This is a multiple choice assignment. The assignment is two parts with two different exam numbers. Exam number 500561RR which is "Crafting a Strategy". Exam number 500562RR "Executing the Strategy". Each exam number is consist of 20 multiple choice questions and answers.
一百三; 500561RR - Cra鮎ng a Strategy
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Questions l to 20: Select the best answer to eaCh question. Note that a question and ltS anSWerS may be spllt aCrOSS a Page
break, SO be sure that you have seen the entire question and all the answers before choosing an answer.
1. What sets a multinational diversification strategy apart from other diversification strategleS IS
A. a diversity of businesses and a diversity of national markets.
B. the presence of extra degrees of strategic fit and more economies of scope.
c. the potentia皿faster growth, higher rates of profitability’and more pro卸sanct血es.
D. the potential to have a higher degree of technoIogical expertise.
2. Strategic fit between two or more businesses exists when one or more aCtivities comprising their
respective value chains present oppo血nities
A. to prevent the transfer of expertise or tec血oIogy or capabilities from one business to another.
B. to independently preserve commOn brand names from cross-business usage.
c壷r cross-business co11aboration to build valuable new resource Strengths and competitive capabilities.
D. to increase costs by combining the perfomance of the related value chain activities of different businesses.
3. The biggest risk of empIoying an outsourcing strategy lS
A. causing the company to become paftially integrated instead of being肌y integrated.
B. putting the company in the position ofbeing a late mover instead of an early mover・
c. farming out the wrong activities and hollowing out capabilities that contribute fundamentally to the軸s competitiveness and
market success.
D. hurting a company-s R&D capability.
4. Which of the following is a main disadvantage of pursulng an eXPOrt Strategy?
A. It may be di縦cultto manage in multiple countries.
B. There・s a risk ofsharing valuable know-how to forelgn COmPanies.
c. It becomes vulnerable when the costs ofshipping the products are high.
D. It-s sIow to implement across different foreign countries・
5. Which one ofthe fo11owing is a key element of integrated social-COntraCtS theory?
A. Universal ethical noms always take precedence over local ethical noms.
B. Bribes and kickbacks aren-t considered part of the theory since they aren't universa11y bamed.
c. Integrated social-COntraCtS theory r垂cts the slippery sIope of ethical relativism and embraces ethical universalism.
D. Ethical principles at the country level outweigh universal principles.
6. Diversification should be considered when a company
A. has run out of ways to achieve a distinctive competence in its present business.
B. is under the gun to create a more attractive and cost-e飾cient value chain.
C. lacks sustainable competitive advantage in its present business.
D. begins to encounter diminishing growth prospects in its mainstay business.
7. Evaluating a diversified company-s corporate strategy and critiquing the pluses and minuses of its
business lineup invoIves
A. perfoming a SWOT analysis of each industry ln Which the fim has a business interest・
B・ eValuating the strategic fits and resource fits among the various sister businesses and deciding what priority to glVe eaCh ofthe
company's business units in allocating resources・
C. applying the cost-Ofentry test, the better-Offtest, the profitability test, and the shareholder value test to each business and
industry represented in the company-s business portfolio.
D. looking at each industry仙siness to detemine how many profitable strategic groups the company has diversified into.
8. A company-s biggest vulnerability in empIoying a best-COSt PrOVider strategy is
A. getting trapped in a pnce war with low-COSt leaders.
B. being timid in cu血g its prices far enough below high-end differentiators to win away many oftheir customers.
C. relying too heavily on outsourcing.
D. getting squeezed between the strategies of fims empIoying low-COSt PrOVider strategies and high-end di鵬rentiation strategleS.
9. The primary reasons that companies opt to expand into foreign markets are to
A・ aVOid having to empIoy an export strategy, aVOid the threat of cross-market subsidization from rivals, and enable the use of a
global strategy instead of a multidomestic strategy.
B. boost retums on investment, broaden their product lines, aVOid tari鯖i and trade restrictions, and escape dealing with strong
c. grow sales faster than the industry average, reduce the competitive threats from rivals, and open up more oppo血1ities to
enter into strategic a11iances・
D・ gain access to new customers, aChieve lower costs’e血ance the company's competitiveness’CaPitalize on core competencies,
and spread business risk across a wider market base.
10. The competitive strategy of a fim pursulng a一一think global, aCt local一一approach to strategy-making
A. usually invoIves cross-Subsidizing the prices in those markets where there are slgnificant country-tO-COuntry diiferences in the
product attributes in which customers are most interested.
B. is essentially the same in all country markets where it competes, but may nonetheless give local managers room to make minor
variations where needed to better satisfy local buyers and to be備er match local market conditions.
C. entails little or no strategy coordination across countries.
D. invoIves se11ing a mostly standardized product worldwide, but varying a company-s use of distribution channels and marketing
approaches to accommodate local market conditions.
11. Why do companies decide to enter a foreign market?
A. To concentrate risk within a broader base of countries, eSPeCia11y when sales are down in one area and the company can
undermine sales elsewhere
B. To decrease the rate at which they accunulate experience and move up the leaming curve
C. To raise input costs through greater pooled purchasing power
D・ To capture economies of scale in product development, manufacturing, Or marketing
12. A focused low-COSt Strategy Seeks to achieve competitive advantage by
A. perfoming the primary value-Chain activities at a lower cost per unit than can the industry's Iow-COSt leaders.
B. dominating more market niches in the industry via a lower cost and a lower price than any o血er rival・
C. serving buyers in the target market niche at a lower cost and lower price than rivals.
D. outmatching competitors in offering niche members an absolute rock-bottom prlCe・
13. In which of the following cases are late-mOVer advantages (or first-mOVer disadvantages) not likely to
arise?
A・ When the costs ofpioneemg are much higher than being a follower and only negligible leaming/experience benefits accrue to
the pIOneer
B. when the pioneerIs products are somewhat primitive and are easily bested by late movers
C. when the marketplace is skeptical about the bene卸s of a new technoIogy or product being pioneered by a first-mOVer
D. when oppo血nities exist for a blue-OCean Strategy tO invent a new industry or distinctive market segment that creates
altogether new demand
14. Multinational companies that fo血id the payme加of bribes and kickbacks in their codes of ethical
conduct and that are serious about enforcing this prohibition
A. face a particularly vexlng PrOblem of losing business to competitors that have no scruples-an OutCOme that penalizes ethical
COmPanies and company persomel.
B. are generally advocates of the ethical relativism schooI of thought.
C. are out-Of-SteP With business reality given that the preponderance of company managers are immoral・
D. are mlSguided in their efforts because bribes and kickbacks are rea11y no different宜om tipping for service at restaurants as
you pay for a service rendered・
15. Which of the following actions is typically the strategic impetus for forward-Vertical integration?
A. Being able to control the wholesale/retail portion of the industry value chain
B. Fewer disruptions in the delivery ofthe company-s products to end-uSerS
C. Gaining better access to end-uSerS and better market visibility
D. A11owing the fim access to greater economies of scale
16. The advantages of using an export strategy to build a customer base in foreign markets include
A. minimizing risk and capital requirements.
B. being cheaper and more cost effective than a multico皿try Strategy.
C. being cheaper and more cost effective than licensmg and franchising.
D. minimizing shipping costs and the effects of fluctuating exchange rates.
17. A strategy to be the industlys overa11 low-COSt PrOVider isn’t particularly well matched to the market
Situation when
A・ there are few ways to achieve differentiation that have value to buyers.
B. buyers have widely varylng needs and special requlrementS and the prlCeS Of substitute products are relatively high.
C・ Price competition is especially vigorous.
D. the offerings of rival firms are essentially identical’Standardized, COrmOdity-1ike products.
18. The best strategic options for a local company m COmPeting against global cha11engers include
A. usmg its understanding of local customer preferences to create customized products or services’tranSferring the company's
expertise to cross-border markets, and/or using acquisitions and rapid growth strategies to defend against expansion-minded
multinationals.
B. export strategies, entering into alliances and/or joint ventures with one or more foreign companies having globally competitive
Strengths, and/or cross-border transfer strategies.
C. export strategiesJicensing strategies, franchising strategies, and cross-market coordination strategies.
D. locating buyer-related activities, SuCh as sales, advertising, Or teChnical assistance, CIose to buyers.
19. While there are many routes to competitive advantage, the two biggest factors that distinguish one
COmPetitive strategy宜om another are
A. whether a company can offer the lowest possible prlCeS and whether the company can get the best suppliers in the market.
B・ Whether a company can achieve lower costs than rivals and whether the company lS PurSuing the industry-s sales and market
share leader-s role.
C. whether a company can build a brand name and an image that buyers trust.
D. whether a company-s target market is broad or narrow and whether the company lS PurSulng a low cost or differentiation
Strategy.
20. The chief difference between a low-COSt PrOVider strategy and a focused low-COSt Strategy is
A. the size ofthe buyer group to which a company is trying to appeal・
B・ Whether the product is strongly diiferentiated or weakly differentiated from rivals.
C. the degree of bargamlng POWer that buyers have.
D. the type of value chain being used to achieve a low-COSt COmPetitive advantage・
End of exam
Student ID: 21986055
Exam: 500562RR - Executing the Strategy
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Questions l to 20: Select the best answer to each question. Note that a question and its answers may be split across a page
break, SO be sure that you have seen the entire question and all the answers before chooslng an anSWer.
1. A strong corporate culture
A. isn-t particularly well-Suited to building strong core competencies and competitive capabilities・
B. is usua11y created by prescribing a comprehensive set ofpolicies, PrOCedures, and best practices for empIoyees to follow.
C. promotes good strategy execution when the cultural noms are a good fit with the strategy and hurts execution when the
Cultural noms are a poor fit.
D. helps promote imovative behavior among employees and rapid adaptation to market-driven and customer-driven changes・
2・ The statistical thinking underlying Six Sigma is based on which ofthe following sets ofprinciples?
A. All work is a process, a11 processes have variability, and all processes create data that explains variability.
B. All activities can be controlled, emPIoyee empowement is the best control tool, and 100% control is possible.
C. All work is a statistica11y controllable process, 100% control is possible, and every we11-COntrOlled process is defect誼ee・
D・ All work activities can be done accurate賞y most ofthe time, emPOWered empIoyees are needed for effective control, and
good statistical data is an empowered empIoyee’s best control tool.
3. What actions, behaviors, and work practices that are conducive to good strategy implementation support
the strategy execution e任brt?
A. Enhancing worker productivity and buy-in声CuSing the attention of empIoyees on what is most important, and ensuring
adherence to the company culture
B・ Using peer pressure to company persomel to perfom, enhancing worker productivity and buy-in, and focusing the attention
Of employees on what is most important
C. Energizing the workforce, enSumg that persomel memorize the company values statement and code of ethics, and achieving
COmpetitive advantage
D. Providing for greater strategic flexibility, uSing peer pressure to company persomel to perfom, and energizing the workforce
4. Multidivisional structures offer significant advantages over functional structures because they
A. are led by a hybrid of senior management and middle management.
B. facilitate the management of a complex and diverse set of operations.
C. are organized into several di鯖erent mission-SPeC誼c departments.
D. foster the greatest employee empowement and invoIvement・
5. Apple decides to reallocate resources by curtailing online ad budgets and investing heavily in scratchresistant Sapphire, the material that differentiates the Apple Watch from rival wearわle computing device
brands. What is most /ikeb′ the reason for Apple’s reallocation of resources?
A. Making critical value chain activities less e節鵜tive
B. Signaling cormitment to offline sales of the brand
C. Supporting the new strategic initiative ofthe brand
D. Signaling cormitment to online sales ofthe brand
6. In fomulating an action agenda to implement and execute a new or different strategy, the place for
managers to begin is with
A. evaluating whether existing policies and procedrres are adequately strategy-SuPPOrtive.
B. allocating more resources to strategy-Critical parts of the business.
C. choosing which leadership style to empIoy in句′ing to carry out the strategy success餌Iy.
D. a probing assessment of what the organization must do differently and better to carry out the strategy success餌Iy.
7. Motivational and incentive compensation practices that aim at wiming the commitment of company
PerSOmel to good strategy execution typically
A. strike a middle ground--entailing decidedly positive rewards for meeting or beating perfemance targets, but also imposmg
Su飴ciently negative consequences when actual perfomance falls short of the target・
B. aim at creating a no-PreSSure/no-adverse-COnSequenCeS WOrk environment.
C. entail paymg the highest wages and salaries in the industry and also stressing nomonetary rewards for high-Perfomlng
empIoyees.
D. use only positive rewards and never invoIve the use oftension, fear, job insecurity, StreSS, Or anXiety.
8. is an example of an unhealthy company cu血re.
A. Hyper-adaptive culture
B. Change-embracmg Cu血re
C. Ethical and triple-bottom-1ine driven cu血re
D. Insular inwardly focused cu血re
9・ The guidelines for designing an incentive compensation system that will help drive success餌strategy
execution includes
A. making the payoff for meeting or beating perfomance targets a m牛IOr, nOt minor, Piece of the total compensation package.
B・ having an outside wage-and-Salary expert administer the system, SO that there's no doubt as to its falmess and impartiality.
C. having a bonus and incentive plan that applies to managers only (empIoyees generally shouldn’t be included in incentive pay
Plans, but should have attractive wages and salaries).
D. making minimal use of nomonetary lnCentives and rewarding people for diligently perfoming their assigned duties.
10・ Replacing key executives who aren't embracing cu血ral change
A. runs the risk of inadvertently creating barriers to building the needed competencies and capabilities.
B. signals a detemined commi血ent to strategic change and can help catalyze and give credibility to the implementation process.
C. is rarely needed in implementing a new strategy unless the new strategy entails a radica11y different set of value-Chain activities.
D. can be dysfunctional in trying to implement a new strategy because ofthe insecurity that big changes cause among company
PerSOnneL
11. The first phnciple in designing an effective compensation system and血e most dependable way to keep
people focused on strategy execution and the achievement of perfomance targets is to
A. generously reward and recognlZe PeOPle who meet or beat perfomance targets and to deny rewards and recognition to those
WhO don-t.
B. design monetary and normonetary incentives that boost labor productivity and help lower the fim-s overall labor costs.
C. pay employees a bonus for each strategic and financial objective that the company achieves.
D. establish ethical compensation policies and convince employees that they are the fim-s most valuable competitive asset.
12・ Coordinating the work effo面of intemal organization units is best accomplished by
A. establishing a coIPOrate Cu血re where teamwork is a core value and decisions are made by general consensus among team
leaders in the affected work units.
B. having the heads of support activities report to the heads of primary, Strategy-Critical activities.
C. having cIosely related activities report to a single executive who has血e authority and organizational cIout to coordinate,
integrate, and arrange for the cooperation of units under their supervision.
D・ eStablishing monetary incentives血at reward people for being cooperative team players.
13. A company's culture is typica11y grounded in and shaped by its
A. core values and the bar it sets for ethical standards.
B. core competencies and competitive capabilities.
C. intent and reward system.
D. long-tem Strategic success, Or lack thereof
14・ Which one ofthe following is particularly help餌in peapetuating a company-s cu血re?
A. Frequent reiteration of core values by senior managers and group members
B. Frequent meetings to share company progress
C. Maintaining a consistent strategic vision and strategic intent over time
D. Consistent review of company benchmarks
15・ One key step in changing a problem cu血re is to
A. introduce new tec血oIogleS tO help employees grow their core capacities.
B. foster a culture ofimovation.
C. create a new vision statement and mission statement.
D・ identify dysfunctional facets of the present cu血ne and those that impede strategy execution.
16・ Which of the following characterizes a centralized organizational structure?
A. A company relies on team empowement and little managerial oversight.
B. Top executives retain authority over most strategic and operating decisions and keep a tight rein on business units.
C. All operating皿its are within the same geographical area.
D・ A company draws on the combined intellectual capital of all its people.
17. What aids in building organizational bridges with extemal allies?
A・ Agreemg With allies to meet frequently and make all decisions pertaining to the amance on the basis ofm血al agreement and
B・ Fommg a 50-50 joint venture with each strategic partner and then asslgnlng PeOPle to the joint venture who have the
au血ority and responsibility to enforce tight coordination
C. Getting each strategic ally to agree to appoint someone as head ofthe collaborative effort and to give that person the authority
to enforce tight coordination of ioint activities
D. Appointing一'relationship managers一一and giving them responsibility for making particular strategic pa血erships or alliances that
generate the intended benefits
18・ The three components of building an organization capable of good strategy execution are
A. hiring a capable top management team, emPOWermg emPloyees, and estz心lishing a strategy-SuPPO正ve coIPOrate Culture.
B. putting a centralized decision-making structure in place’detemining who should have responsibility for each value-Chain
activity, and aligning the corporate cu血re with key policies, PrOCedures, and operating practices.
C. making pehodic changes in the fim’s intemal organization to keep people from getting into a comfortable rut言nsti請ing a
decentralized approach to decision making, and developmg the appropriate competencies and capabilities.
D. sta鯖ng the organization, building core competencies and competitive capabilities, and structuring the organization and work
effb九
19. OrganlZmg a COmPany-s work effort to promote successful strategy execution invoIves
A. making intemally perfomed strategy-Critical, Value-Chain activities the main building blocks in the organizational struc巾re.
B. choosing an organizational structure that's a tight fit with the corporate culture.
C・ deciding how much to spend on training managers and employees.
D. instituting a compensation structure血at reduces employee tumover and thus stabilizes the makeup of work teams.
20・ What is the idea behind benchmarking and best practices?
A. Searching the world for a company that perfoms a strategically relevant task or value-Chain activity at the lowest possible
COSt, and then usmg business-PrOCeSS reengmeering techniques to try to meet or beat the costs ofthe world-s low-COSt Perfomer
Of血at activity
B・ Identifying which companies are the best perfemers of a strategically relevant activity and then exactly copying their methods
C. Detemimng Whether a company has a一一world葛Class" value chain
D・ Identifying companies that are the best perfemers of an activity, and then modifying and adapting their practices to fit the
COmPany's own specific circumstances and operating requlrementS
End of exam