Question 1

Clusters of firms are usually defined as

Accepted Answer

A)   Groups of firms within the same jurisdiction
B)   Regional agglomerations of firms that form part of a single company
C)   Global groups of firms with complementary products in the same or related industries
D)   Regional agglomerations of competing firms and those with complementary products in the same or related industries D

Question 2

One of the oldest and most frequently used tools in strategic management is SWOT analysis

Accepted Answer

A) True 
 B)False  True

Question 3

Acquisitions are instances of corporate development where one corporate entity internalizes another entity, which subsequently ceases to exist independently

Accepted Answer

A) True 
 B)False  True

Question 4

Proctor and Gamble's 'Connect & Develop' approach to innovation includes all except one of the following

Accepted Answer

A)   Access to more internal technologies than any other consumer products company
B)   Primarily connecting ideas across internal businesses
C)   Reaching outside of Proctor & Gamble to a global network of nearly two million researchers
D)   A bigger and stronger innovation pipeline

Question 5

Absorptive capacity, or the ability to learn, underpins the successful implementation of practical alternatives to integrating knowledge such as alliances, M&A, lead users, ventures etc.

Accepted Answer

A) True 
 B)False

Question 6

Strategic competitiveness and above average returns involve

Accepted Answer

A)   Focus on external resources to overcome threats in the external environment and take advantage of opportunities to create value for customers
B)   Integrating internal with external resources to overcome threats from the internal environment and take advantage of opportunities to create value for customers
C)   Integrating internal with external resources to overcome threats in the external environment and take advantage of opportunities to create value for customers
D)   Focus on internal resources to overcome threats in the external environment and take advantage of opportunities to create value for customers

Question 7

Stable integration is the purposeful selection of resources that are better sourced externally to substitute specific elements of the value chain

Accepted Answer

A) True 
 B)False

Question 8

Between 1995 and 2002 Alessi has been able to achieve an average rate of return of 20% and a return on equity of about 40%

Accepted Answer

A) True 
 B)False

Question 9

Knowledge and capabilities are no longer sources of competitive advantage in the current economic environment

Accepted Answer

A) True 
 B)False

Question 10

What are the basic models for integrating internal and external resources?

Accepted Answer

The answer of What are the basic models for integrating...

Question 11

Coopetition can be described as a situation in which

Accepted Answer

A)   Companies cooperate to develop complementary products and simultaneously compete
B)   Companies cooperate to develop complementary products and do not compete with each other
C)   One company acquires another company with which it was in competition
D)   Companies with non-complementary products agree to cooperate

Question 12

By 2000 for Proctor & Gamble to rely on organic growth would have been approximately equivalent to

Accepted Answer

A)   Building a multi-billion Euro business each year
B)   Building a multi-million Euro business each year
C)   Building a multi-billion Euro business each decade
D)   Building a multi-billion Euro business each quarter

Question 13

Open innovation builds on seminal work and seeks to integrate all except one of the following concepts

Accepted Answer

A)   Lead users
B)   Linear model of innovation
C)   The importance of information
D)   Knowledge processes

Question 14

Intellectual property rights are rarely an issue when a new product launch is discussed in emerging markets

Accepted Answer

A) True 
 B)False

Question 15

Why and how do firms use external resources to support their strategy?

Accepted Answer

The answer of Why and how do firms use external...

Question 16

Fitting new knowledge within the existing frame of reference can be referred to as

Accepted Answer

A)   Assimilation
B)   Transforming
C)   Organizational change
D)   Positioning

Question 17

Markets can be described as highly efficient coordinating mechanisms that

Accepted Answer

A)   Remove the need for organisations
B)   Require no further regulation
C)   Are based on unenforceable contracts
D)   Bring supply and demand together

Question 18

Basic modes of integration describe broad, alternative approaches to integrate internal and external knowledge

Accepted Answer

A) True 
 B)False

Question 19

Recently Proctor & Gamble instituted a policy stating that any idea that originates in its labs must not be offered to outside firms under any circumstances

Accepted Answer

A) True 
 B)False

Question 20

Disruptive technologies transform a company's frame of reference and make fundamental organizational change necessary

Accepted Answer

A) True 
 B)False

Exam 4: Integrating Internal and External Resources Open Innovation, Absorptive Capacity and Integration

Clusters of firms are usually defined as

One of the oldest and most frequently used tools in strategic management is SWOT analysis

Acquisitions are instances of corporate development where one corporate entity internalizes another entity, which subsequently ceases to exist independently

Proctor and Gamble's 'Connect & Develop' approach to innovation includes all except one of the following

Absorptive capacity, or the ability to learn, underpins the successful implementation of practical alternatives to integrating knowledge such as alliances, M&A, lead users, ventures etc.

Strategic competitiveness and above average returns involve

Stable integration is the purposeful selection of resources that are better sourced externally to substitute specific elements of the value chain

Between 1995 and 2002 Alessi has been able to achieve an average rate of return of 20% and a return on equity of about 40%

Knowledge and capabilities are no longer sources of competitive advantage in the current economic environment

What are the basic models for integrating internal and external resources?

Coopetition can be described as a situation in which

By 2000 for Proctor & Gamble to rely on organic growth would have been approximately equivalent to

Open innovation builds on seminal work and seeks to integrate all except one of the following concepts

Intellectual property rights are rarely an issue when a new product launch is discussed in emerging markets

Why and how do firms use external resources to support their strategy?

Fitting new knowledge within the existing frame of reference can be referred to as

Markets can be described as highly efficient coordinating mechanisms that

Basic modes of integration describe broad, alternative approaches to integrate internal and external knowledge

Recently Proctor & Gamble instituted a policy stating that any idea that originates in its labs must not be offered to outside firms under any circumstances

Disruptive technologies transform a company's frame of reference and make fundamental organizational change necessary