Strategy & Globalization (M42)

Question 1

These are conditions that threaten management’s ability to execute strategies and achieve the firm’s objectives

Answer 1

Business Risks

Question 2

What are the general environment factors? (6)

Answer 2

1) Economic
2) Demographic
3) Political & Legal
4) Sociocultural
5) Technological
6) Global

Question 3

This is a set of factors that influence the firm’s competitive actions

Answer 3

Industry Environment

Question 4

What are the 5 forces in the Porter model for industry analysis?

Answer 4

1) Competitors
2) Potential Entrants into the Market
3) Equivalent Products
4) Bargaining Power of Customers
5) Bargaining Power of Input Suppliers

Question 5

Inflation rates are what type of general environment factor

Answer 5

Economic

Question 6

Population size is what type of general environment factor

Answer 6

Demographic

Question 7

Antitrust laws, tax laws, and deregulation philosophies are what type of general environment factor

Answer 7

Political & Legal

Question 8

Workforce Diversity is what type of general environment factor

Answer 8

Sociocultural

Question 9

This is a market where only one buyer exists for all sellers

Answer 9

Monopsony

Question 10

The power of customers determines the firm’s ability to increase prices or lower quality of their products

Answer 10

Bargaining Power of Customers

Question 11

The power of suppliers affects a firm’s ability to negotiate price or quality concessions

Answer 11

Bargaining Power of Suppliers

Question 12

This sets forth the purpose of an organization, including its distinguishing characteristics

Answer 12

Mission

Question 13

This sets forth where the organization would like to be in the future

Answer 13

Vision

Question 14

This is used to develop strategies to minimize risks and take advantage of major opportunities

Answer 14

SWOT Analysis

Question 15

The simple regression formula is as follows:

y = a +bx

What does ‘y’ stand for?

Answer 15

The dependent variable

Question 16

The simple regression formula is as follows:

y = a +bx

What does ‘a’ stand for?

Answer 16

The y-axis intercept

Question 17

The simple regression formula is as follows:

y = a +bx

What does ‘b’ stand for?

Answer 17

The slope of the line

Question 18

The simple regression formula is as follows:

y = a +bx

What does ‘x’ stand for?

Answer 18

The independent variable

Question 19

What are the two target scopes for generic business strategies, as dictated by Porter?

Answer 19

1) Broad (Industry-Wide)

2) Narrow (Market Segment)

Question 20

What are two advantages a company can have in their products?

Answer 20

1) Low Cost

2) Product Uniqueness

Question 21

How can a company differentiate their product?

Answer 21

1) Physical Characteristics
2) Perceived Differences (brand name)
3) Support Service Differences

Question 22

This is the sharing of key information from the point of sale to the final consumer back to the manufacturer, the manufacturer’s suppliers, and the supplier’s suppliers

Answer 22

Supply Chain Management

Question 23

This involves contracting for the performance of processes by other firms

Answer 23

Outsourcing

Question 24

When given a regression analysis problem, Adjusted R Squared measures what?

Answer 24

The percent of the variance in the dependent variable explained by the independent variable

Question 25

When given a regression analysis problem, Multiple R measures what?

Answer 25

the Coefficient of Correlation

Question 26

What is the simple regression formula?

Answer 26

y = a + bx