Question 1

A company which keeps up by imitating a leading company's strategy while ignoring its own strengths and weaknesses is an example of which strategy to avoid?

Accepted Answer

A)  follow the leader 
B)  hit another home run 
C)  arms race 
D)  do everything 
E)  losing hand

Question 2

Which type of pricing takes advantage of the demand curve while the product is still novel and competitors are few to increase profits?

Accepted Answer

A)  demand pricing 
B)  skim pricing 
C)  competitive pricing 
D)  penetration pricing 
E)  loss-leader pricing

Question 3

The continuous improvement system was developed by Deming.

Accepted Answer

A) True 
 B)False

Question 4

The orientation of the functional strategy is dictated by its parent business unit's strategy.

Accepted Answer

A) True 
 B)False

Question 5

Research indicates that the use of work teams leads to decreased quality and productivity as well as lower employee satisfaction and commitment as a result of less accountability.

Accepted Answer

A) True 
 B)False

Question 6

A product development strategy deals with pricing, selling, and distributing a product.

Accepted Answer

A) True 
 B)False

Question 7

The purchasing strategy in which two suppliers are the sole suppliers of different parts, but are also the backup suppliers for each other's parts is

Accepted Answer

A)  sole sourcing. 
B)  multiple sourcing. 
C)  just-in-time sourcing. 
D)  backup sourcing. 
E)  parallel sourcing.

Question 8

According to a 2012 survey by Deloitte Consulting, the most popular outsourced activity was

Accepted Answer

A)  marketing. 
B)  sales. 
C)  finance. 
D)  R&D. 
E)  information technology.

Question 9

What is a corporate scenario? What are the three steps in their construction?

Accepted Answer

The answer of What is a corporate scenario? What are...

Question 10

If a company wishes to be a technological leader and also maintain a cost advantage, the appropriate R&D strategy would be to

Accepted Answer

A)  increase the cost of the product. 
B)  lower the cost of the product or value activities by learning from the leader's experience. 
C)  avoid R&D costs through imitation. 
D)  create low-cost ways of performing value activities. 
E)  innovate in other activities to increase buyer value.

Question 11

Fujitsu demonstrated a strategy to avoid when it imitated IBM's strategy focused on mainframes in 1990.

Accepted Answer

A) True 
 B)False

Question 12

The importance of sole sourcing was supported by Deming to obtain high supplier quality.

Accepted Answer

A) True 
 B)False

Question 13

To avoid the consensus trap, which technique involving presenting two conflicting views (the thesis and the antithesis)presented in a debate format can be traced back to Plato and Aristotle?

Accepted Answer

A)  devil's advocate 
B)  Sloan's judgment 
C)  sales presentation 
D)  dialectical inquiry 
E)  scenario construction

Question 14

Two suppliers are the sole suppliers of two different parts, but they are also backup suppliers for each other's parts in parallel sourcing.

Accepted Answer

A) True 
 B)False

Question 15

When Dell Computer's customers use the Internet to design their own computers, this demonstrates which manufacturing strategy?

Accepted Answer

A)  continuous improvement 
B)  mass production 
C)  job shop 
D)  mass customization 
E)  just-in-time

Question 16

A recent trend in information systems strategy used by multinational corporations is

Accepted Answer

A)  computerizing accounting. 
B)  automating customer service. 
C)  practicing follow-the-sun management. 
D)  replacing Fortran with Cobol in order to boost productivity. 
E)  replacing mainframe computers with robots.

Question 17

When a company determines how and where a product or service is to be manufactured, the level of vertical integration in the production process, the deployment of physical resources, and relationships with suppliers, the company is developing its ________ strategy.

Accepted Answer

A)  marketing 
B)  operations 
C)  R&D 
D)  financial 
E)  human resource management

Question 18

A popular financial strategy in which a company is acquired in a transaction financed largely by debt and eventually paid with money generated from the acquired company's operations or by sale of its assets is

Accepted Answer

A)  illegal in most countries. 
B)  a good way to build a core competency. 
C)  an application of the capital asset pricing model. 
D)  the leveraged buyout. 
E)  an example of internal financing.

Question 19

When Smith & Wesson puts its name on others' products like men's cologne, it is using which marketing strategy?

Accepted Answer

A)  demand pricing 
B)  brand pricing 
C)  brand extension 
D)  penetration extension 
E)  demand extension

Question 20

To avoid the consensus trap, which technique assigns a group or individual to identify potential pitfalls and problems with a proposed alternative strategy in a formal presentation?

Accepted Answer

A)  devil's advocate 
B)  Sloan's judgment 
C)  sales presentation 
D)  dialectical inquiry 
E)  scenario construction

Exam 8: Strategy Formulation: Functional Strategy and Strategic Choice

A company which keeps up by imitating a leading company's strategy while ignoring its own strengths and weaknesses is an example of which strategy to avoid?

Which type of pricing takes advantage of the demand curve while the product is still novel and competitors are few to increase profits?

The continuous improvement system was developed by Deming.

The orientation of the functional strategy is dictated by its parent business unit's strategy.

Research indicates that the use of work teams leads to decreased quality and productivity as well as lower employee satisfaction and commitment as a result of less accountability.

A product development strategy deals with pricing, selling, and distributing a product.

The purchasing strategy in which two suppliers are the sole suppliers of different parts, but are also the backup suppliers for each other's parts is

According to a 2012 survey by Deloitte Consulting, the most popular outsourced activity was

What is a corporate scenario? What are the three steps in their construction?

If a company wishes to be a technological leader and also maintain a cost advantage, the appropriate R&D strategy would be to

Fujitsu demonstrated a strategy to avoid when it imitated IBM's strategy focused on mainframes in 1990.

The importance of sole sourcing was supported by Deming to obtain high supplier quality.

To avoid the consensus trap, which technique involving presenting two conflicting views (the thesis and the antithesis) presented in a debate format can be traced back to Plato and Aristotle?

Two suppliers are the sole suppliers of two different parts, but they are also backup suppliers for each other's parts in parallel sourcing.

When Dell Computer's customers use the Internet to design their own computers, this demonstrates which manufacturing strategy?

A recent trend in information systems strategy used by multinational corporations is

When a company determines how and where a product or service is to be manufactured, the level of vertical integration in the production process, the deployment of physical resources, and relationships with suppliers, the company is developing its ________ strategy.

A popular financial strategy in which a company is acquired in a transaction financed largely by debt and eventually paid with money generated from the acquired company's operations or by sale of its assets is

When Smith & Wesson puts its name on others' products like men's cologne, it is using which marketing strategy?

To avoid the consensus trap, which technique assigns a group or individual to identify potential pitfalls and problems with a proposed alternative strategy in a formal presentation?