Assessment-1 Question

1 A soft drink company’s closely guarded formula can be an example of ___

2 Which of these does not increase the customer's willingness to pay?
The Price competition is muted in the soft drink industry dominated by Pepsi and Coke.
3
Which of the following is not a possible reason?
We find the traditional home land line telephones disappearing and being replaced by
4
smart phones. This is driven by which of the following parameters.
Which of the following would not be a strong barrier to entry for a telecom service
5
provider?
A customer's "Willingness to Pay" should always be below the price that is being
6
charged by the firm in the industry.
We find that the margins of Microsoft and Intel are higher compared to the PC
manufacturers, we find that that Apple takes a very high margin on sale of mobile
7
application by individual developers for the iOS platform. What are the underlying
forces in these two scenario respectively?
The Skype application is a _______________ to a Wi-Fi tablet system you use to
8
communicate.
Which of the following operates in Television Broadcasting in a multi-lingual setting like
9
India
A game you developed for the mobile and tablet platform has become a huge hit. You
10 are now considering launching a bags and other stationary items using the same brand
name. The source of this choice is driven by ____
11 Which among the following is true?

12 An important requirement for doing a good PESTLE analysis is ___

 Correct Answer
Barriers to entry
Price
They have great economies of scale

Higher performance/price ratio

Outsourcing of the network tower maintenance
FALSE

Supplier and Complementor

Compliement
Regional Economies of Scale
Brand Name of the game
Both of the above
1. Identifying a few key pestle factors that are likely to significantly influence and
monitor at regular intervals
2. Identifying the interactions across key factors
Assessment-2
1
2
3
4
5

10
11
12
13
14

15
 Question
Which of the following does not help in sustainability of the competitive advantage a firm possesses?
The primary goal of resource analysis is to value a company's assets.
The primary concern of resource based view is industry selection and positioning
Which of the following is an inherent assumption in the Resource based view of the firm?
Which of the following makes it relatively easier to imitate resources?

Company A has successfully launched its product in the market and has reaped rich dividends for the same. S is a top executiv
of the firm who is planning to move out to start the same business supported by a few investors. 6 months later, despite the
product launch S has not been able to replicate the same success as in company A. Which of the following is a possible reason

Isolating Mechanisms in firms are similar to Entry Barriers in

A is an exceptional surgeon working in Hospital K. He decides to decline an offer from a newly set up Hospital - B which is still
the process of adding in the necessary infrastructure. From a RBV perspective, his decision is most likely to be driven by whic
of the following reasons:
Most automobile companies in the United States between 1970 and 1990 knew that Toyota was able to create and capture
advantage over its competitors because of the way it works with its suppliers. This is an example of ____
Southwest Airlines' activities to achieve lower cost have been well documented in academics and business press. Yet most of
the low cost airlines fail to match its success while imitating its strategy. This can be explained by ____
From a RBV perspective, with respect to resources, the source of heterogeneity among firms is the way
Which of the following constituents of the SWOT is aligned with the Resource Based View of the firm ?
Studies have documented that there is a greater variation in firms profitability due to _____
Wal-Mart's ability to negotiate a hard bargain with suppliers can be a source of competitive advantage if ____
Naukri.com is a job portal which has both the highest number of job seekers and also the highest number of employers seekin
candidates registered on its platform. The source of competitive advantage for Naukri.com in this case can be attributed to
_____
 Correct Answer
Relevance
FALSE
FALSE
Resource immobility
Visible assets

Imperfect mobility of the resource

Industry

Need for interconnected resources

Social Complexity

All of the above

firms bundle resources and their interconnected nature
SW
within industry differences in profitability.
other retailers find it difficult to imitate

network effects
Assessment-3

3
4
5

10

11

12

13

14
15
 Question

Differentiation and Segmentation are different from each other. Differentiation is concerned with
_________ a firm competes, while Segmentation is concerned with _________ a firm competes

Federal Express (FedEx) has constantly attempted to ensure reliability of its delivery. McDonald's
(McD) food chains have ensured that customers get the fast food ordered within same time all over
the world. Which of the following aptly represent FedEx and McD?
Differentiation would consist of creating differences in the firms product and service that is industry
wide _________
Which of the following are potential pitfalls of a differentiation strategy?
Which of the following is not a potential pitfall of a focused strategy?

Which of the following could possibly be an organization structure used in implementing cost
leadership?
The barrier to entry that helps reduce the threat of new entrants for an incumbent firm using a
cost-leadership strategy would mean _______
Which of the following is less likely to be a feature of the compensation adopted by a product
differentiator firm?
Which of the following is not a way in which a product differentiator firm would differentiate itself
on?
Harley Davidson positions itself as a lifestyle beyond just a super bike with annual fairs, community
drives and so on. What is the strategy followed here?
Apple's iphone is a product that is differentiated based on user experience and features. Which of
the following activities are likely to negatively impact Apple's product differentiation?
Cost leadership focuses on ____________ where as differentiation strategy focuses on
___________.
Bigbasket.com allows customers to order their groceries, vegetables online and get it home
delivered at a convenient time. Which of the following conditions would suggest that it is following
a differentiation strategy?
A firm offering almost same benefits to customers at a much lower price is known as _______
Which of the following can act against a firm following a differentiation strategy?
 Correct Answer

How & Where

FedEx: Differentiation; McD: Differentiation

unique and valued by customers

Uniqueness is not valuable
New entrants would find it hard to achieve the
economies of scale or unanswered

Having a substantially lower cost compared to

competitors

Reward for cost reduction

Cost

Focused differentiation

Heavy discounts for Christmas sale

reducing cost, increasing willingness to pay

Its customers are loyal and don’t mind paying higher

than that of physical retail store

benefit parity
Uniqueness in offering isn't valued by customers
Assessment-3

10
11

12

13

14
 Question

It makes sense for a firm to vertically integrate only if ___________

A firm's ___________________is the way in which managers conceptualize the business and make critical
resource allocation decisions-be it in technologies, product development, distribution, advertising, or in
human resource management.

Which of the following represent the synergies that a multi-business firm can claim across its two businesses
A and B? [V(A) represents the value of business A and so on]

Which of the following aptly represents the question corporate strategy attempts to answer?

Which of the following is not a means of obtaining synergies across different businesses of a multi-business
firm?

Which of the following is a potential problem in a multi-business firm?

Strategy scholars argue that diversification can also lead to loss of value. This can happen because of
_______

Which of the following is not an explanation for where business groups fill institutional voids in developing
countries?

A business group with a high level of unrelated diversification has its businesses as separately listed and legal
entities. The parent company however is not a listed organization. Which type of multi-business structure is
this?

A small number of business houses with diversified businesses control a large part of the country's economy
in several nations in Asia. Which of the following is a compelling explanation for this phenomenon?
The CEO of an express delivery service company is contemplating an entry into truck manufacturing through
an acquisition. What would you suggest to the CEO? and why?

A company should diversify into multiple businesses only if ______

Geographic diversification across national boundaries often hurts a company's performance because ______

Which of the following is the most compelling reason for diversifying into a new business?
 Correct Answer

Transactions costs in the market > Administrative costs within the firm

dominant logic

Sharing activities across different products.

Cost of coordination is higher than gain from economies of scope

Conglomerate discount
Do vertically integrate. It gives you access to critical resources.

all of the above three requirements are met

Options

1.Transactions costs in the market > Administrative costs within the firm
2.Administrative costs within the firm > Transactions costs in the market
3.Administrative costs within the firm = Transactions costs in the market
4.Transaction costs do not exist

1.dominant logic
2.economic logic
3.ecological logic
4.dormant logic

V(A)+ V(B) - V(AB)

V(AB)+V(A)+V(B)
V(AB)-V(A)+V(B)
V(AB)-V(A)-V(B)
unanswered

How to position a business in the market?

Which businesses to compete in?
Who is my competitor?
How do I compete?

Leveraging existing resources

Sharing activities across different products
Using capabilities from one business in another business
Outsourcing an activity that was previously undertaken by the firm

Slower decision making

High governance costs
Lack of high-powered incentives
All of the above

Focused diversification
Related diversification
Cost of coordination is higher than gain from economies of scope
High levels of executive compensation

Poorly developed labor markets

Weak protection that consumers have
Weak contract enforcement
Conglomerate discount

Cooperative form
SBU form
Competitive form
None of these

Business groups can act to compensate for institutional voids

Family businesses are easier to control
The gains from synergies of a multi business strategy is higher than costs associated with it
Business groups add value through centralized corporate functions
Do vertically integrate. It gives you access to critical resources.
Do vertically integrate. It promises monopoly control over your competitors.
Do not integrate. Express delivery and truck manufacturing are businesses that require very different
competencies.
Do not integrate. The transactions costs of buying trucks in the market are greater than the administrative
costs of making trucks within the firm.

1.economies of scope exist

2.the extra value created by the company is greater than the value that independent shareholders can
create for themselves by risk diversification
3.the extra value created by the firm is greater than what can be created by another parent firm
4.all of the above three requirements are met

countries differ in languages, cultures, norms and institutional practices

economies of scope exist
economies of scale exist
some countries have low labor costs

The entry barriers for this new business are low

The company has a corporate advantage when it enters this new business
Five forces analysis suggests that the industry is attractive
The new business is unrelated to its existing businesses
Rest all options are covered only bold sentence is not covered