle requires a different set of core competencies. What is the set of core
competenies required in the Growth stage?
R & D, Manufacturing, Marketing
Manufacturing; Process engineering; Marketing
R & D; Marketing
Manufacturing, Process engineering, Marketing, Service
4 points
QUESTION 3
The 4 factors that Porter mentions in his framework to explain how a country gains a national competitive
advantage include:
Factor conditions, supply conditions, demand conditions, financial resources
Factor conditions, demand conditions, competitive intensity in the focal industry, related and
supporting industries
Factor conditions, supply conditions, demand conditions, competitive intensity in the focal industry
Factor conditions, supply conditions, demand conditions, related and supporting industries
4 points
QUESTION 4
The 3 dimensions of corporate level strategy are:
regional markets, national markets, global markets
value chains, products & services, hypercompetition
diversification, integration, hypercompetition
vertical integration, horizontal integration, geographic scope
4 points
QUESTION 5
The business level strategy of an organization answers the question: How should we compete?

True
False
4 points
QUESTION 6
According to the Integration - Responsiveness Framework there are 4 main global strategy positions for MNEs.
The 4 are:
Global strategy, International strategy, Transnational strategy, Diversification strategy
Global-standardization strategy, Transnational strategy, International strategy, Localization strategy
Global strategy, Standardization strategy, International strategy, Regional strategy
Global strategy, Transnational strategy, Localization strategy, Diversification strategy
4 points
QUESTION 7
Transaction costs are all costs associated with doing business. They are sometimes called Administrative
costs. These costs help the company make its decision as to whether it should 'Buy" or "Make" the goods and
services it needs to do its business. These are 2 extremes on a continuum. Some of the alternatives on this
continuum include:
short term contracts, long term contracts, strategic alliances, equity alliances, joint ventures
short term contracts, vertical integration, taper integration, backward integration, forward integration,
diversification
short and long term contracts, mergers, acquisitions, strategic alliances
vertical integration, horizontal integration, taper integration, backward vertical integration, forward
vertical integration
4 points
QUESTION 8
Because of globalization and the internet, there is no longer a positive relationship between firm location in a
regional cluster and competitive advantage.
True
False
4 points
QUESTION 9
The industry life cycle has 4 main stages:
Radical innovation, Incremental innovation, Architectural innovation, Disruptive innovation
Invention, Innovation, Commercialization, Growth
Early adopters, Maturity, Laggards, Growth
Introduction, Growth, Maturity, Decline
4 points
QUESTION 10

Which quadrant in the BCG Growth Share Matrix is described as having high, stable or growing earnings;
neutral cash flow; and a proposed strategy of holding or investing for growth?
Dog
Cash Cow
Question mark
Star
4 points
QUESTION 11
According to Porter's 5 Forces Model, which of these products would be a "Threat of Substitues" to Coca Cola?
Pepsi Cola
Going to a movie
Smoking a cigarette or an e-cigarette
A Candy Bar
4 points
QUESTION 12
Most mergers fail because of inadequate financing.
True
False
4 points
QUESTION 13
Taper integration is a form of vertical integration which serves to reduce some of the risks that come with
vertical integration and also has several other benefits, such as:
increases a firm's flexibility, allows the firm to retain it competencies in marketing and manufacturing, can lead
to more innovations.
product diversification, geographic diversification, market diversification
outsourcing, off-shoring, product related diversification
lowering costs, improving quality, reducing potential for legal liability
4 points
QUESTION 14
There are 2 basic business level strategies:
1.
differentiation and cost leadership
2.
value drivers and product features
3.
generic and unique

4.
integration and diversification
4 points
QUESTION 15
Even though we still use Hofstede's work on national cultures, we do know there are limitations and drawbacks.
And research is being continually done by his foundation to update the studies. Which are the dimensions from
the original study?
power-distance, masculinity-femininity, agressiveness-collegiality, national culture-national religion
Power-distance, individualism-collectivism, masculinity-femininity, uncertainty avoidance
cultural distance, power distance, individualism, agressiveness
aggressiveness-collegiality, power-distance, national culture, individualism
4 points
QUESTION 16
Intrepreneurs start their own businesses; entrepreneurs use their creativity as employees within large
businesses.
True
False
4 points
QUESTION 17
The most common reasons for entering a strategic alliance include:
reduce costs, reduce inventory levels, reduce competition
reduce costs, increase perceived value, reduce inventory
diversification, integration, geographic scope
increase competitive position, enter new markets, learn new capabilities, hedge against uncertainty
4 points
QUESTION 18
The distinction between mergers and acquisitions can be blurry--so we often use the umbrellat term M & A to
describe horizontal integration.
True
False
4 points
QUESTION 19
As a corporate strategy, firms use horizontal integration to:
increase competition, increase competitive advantage, increase perceived value
increase shareholder value, increase perceived value, reduce principal-agent problems
reduce costs, reduce principal-agent problems, reduce equity alliances.

reduce competition; lower costs; increase differentiation; get into new markets
4 points
QUESTION 20
The 2 grids on the BCG Growth-Share matrix are:
sales growth and cash flowf
relative market share and market growth
Cash flow and strategy
vertical integration and horizontal integration
4 points
QUESTION 21
Globalization is a process of closer integration and exchange between different countries. This has led to
significant increases in the standard of living in many countries.
True
False
4 points
QUESTION 22
Research indicates that mergers are most ofte not financially successful. However, there are still lots of
mergers? Why?
a merger is ofen the 1st step in creating strategic networks
Their company is suffering from a severe competitive disadvantage and they think this is the best way
to overcome it
Most companies are either not aware of this fact
They don't have enough money to buy the other firm, so they try for a merger.
4 points
QUESTION 23
Why is it difficult to succeed at an integration strategy?
the internal value chain activities relating to cost leadership and differentiation are so different.
there are disadvantages to both a generic business strategy and a focused busines strategy.
There are too many possible substitute products available.
strategic positions are fixed.
4 points
QUESTION 24
A company can gain a cost leadership competitive advantage by:
making products that are easy to use for the widest group of possible users
increasing the perceived value of the product or service

focusing on customer service and responsiveness

reducing the cost to produce the good or service
4 points
QUESTION 25
The text refers to the 'self-interest' issue as the 'principal - agent' issue. This means that a person is focusing
on their own personal needs,not that of the company.
True
False
4 points