Management Strategy

1. Please choose an incorrect description of core competencies.

• A. Core competencies are a company's unique strengths

• B. Core competencies differentiate a company’s products and services from those of competitors.

• C. Core competencies persist over time.

• D. Core competencies expressed through structures, processes, routines.

2. Please choose an incorrect sentence regarding the resource-based view of competitive advantage.

• A. Each company possesses a unique combination of resources and capabilities.

• B. Resources are not easily transferred to other companies.

• C. The goal of resource-based view is to create a strategic fit with the firm’s environment.

• D. Intangible resources do not have physical attributes and are invisible.

3. Please choose an incorrect sentence about performance measuring.?

• A. Corporate performance can only be measured with qualitative data such as accounting profitability

• B Three frameworks include accounting profitability, shareholder value creation, and economic value creation.

• C. Accounting profitability analyzes performance by comparing it with other competitors within the same industry or with the industry average.

• D. The limitation of shareholder value creation is that macroeconomic factors affect the stock price.

4. Please choose an incorrect sentence regarding economic value creation

• A. Consumer surplus refers to the difference between the amount a consumer is willing to pay, and the actual price.

• B. Consumer surplus represents the profit of a company.

• C. The value of a product perceived by consumers can change based on factors such as weather.

• D. Producer surplus is the difference between the price paid and the cost of production

5. Diseconomies of scale occur when __________.

• A. Firms spread fixed costs over more units

• B. Firms become too big and lose flexibility

• C. Firms use specialized equipment efficiently

• D. Firms achieve minimum efficient scale

6. Please choose an incorrect sentence regarding differentiation and cost leadership strategy

• A. The cost leadership strategy focuses on attracting customers who are willing to pay a price premium

• B. Companies can generate lower costs through improvements in technology and production processes.

• C. As companies accumulate experience, production time decreases, which can also lead to lower costs.

• D. Differentiation strategies focus on adding value through unique features.

7. Please choose an incorrect sentence describing vision, mission and values.

• A. Vision captures an organization’s aspiration.

• B. An effective vision is expressed as a statement.

• C. Mission is what an organization actually does.

• D. The relationship between vision statement and firm performance is strongest when the vision is product-oriented.

8. Please choose an incorrect sentence describing a good strategy.

• A. Competitive advantage is always absolute and never relative.

• B. A firm can achieve a competitive advantage by offering superior value.

• C. Competitive advantage can be measured by comparing a firm to its industry average.

• D. Sustainable competitive advantage lasts over a prolonged period.

9. Please choose an incorrect sentence describing the strategy process across levels.

• A. Corporate strategy determines industry, markets and geography.

• B. Organizations are required to determine cost leadership, differentiation or value innovation strategies at functional level.

• C. Business strategy concerns how to compete in the industry.

• D. Corporate strategy concerns where to compete.

10. Which of the following helps firms keep costs low in a cost leadership strategy?

• A. Premium pricing

• B. Economies of scale and learning-curve effects

• C. Customized marketing

• D. Brand exclusivity