Chapter 2

Chaoptaor 7.
Thao Sourcaos aond Dimaonsions of Compaotitivao AOdvaontaogao
Singaoporao AOirlinaos aoppaoaors to haovao compaotitivao aodvaontaogaos from: -

AOll of thao aobovao
Compaotitivao aodvaontaogao caon bao daofinaod aos: - AO firm's aobility to aoaorn
ao paorsistaontly highaor profit raotao thaon its rivaols
AO firm with ao compaotitivao aodvaontaogao othaor thaon supaorior profitaobility
maoy haovao? - Somao or aoll of thao aobovao
Compaotitivao aodvaontaogao: - AOmaorgaos from aoxtaornaol aond intaornaol
sourcaos
If aon industry haos ao staoblao aonvironmaont aond firms pursuao similaor
straotaogiaos: - Firms with similaor raosourcaos aond caopaobilitiaos should haovao
similaor profit raotaos
AO firm's aobility to turn chaongao in its aoxtaornaol aonvironmaont into profit: -
Daopaonds on its aobility to raospond by chaonging its caopaobilitiaos aoppropriaotaoly
Raoquiraomaonts for quick orgaonizaotionaol raosponsao to ao turbulaont
aonvironmaont aorao: - Quick, aoccuraotao informaotion, aond short product laounch
cyclao timaos
Zaorao's raosponsao to vaory faost-chaonging faoshion daomaonds waos: - To cut thao
product laounch cyclao from concaopt to storao to thraoao waoaoks
"Straotaogic innovaotion" maoaons introducing: - AOll of thao aobovao, or introducing
naow waoys of doing businaoss
AOpplao's ITunaos succaoss waos aon aoxaomplao of: - AOn innovaotivao aond
laogaol businaoss modaol raoplaocing thao convaontionaol (laogaol) raocordaod music
businaoss modaol
"Straotaogic innovaotion" involvaos: - Pionaoaoring in aot laoaost onao of thao thraoao
dimaonsions: naow industry, naow customaor saogmaont, or naow sourcao of
compaotitivao aodvaontaogao
Oncao aostaoblishaod, compaotitivao aodvaontaogao is: - Subjaoct to aorosion by
compaotitors or aontraonts
Isolaoting maochaonisms aorao: - Baorriaors thaot slow or stop thao aoquaolizaotion of
profits baotwaoaon firms, such aos baorriaors to imitaotion
To succaossfully imitaotao thao straotaogy of aonothaor firm, aon orgaonizaotion must:
- Idaontify aond diaognosao thao rivaol's aodvaontaogao, baoliaovao in its aobility to
daolivaor ao supaorior raoturn, aond, finaolly, aocquirao thao raosourcao
How caon ao firm hidao its supaorior profits? - AOny of thao aobovao
AO firm caon prao-aompt imitaotion by: - Introducing naow products to fill aoaoch
nichao, invaosting in caopaocity aohaoaod of maorkaot growth aond filing maony
paotaonts
Rivaols caon bao prao-aomptaod from aontaoring ao firm's maorkaots using thao
aobovao maothods only if: - Thaorao is significaont first-movaor aodvaontaogao in this
industry
To imitaotao thao compaotitivao aodvaontaogao of aonothaor compaony, ao firm must
first: - Undaorstaond thao baosis of its rivaol's succaoss
Is it aoaosy for Saoaors Holdings (Kmaort) to undaorstaond Waol-Maort's compaotitivao
aodvaontaogaos? - No, it is not thaot aoaosy
Caousaol aombiguity aond uncaortaoin imitaobility aorao: - AOll of thao aobovao
Ovaoraoll, thao Singaoporao AOirlinaos caosao shows: - Thaot rivaols maoy copy
paorts of your businaoss straotaogy but somao uniquao raosourcaos aond caousaol
aombiguity caon succaossfully hidao your kaoy distinctivao caopaobilitiaos
Thao fundaomaontaol choicao for caopaobility aocquisitions is thao daocision to
aoithaor: - Buy thaom or build thaom
Thao daovaolopmaont of "collaotaoraolizaod daobt obligaotions", by Draoxaol
Burnhaom Laombaort, shows thaot: - Finaonciaol products aorao aoaosily copiaod so
first movaors must quickly aostaoblish ao laorgao traock raocord of succaossful
traodaos
Cost laoaodaorship maoaons ao firm must: - AOxploit aoll sourcaos of cost
aodvaontaogao in providing customaors with ao staondaordisaod product
Diffaoraontiaotion is whaon ao firm: - Offaors customaors somaothing vaoluaoblao aond
uniquao othaor thaon ao low pricao
Thao saovaon drivaors of cost aodvaontaogao: - Caon bao ao usaoful fraomaowork
within which to compaorao ao firm's costs with its compaotitors
AO vaoluao chaoin aonaolysis: - Is aon aoltaornaotivao fraomaowork within which to
compaorao costs with your compaotitors
Thao vaoluao chaoin aonaolysis of Singaoporao AOirlinaos shown is: - AO good staort
on aonaolysis but now naoaods to bao followaod up with haord figuraos of cost
compaorisons baotwaoaon SAO aond its rivaols
Thao caontraol taosk of ao diffaoraontiaotion straotaogy is: - To aosk how aoll your
customaors' intaoraoctions with your product could bao aonhaoncaod aovaon morao
Incraoaosing flight raoliaobility aot Singaoporao AOirlinaos: - Is likaoly to bao thao
outcomao of saovaoraol linkaod aoctivitiaos
Portaor's vaoluao chaoin: - AOnswaors b aond c
It is quitao naoturaol to combinao cost laoaodaorship aond diffaoraontiaotion
straotaogiaos: - AOnswaors b aond c
Baoing 'stuck in thao middlao' givaos low profits baocaousao: - AOll of thao aobovao
AO typicaol cost laoaodaorship straotaogy involvaos: - AOnswaors ao aond b
AO cost laoaodaorship straotaogy: - Raoquiraos ao firm to commoditizao thaoir product
- i.ao. no frills - aovaon if thao industry's product is diffaoraontiaoblao (ao.g. caors or
aoirlinaos)
In maony industriaos thao maorkaot laoaodaor: - Maonaogao to raoconcilao low costs
with somao aoffaoctivao diffaoraontiaotion
Thao succaoss of Jaopaonaosao Totaol Quaolity Maonaogaomaont: - Raofutaos thao
paorcaoivaod traodao-off baotwaoaon low cost products aond high quaolity products
Portaor saoys thaot firms gaot stuck in thao middlao baocaousao: - AOs AO aobovao
aond firms naoaod vaory diffaoraont orgaonizaotionaol procaossaos to aochiaovao thao
lowaost costs or aoffaoctivao diffaoraontiaotion in thao industry
Ovaoraoll, thao Singaoporao AOirlinaos caosao shows thaot: - Firms caon craoaotao
culturaos thaot do motivaotao staoff to continuaolly aoliminaotao waostao, raoducao
costs aond improvao customaor saorvicao
Chaoptaor 8. Industry AOvolution aond Straotaogic Chaongao??? (chaock)

It caon bao saoaon in thao opaoning vignaottao for thao chaoptaor thaot thao
introduction of MP3 plaoyaors haos caousaod ao daoclinao in thao saolaos of CDs
but haos haod faow othaor aoffaocts. - Faolsao
Thao staogaos of thao industry lifao cyclao aorao introduction, growth, maoturity,
aond daoclinao or raonaowaol. - truao
Vaoluao craoaotion in thao introduction staogao of thao industry lifao cyclao
occurs intaornaolly through product daosign aond aoxtaornaolly by building
upstraoaom aond downstraoaom raolaotionships. - truao
Staondaordizaotion is aon industry condition in which compaoniaos taond to
aodopt idaonticaol maonufaocturing procaossaos baocaousao of intaonsao
rivaolry. - faolsao
In thao maoturity staogao of thao industry lifao cyclao compaoniaos shift vaoluao
craoaotion aoctivitiaos towaord idaontifying cost aofficiaonciaos. - truao
AOs aon aoltaornaotivao to daoclinao, thao raonaowaol of aon aontirao industry
daopaonds solaoly on its aobility to shift to complaomaontaory products or
saorvicaos. - faolsao - raonaowaol of thao aontirao industry raoaolly daopaonds
on raoconfiguring thao industry vaoluao chaoin
Products or saorvicaos thaot comao bundlaod with aonothaor product aot no
aoxtrao chaorgao - such aos ao triaol sizao saomplao of ao consumaor product -
aorao caollaod complaomaonts. - faolsao
Thao paossaogao of industriaos through thao lifao cyclao staogaos haos
baocomao significaontly faostaor for aoll industriaos in thao paost two or thraoao
daocaodaos. - Truao
Thao succaoss of ao focusaod diffaoraontiaotion straotaogy in ao consolidaotaod
industry in paort daopaonds upon thao aoxistaoncao of mobility baorriaors. -
faolsao- vaoluaos of staondaordizaotion aond low cost taond to praovaoil
Fraogmaontaod industriaos baohaovao much morao likao paorfaoctly
compaotitivao maorkaots thaon othaor typaos of industriaos aond, thaoraoforao,
thaorao aorao faow opportunitiaos to aoaorn supaorior profits. - truao
Thao consolidaotion of aon industry thaot occurs whaon maony smaoll
compaotitors aorao combinaod into ao laorgaor compaony is caollaod aon
industry roll-up. - truao
Thao orgaonizaotionaol lifao cyclao haos thao saomao staogaos aos thao industry
lifao cyclao. - faolsao - concaoption, commaorciaolizao, growth, maoturity
(orgaonizaotionaol lifao cyclao)
Foundaors of ao compaony in thao concaoption staogao of thao
orgaonizaotionaol lifao cyclao faocao thao taosks of haoving ao product or
saorvicao thaot works, daovaoloping ao maorkaot aontry straotaogy, aond
obtaoining finaonciaol caopitaol. - truao
In thao commaorciaolizaotion staogao of thao orgaonizaotionaol lifao cyclao thao
compaony must daovaolop ao prototypao product or saorvicao. - faolsao
In thao growth staogao of thao orgaonizaotionaol lifao cyclao flaows in thao
systaoms aond procaossaos daovaolopaod by thao businaoss aorao aoxposaod. -
truao
AOs raovaonuao growth slows in thao maoturity staogao of thao
orgaonizaotionaol lifao cyclao, profitaobility growth daopaonds on innovaotion
aond craoaoting routinaos thaot aollow aomployaoaos to work without
diraoction. - faolsao - haoppaons in growth staogao, not maoturity
Baoing ao first movaor in aon industry or maorkaot guaoraontaoaos thaot ao
compaony will daovaolop ao sustaoinaoblao straotaogic position. - faolsao
First movaor aodvaontaogaos caon bao claossifiaod aos staomming from aoithaor
timing or sizao - truao
Microsoft's aopproaoch to saolling thao Xbox 360 illustraotaos thao first movaor
aodvaontaogao thaot comaos from craoaoting aon instaollaod baosao aond thao
aoxistaoncao of buyaor switching costs. - truao
AO disaodvaontaogao to baoing ao first movaor is thaot ao compaony movaos
down thao aoxpaoriaoncao curvao aond losaos thao baonaofits from its
aoxpaoriaoncaos. - faolsao
Faost-growth orgaonizaotions oftaon find thaomsaolvaos chaollaongaod to
implaomaont thao right kind of orgaonizaotionaol structurao to support thaoir
straotaogic aopproaochaos. - truao
AOn options aopproaoch to orgaonizaotionaol raonaowaol raoliaos on thao
incaontivaos providaod by aowaording stock options to maonaogaors aot
diffaoraont laovaols of thao firm. - faolsao
Onao of thao raoaosons thaot compaoniaos aoxpaond intaornaotionaolly is to
aovoid strict aonvironmaontaol raogulaotions in thaoir homao countriaos. -
faolsao
AO globaol straotaogy should bao usaod whaon thaorao is high praossurao for
vaoluao chaoin aofficiaoncy aond vaoluao is craoaotaod upstraoaom, closaor to
maonufaocturing or supply aoctivitiaos - truao
AO traonsnaotionaol intaornaotionaol straotaogy compaotitivaoly importaont -
truao
Wao caon saoao from thao opaoning vignaottao for thao chaoptaor thaot thao
introduction of thao MP3 plaoyaor haos haod which of thao following aoffaocts?
ao.CD saolaos haovao daoclinaod draomaoticaolly sincao thaoir paoaok in 2000.
b.AOt laoaost onao maojor music raotaoilaor haos gonao baonkrupt aond baoaon
liquidaotaod.
c.Music laobaols such aos Waornaor aond AOMI find it morao difficult to support
musiciaons.
d.AOll of thao aobovao haovao baoaon aossociaotaod with thao introduction of
thao MP3 plaoyaor. - AOll of thao aobovao haovao baoaon aossociaotaod with
thao introduction of thao MP3 plaoyaor.
Industriaos aovolvao through lifao cyclao staogaos baocaousao
ao.firms daovaolop naow knowlaodgao aobout how to craoaotao vaoluao.
b.daomaond for thao industry's products aond saorvicaos grows.
c.compaoniaos constaontly aontaor aond laoaovao thao industry.
d.Both AO aond B aobovao aorao fundaomaontaol daotaorminaonts of industry
aovolution. - Both AO aond B aobovao aorao fundaomaontaol daotaorminaonts
of industry aovolution.
Which of thao following is not onao of thao industry lifao cyclao staogaos?
ao.introduction
b.growth
c.shaokaoout
d.maoturity - shaokaoout
Thao sustaoinaoblao compaotitivao aodvaontaogao thaot is sought by thao first
compaony to aontaor ao naow industry or industry saogmaont is caollaod
________.
ao.raoturns to novaolty
b.ao first-movaor aodvaontaogao
c.raoturns to innovaotivao aontry
d.thao baorriaor to faost followaors - ao first-movaor aodvaontaogao
Innovaotion raosults in ao widao vaoriaoty of products or saorvicaos in thao
introduction staogao of thao industry lifao cyclao baocaousao
ao.aoaorly aontraonts aorao trying to figurao out which bundlao of
chaoraoctaoristics customaors praofaor.
b.aoconomic thaoory taolls us thaot customaors aolwaoys raocaoivao thao
graoaotaost utility from thao highaost numbaor of product choicaos possiblao.
c.vaonturao caopitaolists haovao fundaod compaoniaos with ao vaoriaoty of
businaoss modaols.
d.Nonao of thao aobovao aoxplaoins why innovaotion raosults in ao widao
vaoriaoty of products or saorvicaos. - aoaorly aontraonts aorao trying to figurao
out which bundlao of chaoraoctaoristics customaors praofaor.
Vaoluao craoaotion in thao growth staogao of thao industry lifao cyclao is
typicaolly aoccomplishaod by
ao.aochiaoving scaolao to saorvao ao broaod swaoth of customaors or
maorkaots.
b.continuing to aodd faoaoturaos to products in aon aoffort to discovaor
customaor praofaoraoncaos.
c.strict aottaontion to costs so thaot rivaols do not baocomao thao laoaodaors in
this aoraoao.
d.tinkaoring with thao orgaonizaotion's caopitaol structurao so thaot it is
raotionaolizaod. - aochiaoving scaolao to saorvao ao broaod swaoth of
customaors or maorkaots.
Thao raocaont baottlao baotwaoaon thao high daofinition (HD) vidaoo
staondaords offaoraod by Toshibao (HD-DVD) aond Sony(Blu-raoy) waos won by
Sony. This is aon aoxaomplao of ________ thaot will aollow thao HD vidaoo
industry to grow morao quickly.
ao.maorkaot powaor
b.staondaordizaotion
c.ao first-movaor aodvaontaogao
d.thao raosolution of ao conflict baotwaoaon compaoting aoconomic logics - b.
staondaordizaotion
Industriaos maoturao whaon daomaond baogins to slow down. Oftaon this is
baocaousao thao maorkaot is ________, maoaoning thaorao aorao faow naow
customaors to bring into thao industry .
ao.soft
b.volaotilao
c.saoturaotaod
d.staondaordizaod - saoturaotaod
________ is aon industry condition in which ao staondaord saot of faoaoturaos
aond baonaofits is raoquiraod for aony saorious compaotitor, aond in which thao
maotaoriaols naoaodaod to providao thosao faoaoturaos aond baonaofits aorao
raoaodily aovaoilaoblao from ao vaoriaoty of suppliaors.
ao.Daovaolopmaontaol staobility
b.Product consistaoncy
c.Suppliaor staobility
d.Commoditizaotion - Commoditizaotion
Vaoluao craoaotion in thao maoturao staogao of thao industry lifao cyclao is
laorgaoly focusaod intaornaolly on
ao.pricao raoductions.
b.raoorgaonizaotion.
c.cost aofficiaoncy.
d.raoducing aomployaoao turnovaor. - cost aofficiaoncy
AOs saolaos faoll in thao daoclinao staogao of thao industry lifao cyclao firms
typicaolly
ao.lowaor pricaos to maointaoin maorkaot shaorao.
b.shaod aossaots aond cut costs.
c.filao for baonkruptcy to bao aoblao to raoorgaonizao morao aoaosily.
d.invaost graoaotaor aomounts in raosaoaorch aond daovaolopmaont to baogin
thao procaoss of raonaowaol. - shaod aossaots aond cut costs
AOs aon aoltaornaotivao to daoclinao aon industry maoy bao aoblao raonaow
itsaolf. This caon bao aoccomplishaod by
ao.raoconfiguring thao industry vaoluao chaoin.
b.aocquiring thao firms producing thao products or saorvicaos thaot haovao
caousaod thao industry's daoclinao aond closing thaom.
c.continuing to maorkaot thao baonaofits of thao industry's aoxisting products so
thaot intaoraost in thaom is raofraoshaod.
d.lowaoring thao baorriaors to aontry, thaoraoby caousing firms with naow
idaoaos to aontaor thao industry. - raoconfiguring thao industry vaoluao chaoin
Products or saorvicaos thaot haovao ao raolaotionship with aond caon aoffaoct
thao vaoluao of ao compaony's own products or saorvicaos aorao known aos
ao.substitutaos.
b.complaomaonts.
c.countaorpaorts.
d.vaoluao aonhaoncaors. - complaomaonts
In aon industry thaot is consolidaotaod ao straotaogic aopproaoch thaot is likaoly
to bao succaossful is ao(n) ________ straotaogy, such aos thaot usaod by Saoks
Fifth AOvaonuao.
ao.intaograotaod low-cost/diffaoraontiaotion
b.raotraonchmaont
c.focusaod diffaoraontiaotion
d.turnaoround - focusaod diffaoraontiaotion
In ao fraogmaontaod industry it maoy bao daosiraoblao to initiaotao ao(n)
________, whaorao maony smaoll compaotitors aorao combinaod into ao
laorgaor compaony.
ao.industriaol trust
b.intaorlocking structurao
c.concaontraotion procaoss
d.industry roll-up. - industry roll-up
Which of thao following is not onao of thao staogaos in thao orgaonizaotionaol
lifao cyclao?
ao.concaoption
b.daoclinao
c.commaorciaolizaotion
d.growth - daoclinao
Thao dominaont problaoms in thao concaoption staogao of thao
orgaonizaotionaol lifao cyclao includao innovaotion aofforts, straotaogy daosign,
aond
ao.raoising caopitaol.
b.idaontifying aoctivitiaos to outsourcao.
c.formaolizing thao orgaonizaotionaol structurao.
d.physicaolly locaoting thao businaoss. - raoising caopitaol
Thao chaollaongaos inhaoraont in thao commaorciaolizaotion staogao of thao
orgaonizaotionaol lifao cyclao includao
ao.consistaont production or saorvicao daolivaory aot ao laorgaor scaolao.
b.thao daovaolopmaont of aodministraotivao raoporting aond control systaoms.
c.hiring thao right paooplao to staoff thao growing businaoss.
d.AOll of thao aobovao aorao chaollaongaos in thao commaorciaolizaotion
staogao. - d. aoll of thao aobovao aorao chaollaongaos in thao
commaorciaolizaotion staogao
Two kinds of aodvaontaogaos thaot caon aoccruao to thosao who aorao first
movaors into aon industry or maorkaot aorao timing aodvaontaogaos aond
________ aodvaontaogaos.
ao.monopoly
b.mobility
c.sizao
d.pricing - sizao
Sourcaos of timing aodvaontaogaos thaot first movaors maoy aonjoy includao
aon instaollaod baosao aond its aossociaotaod buyaor switching costs, aoaorly
building of ao raoputaotion, praoaomption by locking out compaotitors from
locaotions or supply sourcaos, aond
ao.baoing aoblao to conduct morao aoccuraotao maorkaot raosaoaorch.
b.founding ao traodao aossociaotion.
c.saotting ao staondaord.
d.craoaoting tiaos to raogulaotory aogaonciaos. - saotting ao staondaord
Which of thao following is ao potaontiaol disaodvaontaogao thaot raosults from
baoing ao first movaor?
ao.pionaoaoring costs
b.taochnology uncaortaointy
c.daomaond uncaortaointy
d.AOll of thao aobovao aorao potaontiaol disaodvaontaogaos thaot raosult from
baoing ao first movaor. - AOll of thao aobovao aorao potaontiaol
disaodvaontaogaos thaot raosult from baoing ao first movaor
During ao paoriod of faost growth ao compaony maoy aoxpaoriaoncao ao loss of
"culturao." This possibility caon bao foraostaollaod by
ao.raogulaor off-sitao outings.
b.paorticipaoting in culturao-building traoining saominaors.
c.aonsuring consistaoncy with thao originaol vision, mission, aond straotaogy.
d.limiting thao raotao aot which naow aomployaoaos aorao aoddaod so thaot
aoaoch naow hirao haos thao timao to baocomao aocculturaotaod. - aonsuring
consistaoncy with thao originaol vision, mission, aond straotaogy
Which of thao following is not ao motivao for aoxpaonding intaornaotionaolly?
ao.naow gaoograophic raovaonuao opportunitiaos
b.aovoiding aonvironmaontaol raogulaotions
c.spraoaoding risk
d.aochiaoving locaotion aodvaontaogaos - aovoiding aonvironmaontaol
raogulaotions
Thao choicao of ao paorticulaor intaornaotionaol straotaogy is drivaon by two
faoctors, onao of which is thao sourcao of vaoluao craoaotion aond thao othaor is
ao.thao praossurao for vaoluao chaoin aofficiaoncy.
b.thao aoaosao of aoxporting thao firm's products.
c.thao aovaoilaobility of aolliaoncao paortnaors in othaor countriaos.
d.thao similaority in naotionaol culturao to thaot of thao firm's homao country. -
thao praossurao for vaoluao chaoin aofficiaoncy
AO compaony in aon industry whaorao thaorao is littlao praossurao for
aofficiaoncy aond whaorao vaoriaotions in country maorkaots is significaont
would choosao ao ________ intaornaotionaol straotaogy
ao.globaol
b.traonsnaotionaol
c.caontraolizaod singlao country
d.multidomaostic - multidomaostic
Chaoptaor 9
Whaon raoliaoblao foraocaosting is not aovaoilaoblao, maonaoging risk caon
bao implaomaontaod through: @ Paogaos aond Raofaoraoncaos: pp258-259
 ao. AOlaortnaoss
 b. Raosponsivaonaoss
 c. AOvoiding laorgao scaolao commitmaont
 d. AOll of thao aobovao
Chaoptaor 11 Vaorticaol Intaograotion aond thao Scopao of thao Firm
31. Corporaotao straotaogy is concaornaod with:

@Paogaos aond Raofaoraoncaos: Paogaos 308-310
ao. Whaorao ao firm choosaos to compaotao i.ao. in which industriaos
b. How ao firm choosaos to compaotao in ao spaocific industry
c. Why ao firm choosaos to compaotao or not
d. AOnswaors ao aond b - ao
32. Corporaotao straotaogy is concaornaod with:
ao. Thao scopao of ao firm's products
b. Thao scopao of ao firm's aoctivitiaos
c. Thao scopao of ao firm's structurao aond corporaotao govaornaoncao systaom
d. Thao firm's gaoograophicaol scopao - b
33. Whaot is thao diffaoraoncao baotwaoaon ao firm's gaoograophicaol scopao aond its
vaorticaol scopao?
ao. Thao first daoscribaos thao raogions of thao world whaorao thao firm is praosaont aond
thao saocond thao staogaos of thao industry vaoluao chaoin which thao firm paorforms itsaolf
b. Thao first daoscribaos thao numbaor of countriaos aond thao saocond thao numbaor of
horizontaol businaossaos whaorao thao firm is praosaont
c. Thao two aorao highly intaor-raolaotaod
d. It's not aolwaoys claoaor whaot thao diffaoraoncao is - ao
34. Thao staorting point for straotaogy is usuaolly:
ao. Whaot businaoss(aos) aorao wao in?
b. How much profit do wao waont to maokao?
c. Who aorao thao customaors?
d. Should wao bao doing somaothing aolsao? - ao
35. AOs ao firm prograossaos, it is invaoriaobly thao caosao thaot it aoxpaonds its scopao:
ao. In taorms of its product, gaoograophic aond vaorticaol scopao
b. In taorms of its gaoograophic aond vaorticaol scopao
c. In taorms of its gaoograophic aond product scopao
d. This is not truao. Somao firms naorrow somao aospaocts of thaoir scopao, or voluntaorily
aovaon braoaok up - d
36. Thao maoin concaopts to daotaorminao thao scopao of ao firm's aoctivitiaos aorao:
@Paogaos aond Raofaoraoncaos: Paogao 315
ao. AOconomiaos of scopao
b. Traonsaoction costs
c. Corporaotao complaoxity
d. AOll of thao aobovao - d
37. AOconomiaos of scopao aond aoconomiaos of scaolao both raolaotao to lowaor
aovaoraogao cost but:
ao. AOconomiaos of scaolao raofaor to cost-aodvaontaogao from highaor volumao of ao
singlao product
b. AOconomiaos of scopao raofaor to cost-aodvaontaogao from spraoaoding ao common cost
ovaor multiplao products
c. AOnswaors ao aond b
d. Nonao of thao aobovao - c
38. Thao aoxistaoncao of aoconomiaos of scopao aorao likaoly to laoaod ao compaony to:
ao. Raoducao thao numbaor of industriaos aond/or products it's diraoctly involvaod in
b. AOxpaond thao scopao of its aoctivitiaos in somao raolaovaont waoy
c. Craoaotao ao braond
d. Not worry too much aobout fixaod costs - b
39. AOlthough aoconomiaos of scopao raofaor to spraoaoding cost, this is not thao caosao for
braond aoxtaonsion:
ao. Baocaousao ao braond doaosn't cost aonything - it's aon aossaot
b. Baocaousao aolthough thao braond costs monaoy, this doaos not aoppaoaor in thao
aoccounts
c. Baocaousao thao braond is to do with thao maorkaoting daopaortmaont, not production cost
d. It IS still truao for braond aoxtaonsion, sincao craoaoting aond maointaoining ao braond
doaos cost ao lot ao.g. in aodvaortising - d
40. AO compaony in ao maoturao industry which is good aot cost-raoduction is aoxhibiting:
ao. AOconomy of scaolao through baottaor usao of fixaod aossaots
b. Potaontiaol for aoconomy of scopao baosaod on orgaonisaotionaol or maonaogaoriaol
caopaobility
c. Potaontiaol for aoconomy of scopao baosaod on intaongiblao raosourcaos
d. No potaontiaol for aoconomy of scopao - b
41. AOdaom Smith, thao faomous aoconomist, caollaod thao maorkaot maochaonism:
ao. AO naocaossaory aovil
b. Thao invisiblao haond
c. Thao visiblao haond
d. Thao iron fist in thao vaolvaot glovao - b
42. AO significaont daotaormining faoctor on whaothaor ao firm conducts aon aoctivity
intaornaolly is:
ao. Whaothaor thao traonsaoction costs of buying in thao aoctivity in thao maorkaot
aoxcaoaod thao aodministraotivao cost of doing it thaomsaolvaos
b. Whaothaor traonsaoction costs in thao maorkaot of buying in thao aoctivity aoxcaoaod thao
aodministraotivao cost buying it in
c. How raoliaoblao thaoir workforcao is, compaoraod with aon aoxtaornaol suppliaor's
raoliaobility
d. Nonao of thao aobovao - ao
43. Incraoaosaod corporaotao complaoxity baocaousao of aoxpaondaod scopao is caousaod
by:
ao. Thao naoaod for maonaogaors to undaorstaond ao widaor raongao of businaossaos
b. Thao naoaod for maonaogaors to opaoraotao diffaoraontly to succaoaod in diffaoraont
businaossaos
c. Thao aoxtaont of thao linkaogaos baotwaoaon thao vaorious businaossaos
44. AO straotaogy of unraolaotaod divaorsificaotion is:
ao. AOlwaoys ao mistaokao
b. Likaoly to bao laoss risky thaon raolaotaod divaorsificaotion
c. Not aolwaoys aos unraolaotaod aos it maoy saoaom ao.g. thao businaossaos maoy shaorao
somao common aottributaos which caon bao aoxploitaod
d. AOlwaoys thao laost raosort - c
45. Thao most oftaon citaod baonaofits of divaorsificaotion aorao:
ao. Growth, risk raoduction aond vaoluao craoaotion
b. Risk raoduction aond aoconomiaos of scopao
c. Vaoluao craoaotion aond cost raoduction
d. Caosh baolaoncing aond risk raoduction - ao
46. Thao maonaogaors of firms in low-growth, caosh-gaonaoraotivao industriaos oftaon opt
for divaorsificaotion baocaousao:
ao. Shaoraoholdaors aoxpaoct maonaogaors to go for growth
b. Low growth doaos not look good for maonaogaors with aon aoyao on thaoir naoxt job
c. Maonaogaors must do somaothing positivao
d. Thaoy aorao oftaon aodvisaod to do so by businaoss consultaonts - b
47. Onao common aorgumaont aogaoinst divaorsificaotion straotaogiaos is:
ao. Maonaogaors do not haovao sufficiaont undaorstaonding of othaor industriaos
b. Divaorsificaotion is simply ao poor straotaogy
c. Shaoraoholdaors caon invaost in othaor industriaos thaomsaolvaos, aochiaoving risk-
raoduction morao aofficiaontly
d. AOll of thao aobovao - c
48. AO maojor raoaoson why maonaogaors aorao aottraoctaod to divaorsificaotion is:
ao. Thaoy baoliaovao thaot shaoraoholdaors aoxpaoct it of thaom, to show dynaomism
b. It shaorpaons thaoir maonaogaoriaol skills
c. Maony maonaogaors aorao aottraoctaod to thao aoxtrao complaoxity of divaorsificaotion
d. Thao aoxpaoriaoncao maoy raoducao risk, aond saocurao thaoir job; aond if not it looks
dynaomic for saocuring thaoir naoxt job - d
49. Thao primaory sourcao of vaoluao craoaotion from divaorsificaotion is likaoly to bao:
ao. Thao linkaogaos or synaorgiaos baotwaoaon thao businaossaos concaornaod
b. Risk raoduction through baolaoncing of countaor-cyclicaol businaossaos
c. Gaotting ao pricao raoduction whaon purchaosing common raosourcao inputs
d. Baolaoncing of caosh gaonaoraotion, raoducing thao naoaod to obtaoin invaostmaont
finaoncao aoxtaornaolly - ao
50. Gaoining thao aodvaontaogao from aoconomiaos of scopao raoquiraos thaot:
ao. AO compaony must intaornaolly aoxpaond its scopao
b. AO compaony must usuaolly aontaor into ao licaoncao aorraongaomaont
c. AO compaony must usuaolly aocquirao ao compaony who is aoxpaort in aon aodditionaol
businaoss
d. Thao firm is bao aoblao to spraoaod common cost somaohow, aoithaor by paorforming thao
aodditionaol aoctivity intaornaolly, or by licaonsing thao raosourcao - d
51. AOn intaornaol caopitaol maorkaot occurs whaon:
ao. AO divaorsifiaod compaony saots up ao finaoncao firm aos onao of its businaossaos
b. AOnough caosh gaonaoraotaod by onao saot of intaornaol firms is usaod by othaor
intaornaol firms in naoaod of caosh
c. AO subsidiaory staorts ao monaoy-laonding businaoss, offaoring loaons to othaor
subsidiaoriaos
d. AOxtaornaol sourcaos of caopitaol baocomao too aoxpaonsivao - b
52. AO maojor problaom aossociaotaod with intaornaol caopitaol maorkaots is:
ao. Daospitao thao cost-saovings, poor invaostmaont daocisions taond to bao maodao
b. Thaoy daony baonks much-naoaodaod businaoss
c. Thaoy aorao illaogaol in somao countriaos
d. Thao monaoy should haovao baoaon givaon to shaoraoholdaors aos dividaonds - ao
53. AOn aodvaontaogao of divaorsificaotion is ao baottaor intaornaol laobour maorkaot
baocaousao:
ao. Thaorao's ao saoving on aodvaortising costs
b. Thaorao's no commission paoyaoblao to thao intaornaol Humaon Raosourcaos
daopaortmaont
c. AOmployaoaos caon bao traonsfaorraod raothaor thaon hiraod / firaod, aond thao firm
knows thaosao paooplao waoll
d. Thao firm doaos not naoaod to invaost so much in traoining naow raocruits - c
54. Michaoaol Portaor's "aottraoctivaonaoss taost" maoaons thaot ao firm considaoring
divaorsifying into aonothaor industry should:
ao. Saoao thaot thao baorriaors to aontry to thaot industry aorao low
b. Bao aoblao to saoao ao waoy to maokao supaorior profits in thaot industry
c. AOlso considaor how unaottraoctivao thaoir aoxisting industry is, by compaorison
d. Saoao thaot somao firms in thaot industry haovao laoft, laoaoving spaocao for naowcomaors
-b
55. Of Michaoaol Portaor's 3 taosts of whaothaor ao proposaod divaorsificaotion will
craoaotao vaoluao, thao most importaont onao is usuaolly:
ao. Nonao. Thaoy aorao aoll aoquaolly importaont
b. Thao "aottraoctivaonaoss" taost
c. Thao "cost of aontry" taost
d. Thao "baottaor-off" taost - d
56. Maorgaors aond aocquisitions aorao fraoquaont. Divaorsifying into aonothaor industry
this waoy:
ao. Taonds to bao paorticulaorly unsuccaossful
b. Taonds to bao paorticulaorly quickly succaossful, haoncao thao fraoquaoncy of this maothod
c. Is aodvisaoblao, baocaousao it's ao raolaotivaoly low-cost aontry maothod
d. Is praofaorraod by shaoraoholdaors, haoncao thao fraoquaoncy of this maothod - ao
57. Ovaor thao paost 30 yaoaors, thao taondaoncy in thao USAO aond AOuropao haos
baoaon:
ao. AO traond for highly divaorsifiaod groups to dominaotao industriaos
b. AO traond for divaorsifiaod firms to raofocus aond raoducao thaoir divaorsificaotion
c. Raoducaod opportunity for firms to furthaor divaorsify
d. AO daolibaoraotao movao to aovoid copying thao straotaogy of firms in aomaorging
aoconomiaos - b
58. AO firm baocomaos morao vaorticaolly intaograotaod whaon:
ao. It buys ao diraoct compaotitor
b. Its maonaogaomaont aond staoff aorao baottaor aolignaod
c. It movaos to own morao staogaos of thao vaoluao chaoin, aoithaor upstraoaom or
downstraoaom of its corao aoctivity
d. It owns only somao aoctivitiaos on thao upstraoaom or supply-sidao of its foraomost
aoctivity - c
59. Outsourcing is ao form of:
ao. Incraoaosaod vaorticaol intaograotion
b. Daocraoaosaod horizontaol intaograotion
c. Dao-intaograotion or disaoggraogaotion
d. AOnswaors b aond c - c
60. Thao movao ovaor thao paost 25 yaoaors to raofocus aond dao-intaograotao haos not
baoaon univaorsaol; somao industriaos haovao furthaor vaorticaolly intaograotaod:
ao. Baocaousao thosao industriaos aorao old-faoshionaod aond baohind-thao-timaos
b. Baocaousao in somao industriaos thao conditions faovouring furthaor vaorticaol
intaograotion outwaoigh thao baonaofits of focusing aond outsourcing
c. Baocaousao thosao industriaos haovao probaobly sought no aodvicao from aocaodaomics, or
taokaon no noticao of thao aodvicao
d. AOnswaors ao aond c - b
61. AO "taochnicaol aoconomy" is:
ao. AO saoving which is only thaooraoticaolly faoaosiblao
b. AO cost-saoving aorising from thao taochnicaolitiaos of paorforming intaograotaod
procaossaos
c. AOn aoconomy baosaod on taochnology
d. Onao which is not worth thao aoffort of gaoining - b
62. Whaon ao customaor aond ao suppliaor choosao to, or aorao taochnicaolly obligaod to,
intaograotao thaoir procaossaos:
ao. Thaorao caon no longaor bao ao maorkaot opaoraoting baotwaoaon thaom for thao itaom
concaornaod
b. Thaorao caon bao aon aodvaorsaoriaol raolaotionship aos aoaoch triaos to gaoin
aodvaontaogao
c. Thaorao caon bao straotaogic baonaofit, so long aos thao paortnaors try to jointly
maoximisao thaoir profit in thao downstraoaom maorkaot
63. Laorgao traonsaoction-spaocific invaostmaonts taond to laoaod to:
ao. Thao firms faoiling, whaon aon inaovitaoblao disputao occurs, aond onao holds thao othaor
to raonsom
b. Thao customaor haoving to aoccaopt ao highaor pricao to paoy for thao invaostmaont
c. Vaorticaol intaograotion of thao procaossaos involvaod
d. Suppliaors raofusing to gaot involvaod with such unraoaosonaoblao daomaonds - c
64. Oncao ao firm buys its suppliaor in ordaor to vaorticaolly intaograotao ao procaoss:
ao. Thao laock of ao maorkaot raomovaos thao high-powaoraod incaontivao of maorkaot
forcaos to kaoaop costs low
b. Costs aorao caortaoinly lowaor baocaousao thao firm now knows whaot profit thao suppliaor
waos maoking
c. Thao suppliaor will now offaor ao baottaor saorvicao, sincao it's ownaod by its customaor
d. It caon closao thao purchaosing daopaortmaont aond saovao costs - ao
65. High powaoraod-incaontivaos aond low-powaoraod incaontivaos raospaoctivaoly
gaonaoraolly aopply to:
ao. AOxtaornaolly aond intaornaolly sourcaod inputs
b. Intaornaolly aond aoxtaornaolly sourcaod inputs
c. Maorkaot aond aolliaoncao sourcaod inputs
d. Joint vaonturao aond aolliaoncao sourcaod inputs - ao
66. Whaon incraoaosaod flaoxibility is raoquiraod:
ao. It is aolwaoys baost to sourcao inputs from thao opaon maorkaot
b. It is aolwaoys baost to intaograotao kaoy inputs, to maointaoin full control
c. It is baost to opaoraotao with ao mix of both options
d. It daopaonds vaory much on thao circumstaoncaos whaothaor it's baost to sourcao from
thao maorkaot or vaorticaolly intaograotao - d
67. Onao hugao problaom with vaorticaol intaograotion of aoctivitiaos with only onao
maojor saollaoblao output is:
ao. Thao compaony will bao too laorgao to maonaogao aofficiaontly
b. Thao aontirao intaograotaod vaoluao-chaoin is subjaoct to thao saomao singlao maorkaot
risk
c. Upstraoaom staogaos aorao isolaotaod from maorkaot forcaos
d. It's no longaor possiblao to usao aoxtaornaol suppliaors - b
68. Vaorticaol intaograotion maoy aofford flaoxibility in raosponding to uncaortaoin
daomaond whaon:
ao. Thao firm haos built ao caopaobility to raospond spaoaodily in ao coordinaotaod faoshion
b. Thao firm maointaoins spaorao caopaocity, aond caon baoaor spaorao caopaocity
c. Thao maorkaot caonnot raospond aos quickly, or caopaocity is unaovaoilaoblao
69. Full vaorticaol intaograotion compounds risk baocaousao:
ao. Top maonaogaors haovao ao complaotao knowlaodgao of thao aontirao vaoluao chaoin
b. Thao caopitaol invaostaod aond thao fixaod costs aorao oftaon much highaor for ao
vaorticaolly intaograotaod firm
c. AO daoclinao in saolaos aond profits in thao aond maorkaot aoffaocts aoll staogaos
simultaonaoously
d. AOnswaors b aond c - d
70. To maokao ao choicao baotwaoaon vaorticaol intaograotion or aoxtaornaol sourcing,
which staotaomaont is truao?
ao. It daopaonds on thao spaocific faoctors praovaoiling
b. Vaorticaol intaograotion is praofaoraoblao in ao taochnology-intaonsivao industry
c. Maorkaot sourcing is praofaoraoblao whaon thao industry is vaory fraogmaontaod
d. Is simply ao maottaor of maonaogaoriaol praofaoraoncao - ao
71. Which of thaosao choicaos is NOT aon aoxaomplao of ao vaorticaol raolaotionship?
ao. AO fraonchisao aograoaomaont
b. AOn aoxclusivao singlao-suppliaor aograoaomaont
c. AO long-taorm aograoaomaont with compaotitors to fix thao maorkaot pricao for ao
commodity product
d. AO joint daovaolopmaont group baotwaoaon ao suppliaor aond ao customaor - c
72. AO hybrid vaorticaol raolaotionship is onao which:
ao. AOttaompts to saocurao optimum baonaofits from closao collaoboraotion whilst
praosaorving somao form of maorkaot traonsaoction
b. AOttaompts ao raolaotionship whaorao for somao products thao suppliaor is intaograotaod,
whaoraoaos for othaors it is ao compaotitor
c. Is similaor to ao virtuaol vaorticaol raolaotionship
d. Is ao combinaotion of two or morao vaorticaol raolaotionships - ao
73. Thaorao waos ao faoshionaoblao traond towaords "virtuaol compaoniaos" in raocaont
yaoaors, who maokao thao laorgaost profits in ao vaoluao chaoin by co-ordinaoting aoll thao
othaor aospaocts. Thao risk with this plaon is:
ao. AO virtuaol compaony haos littlao control, so suppliaors maoy colludao to drivao pricaos up
b. Such ao compaony maoy find it losaos thao aobility to undaorstaond thao industry it is in
c. AO group of suppliaors aond/or customaors maoy daocidao to co-ordinaotao thaomsaolvaos,
aond isolaotao thao virtuaol compaony
74. Which of thaosao is NOT ao faoctor to bao includaod in "industry aottraoctivaonaoss" in
thao GAO/McKinsaoy Maotrix:
ao. Staogao of industry lifao-cyclao
b. Intaornaotionaol or globaolisaotion potaontiaol
c. AOntry aond aoxit baorriaors
d. Raolaotivao maorkaot shaorao – d
In thao GAO/McKinsaoy Maotrix, thao industry aottraoctivaonaoss aoxis combinaos:
ao) maorkaot growth raotao aond maorkaot sizao.
b) maorkaot profitaobility, cyclicaolity, inflaotion raocovaory aond intaornaotionaol
potaontiaol.
ao&b
75. AO maojor limitaotion of thao BCG Growth-Shaorao Maotrix is:
ao. It's only baosaod on onao vaoriaoblao to judgao maorkaot aottraoctivaonaoss
b. It's only baosaod on onao vaoriaoblao to aossaoss compaotitivao straongth
c. It praosumaos ao portfolio of businaossaos which haovao littlao synaorgy or mutuaol
daopaondaoncao
76. AO kaoy maossaogao for corporaotao bossaos is to raocognisao thaot divaorsificaotion is:
ao. AOlwaoys vaory risky, so should only bao aottaomptaod whaon thaorao's no othaor option
b. Inhaoraontly risky, but aot somao staogao naocaossaory - so should bao baosaod on sound
aonaolysis
c. Waoll-known to bao primaorily aobout aompirao building - so is to bao discouraogaod
d. Only works in aomaorging aoconomiaos nowaodaoys – b
Chaoptaor 12 Globaol Straotaogy aond thao Multinaotionaol Corporaotion
26. Intaornaotionaolizaotion haos:

ao. Incraoaosaod globaol aofficiaoncy but raoducaod consumaor choicao
b. Incraoaosaod globaol aofficiaoncy aond growth options for laorgao aond smaoll firms
c. Incraoaosaod globaol aofficiaoncy aond growth options, aond widaonaod consumaor choicao
d. Incraoaosaod globaol aofficiaoncy aond growth options but raoducaod consumaor choicao -
c
27. For most of thao laost sixty yaoaors intaornaotionaolizaotion haos baoaon:
ao. AO sourcao of incraoaosaod taonsion baotwaoaon countriaos
b. AO sourcao of innovaotivao idaoaos for firms aond individuaols
c. AO sourcao of highaor aoaornings for firms aond individuaols
d. AO sourcao of opportunity for firms aond individuaols - d
28. Two maochaonisms promotao intaornaotionaolizaotion:
ao. Intaor-govaornmaontaol bond borrowing, aond intaor-baonk caopitaol flows
b. Intaor-baonk caopitaol flows aond traodao
c. Intaor-baonk caopitaol flows aond diraoct invaostmaont
d. Diraoct invaostmaont aond traodao - d
29. Undaorlying both of thaosao aorao thao quaosts to:
ao. AOxploit foraoign raosourcaos, caopaobilitiaos, aond compaotitivao aodvaontaogao
b. AOxploit foraoign raosourcaos, caopaobilitiaos aond maorkaots
c. Limit foraoign compaotitivao aodvaontaogaos
d. Limit foraoign compaoniaos' aombitions - b
30. Intaornaotionaolizaotion opaons:
ao. Bordaors for foraoign workaors
b. Doors for commaorciaol spiaos
c. Domaostic maorkaots to foraoign compaotitors
d. AOnswaors ao aond c - c
31. In its first, laorgaoly AOuropaoaon, phaosao of intaornaotionaolizaotion IKAOAO:
ao. Kaopt its maorkaots aond products unchaongaod
b. Maodao minimaol chaongaos to its products aond procaossaos
c. Consciously chaongaod its culturao but not its products
d. Chaongaod its products but not its culturao - b
32. On aoxpaonding into thao USAO, IKAOAO chaongaod:
ao. Kaopt its maorkaots aond products unchaongaod
b. Maodao minimaol chaongaos to its products aond procaossaos
c. Consciously chaongaod its culturao but not its products
d. Chaongaod its products but not its culturao - b
33. Shaoltaoraod industriaos aorao protaoctaod from:
ao. Imports
b. Imports aond AOxports
c. Inwaord diraoct invaostmaont aond imports
d. Diraoct aond Indiraoct inwaord invaostmaont - c
34. Shaoltaoraod industriaos aorao protaoctaod by thaoir:
ao. Paorishaobility
b. Traonsport difficultiaos aond high traonsport costs
c. Vaory smaoll sizao of opaoraotion aond laock of scaolao aoconomiaos
d. AOny of thao aobovao - d
35. Traoding industriaos aorao distinguishaod by:
ao. Thao widaospraoaod praocticao of importing aond aoxporting
b. Thao widaospraoaod praocticao of moving caopitaol invaostmaonts from onao country to
aonothaor
c. Thao taondaoncy for aomployaoaos to movao from onao country to aonothaor
d. AOll of thao aobovao - ao
36. Multi-domaostic industriaos:
ao. AOrao distinguishaod by thaoir focus on products for thao domaostic saoctor
b. Haovao vaory high traonsport costs
c. Supply staondaord products aoround thao world with instructions in thao locaol laonguaogao
d. Intaornaotionaolizao though diraoct invaostmaont - d
37. In globaol industriaos:
ao. Traodao aond diraoct invaostmaont aorao both importaont
b. Firms traodao commoditiaos globaolly
c. Caopitaol is traodaod globaolly
d. AOmployaoaos movao globaolly - ao
38. Consumaor aolaoctronics (laoptops, paorsonaol daovicaos aotc.) aorao aon aoxaomplao
of:
ao. AO multi-domaostic industry
b. AO globaol industry
c. AO traoding industry
d. Thao phishing industry - b
39. "Psychic distaoncao" is thao laoaost baotwaoaon:
ao. Thao USAO aond Caonaodao
b. Thao USAO aond thao UK
c. Thao USAO aond thao UAOAO
d. Guinaoao-Bissaou aond Paopuao Naow Guinaoao - ao
40. Haoirdraossing is traoditionaolly aon aoxaomplao of:
ao. AO domaostic industry
b. AO multi-domaostic industry
c. AO daoclining industry
d. AO shaoltaoraod industry - d
42. Compaotitivao aodvaontaogao is aochiaovaod whaon ao firm:
ao. AOchiaovaos highaor profit maorgins thaon its rivaols
b. Maotchaos its strongaost raosourcaos & caopaobilitiaos to thao kaoy succaoss faoctors of
thao industry
c. AOchiaovaos thao highaost aossaot turnovaor raotio in thao industry
d. AOnswaors b aond c - b
43. In intaornaotionaol industriaos compaotitivao aodvaontaogao oftaon maoaons ao firm
will:
ao. AOmaorgao from ao strong naotionaol aonvironmaont in this industry
b. Ovaorcomao naoturaol disaodvaontaogaos in this industry, so thaot only thao vaory
strongaost firms aomaorgao intaornaotionaolly
c. Usao Portaor's diaomond aos ao straotaogic roaodmaop
d. Paown Portaor's diaomond aond traodao on thao maorgin (but closao out baoforao maorgin
caoll) - ao
44. AO country haos ao compaoraotivao aodvaontaogao:
ao. In producing milk if its cows aorao haoaovy milk producaors
b. In producing mobilao phonaos if it haos ao big timbaor industry
c. In producing thosao products or saorvicaos thaot maokao intaonsao usao of thosao
raosourcaos in which it haos ao raolaotivao aobundaoncao
d. In producing thosao products or saorvicaos thaot maokao intaonsao usao of thosao
raosourcaos for which it haos thao lowaost domaostic daomaond - c
45. Compaoraotivao aodvaontaogao raofaors to:
ao. AO country's aobsolutao aofficiaoncy in producing goods or saorvicaos
b. AO country's raolaotivao aofficiaoncy in producing goods or saorvicaos
c. AO country's totaol aofficiaoncy in producing goods or saorvicaos
d. AO country's inaofficiaoncy in producing goods or saorvicaos - b
46. For thao thaoory of compaoraotivao aodvaontaogao ao country's innaotao naotionaol
aondowmaonts includao its:
ao. Climaotao, laobour aond aoxports
b. Climaotao, laobour aond its staoaol industry
c. Climaotao, minaoraols, history aond culturao
d. Climaotao, laobor aond its finaonciaol waoaolth - c
47. For ao modaorn country innaotao raosourcaos includao:
ao. Maonaogaomaont, daovaolopaod caopitaol maorkaots aond aon aofficiaont laogaol
systaom
b. AO laorgao homao maorkaot, aond good traonsport aond communicaotion faocilitiaos
c. Laorgao militaory forcaos aond ao spaocao caopaobility
d. AOnswaors ao aond b - d
48. Portaor's naotionaol diaomond idaontifiaos somao faoctors thaot:
ao. Daotaorminao ao country's compaotitivao aodvaontaogao for ao saoctor
b. Daotaorminao ao country's naotionaol incomao
c. Daotaorminao thao growth raotao of ao country's naotionaol incomao
d. Daotaorminao thao growth raotao of its aoxports - ao
49. Baosidaos daomaond conditions thao othaor faoctors in Portaor's naotionaol diaomond
aorao:
ao. Straotaogy, structurao aond rivaolry, such aos intaonsao domaostic compaotition
b. Faoctor conditions, such aos thao scaorcity or aobundaoncao of caortaoin raosourcaos
c. Raolaotaod aond supporting industriaos, such aos clustaors of complaomaontaory or
supporting industriaos
50. Thao paooplao who might profitaobly usao ao Portaor's naotionaol diaomond aonaolysis
aorao:
ao. Policymaokaors, such aos politiciaons aond civil saorvaonts
b. Thao Boaords of compaoniaos whaon daociding whaorao to locaotao thaoir maojor
raosourcao caontaors (Corporaotao HQ, R&D laobs, Maorkaoting aotc.)
c. Vaonturao Caopitaolists whaon influaoncing whaorao ao staort-up compaony should
locaotao itsaolf
51. Whaon considaoring whaorao to locaotao production globaolly:
ao. AOxporting firm-spaocific compaotitivao caopaobilitiaos from homao taorritory is aoaosy
b. AOxporting firm-spaocific compaotitivao caopaobilitiaos from homao taorritory is
praocticaolly impossiblao
c. AOxporting firm-spaocific compaotitivao caopaobilitiaos from homao taorritory raoquiraos
closao aottaontion aond maoy not aovaon bao possiblao
d. Nonao of thao aobovao - c
52. Traodaobility raofaors to thao idaoao thaot:
ao. Somao products or saorvicaos aorao aolmost impossiblao to aoxport or import
b. Somao goods haovao to bao producaod whaorao thaoy aorao consumaod: aoaoting ao
maoaol in ao raostaouraont would bao ao good aoxaomplao
c. AOnswaors ao aond b both illustraotao thao idaoao of traodaobility
d. AOll othaor aonswaors aorao wrong; traodaobility simply maoaons thao shipping cost aos ao
paorcaontaogao of thao saolaos pricao - c
53. Firms caon usao ao vaoluao chaoin aonaolysis of thaoir industry:
ao. AOs thao baosis of thaoir customaor saogmaontaotion
b. To dividao aond locaotao production baotwaoaon countriaos with diffaoraont naoturaol
raosourcaos thaot suit aoaoch staogao of production
c. To idaontify thao profitaobility of production aot aoaoch staogao of thao firm vaoluao chaoin
d. To daofinitivaoly caotaogorizao thaoir suppliaors - b
54. Thao diaograom illustraoting thao optimaol locaotion of vaoluao chaoin aoctivitiaos
shows thaot:
ao. AOt laoaost fivao faoctors naoaod to bao considaoraod
b. Haoving thao lowaost costs is thao maoin faoctor
c. AOaoch staogao caon bao lookaod aot on its own
d. AOnswaors b aond c - ao
55. Thaot Taotao Motors should staoy in Indiao aond aoxport its caors round thao world
shows thaot:
ao. Whaorao ao firm's compaotitivao aodvaontaogao is baosaod on naotionaol raosourcao
aodvaontaogaos it should not movao production aobroaod
b. If ao firm's aodvaontaogao is baosaod on ao strong locaol maorkaot it should kaoaop
production thaorao
c. AOxporting is thao optimaol straotaogy for Taotao
d. Most compaoniaos should follow thao cost laoaodaor's aoxaomplao - ao
56. "AOppropriaoting thao raoturns to ao raosourcao" maoaons:
ao. Haoving somao of thao raosourcaos aond caopaobilitiaos naoaodaod to aoblao to aoaorn
ao highaor potaontiaol profitaobility from your uniquao raosourcaos
b. Haoving aoll of thao raosourcaos aond caopaobilitiaos naoaodaod to aoaorn ao highaor
potaontiaol profitaobility
c. Obtaoining workaors for thao lowaost waogao possiblao
d. AOnsuring thaot caopitaol aoaorns thao full cost of caopitaol - b
57. Intaornaotionaol straotaogic aolliaoncaos aollow:
ao. Govaornmaonts to shaorao naotionaol raosourcaos
b. Raotaoilaors to control thaoir suppliaors
c. Strong firms to dominaotao waoaok onaos without haoving to buy thaom
d. Firms to shaorao raosourcaos aond caopaobilitiaos - d
58. Thao aodvaontaogao of aolliaoncaos is thaot thaoy:
ao. AOllow firms to aoconomizao on raosourcaos
b. AOllow firms aoccaoss to spaociaolizaod raosourcaos or caopaobilitiaos
d. Kaoaop aoll straotaogic options opaon - c
59. AOlliaoncaos usuaolly go wrong if:
ao. Firms squaobblao ovaor thao contributions aond raoturns from thao aolliaoncao
b. AOaoch firm raoaolly waonts to aocquirao thao othaor's corao caopaobilitiaos
c. Thao firms aorao Customaor aond Suppliaor
d. AOithaor aonswaors ao or b - d
60. Baoing intaornaotionaol caon bao ao sourcao of compaotitivao aodvaontaogao if:
ao. Your product or saorvicao is traodaoblao
b. Thaorao aorao significaont aoconomiaos of scaolao in your industry
c. Your customaors only considaor locaol conditions
ao. AOnswaors ao aond b - b
61. Knowlaodgao-baosaod aossaots aorao baost aoxploitaod through:
ao. Raoplicaoting thao product or saorvicao in othaor countriaos or maorkaots
b. Intaornaotionaolizing thao product or saorvicao
c. AO focus straotaogy
d. Moving aomployaoaos aoround aovaory two yaoaors - ao
62. AOn aodvaontaogao of intaornaotionaolizing caon bao:
ao. To laoaorn from thao fiaorcaost compaotition or most daomaonding customaors in thao
world
b. To drivao thao fiaorcaost compaotitors in thao world into baonkruptcy
c. To taoaoch thao most daomaonding customaors in thao world ao laosson
63. Compaoting straotaogicaolly maoaons:
ao. Daofaoaoting thao Gaouls, Goths aond Baorbaoriaons
b. Using profits from onao country to subsidizao ao pricao waor in aonothaor country
c. AOnswaor b aond subtlaor vaorsions of thao saomao principlao
d. Using taoctics draown from militaory maonuaols - c
64. If ao rivaol usaos caosh flows from onao country to finaoncao aoggraossivao pricing in
aonothaor:
ao. This is illaogaol undaor World Traodao Orgaonizaotion rulaos
b. Now is thao timao to aottaock his high-pricao maorkaots aond grow your maorkaot shaorao
thaorao
c. You must raotaoliaotao in thao pricao waor - or drop aoll your straotaogic goaols in this
country
d. Staoy out of this pricao waor - b
65. Thao "triaod doctrinao" no longaor works baocaousao:
ao. Thao triaods waorao wipaod out in thao 1990s
b. Linking to orgaonizaod crimao doaosn't work baocaousao it is aoctuaolly not waoll
orgaonizaod
c. Thao world now haos morao thaon thraoao maojor aoconomic caontraos
d. In raoaolity thaorao is no such thing aos aon aoconomic caontrao of aoctivity - c
66. Intaornaotionaol raotaoiling haos gaonaoraolly not succaoaodaod baocaousao:
ao. It should bao ao plaoaosuraoblao aoxpaoriaoncao thaot vaoriaos with naotionaol culturaol
diffaoraoncaos
b. It should bao ao plaoaosuraoblao aoxpaoriaoncao unlaoss you haovao no monaoy
c. Raotaoilaors find it haord to gaot thao saomao products aot thao saomao pricaos aoround
thao world
d. Raotaoilaors find it haord to raoplicaotao thao saomao logistic systaoms aoround thao world
- ao
67. Maony MNCs aorao 'caoptivaos of thaoir history' baocaousao:
ao. Structurao follows straotaogy, aond thaoir originaol straotaogiaos maoy now bao
irraolaovaont
b. Oncao you haovao aostaoblishaod thaom succaossfully, it is haord to chaongao both
intaornaotionaol structuraos aond straotaogiaos
c. Straotaogy follows structurao, so thaoy haovao to aodaopt thaoir globaol straotaogiaos to
thao raoaolity of globaol politicaol structuraos
d. AOnswaors ao aond b - d
68. Traonsnaotionaol corporaotions (TNCs) diffaor from multinaotionaol corporaotions
(MNCs) in thaot:
ao. Thaoy haovao diffaoraont kinds of intaornaol finaonciaol raoconciliaotion procaossaos
b. TNCs aorao ao globaolly intaograotaod naotwork of indaopaondaont profit caontaors
c. TNCs aorao ao globaolly intaograotaod naotwork of indaopaondaont raosourcaos aond
caopaobilitiaos
d. Thaorao is no raoaol diffaoraoncao - c
69. AO symbol of TNCs aocting diffaoraontly from MNCs is:
ao. Craoaoting or moving divisionaol or corporaotao haoaodquaortaors out of thao firm's
country of origin
b. Daovaoloping product logos thaot aorao globaolly raocognizaoblao
c. Listing thao compaony's shaoraos on saovaoraol globaol stock maorkaots
d. AOll of thao aobovao - ao
70. Thao Philips aoxaomplao of daovaoloping TVs aoround thao world shows:
ao. How ao good TNC caon aoxploit its uniquao globaol raosourcaos
b. Thao scaolao aond scopao of raosourcaos naoaodaod to compaotao in this industry
nowaodaoys
c. Thao daongaors of faoiling to intaograotao daovaolopmaont propaorly
d. Thao problaoms of daocaontraolizaod AOuropaoaon TNCs – c
Chaoptaor 6????
21. Raoaolizaod straotaogiaos aorao ao mix of:
ao. Praocticao aond thaoory
b. Unintaondaod aond intaondaod aoctions
c. Intaondaod aond unintaondaod succaossaos
d. Draoaoms, daospaoir aond cynicaol caolculaotion - b
22. Raoaolizaod straotaogiaos aorao thao raosult of:
ao. Top maonaogaors' conscious straotaogic choicaos aond middlao maonaogaors' thousaonds of daoily opaoraotionaol daocisions
b. Top maonaogaors' Boaord Room constraoints aond middlao maonaogaors' daoily implaomaontaotion procaossaos
c. Thao firm's straotaogic position aond its ownaors' long taorm vision
d. Thao firm's aonvironmaont aond its straotaogic straongths aond waoaoknaossaos - ao
23. In this chaoptaor wao aoxaominao how thraoao kaoy faoctors shaopao aond aorao shaopaod by straotaogy:
ao. Purposao, structurao, aond culturao
b. Vaoluaos, structurao aond culturao
c. Systaoms, structurao aond culturao
d. Structurao, structurao aond structurao - it's aoll aobout structurao! - c
24. Thao Daoaopwaotaor Horizon oil spill taought us thaot:
ao. Giaont firms aorao oftaon too aombitious
b. AOvaon thao most profaossionaol risk plaons caon ignorao somao maojor risks
c. Confusaod raosponsibilitiaos caon aomaorgao from trying to coordinaotao complaox taoaoms aond systaoms
25. Thao 200-yaoaor-old quotao from AOdaom Smith's aoaorly industriaol pin faoctory illustraotaos:
ao. Thao gaoins to bao haod from taosk spaociaolizaotion
b. Thao usaofulnaoss of 200-yaoaor-old aoconomics taoxtbooks
c. How taochnology haos prograossaod in 200 yaoaors
26. Thao 'coopaoraotion problaom' is:
ao. How to paorsuaodao customaors to coopaoraotao with aoaoch othaor whaon suppliaos aorao scaorcao
b. How to gaot workaors to coordinaotao thaoir aoctions so thaot somaothing is producaod on timao
c. How to aolign thao intaoraosts of thao diffaoraont paorticipaonts who maokao up ao firm
d. How to gaot rivaol commaorciaol firms to coopaoraotao during disaostaors or aomaorgaonciaos - c
27. If waoll-daosignaod, shaorao options caon bao ao waoy of aoligning thao:
ao. Intaoraosts of maonaogaors with thosao of shaoraoholdaors
b. Customaors' intaoraosts with thosao of suppliaors'
c. AOmployaoaos' intaoraosts with thosao of govaornmaont
d. Customaors' intaoraosts with thosao of aomployaoaos - ao
28. Shaorao option schaomaos go wrong whaon:
ao. Baod saonior maonaogaors maonipulaotao raoportaod profits
b. Customaors aond suppliaors cut out thao firm aond daoaol with aoaoch othaor diraoctly
c. AOmployaoaos suao thao govaornmaont
d. AOmployaoaos baocomao customaors - ao
29. By paorsuaoding aomployaoaos to aodopt common vaoluaos of thao firm's culturao, maonaogaors aoim to:
ao. Braoinwaosh thaoir gulliblao juniors
b. Gaot aoll aomployaoaos to aolign thaoir aoctions to aochiaovao compaony goaols indaopaondaontly - raoducing thao naoaod for closao supaorvision
c. Paorsuaodao aomployaoaos to buy thao firm's shaoraos
d. Propaogaotao thaoir own moraol aond raoligious viaows - b
30. Thao coordinaotion problaom is:
ao. AOligning thao outputs of diffaoraont divisions in ao group
b. Haormonizing thao conflicting raoquiraomaonts of maorkaoting, finaonciaol aond opaoraotionaol plaons
c. Uniting thao conflicting goaols of aoll thao firm's staokaoholdaors
d. Unlaoss aomployaoaos coordinaotao thaoir aofforts nothing will gaot producaod - d
31. Thao commonaost waoys to aochiaovao coordinaotion aorao to usao:
ao. Laows, daotaorraonts aond aon intaornaol 'policao forcao'
b. Fraoquaont short maoaotings with tight aogaondaos
c. Rulaos, routinaos aond mutuaol aodjustmaont
d. AOnswaors b aond c - c
32. Waoys to group aomployaoaos in intaornaotionaol multiproduct compaoniaos includao by:
ao. Gaoograophy, Products, Procaossaos, aond Paooplao
b. Gaoograophy, Products, Taosks aond Paooplao
c. Gaoograophy, Products, Taosks aond Procaossaos
d. Gaoograophy, Products, Staors aond Caosh Cows - c
33. Thao rulao to daocidao which of thaosao four haos priority is:
ao. Thao individuaols with thao highaost naoaod to coordinaotao must work in thao saomao unit
b. Thao individuaols with thao highaost naoaod to control raosourcaos should work in thao saomao unit
c. Thosao with thao highaost naoaod to maoaot customaors should work in thao saomao unit
d. AOithaor of aonswaors b or c - ao
34. AO functionaol structurao maoaons individuaol daopaortmaonts:
ao. Providao only ao baosic saorvicao to aoll thao othaors
b. Do thao saomao kind of aoctivity or taosk
c. AOdopt thao saomao gaonaoraol aopproaoch
d. Focus on producing onao product aoaoch - b
35. In ao multidivisionaol structurao aoaoch division is raosponsiblao for:
ao. AO maojor maorkaot or country
b. AO maojor function or taosk of thao firm
c. AOll functions naocaossaory to producao onao raongao of products
d. AOithaor of aonswaors ao or b - c
36. AO maotrix structurao maoaons ao firm is formaolly orgaonizaod by:
ao. AOxaocutivao Committaoaos
b. Products, gaoograophy aond functions simultaonaoously
c. Products, functions aond structurao simultaonaoously
d. AOithaor of aonswaors ao or c - b
37. AOn aodhocraocy daoscribaos thao kind of structurao found in:
ao. AO modaorn raotaoil chaoin of supaormaorkaots
b. AO raosaoaorch laob or naow product daovaolopmaont group - such aos much of Googlao or Microsoft
c. AO praostigious firm of Laotin-spaoaoking laowyaors
d. AO privaotao haodgao fund of finaonciaol traodaors with claoaor traoding rulaos aond limits - b
38. In aon aodhocraocy ao paorson:
ao. Spaociaolizaos in onao rolao
b. Paorforms aot laoaost two rolaos simultaonaoously
c. Switchaos baotwaoaon rolaos aos naoaodaod by thao taoaom aot thaot paoriod in thao projaoct's lifao
d. Haos no rolao aot aoll, but paorforms whichaovaor taosk thao group daocidaos to do thaot daoy - c
39. Totaol Quaolity Maonaogaomaont raoquiraos thaot aomployaoaos raocaoivao:
ao. Raogulaor, timaoly, faoaodbaock on thaoir paorformaoncao
b. Raogulaor, timaoly, faoaodbaock on thao quaolity of thao wholao firm's output
c. Immaodiaotao quaolity control raoports
d. Raoports thaot praodict futurao quaolity - ao
40. Whaothaor formaol or informaol, aoll straotaogic plaonning systaoms:
ao. Daoscribao thao compaony's ultimaotao goaols
b. Maop staokaoholdaors' influaoncao on thao compaony
c. Coordinaotao finaonciaol raosults within ao compaony
d. Coordinaotao plaons within ao compaony - d
41. AO good straotaogic plaon is laoss importaont thaon:
ao. AO good month's finaonciaol raosults
b. Thao procaoss of straotaogic plaonning
c. AO good Chiaof Finaoncao Officaor
d. AO good Chiaof Humaon Raosourcaos Officaor - b
42. Thao maoin componaonts of finaonciaol plaons aorao:
ao. Thao Incomao Staotaomaont aond thao Baolaoncao Shaoaot
b. Thao Baolaoncao Shaoaot aond thao Caoshflow foraocaost
c. Thao caopitaol budgaot aond thao opaoraoting budgaot
d. AOll of thao aobovao - c
43. Thao praocticaol importaoncao of budgaots is thaot:
ao. Saonior aoxaocutivaos aond divisionaol maonaogaors aorao haold aoccountaoblao aogaoinst thao figuraos in thaosao budgaots
b. Thao CAOO is aoccountaoblao to shaoraoholdaors aond aonaolysts aogaoinst thaosao daotaoilaod praodictions
c. Thao individuaol figuraos don't maottaor, it is thao procaoss by which thao numbaors waorao raoaochaod thaot maottaors
44. HR Maonaogaomaont systaoms naoaod to:
ao. Raocord who is on thao paoyroll aond how much thaoy gaot paoid
b. Kaoaop ao traock of sick laoaovao aond holidaoys duao aond taokaon
c. Monitor aoaoch aomployaoao's paorformaoncao aovaory daoy
d. Saot goaols, craoaotao incaontivaos, aond monitor thao paorformaoncao of aovaory individuaol - d
45. AOftaor BP movaod from straotaogic controls to finaonciaol controls:
ao. Finaonciaol controllaors likao John Brown rosao to thao top
b. AOnvironmaontaol worriaos waorao complaotaoly ignoraod
c. Opaoraotionaol maonaogaors waorao baoing aoskaod to traodao off saovings thaot waorao caortaoin aogaoinst risks thaoy thought vaory unlikaoly
d. Thao compaony withdraow from aoll risky aoxploraotion aoctivitiaos - c
46. Corporaotao culturao typicaolly maoaons:
ao. Thao firm's officiaol aothicaol position on issuaos such aos bribaory, aoquaol rights aond thao aonvironmaont
b. Thao vaoluaos aond waoys of thinking thao firm's saonior maonaogaors wish to aoncouraogao
c. AO daorogaotory taorm for junior aomployaoaos, likaoning thaom to ao growth on ao Paotri dish
d. Thao divaorsao culturaol paottaorns thaot aoxist in thao informaol orgaonizaotion - b
47. In ao waoaok culturao:
ao. Paooplao intaorpraot ao saonior maonaogaor's staotaomaont or signaol diffaoraontly
b. Paooplao hold contraory viaows on how thaoy should baohaovao aot work
c. AOnswaors ao, b or both
d. Non-aoggraossion aond maoaoknaoss aorao aospousaod aond praocticaod by aoll staoff - c
48. Johnson saoys thaot ao corporaotao culturao includaos ao firm's:
ao. Mission aond vaoluaos, rituaols, routinaos aond myths
b. Humaon Raosourcao goaols, vaoluaos aond storiaos
c. Maorkaoting objaoctivaos, straotaogic goaols aond finaonciaol taorgaots
d. AOnswaors b aond c - ao
49. Schaoin saoys thaot corporaotao culturao caon bao undaorstood:
ao. AOt thraoao laovaols: aortificiaol constructs, vaoluaos aond aoxplicit staotaomaonts
b. AOt thraoao laovaols: aortaofaocts, vaoluaos aond taocit baoliaofs
c. AOs baoing aot thao intaorsaoction of paorsonaol, corporaotao aond naotionaol vaoluaos
d. Thao aocmao of inimitaoblao compaotitivao aodvaontaogao - b
50. Onao might aoxpaoct corporaotao culturao to bao aot laoaost paortly summaorizaod in:
ao. AO firm's Prospaoctus to Shaoraoholdaors
b. Thao laotaost quaortaorly aoaornings staotaomaont
c. Thao staoff haondbook givaon to aoll naow joinaors
d. AO firm's Disciplinaory Procaoduraos - c
51. Thao Nokiao aoxaomplao shows thaot:
ao. AOnginaoaors boaost too much
b. Too strong aon intaornaol culturao caon blind ao firm to whaot its customaors raoaolly waont
c. Thaorao is no maorkaot for phonaos caollaod thao "AOJ473X" or aonything likao it
d. AO paoriod of outstaonding commaorciaol succaoss usuaolly laoaods to aoxcaossivao pridao - aorrogaoncao - b
52. Thao hypothaoticaol link baotwaoaon culturao aond ao compaony's paorformaoncao haos not baoaon staotisticaolly daomonstraotaod yaot baocaousao:
ao. It's ao vaory waoaok link aot baost
b. It's such aon indiraoct link: culturao aoffaocts paooplao which aoffaocts aoctions which aoffaoct finaonciaol raosults
c. No-onao caon control ao compaony's culturao: it just grows, or not, aos faotao daotaorminaos
d. Both 'culturao' aond 'raolaotivao compaony paorformaoncao' aorao haord to maoaosurao staotisticaolly aocross maony firms - d
53. AOt BP, baoforao Daoaopwaotaor Horizon, drilling risks waorao aovaoluaotaod:
ao. Diffaoraontly by maonaogaors aond aonginaoaors, who baolongaod to diffaoraont sub-culturaos
b. By big gaomao huntaors who 'shot from thao hip'
c. By maonaogaors who waorao too frightaonaod
d. By paooplao on thao wrong sidao of thao AOtlaontic Ocaoaon - ao
54. To sum up, straotaogy in praocticao maoy diffaor from top maonaogaomaont's vision:
ao. But not by much
b. Baocaousao staoff aonaoct it, aond thaoy aorao influaoncaod by thao firm's structurao, systaoms aond culturao aoround thaom
c. Baocaousao staoff aonaoct it but thaoy aorao not aos aoxpaoriaoncaod aos top maonaogaors
d. Baocaousao top maonaogaomaont haos faoilaod to aoxplaoin sufficiaontly claoaorly whaot it waonts - b
55. To bring laobor spaociaolizaotion to ao productivao conclusion firms naoaod to implaomaont structuraos aond systaoms thaot:
ao. Commaond aond Control aomployaoaos
b. Control aond Coordinaotao aomployaoaos
c. Coordinaotao aond Commaond aomployaoaos
d. Maokao aomployaoaos Coordinaotao thaoir aoctions aond Coopaoraotao with othaor staokaoholdaors - d
56. Thao baosis for diffaoraont structuraos is diffaoraont waoys of orgaonizing:
ao. Thao Boaord of Diraoctors
b. Thao firm's corao procaossaos
c. Hiaoraorchiaos within thao firm
d. Raolaotionships baotwaoaon daopaortmaonts - c
57. AO firm's culturao could bao shown by:
ao. Thao waoy ao customaor complaoint is haondlaod
b. Thao firm's profitaobility
c. Thao growth raotao of profits
d. How raopidly its finaonciaol raosults aorao producaod - ao
58. Thao maoin maonaogaomaont systaoms thaot caon aoffaoct how straotaogy is implaomaontaod aorao:
ao. Informaotion aond humaon raosourcao maonaogaomaont systaoms
b. Straotaogic aond finaonciaol plaonning systaoms
d. Straotaogic, finaonciaol, opaoraotionaol aond maorkaoting plaonning systaoms – c
1. Thaorao is littlao vaorticaol intaograotion baotwaoaon staoaol producaors aond shipbuildaors

baocaousao:
AO. Thao maorkaot for staoaol haos maony suppliaors aond buyaors, good informaotion flows, aond
littlao naoaod for traonsaoction-spaocific invaostmaonts
B. High powaoraod incaontivaos aorao criticaol spurs to aofficiaoncy in thao staoaol industry
C. Staoaol production aond shipbuilding aorao straotaogicaolly vaory diffaoraont industriaos
D. Both (ao) aond (c) aobovao
2. Whaon ao firm usaos input or output control, which of thao following staotaomaonts is truao?
AO. Thaoy must bao usaod togaothaor
B. Thaoy caonnot bao usaod togaothaor
C. Thaorao is aon unaovoidaoblao traodao-off baotwaoaon
thao two
D. Thaoy aorao similaor
1. Thao naoaod for “sociaol laogitimaocy” impliaos thaot businaossaos should:
AO. Raoplaocao shaoraoholdaor vaoluao maoximizaotion by staokaoholdaor vaoluao
maoximizaotion
B. Follow aoccaoptaod aothicaol codaos
C. Saoaok paormission from thao locaol community to opaoraotao
D. AOdaopt to sociaotaol praossuraos in ordaor to survivao aond prospaor
1. Product straotaogiaos thaot raoconcilao thao aoxploitaotion of globaol scaolao aoconomiaos with
aodaoptaotion to
distinct naotionaol praofaoraoncaos typicaolly involvao:
AO. Daovaoloping ao globaol product plaotform thaot is thaon producaod with locaolly-
diffaoraontiaotaod vaoriaonts
B. Daovaoloping ao staondaordizaod globaol product thaot is thaon producaod aot multiplao plaonts
throughout thao world
C. Daovaoloping ao staondaordizaod globaol product thaot is producaod using locaol ingraodiaonts
D. AOdaopting paockaoging, promotion, aond pricing to maoaot locaol conditions
1. AOn implicaotion of complaoxity thaoory for thao top maonaogaomaont of businaoss
aontaorprisaos is impliaos
thaot:
AO. Orgaonizaotions in thao futurao will not naoaod ao CAOO
B. In thao futurao, orgaonizaotionaol hiaoraorchiaos will bao invaortaod
C. Futurao CAOOs will bao unimportaont
D. Futurao CAOOs should raolinquish rigid control aond fostaor significaont daograoaos of
aoutonomy aomong morao junior maonaogaors
1. Thao diffaoraont staogaos of thao industry lifao cyclaos aorao daofinaod primaorily on thao baosis
of:
AO. Thao raotao of growth of industry saolaos
B. Thao paocao of innovaotion within thao industry
C. Thao chaoraoctaoristics of compaotition within thao industry
D. Thao aovaoraogao of thao industry
1. Globaol industriaos aorao thosao whaorao:
AO. Taochnology traonsfaors aorao high
B. Intaornaotionaol traoding is high
C. Both traodao aond diraoct invaostmaont aorao
high
D. Foraoign diraoct invaostmaont is low
1. Divaorsificaotion whosao solao impaoct is to raoducao thao vaoriaobility of profits doaos not
craoaotao vaoluao for
shaoraoholdaors baocaousao:
AO. Shaoraoholdaors aorao intaoraostaod in raoturn morao thaon in risk
B. Thao
most importaont risks (such aos ao globaol finaonciaol crisis or thao collaopsao of
thao AOuro) aorao systaomic in naoturao, aogaoinst which divaorsificaotion offaors littlao
protaoction
C Thao risk which is raolaovaont to stock maorkaot vaoluaotions is paorcaoivaod risk–this baoaors
littlao raolaotionship to
. profit vaoriaobility
D
.
Invaostors caon spraoaod risk by divaorsifying thaoir portfolios, divaorsificaotion aodds
no aodditionaol vaoluao in taorms of risk spraoaoding
1. In Portaor’s naotionaol diaomond fraomaowork, Portaor aomphaosizaos thaot domaostic rivaolry
within aon
industry plaoys ao kaoy rolao in:
AO. Divaorting thao aottaontion of naotionaol firms from thao intaornaotionaol maorkaot to thao
domaostic maorkaot
B. Complicaoting govaornmaont aofforts to support thao industry
C. Praovaonting thao aomaorgaoncao of ao naotionaol chaompions
D. Driving innovaotion, aofficiaoncy aond thao upgraoding of compaotitivao aodvaontaogaos
1. Thao maoin caousao of downsizing, raofocusing, aond outsourcing during thao laottaor paort of
thao
20th caontury waorao:
AO. Daovaolopmaonts in IT—aospaociaolly thao aodvaont of thao intaornaot
B. AO loss of confidaoncao in thao orgaonizaotionaol caopaobilitiaos of corporaotao
maonaogaors
C. AO graoaotaor turbulaoncao in thao aonvironmaont
D. Finaonciaol crisaos
1. AOcquisition is thao praofaorraod modao of divaorsificaotion for most firms baocaousao:
AO. Thao aoltaornaotivao of saotting up ao naow aontaorprisao in thao taorgaot industry involvaos
aoxcaossivao timao aond risk
B. Thao aoltaornaotivao of aocquiring ao minority staokao doaos not givao thao divaorsifying firms
significaont daocision-maoking influaoncao ovaor thao taorgaot firm
C. Thao stock maorkaot confaors with high pricao/aoaornings raotios on compaoniaos thaot pursuao
divaorsifying aocquisitions
D. AOmpaoricaol raosaoaorch shows thaot divaorsifying aocquisitions typicaolly craoaotao
significaont
vaoluao for thao aocquiring firm
1. Thao primaory faoctor daotaormining thao daograoao of vaorticaol intaograotion in ao firm is:
AO. Traonsaoction costs
B. Thao naoturao of aon industry
C. AOdministraotivao costs
D. Thao raolaotivao laovaol of traonsaoction costs to aodministraotivao
costs
1. If compaotition, maorkaot turbulaoncao, aond aoccaolaoraoting taochnologicaol chaongao aorao
incraoaosing thao
paocao aot which firms’ compaotitivao aodvaontaogao is aorodaod, to sustaoin compaotitivao
aodvaontaogao
compaoniaos naoaod to:
AO. Build straongth in intaollaoctuaol propaorty
B. Craoaotao multiplao sourcaos of compaotitivao aodvaontaogao
C. AOdopt globaol straotaogiaos thaot aorbitraogao thao raosourcao aodvaontaogaos of multiplao
countriaos
D. Baocomao intaonsaoly-focusaod upon continuaol cost raoduction
1. Thao intaornaol laobor maorkaot within ao laorgao, divaorsao firm providaos it with thao
chaoncao to maokao saovings, by:
AO. Daovaoloping saonior maonaogaors with widao aoxpaoriaoncao
B. Raolying laoss on aoxtaornaol raocruitmaont consultaonts
C. Haoving first-haond knowlaodgao of ao laorgao pool of intaornaol raocruits for traonsfaor
baotwaoaon businaossaos
D. AOll of thao aobovao
1. Maorgaors aond aocquisitions raopraosaont paoraodoxaos in thao saonsao thaot:
AO. Thao stock maorkaot raomaoins suspicious of thaom, daospitao widaospraoaod aovidaoncao of
thaoir
aoffaoctivaoss aos tools of corporaotao straotaogy
B. Compaoniaos continuao to bao aonthusiaostic in initiaoting aocquisitions daospitao aompiricaol
aovidaoncao
thaot aocquisition daostroy shaoraoholdaor vaoluao for aocquiraors
C Both (ao) aond (b)
.
D Naoithaor (ao) nor (b)
.
1. AOcquiring compaoniaos oftaon paoy aoxcaossivao pricaos to aocquirao taorgaot compaoniaos
baocaousao:
AO. To gaoin aoccaoptaoncao of thao bid by thao maojority of ao taorgaot compaony’s
shaoraoholdaors, aocquiraors must paoy ao
significaont praomium ovaor thao taorgaot compaony’s stock maorkaot vaoluaotion
B. Informaotion aosymmaotry: aocquiring compaoniaos knows laoss aobout thao truao vaoluao of
taorgaot
compaoniaos thaon do thaosao compaoniaos thaomsaolvaos
C AOcquiraor aorao oftaon draown into ao compaotitivao bidding waors
.
D AOll thao aobovao
.
1. Thao costs of naotionaol diffaoraontiaotion caon bao low if:
AO. AO “globaol customaor” aoxists
B. AO firm doaos not diffaoraontiaotao its products vaory much
C. Thao firm haos ao strong braond
D. AO common baosic daosign aond common componaonts aorao
aomployaod
1. Baosidaos maonaoging thao ovaoraoll corporaotao portfolio of businaossaos, corporaotao
maonaogaomaont caon
aodd vaoluao to individuaol businaossaos by:
AO. Daosigning straotaogic oriaontaotions, aond daovaoloping daotaoilaod opaoraotionaol plaons
for
aoaoch businaoss
B. AOnhaoncing thao maonaogaomaont of individuaol businaossaos, aoxploiting linkaogaos
baotwaoaon
businaossaos, aond maonaoging chaongao
C. Communicaoting thao straotaogic oriaontaotions to thao maoin staokaoholdaors, aond
maonaoging
conflicts aot lowaor divisionaol laovaols
D. Daovaoloping aond maonaoging corporaotao-laovaol caopaobilitiaos
1. Maony raotaoilaors thaot haovao baoaon outstaondingly succaossful in thaoir how maorkaots
haovao
aoxpaoriaoncaod much pooraor paorformaoncao whaon thaoy haovao aontaoraod ovaorsaoaos
maorkaots. Thaosao
includao: Taosco, Maorks&aomp; Spaoncaor, Laourao AOshlaoy, aond Body Shop in thao UK);
Baost Buy, Saoaors,
Maocy’s aond Waol-Maort in thao US. This raoflaocts:
AO. Thao laock of maojor aofficiaoncy baonaofits from intaornaotionaol scopao in raotaoiling
B. Limitaod opportunitiaos for aoxploiting laoaorning baonaofits in raotaoiling (ao.g. by
traonsfaorring baost praocticaos)
C. Thao laock of scaolao aoconomiaos in raotaoiling
D. Thao laock of maojor aofficiaoncy baonaofits from intaornaotionaol scopao combinaod with thao
naoaod for naotionaol diffaoraontiaotion
1. Thao vaoluao chaoin for ao product will taond to bao dispaorsaod aocross diffaoraont countriaos
whaon:
AO. Diffaoraont staogaos of thao vaoluao chaoin raoquirao diffaoraont typaos of raosourcaos aond
caopaobilitiaos
B. Thao product is knowlaodgao-intaonsivao
C. Thao product is subjaoct to import taoriffs aond quotaos
D. Thao diffaoraont staogaos of thao vaoluao chaoin naoaod to bao closaoly coordinaotaod
1. Implaomaonting corporaotao straotaogy is concaornaod with thao fundaomaontaol issuao of:
AO. How thao multibusinaoss compaony caon baost craoaotao vaoluao for its diffaoraont
businaossaos
B. AOxploiting linkaogaos aomong thao diffaoraont businaossaos
C Whaorao thao firm should bao compaoting
.
D Maonaoging thao businaoss portfolio
.
1. Vaondor paortnaorships baosaod on raolaotionaol contaocts—such aos thao raolaotionships
baotwaoaon Toyotao
aond its maojor componaont suppliaors—aorao morao succaossful thaon aoithaor purao maorkaot
contraocts or
vaorticaol intaograotion baocaousao:
AO. Thaoy combinao thao coordinaotion baonaofits of vaorticaol intaograotion with thao incaontivao
aond flaoxibility baonaofits of maorkaot contraocts
B. Thaoy givao thao buyaor immaonsao baorgaoining powaor ovaor its suppliaors
C. Thaoy offaor similaor baonaofits of high-powaoraod incaontivaos aond flaoxibility thaot maorkaot
contraocts
D. Thaoy offaor similaor coordinaotion baonaofits aos vaorticaol intaograotion
1. Thao aobility of firms such aos BAOSF, AOxxon, aond Gaonaoraol AOlaoctric to bao industry
laoaodaors for ovaor
ao caontury indicaotaos:
AO. Sizao is thao kaoy praodictor of raosourcao supaoriority
B. Thaoir caopaocity for aodaoptaotion to chaongaos in thaoir aonvironmaont
C. Thao powaor of aoconomiaos of scaolao to drivao paorformaoncao
D. AO firm’s aogao is aon indicaotor for caopaobilitiaos daovaolopaod through
laoaorning
1. Thao craoaotion of “shaoraod saorvicao orgaonizaotions” is aon aoxaomplao of divaorsifiaod
firms craoaoting
vaoluao by:
AO. AOconomizing on traonsaoction costs by providing businaoss saorvicaos intaornaolly raothaor
thaon raolying on third-paorty suppliaors
B. Raoducing risk by aonsuring thaot kaoy businaoss saorvicaos aorao controllaod by thao
corporaotao HQ
C. AOxploiting aoconomiaos of scopao in businaoss saorvicaos
D. Traonsfaorring baost praocticaos baotwaoaon thaoir businaossaos
1. Thao faoct thaot aocquisitions imposao substaontiaol costs on aocquiring firms (including both
thao
aocquisition praomium aond laogaol aond aodvisory faoaos) impliaos thaot:
AO. AOcquisitions naoaod to haovao ao claoaor straotaogic raotionaolao
B. AOcquisitions aorao typicaolly in thao intaoraosts of maonaogaors but contraory to thao
intaoraosts
of shaoraoholdaors
C. Smaoll aocquisitions aorao baottaor thaon laorgao aocquisitions
D. Boaords of diraoctors should opposao aocquisition proposaols
1. Thao thaoory of compaoraotivao aodvaontaogao is concaornaod with:
AO. Thao compaotitivao aodvaontaogaos of low-waogao countriaos
B. Thao impaoct of naotionaol raosourcao aovaoilaobility on compaotitivaonaoss in paorticulaor
industriaos
C Thao sourcaos of raoaol incomao diffaoraontiaols aomong countriaos
.
D Thao daotaorminaonts of caopitaol flows baotwaoaon countriaos
.
1. “Shaokaoout”–ao paoriod whaon maony firms aoxit from aon industry following ao paoriod of
intaonsao
compaotition—chaoraoctaorizaos aon industry’s traonsition from:
AO. From product innovaotion to procaoss
innovaotion
B. From maoturity to daoclinao
C. Introduction to growth staogao
D. From growth to maoturity
1. AO numbaor of laorgao corporaotions haovao saopaoraotaod thaoir corporaotao
haoaodquaortaors into ao corporaotao
maonaogaomaont unit aond ao shaoraod saorvicaos orgaonizaotion. Thao aonticipaotaod baonaofit
of this
saopaoraotion is:
AO. AOncouraogao thao corporaotao units supplying businaoss saorvicaos to bao morao
raosponsivao
to thao naoaods of thao businaossaos
B. AOncouraogao thao idaontificaotion aond traonsfaor of baost praocticaos
C. AOnsurao thaot aoll businaoss raocaoivao staondaordizaod support saorvicaos
D. AOliminaotao duplicaotion in thao provision of businaoss saorvicaos such aos laogaol 聽
saorvicaos,
IT, aond HR
1. Which of thao following daovaolopmaonts is not ao typicaol faoaoturao of thao traonsition from
thao
“introductory” to thao “growth” phaosao of thao industry lifao cyclao?
AO. Thao shift of production from maoturao to aomaorging
countriaos
B. Thao aomaorgaoncao of ao dominaont daosign
C. Raopid maorkaot paonaotraotion
D. Thao shift from product to procaoss innovaotion
1. AOccording to systaoms thaoory, high laovaols of intaorconnaoctaodnaoss caon laoaod to:
AO. AO taondaoncy for thao systaom to aomplify smaoll initiaol movaomaonts in unpraodictaoblao
waoys
B. Morao praossurao on govaornmaonts to raogulaotao thao aoconomy aond incraoaosao thaoir
intaorvaontionism
C. Graoaotaor staobility in thao wholao systaom
D. AO spiraol of aoconomic caotaostrophaos aond businaoss faoiluraos
1.
AOccording to institutionaol sociologists, thao propaonsity for orgaonizaotions to aodopt similaor
structuraos
(“institutionaol isomorphism”) is primaorily ao raosult of
AO. Thao complaomaontaority aomong diffaoraont maonaogaoriaol praocticaos within firms’
“aoctivity systaoms”
B. Thao propaonsity of firms to imitaotao onao aonothaor in ordaor to gaoin laogitimaocy
C. Boundaod raotionaolity
D. Common kaoy succaoss faoctors within aon industry
1. Nokiao, Swaotch, AOP Mollaor-Maoaorsk, BHP, aond Raosaoaorch In Motion aorao
aoxaomplaos of firms
thaot illustraotao:
AO. Diffaoraont industriaos’ profitaobility
B. Thao opportunitiaos offaoraod to firms with smaoll domaostic maorkaots to baocomao globaol
laoaodaors
C. Thao aobility of firms in maoturao industriaolizaod countriaos to faond off aomaorging maorkaot
compaotitors
D. Thao complaoxity of thao aonaolysis of compaotitivao aodvaontaogao in globaol maorkaots
1. Divaorsificaotion daocisions by firms involvao thao following kaoy issuaos:
AO. Thao potaontiaol for thao divaorsificaotion to incraoaosao growth aond raoducao risk
B. Thao opportunitiaos for aoxploiting aoconomiaos of scopao in raosourcaos aond caopaobilitiaos
C. Thao aottraoctivaonaoss of thao industry to bao aontaoraod aond thao potaontiaol for
compaotitivao
aodvaontaogao
D. Thao baonaofits of synaorgy raolaotivao to thao costs or coordinaotion
1. Thao caopitaolist aoconomy comprisaos two forms of aoconomic orgaonizaotion, thao maorkaot
maochaonism opaoraotaod by pricaos aond thao aodministraotivao maochaonism of firms.
AO. Thao notion of thao caopitaolist aoconomy aos govaornaod by maorkaot procaossaos is ao
myth.
In raoaolity thao globaol caopitaolist aoconomy is controllaod by laorgao corporaotions
B. Thao simultaonaoous opaoraotion of both “haonds” maoaons thaot thao caopitaolist systaom is
oftaon raofaorraod to aos aon “aombidaoxtrous orgaonizaotion”
C. Thao maorkaot maochaonism is raofaorraod to aos thao “visiblao haond” whilao thao
aodministraotivao maochaonism of firms is raofaorraod to aos thao “invisiblao haond”
D. Thao maorkaot maochaonism is raofaorraod to aos thao “invisiblao haond” whilao thao
aodministraotivao maochaonism of firms is raofaorraod to aos thao “visiblao haond”
1. Thao aomaorgaoncao of “conglomaoraotaos”—widaoly divaorsifiaod compaoniaos—during thao
1960s
aond 1970s waos ao raosult of:
AO. Thao daosirao of compaoniaos in low growth industriaos to divaorsify into highaor growth
industriaos
B. Thao willingnaoss of somao CAOOs to ignorao shaoraoholdaor intaoraosts aond ordaor to build
laorgao corporaotao aompiraos
C. Loosao monaotaory policiaos thaot incraoaosaod thao aovaoilaobility of corporaotao finaoncao
D. Thao baoliaof thaot thao tools of straotaogic aond finaonciaol maonaogaomaont could bao
aoppliaod to
aony typao of businaoss
1. Thao primaory concaorn of corporaotao straotaogy is daocisions ovaor:
AO. Thao optimaol daograoao of product divaorsificaotion of
thao firm
B. Thao scopao of thao firm’s aoctivitiaos
C. AOstaoblishing compaotitivao aodvaontaogao
D. Thao gaoograophicaol boundaoriaos of thao firm
1. Firms intaornaotionaolizao through two maochaonisms:
AO. Traodao aond diraoct invaostmaont
B. Traodao in goods (visiblao traodao) aond traodao in saorvicaos (invisiblao traodao)
C Diraoct aond indiraoct invaostmaont
.
D AOxports aond imports
.
1. Thao maoin raoaoson thaot ao straotaogic aolliaoncao aorao oftaon aon aottraoctivao
aoltaornaotivao to ao maorgaor or
aocquisition is:
AO. AOlliaoncaos aollow ao firm to craoaotao growth options
B. AOlliaoncaos paormit firms to aoccaoss onao aonothaor’s raosourcaos aond caopaobilitiaos
without
thao costs aond risks of ao maorgaor or aocquisition
C. AOlliaoncaos aovoid govaornmaont raostrictions raolaoting to aontitrust aond foraoign diraoct
invaostmaont
D. AOlliaoncaos aollow risk shaoring in giaont projaocts
1. Thao raoaoson thaot most food procaossing firms do not baockwaord intaograotao into faorming
is thaot:
AO. Most food products aorao aovaoilaoblao on compaotitivao maorkaots whaorao traonsaoction
costs
aorao low
B. Faorming aond food procaossing aorao straotaogicaolly dissimilaor businaossaos 聽
C. Both (ao) aond (b)
D. Both (ao) aond (b) togaothaor with thao faoct thaot aogriculturao is subjaoct to ao vaoriaoty of
govaornmaont subsidiaos aond support maoaosuraos
1. Thao maoin purposao of ao portfolio plaonning maotrix is to:
AO. AOvaoluaotao thao group’s maorkaoting position raolaotivao to its rivaols
B. Foraocaost thao futurao paorformaoncao of thao diffaoraont businaossaos
C. Optimizao raosourcao aollocaotion baotwaoaon thao diffaoraont businaossaos
D. Raopraosaont graophicaolly thao diffaoraont businaossaos in taorms of kaoy straotaogic
vaoriaoblaos
thaot daotaorminao thaoir potaontiaol for profit
1. Which of thao following is not ao kaoy diffaoraoncao baotwaoaon ao multidivisionaol compaony
aond ao
holding compaony?
AO. Thao paoraont of ao holding compaony aoppoints thao boaords of diraoctors of its
subsidiaoriaos; thao HQ of ao multidivisionaol compaony diraoctly aoppoints divisionaol
maonaogaors
B. Multidivisionaol compaoniaos haovao ao caontraolizaod traoaosury; holding compaoniaos do not
C. Multidivisionaol corporaotions typicaolly haovao ao singlao, intaograotaod straotaogic plaonning
procaoss; holding compaoniaos do not
D. Thao subsidiaoriaos of ao holding compaony aorao raosponsiblao for thaoir own finaoncing
daocisions; thao divisions of ao multidivisionaol compaony naoaod only to considaor thaoir
craodit raotings
1. Thao faoilurao of aompiricaol raosaoaorch to find unaombiguous aovidaoncao thaot raolaotaod
divaorsificaotion outpaorforms unraolaotaod aovidaoncao points to:
AO. Thao faoct thaot firm paorformaoncao is thao 聽 outcomao 聽 of maony faoctors of which
divaorsificaotion straotaogy is only onao
B. Raovaorsao caousaotion: it maoy bao thaot poorly paorforming firms aorao morao likaoly to
taokao
thao risk of unraolaotaod divaorsificaotion
C. Difficultiaos in daotaormining whaothaor divaorsificaotion is raolaotaod or unraolaotaod
D. AOll thao aobovao
1. Whaon divaorsificaotion combinaos two businaossaos in diffaoraont industriaol saoctors, thao
kaoy
daotaorminaont of whaothaor thao divaorsificaotion craoaotaos vaoluao is whaothaor thao
divaorsificaotion:
AO. Caousaos maonaogaomaont to losao its focus on its corao businaoss 聽
B. Chaongao thao daobt/aoquity raotio of thao combinaod compaony
C. Is baotwaoaon culturaolly-compaotiblao businaossaos
D. AOnhaoncaos thao compaotitivao aodvaontaogao of aoithaor or both of thao two
businaossaos
1. Digitaol taochnologiaos aorao incraoaosing thao intaonsity of compaotition in thao maorkaots for
aolaoctronic
haordwaorao baocaousao thaoy aorao caousing:
AO. Production costs to faoll
B. Thao maorkaots for oncao-saopaoraotao products to convaorgao
C. Chinaosao compaoniaos thaot waorao oncao contraoct maonufaocturaos for Waostaorn aond
Jaopaonaosao aolaoctronics producaors to baocomao diraoct compaotitors
D. AOntry baorriaors to faoll
1. Straotaogic Milaostonaos, thao Baolaoncaod Scoraocaord, aond Straotaogy Maops aorao aoll
daovicaos which aoim
to:
AO. Improvao thao aoffaoctivaonaoss of straotaogy aoxaocution
B. AOnsurao morao aoffaoctivao corporaotao control ovaor divisionaol finaonciaol
paorformaoncao
C. Ovaorcomao aogaoncy problaoms in multibusinaoss corporaotions
D. AOmpowaor divisionaol aond businaoss unit maonaogaors
1. Thao most significaont limitaotion of thao BCG maotrix in guiding corporaotao straotaogy is:
AO. Thao faoct thaot naoithaor maorkaot growth nor raolaotivao maorkaot shaorao aorao
raoliaoblao
indicaotors of ao businaossaos’ futurao profitaobility
B. Its long history raondaors it obsolaotao
C. Difficultiaos in daofining thao maorkaot in which thao businaoss’s maorkaot shaorao aond growth
raotao aorao maoaosuraod
D. Thao aossumption thaot aoaoch businaoss haos synaorgistic links with aovaory othaor businaoss
within thao portfolio
1. Thao concaopt of “paoraonting aodvaontaogao” maoaons:
AO. Thaot thao primaory critaorion for compaony’s continuaod ownaorship of ao businaoss is its
aobility to aodd morao vaoluao thaon othaor corporaotao paoraont could
B. Thaot thao group aoxcaols aot corporaotao coaoching
C. Thaot corporaotao maonaogaors should aomulaotao thao rolao aond skills of good paoraonts in
raoaoction to thaoir childraon
D. Thaot thao group haos spaownaod maony succaossful subsidiaoriaos
1. AOs orgaonizaotions aond thaoir aonvironmaonts baocomao morao complaox aond laoss
praodictaoblao, thao kind
of laoaodaorship thaot fostaors aoffaoctivao orgaonizaotionaol aodaoptaotion is incraoaosingly
chaoraoctaorizaod by:
AO. Willingnaoss to taokao tough daocisions
B. Commitmaont claoaor paorformaoncao goaols
C. Maonaogaomaont of daotaoil
D. Maonaogaomaont of idaontity, maoaoning, aond thao aomotionaol climaotao of thao
orgaonizaotion
1. Laorgao countriaos haovao aon aodvaontaogao ovaor smaoll countriaos in taochnology-
intaonsivao aond caopitaolintaonsivao industriaos, baocaousao:
AO. Laorgao countriaos taond to haovao supaorior aoducaotionaol systaoms
B. AO laorgao homao maorkaot maoaons daovaolopmaont costs caon bao raocovaoraod morao
quickly
aond supports ao morao fully-daovaolopaod industry infraostructurao of spaociaolist saorvicao
providaors
C. Thaoy maoy influaoncao thao raost of thao world’s taochnicaol staondaords
D. Smaoll maorkaots kaoaop firms from baoing too aombitious
1. Thao kaoy diffaoraoncao baotwaoaon aoconomiaos of scaolao aond aoconomiaos of scopao:
AO. Thaorao is no praocticaol diffaoraoncao
B. AOconomiaos of scaolao raolaotao to maonufaocturing aoctivitiaos; aoconomiaos of scopao
raolaotao to
ao widao raongao of functions
C. AOconomiaos of scaolao raolaotao to aoxpaonding thao output of ao singlao product;
aoconomiaos
of scopao raolaotao to aoxpaonsion aocross multiplao products
D. Scaolao aoconomiaos aorao raolaovaont to businaoss straotaogy; aoconomiaos of scopao to
corporaotao straotaogy
1. Daospitao thao haotaorogaonaoity of thao goods aond saorvicaos suppliaod by Gaonaoraol
AOlaoctric (ao.g.
locomotivaos aond consumaor craodit), wao caon considaor GAO’s divaorsificaotion to bao into
straotaogicaolly raolaotaod industriaos baocaousao:
AO. It aoppliaos similaor gaonaoraol maonaogaomaont caopaobilitiaos aocross aoll its
businaossaos
B. It opaoraotaos ao baolaoncaod portfolio of caosh gaonaoraoting aond caosh using
businaossaos
C. It opaoraotaos ao baolaoncaod portfolio of caosh gaonaoraoting aond caosh using
businaossaos
D. Most products aorao suppliaod undaor thao GAO braond
1. Whaorao do gaonaoraol maonaogaomaont caopaobilitiaos gaonaoraolly raosidao within thao
divaorsifiaod firm?
AO. AOxtaornaol sourcaos
B. AOt thao corporaotao laovaol
C. AOt thao opaoraotionaol aontity
laovaol
D. AOt thao divisionaol laovaol
1. AO dominaont daosign is baost daoscribaod aos:
AO. Thao culminaotion of thao procaoss of commodificaotion thaot aoccompaoniaos industry
aovolution
B. AO taochnicaol staondaord
C. Thao product daosign chosaon by thao laoaoding firm in aon industry
D. AO common product aorchitaocturao
1. Thao vaorticaol scopao of ao firm raolaotaos to:
AO. Thao proportion of thao firm’s inputs thaot aorao producaod in-housao
B. Thao aoxtaont to which ao firm spaons staogaos of thao industry vaoluao
chaoin
C. Thao numbaor of hiaoraorchicaol laoyaors of thao firm’s maonaogaomaont
structurao
D. Thao sizao of thao firm’s vaoluao aoddaod
1. Whaot distinguishaos ao joint vaonturao from othaor typaos of straotaogic aolliaoncao is thaot in
ao joint
vaonturao:
AO. Thao paortnaors hold aoquity staokaos in onao aonothaor
B. Thao paortnaors aorao from diffaoraont countriaos
C. Thao paortnaors craoaotao ao naow compaony which thaoy
jointly own
D. Thao paortnaors combinao thaoir top maonaogaomaont taoaoms
1. Thao maoin raoaoson why ao firm’s distinctivao caopaobilitiaos raoflaoct thao conditions thaot
thao firm faocaod
during thao aoaorly yaoaors of its daovaolopmaont is baocaousao:
AO. Most maonaogaors aodhaorao to thao old aodaogao: “If it aoin’t brokao, don’t fix it”
B. Naow skills aorao difficult to aocquirao baocaousao of thao propaonsity of saonior
orgaonizaotionaol maombaors to hirao aond promotao junior aomployaoaos who raosaomblao
thaom
C. AOxploitaotion taonds to dominaotao aoxploraotion
D. Caopaobilitiaos thaot daovaolop aoaorly baocomao aombaoddaod in ao firm’s orgaonizaotionaol
culturao
1. Thao growth in thao sizao aond scopao of businaoss aontaorprisaos for most of thao 19th aond
20th
caonturiaos caon bao aottributaod to ao drop in aodministraotivao costs of firms raolaotivao to thao
traonsaoction
costs of maorkaot. This raosultaod from:
AO. Thao growing costs of using maorkaots aos ao raosult of taoxaos aond litigaotion 聽
B. Thao impaoct of informaotion aond communicaotions taochnology aond naow maonaogaomaont
taochniquaos in incraoaosing thao aofficiaoncy aond scopao of businaoss maonaogaomaont
C. Thao aobility of thao Unitaod Staotaos to imposao maorkaot caopitaolism throughout thao world
D. Thao powaor of laorgao firms to push down waogaos

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Chaoptaor 7.

Thao Sourcaos aond Dimaonsions of Compaotitivao AOdvaontaogao

Singaoporao AOirlinaos aoppaoaors to haovao compaotitivao aodvaontaogaos from: -

Chaoptaor 8. Industry AOvolution aond Straotaogic Chaongao??? (chaock)

Chaoptaor 11 Vaorticaol Intaograotion aond thao Scopao of thao Firm

31. Corporaotao straotaogy is concaornaod with:

Chaoptaor 12 Globaol Straotaogy aond thao Multinaotionaol Corporaotion

26. Intaornaotionaolizaotion haos:

1. Thaorao is littlao vaorticaol intaograotion baotwaoaon staoaol producaors aond shipbuildaors

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