Question 1

IBM is headquartered in Armonk,New York,but more than 70% of its employees work for the company outside of the U.S.What is given as a major reason for this in the text?

Accepted Answer

A)  IBM is following Coca-Cola and Sony corporate strategies. 
B)  Two-thirds of its revenue and most of its growth are occurring outside the U.S. 
C)  Bottom-of-the-pyramid effects on technology consulting. 
D)  High corporate tax rates in the U.S. are driving firms offshore.

Question 2

Stakeholder power and influence will vary by industry.In the ________,one of the most powerful external stakeholders has historically been unions.

Accepted Answer

A)  Hospitality industry 
B)  Health care industry 
C)  Computer industry 
D)  Automotive industry

Question 3

Web 2.0 relies on the idea that the value of a product or service increases as more people use it.This concept is called what?

Accepted Answer

A)  Network consolidation 
B)  Network effects 
C)  Internet strategy 
D)  Accelerated technological change

Question 4

The increasing interactivity and collective intelligence available on the Internet is called what?

Accepted Answer

A)  The Internet strategy 
B)  Bottom of the pyramid 
C)  Web 2.0 
D)  Electronic commerce

Question 5

A business model is the translation of strategy into action,which details the firm's competitive tactics and initiatives.Another way to say this is ___________.

Accepted Answer

A)  It's reliant on co-opetition to be successful 
B)  It's a crowdsourcing process for the firm 
C)  It's how the firm intends to make money 
D)  It's how network effects are taken into account

Question 6

Given current trends,several industries promise significant potential for value creation and thus career opportunities.Which of the following is not one of them described by the text?

Accepted Answer

A)  Health care 
B)  The green economy 
C)  Web 2.0 
D)  Petroleum

Question 7

Briefly describe the BRIC countries and their expected role in the 21^s^t-century economy.

Accepted Answer

The answer of Briefly describe the BRIC countries and their...

Question 8

Grameen Telecom and the Nano car introduced by Tata are examples of what new business model?

Accepted Answer

A)  A subscription model of services available to all 
B)  Making a small revenue but across a large base of the world's poorest 
C)  Not-for-profit businesses trying to aid the world's poor 
D)  A crowdsourcing model targeted at the world's most impoverished

Question 9

According to the text,which part of the organization seeks superior performance by asking the question "how to compete"?

Accepted Answer

A)  Corporate strategy 
B)  Functional strategy 
C)  Business level strategy 
D)  Project strategy

Question 10

Determining firm performance is a complex interaction of firm effects and industry effects,with other factors also considered.Based on historical analysis,what do we know about firm and industry effects?

Accepted Answer

A)  Managerial actions rather than firm effects have a large role in firm performance. 
B)  Macro environmental effects such as a recession have more impact than either firm or industry effects. 
C)  Firm effects have more impact on performance than industry effects. 
D)  Industry effects have more impact on performance than firm effects.

Question 11

Explain and give an example of how firms will use the theory of bottom of the pyramid in the global economy.
Firms can find significant business opportunities serving the 4 billion people at the bottom of the pyramid.In the process,they can improve the living standard of the world's poorest.How can they do this? One example is Muhammad Yunus,who discovered a way to provide small loans (microcredit)to impoverished villagers in Bangladesh.These loans have allowed villagers to overcome their poverty.

Accepted Answer

The answer of Explain and give an example of how...

Question 12

BRIC countries include Britain,Russia,Ireland,and Chile and are likely to be the fastest-growing economies in the world.

Accepted Answer

A) True 
 B)False

Question 13

If Smith Pharmaceuticals has a 15% return on invested capital (RoIC),what do you need to know to determine if it has a competitive advantage?

Accepted Answer

A)  It must be compared to the RoIC of the competitors and industry. 
B)  Nothing, 15% is a terrific return for the shareholders. 
C)  It must be evaluated for depreciation of the capital. 
D)  It must be compared to the history of the firm's RoIC over a number of years.

Question 14

Microsoft is partnering with Yahoo for what major purpose?

Accepted Answer

A)  To improve their search speeds 
B)  To remove Yahoo as a competitor 
C)  To build market share for its Bing search engine 
D)  To compete with Apple

Question 15

Which of the following is not an aspect of the book's definition of strategy?

Accepted Answer

A)  It is goal-directed. 
B)  It is profit-seeking. 
C)  It is about competitive advantage. 
D)  It is sustained over time.

Question 16

Name a firm with generally successful results and what some of its underlying assumptions would be to achieve such performance.

Accepted Answer

The answer of Name a firm with generally successful results...

Question 17

Functional managers have the ability to come up with strategic initiatives that may influence the direction of the company.The reason for this is?

Accepted Answer

A)  Since they are responsible for executing a business strategy, how they do it impacts what actually happens. 
B)  They are closer to products, services, and customers. 
C)  Since strategic planning is a bottom-up process, they are responsible for developing the scenarios looked at. 
D)  They have a better understanding of what the company's capabilities are and can discern new opportunities that match.

Question 18

In recent years,China has invested a tremendous amount of money on increasing its infrastructure with high-speed rails,state-of-the-art airports,and modern roads.China also has the largest number of Internet users of any country in the world.How will this combination of infrastructure and technology likely impact China over the next few years?

Accepted Answer

A)  New innovations will diffuse more quickly throughout China than in the past. 
B)  It will not have a major impact as China's economy is too diverse. 
C)  It will increase the income disparity between coastal and rural areas of China. 
D)  These investments will increase the costs and therefore slow down the growth of new technologies in China.

Question 19

IBM's CEO Sam Palmisano has moved the firm more into global IT services and out of its traditional hardware focus.What level of strategic decisions do these moves represent?

Accepted Answer

A)  Corporate strategy 
B)  Functional strategy 
C)  Business-level strategy 
D)  Alliance strategy

Question 20

Business strategy concerns the choice of strategy in terms of where to compete.

Accepted Answer

A) True 
 B)False

Exam 1: What Is Strategy and Why Is It Important

IBM is headquartered in Armonk,New York,but more than 70% of its employees work for the company outside of the U.S.What is given as a major reason for this in the text?

Stakeholder power and influence will vary by industry.In the ________,one of the most powerful external stakeholders has historically been unions.

Web 2.0 relies on the idea that the value of a product or service increases as more people use it.This concept is called what?

The increasing interactivity and collective intelligence available on the Internet is called what?

A business model is the translation of strategy into action,which details the firm's competitive tactics and initiatives.Another way to say this is ___________.

Given current trends,several industries promise significant potential for value creation and thus career opportunities.Which of the following is not one of them described by the text?

Briefly describe the BRIC countries and their expected role in the 21^s^t-century economy.

Grameen Telecom and the Nano car introduced by Tata are examples of what new business model?

According to the text,which part of the organization seeks superior performance by asking the question "how to compete"?

Determining firm performance is a complex interaction of firm effects and industry effects,with other factors also considered.Based on historical analysis,what do we know about firm and industry effects?

BRIC countries include Britain,Russia,Ireland,and Chile and are likely to be the fastest-growing economies in the world.

If Smith Pharmaceuticals has a 15% return on invested capital (RoIC) ,what do you need to know to determine if it has a competitive advantage?

Microsoft is partnering with Yahoo for what major purpose?

Which of the following is not an aspect of the book's definition of strategy?

Name a firm with generally successful results and what some of its underlying assumptions would be to achieve such performance.

Functional managers have the ability to come up with strategic initiatives that may influence the direction of the company.The reason for this is?

IBM's CEO Sam Palmisano has moved the firm more into global IT services and out of its traditional hardware focus.What level of strategic decisions do these moves represent?

Business strategy concerns the choice of strategy in terms of where to compete.

Exam 1: What Is Strategy and Why Is It Important

IBM is headquartered in Armonk,New York,but more than 70% of its employees work for the company outside of the U.S.What is given as a major reason for this in the text?

Stakeholder power and influence will vary by industry.In the ________,one of the most powerful external stakeholders has historically been unions.

Web 2.0 relies on the idea that the value of a product or service increases as more people use it.This concept is called what?

The increasing interactivity and collective intelligence available on the Internet is called what?

A business model is the translation of strategy into action,which details the firm's competitive tactics and initiatives.Another way to say this is ___________.

Given current trends,several industries promise significant potential for value creation and thus career opportunities.Which of the following is not one of them described by the text?

Briefly describe the BRIC countries and their expected role in the 21st-century economy.

Grameen Telecom and the Nano car introduced by Tata are examples of what new business model?

According to the text,which part of the organization seeks superior performance by asking the question "how to compete"?

Determining firm performance is a complex interaction of firm effects and industry effects,with other factors also considered.Based on historical analysis,what do we know about firm and industry effects?

BRIC countries include Britain,Russia,Ireland,and Chile and are likely to be the fastest-growing economies in the world.

If Smith Pharmaceuticals has a 15% return on invested capital (RoIC) ,what do you need to know to determine if it has a competitive advantage?

Microsoft is partnering with Yahoo for what major purpose?

Which of the following is not an aspect of the book's definition of strategy?

Name a firm with generally successful results and what some of its underlying assumptions would be to achieve such performance.

Functional managers have the ability to come up with strategic initiatives that may influence the direction of the company.The reason for this is?

IBM's CEO Sam Palmisano has moved the firm more into global IT services and out of its traditional hardware focus.What level of strategic decisions do these moves represent?

Business strategy concerns the choice of strategy in terms of where to compete.

Briefly describe the BRIC countries and their expected role in the 21^s^t-century economy.