428 MGMNT EXAM QUESTIONS

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428 MGMNT EXAM QUESTIONS

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-Guarantee passing score -61 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation

Question 1: Product-oriented vision statements provide managers with

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goals to improve service Question 2: If a company chooses to keep its vision customer-oriented rather than product-oriented, what will be the implication of that decision?

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The company will tend to be more flexible when adapting to changing environments.Question 3: The annual net profit after taxes for RSL Corp., a multinational conglomerate, is $5.5 billion. As legal owners, which of the following stakeholder groups has the most legitimate claim on this profit?

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shareholders Question 4: In the 1980s, Japanese competitors brought better-quality chips to the market at lower cost, threatening Intel Corporation's position and strategic plan regarding the production of DRAM (dynamic random-access memory) chips. When the functional managers at Intel came up with the simple rule of producing whichever product delivered the higher margin, the front-line managers shifted Intel's production capacity away from the lower-margin DRAM business to the higher-margin semiconductor business. This _____ emerged as a consequence of the firm's resource allocation process.

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bottom-up strategy Question 5: Which of the following does a firm possess when it can outperform other firms in the same industry or the industry average over a prolonged period of time?

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sustainable competitive advantage Question 6: Which of the following is a stakeholder attribute that managers should consider at every step in a stakeholder impact analysis?

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legitimacy Question 7: Which of the following has contributed to Tesla's competitive advantage in terms of stock appreciation?

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reinvesting profits to continually design and produce better electric vehicles Question 8: Which of the following actions of an automobile firm will be considered as a strategic commitment?

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the firm investing eight years and $4 billion to develop a range of hybrid cars with which it will compete in the future

Question 9: Which of the following statements is true of an oligopoly?

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It is often analyzed using game theory.Question 10: Which of the following groups is most likely to be considered a firm's internal stakeholder?

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board members

Question 11: According to the upper-echelons theory,

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organizational outcomes reflect the values of the top management team.

Question 12: A diagnosis of the competitive challenge, an element of a good strategy, is primarily accomplished through strategy

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analysis Question 13: Which of the following statements related to a firm's stakeholders is not true?

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While external stakeholders are those who make contributions toward the firm, internal stakeholders are those who reap all the benefits.Question 14: A firm's _____ is likely to fall by the wayside because of unpredictable events and turn into unrealized strategy.

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intended strategy Question 15: When a firm integrates the competitive strategies of cost-leadership and differentiation, it will most likely result in

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trade-offs that work against each other.

Question 16: A company's vision primarily states

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what the company wants to ultimately accomplish.Question 17: An organization's _____ describes what the organization actually does-the products and services it plans to provide, and the markets in which it will compete.

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mission Question 18: Which of the following statements is true of customer-oriented visions?

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They define a business in terms of providing solutions to people's needs.

Question 19: A firm is likely to have a competitive advantage when it

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provides services that consumers will value more than those of its rivals.

Question 20: How do complements affect a primary product or service?

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They increase the demand for the primary product.

Question 21: Which of the following statements is true of strategy?

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Actions that allow a firm to address a competitive challenge are strategy.Question 22: In the restaurant industry, a large number of restaurants cater to similar customer needs. However, each restaurant makes its product unique by offering a different cuisine, a different ambience, organic ingredients, or different services like home delivery. This differentiation allows each restaurant to set its own prices. Thus, the restaurant industry best illustrates a(n)

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monopolistically competitive structure.

Question 23: The relative bargaining power of suppliers is most likely low when

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incumbent firms face low switching costs when changing suppliers.Question 24: Quick Eats is a fast-food restaurant that has recently entered the hospitality industry. Since most of its competitors are pursuing a low-cost position and doing well, Quick Eats also wants to adopt the same strategy. Which of the following will be a likely implication of this decision?

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Quick Eats will face low profit potential.Question 25: Evaluating the data collected from environmental analysis, the corporate executives of F&S Pharma Inc. realized that it was the right time to expand the business. The company's vision was accordingly adjusted from "To Be the Best in the Pharmaceutical Industry" to "To Make Good Health Accessible to Everyone around the Globe." To support the new vision, the executives decided that the company would first enter the Asian market where its growth potential would be huge. To further support these decisions, the general managers of different SBUs and the functional managers formulated their own strategies. Which of the following approaches to the development of strategy does this best illustrate?