HSP 480 CHAPTER 8 EXAM QUESTIONS

PDF Download

HSP 480 CHAPTER 8 EXAM QUESTIONS

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -20 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation Question 1: ________ is best described as changes in an industry value chain that involve moving ownership of activities closer to the end (customer) point of the value chain.

• Corporate divestiture
• Closed innovation
• Reverse engineering
• Forward vertical integration

Answer:

• Forward vertical integration

Question 2: ________ are best described as voluntary arrangements between firms that involve the sharing of knowledge, resources, and capabilities with the intent of developing processes, products, or services to lead to competitive advantage.

• Strategic alliances
• Corporate acquisitions
• Cartel agreements
• Embargos

Answer:

• strategic alliances

Question 3: Which of the following is an example of an external transaction cost?

• the cost of recruiting and retaining employees
• the cost of maintaining plant and machinery
• the cost of setting up a production unit
• the cost of searching for a contract manufacturer

Answer:

• the cost of searching for a contract manufacturer

Question 4: Symphon Times Inc., a Swiss-based premium watch brand, has recently started selling its watches through company-owned retail outlets in major cities of the emerging nations. Which of the following types of diversification strategies is the firm pursuing?

• geographic diversification strategy
• process diversification strategy
• product-market diversification strategy
• product diversification strategy

Answer:

• geographic diversification strategy

Question 5: Decisions relating to "what stages of the industry value chain to participate in" determine a firm's

• vertical integration.
• level of diversification
• geographic scope
• absorptive capacity

Answer:

• Vertical Integration

Question 6: ________ is best described as moving one or more internal value chain activities outside the firm's boundaries to other firms in the industry value chain.

• Forward integration
• Horizontal integration
• Reverse engineering
• Strategic outsourcing

Answer:

• strategic outsourcing

Question 7: Amazon.com has decided to enter the college bookstore market. The goal of "Amazon Campus" is to offer co-branded university-specific web sites that offer textbooks and paraphernalia, such as logo sweaters and baseball hats. This development shows Amazon's relentless pursuit of

• geographic diversification.
• vertical integration.
• product diversification.
• horizontal integration.

Answer:

• product diversification.

Question 8: Silver Weave Inc., an apparel company, operates through a business model in which individuals can buy the rights to set up Silver Weave stores and sell the company's merchandise in return for a lump sum fee at the beginning of the contract and a percentage of revenues every month. The owners of the stores have to stock the collection approved from the company's headquarters and also maintain consistent customer service as expected in its flagship store. Which of the following alternatives to integration does this best illustrate?

• bootstrapping
• franchising
• crowdsourcing
• credit rationing

Answer:

• franchising

Question 9: Today, many companies use PeopleSoft and EDS to avoid maintaining a human resource management system. By doing this, these firms are

• increasing their level of vertical integration.
• engaging in unrelated diversification.
• offshoring their core activities.
• engaging in strategic outsourcing.

Answer:

• engaging in strategic outsourcing

Question 10: Which of the following firms is least integrated?

• a firm that owns production subsidiaries across the globe
• a firm that buys all the required raw materials from multiple external vendors
• a firm that makes equity investments in its supplier's company
• a firm that enters a joint venture with another company to develop a new technology

Answer:

• a firm that buys all the required raw materials from multiple external vendors

Question 11: PepsiCo operates in many countries and sells a wide variety of aerated drinks, other beverages, different types of chips, and Quaker Oats goods to achieve continuous growth.From this data, we can conclude that PepsiCo has been involved in

• strategic outsourcing.
• process diversification.
• product-market diversification.
• lean manufacturing.

Answer:

• product-market diversification.