Test

Question 1

1. When internationalisating companies are subject to some conflicting, opposing forces:
   The need to manage investments (cost), coordinate decisions and adapt to local
   tastes. So it is about localising vs standardising (efficiency)
   The need to manage decisions, delegate decisions and adapt to local tastes
   None of the rest
   The need to manage sales, coordinate decisions and study local tastes

Answer 1

The need to manage investments (cost), coordinate decisions and adapt to local
tastes. So it is about localising vs standardising (efficiency)

Question 2

2. When internationalisating companies are subject to some conflicting, opposing forces:
   The need to manage investments (cost), coordinate decisions and adapt to local tastes. So it
   is about localising vs standardising (efficiency)
   The need to manage decisions, delegate decisions and adapt to local tastes
   None of the rest
   The need to manage sales, coordinate decisions and study local tastes

Answer 2

The need to manage decisions, delegate decisions and adapt to local tastes

Question 3

3. Choose the right statement with regards to strategy and structure:
   Structure always follows strategy
   They are not directly related but a manager has to fix both
   Structure is more important than strategy
   Strategy always follows structure
   Strategy and Structure are interconnected in a two way (reciprocal) relationship

Answer 3

Strategy and Structure are interconnected in a two way (reciprocal) relationship

Question 4

4. Gemawat’s CAGE framwork has 4 dimensions, what are they?
   Culture, Administration, Geography, Economic
   Culture, Authority, Geography, Economic
   Competition, Authority, Geography, Equivalence
   None of the rest

Answer 4

Culture, Administration, Geography, Economic

Question 5

5. What term is used for a situation where a company has diversified beyond its current
   products and markets, but within its existing capabilities?
   Synergy
   Stretched capability
   Related diversification
   Market penetration

Answer 5

Related diversification

Question 6

6. According to Hofstede, Masculinity/Femininity dimension of culture refers to:
   The different sports countries play
   The different and diverse values that a country or culture may consider important
   Competiton and cooperation
   None of the options

Answer 6

The different and diverse values that a country or culture may consider importan

Question 7

7. Which of the following best defines a Strategic Business Unit (SBU)?
   A corporation’ autonomous division that has its own manager and its own budget
   An organisation’s ability to develop and change its competences
   A product line independent from the mother company
   A new venture created to exploit vertical integration synergies
   A corporations’ independent subsidiaries across different countrie

Answer 7

A corporation’ autonomous division that has its own manager and its own budge

Question 8

8. Which of the following best defines a Strategic Business Unit (SBU)?
   A corporation’ autonomous division that has its own manager and its own budget
   An organisation’s ability to develop and change its competences
   A product line independent from the mother company
   A new venture created to exploit vertical integration synergies
   A corporations’ independent subsidiaries across different countrie

Answer 8

A corporation’ autonomous division that has its own manager and its own budget

Question 9

9. Choose the right statements below discussing the difference between
   differentiation and diversification? (there is more than one correct answer)
   Through diversification a company creates a new product line and by differentiation
   approach it decides to provide a unique approach upon a price premium
   Differentiation is a competitive level strategy
   Diversification is a corporate level strategy
   Diversification deals with the creation of a new Strategic Business Unit into a new
   market

Answer 9

Differentiation is a competitive level strategy
Diversification is a corporate level strategy

Question 10

10. According to the Strategic Clock theory an organisation:
    Can move from low cost towards differentiation strategy but not suggested to do
    the opposite
    Builds a competitive advantage based on reducing costs ‘‘around the clock’’
    constantly
    Rock around the clock (it’s like dancing) – honestly now, do not choose me
    Can move from differentiation to low cost strategy but not suggested to do the
    opposite
    Should change its strategies in frequent intervals like a clock

Answer 10

Can move from low cost towards differentiation strategy but not suggested to do
the opposite

Question 11

11. Which of the TWO following are (or were) good examples of a Blue Ocean
    Strategy?
    Ferrari Cars
    Gucci Handbags
    AirBnB (the company that connects people who need a short stay with people that
    have a place to rent)
    Cirque du Soleil
    Emirate Airlines

Answer 11

AirBnB (the company that connects people who need a short stay with people that
have a place to rent)
Cirque du Soleil

Question 12

12. Corporate strategy deals with (there is more than one correct answer):
    The ability of a corporation to create or acquire new SBUs
    Deciding in which markets a corporation should operate or not
    Highest level of decision making
    The ability of a corporation to create a synergy effect with its SBUs (Strategic
    Business Units)
    Making decisions on low cost and differentiation approaches

Answer 12

The ability of a corporation to create or acquire new SBUs
Deciding in which markets a corporation should operate or not
Highest level of decision making
The ability of a corporation to create a synergy effect with its SBUs (Strategic
Business Units

Question 13

13. Choose the one most important issue as to why an horizontal integration might
    fail:
    Incompatible and different cultures of the two companies
    Lack of proper planning
    Poor valuation of the merger/acquisition
    Poor implementing skills

Answer 13

Poor valuation of the merger/acquisition

Question 14

15. Differentiation means:
    A firm has an opinion about buyer power that differs from the opinion of its main
    competitor
    A firm merely strives to make its product offerings differ from those of its
    competitors
    A firm strives to make its product offerings differ from those of its competitors,
    under the premise that customers value this difference. For that reason they are
    willing to pay a price premium.
    A firm strives to achieve a difference between its own profitability compared with the
    profitability of its main competitor

Answer 14

A firm strives to make its product offerings differ from those of its competitors,
under the premise that customers value this difference. For that reason they are
willing to pay a price premium.

Question 15

16. In terms of foreign market entry, creating a wholly owned subsidiary implies:
    High levels of risk
    High levels of control
    High levels of commitment
    All of the above

Answer 15

All of the above

Question 16

17. Which of the following THREE are Corporate Growth Strategies ?
    Differentiation
    Vertical Integration
    Strategic Alliance
    Rectification
    Horizontal Integration
    Divesture
    Market Penetration

Answer 16

Vertical Integration
Horizontal Integration
Market Penetration

Question 17

18. The usefulness of Evaluation Tools is that…(TWO correct answers):
    Actually, they are not that useful; it is sufficient for firms to analyse the internal
    environment (resource-based view) and the external environment (Porter)
    They help decision-makers to reflect even after a strategy has been implemented
    and the success or failure has become evident
    They help decision-makers to look ahead, before a strategy is to be rolled out
    None of the above
    Pfff, sick and tired of this test. If you choose me , you lose about 1.4 points but you
    do it consciously as an act of mini rebelion.
    Seriously, were you actually attracted by the above argument? Don’t choose me.

Answer 17

They help decision-makers to reflect even after a strategy has been implemented
and the success or failure has become evident
They help decision-makers to look ahead, before a strategy is to be rolled out

Question 18

19. How did Ryanrair become the third most profitable airline in the world?
    By business process re-engineering and maximising capacity utilisation
    By allowing customers to choose their own seats on the flight rather than having an
    allocated seat number
    By maintaining a social and environmental strategy
    By centralising head office jobs and combining employee roles to improve staff
    efficiency

Answer 18

By business process re-engineering and maximising capacity utilisation

Question 19

20. Inertia seems to be a major reason of why companies and people do not want to
    change. This is because inertia is:
    It keeps people hyper-active and makes them unable to think or reflect
    Is what Millennials are after so as to have a meaningful but easy life
    See the movie ‘‘Scrooged’‘-really nice for Christmas.
    Causing us the illusion of safety and makes it difficult to perceive anything outside
    our ‘‘bubble’’ of reality.
    It helps you control everything

Answer 19

Causing us the illusion of safety and makes it difficult to perceive anything outside
our ‘‘bubble’’ of reality.

Question 20

21. Tesla has recently announced plans to open a factory in China, to sell Tesla
    electric vehicles to Chinese customers. The factory will be wholly owned by Tesla
    and paid for by Tesla’s international investors. The entry mode that best describes
    Tesla’s international China strategy is:
    Wheeling and dealing
    Foreign direct investment (FDI)
    Exporting
    Licensing
    Joint ventures and alliances

Answer 20

Foreign direct investment (FDI)

Question 21

22. Horizontal integration is:
    Smile, you are doing ok- don’t worry.
    Development into activities concerned with the outputs from the company’s current
    business
    Development into activities that are not related with the inputs into the company’s
    current business
    Differentiation of products and services according to a price premium.
    Development into activities which are competitive (or even complementary) to the
    present activities

Answer 21

Development into activities concerned with the outputs from the company’s current
business

Question 22

23. In simple words, what is strategy (choose all that apply)?
    A course of action for achieving an organisation’s purpose
    Strategy can only be about eliminating competition
    Strategy is a course on my program of study (yes, I am correct as well)
    What to achieve, and how to get there

Answer 22

A course of action for achieving an organisation’s purpose
What to achieve, and how to get there

Question 23

24. Which TWO of the following reasons (benefits) explain why unrelated
    diversification strategy is useful?
    To exploit financial synergies
    Where there is great business unit complexity
    To spread the investment risk
    Where it can also forward integrate
    A great idea by the manager

Answer 23

To exploit financial synergies
To spread the investment risk

Question 24

25. What are the THREE key issues that need to be dealt when downsizing?
    Making sure that there are no mistakes in the process
    Stabilizing the situation soon after the implementation
    Making the decision
    Implementing it
    Ensuring that all the older employees are leaving the company

Answer 24

Stabilizing the situation soon after the implementation
Making the decision
Implementing it

Question 25

26. What type of integration occurred when Google (think of the SBU of Android
    operating system) acquired Motorola (as a producer of mobile phones)?
    Organic
    Horizontal
    Related
    A fantastic one
    Vertical

Answer 25

Horizontal

Question 26

27. Forever 21 fast fashion chain competes against other bricks-and-mortar players
    (including Zara, H&M, GAP) using a business unit strategy with large economies of
    scale is best described as:
    Differentiation
    Low cost
    Focused low cost
    Blue ocean
    Focused differentiation

Answer 26

Low cost

Question 27

28. Apple launched the Watch product range some years ago as new SBU for their
    existing customers. The part of their corporate strategy that best describes this
    launch was:
    Related diversification
    Market penetration
    Product development
    Market development
    Unrelated diversification

Answer 27

Product development

Question 28

29. In which situation is it possible to follow a focused differentiation strategy?
    When the perceived added value to a niche, small, profitable segment of the market
    justifies the price premium
    Where the market cannot be segmented
    Where there is no risk of a price war
    When the user perceives added value and market share can be increased without a
    price premium

Answer 28

When the perceived added value to a niche, small, profitable segment of the market
justifies the price premium

Question 29

30. Tesla’s electric SUV car is best described as part of a business unit strategy
    involving elements of unique value but for a small profitable segment which implies:
    Focused low cost
    Blue ocean
    Low cost
    Differentiation
    Focused differentiation

Answer 29

Focused differentiation

Question 30

32. When having a matrix structure for an organisation:
    We succeed in creating a blue ocean strategy that no-one can imitate
    We ensure fast decision making and less mistakes in strategy implementation
    We ensure fairness of treatment of employees but experience delays in decision
    making and problems due to different expectations from every manager
    We achieve less bureaucracy and higher levels of complexity

Answer 30

We ensure fairness of treatment of employees but experience delays in decision
making and problems due to different expectations from every manager

Question 31

33. Diversification often fails because (choose all that apply):
    Incompatible corporate cultures
    Porter was wrong and provided unhelpful tools for managers deciding whether to
    diversify
    Managers do not understand or overestimate the new markets and industries their
    companies try to enter
    Resources and capabilities do not align across the corporation

Answer 31

Incompatible corporate cultures
Managers do not understand or overestimate the new markets and industries their
companies try to enter
Resources and capabilities do not align across the corporation

Question 32

34. Which of the following approaches is a ‘‘Transnational’’ type of
    internationalisation strategy?
    High Global Cost Efficiency - High Local Responsiveness
    Low Global Cost Efficiency - High Local Responsiveness
    Low Global Cost Efficiency - Low Local Responsiveness
    High Global Cost Efficiency - Low Local Responsiveness

Answer 32

High Global Cost Efficiency - High Local Responsiveness

Question 33

35. After BCG Matrix, we now have the MACS (Market Activated Corporate Strategy)
    framework:
    A portfolio management technique that help us understand how the corporate
    headquarters manage their SBUs within a market (SBU=Strategic Business Unit)
    An analysis of the company’s internal environment
    A tool to forecast future profitability of a corporate strategy
    A new form of strategy that allows for better control
    A great socializing platform for top managers

Answer 33

A portfolio management technique that help us understand how the corporate
headquarters manage their SBUs within a market (SBU=Strategic Business Unit)

Question 34

36. Blue Ocean Strategy:
    Creates an uncontested space where competition is becoming irrelevant.
    Creates a new value proposition that despite the direct competition you can be
    extremely successful as a company.
    Is another form of differentiation.
    Is a theory that allows us to evaluate better than the 5 forces the industry’s
    attractiveness and profitability.
    Blue Oceans is an illussion created by the simulation that we live in.
    (seriously, don’t choose me)

Answer 34

Creates an uncontested space where competition is becoming irrelevant.

Question 35

37. Which are the two axes (dimensions) of the BCG matrix?
    Growth of the market and Market share
    Growth and Attractiveness
    Long term market attractiveness and SBU strength
    Value creation of the business unit and the Corporate parent’s ability to take
    advantage of this value
    Beauty and intelligence

Answer 35

Growth of the market and Market share

Question 36

38. Caution Strategy (or Cautious Steps ) is a Corporate Stability Strategy that:
    Is essential to understand highly turbulent markets and help the corporation
    operate in them by deploying many small investment projects.
    Is essential for quick corporate growth in developing markets.
    Enables the company to predict the future of an industry.
    Helps support human competence , create well-paid jobs, and value for the
    employees
    Makes the managers relax and think very carefully the strategy formulation process
    in order to avoid any mistake in the implementation process.

Answer 36

Is essential to understand highly turbulent markets and help the corporation
operate in them by deploying many small investment projects.

Question 37

39. Which of the following approaches is a ‘‘Global’’ type of internationalisation
    strategy?
    High Global Cost Efficiency - Low Local Responsiveness
    Low Global Cost Efficiency - Low Local Responsiveness
    High Global Cost Efficiency - High Local Responsiveness
    Low Global Cost Efficiency - High Local Responsiveness

Answer 37

High Global Cost Efficiency - Low Local Responsiveness

Question 38

40. Which of the following is NOT an example of a political risk?
    Civil unrest
    Government regulations
    War
    Cost of production

Answer 38

Cost of production

Question 39

41. Bargaining power of Suppliers is an example of a factor that falls within the
    _________ environment /micro analysis
    Industry
    Operating
    Economic
    Remote

Answer 39

Industry

Question 40

42. According to Porter’s forces framework: Access to distribution channels is a
    major source of which competitive force?
    Bargaining power of suppliers
    Threat of new entrants
    Bargaining power of buyers
    Threat of substitute products

Answer 40

Threat of new entrants

Question 41

43. According to Value Chain a Constellation of Value is when
    Two or more companies draw competitive value chains and the competition in the
    market increases. This process is creating higher quality products in competitive
    prices for the customers thus higher value
    Two or more companies merge together and create a new company with a large
    value chain that is more efficient
    Two or more companies can align their value chains so as to have a synergistic
    effect and create extra value from collaborating effectively. Like a business
    ecosystem
    Two or more companies decide to create a cartel /oligopoly to dominate the market
    without letting competitors know about it

Answer 41

Two or more companies can align their value chains so as to have a synergistic
effect and create extra value from collaborating effectively. Like a business
ecosystem

Question 42

44. The external environment analysis is divided into:
    Macro and Internal
    Macro and Micro
    Macro, Micro and SWOT
    Macro and OT part of SWO

Answer 42

Macro and Micro

Question 43

45. Which of the following statements best explains the value chain model?
    The value chain explains how value is created in the industry supply chain
    The value chain is a model for evaluating the linkages between the various
    departments that make up the organisation
    The value chain is a model for evaluating which of an organisation’s suppliers offers
    the best value for money
    The value chain is a model for identifying opportunities for cost reduction and value
    creation by combining primary to support activities

Answer 43

The value chain is a model for identifying opportunities for cost reduction and value
creation by combining primary to support activities

Question 44

46. According to RBV, which of the following are not part of the tangible resources?
    (choose all that apply / there is more than one answer)
    Human resources
    Financial resources
    Physical resources
    Reputation resources

Answer 44

Human resources
Reputation resources

Question 45

47. According to RBV, why is ‘‘continuous improvement’’ perceived as a core
    competence?
    Because it is based mostly on intangible resources and other capabilities, thus
    making it very hard for any competitor to imitate it quickly
    Because it is easy to imitate since it is relatively quick to acquire the same resource
    that lead to this capability e.g. capital, IT system and personnel with some
    experience
    Because it provides the competitors with precise information on how to imitate a
    competitive advantage of the company that has it
    Because it does not provide the company with a significant competitive advantage

Answer 45

Because it is based mostly on intangible resources and other capabilities, thus
making it very hard for any competitor to imitate it quickly

Question 46

48. PESTEL analysis: The considerations involving the beliefs, values, attitudes and
    opinions of those in a firm’s environment represent the ______.
    Economic factors
    Personal factors
    Social factors
    Political factors

Answer 46

Social factors

Question 47

49. What term is used for the activities that underpin competitive advantage and are
    difficult for competitors to imitate or obtain?
    Threshold resources
    Fantastic ideas
    Unique resources
    Core competences
    Threshold competences

Answer 47

Core competences

Question 48

50. RBV tells us that if you really want to create core capabilities/competences as
    ‘continuous improvement’ then you need to:
    Use tangible resources to develop them
    Use other capabilities as resources
    Use a variety of resources until you find the right combination
    Use mostly human resources to develop them

Answer 48

Use other capabilities as resources

Question 49

51. Strong Bonds with the Suppliers is..
    A threshold capability since it can be easily imitated and it does not offer any
    competitive advantages
    A core competence since it is based on tangible and human resources. It is easy to
    imitate but it does offer competitive advantage
    Is science fiction since it cannot exist in the real world – it is purely theoretical
    A core competence since it takes time to develop a relationship. It is based on
    intangible elements like trust, loyalty, learning and so on. It is also not easy to
    imitate and it is transcendent (solves a lot of problems at the same time

Answer 49

A core competence since it takes time to develop a relationship. It is based on
intangible elements like trust, loyalty, learning and so on. It is also not easy to
imitate and it is transcendent (solves a lot of problems at the same time)

Question 50

52. Which of these, according to Porter is NOT a force driving industry competition?
    Bargaining power of distributors
    Threat of new entrants
    Threat of substitutes
    Bargaining power of buyers

Answer 50

Bargaining power of distributor

Question 51

53.Which of the following is not part of the analysis of the micro-environment?
Threat of Substitute products
Sociocultural trends
Competitive rivalry/existing competition
Bargaining power of suppliers
Bargaining power of buyers

Answer 51

Sociocultural trends

Question 52

55. What does RBV stands for?
    Rating Base Value of the company
    Rate Before Value
    Resource Based View of the industry
    Resource Based View of the competitive advantage of the firm
    Resources Basic View of the firm

Answer 52

Resource Based View of the competitive advantage of the firm

Question 53

56. Which one of the following is not considered to be a support activity of the value
    chain of a firm?
    Service (customer service)
    Human Resources
    Firm Infrastructure
    Technology

Answer 53

Service (customer service)

Question 54

57. Which of the following statements best explains the RBV model?
    The RBV is a model for that explains how can a company combine resources in order
    to create capabilities. These capabilities can be either threshold or core. The core
    capabilities should lead to competitive advantage because they are hard to imitate
    The RBV explains how competitive advantage is created by creating and sustaining
    core resources. These core resources are very hard to imitate by the competitors
    and this leads to competitive advantage
    The RBV is a model for identifying opportunities for cost reduction and value
    creation by combining primary to support activities
    The RBV is a model for evaluating the existing resources and capabilities. It helps
    identify the singly one pathway to competitive advantage

Answer 54

The RBV explains how competitive advantage is created by creating and sustaining
core resources. These core resources are very hard to imitate by the competitors
and this leads to competitive advantage

Question 55

58. According to 5 Forces analysis: Bargaining Power of Buyers and Bargaining
    Power of Suppliers..
    Are always key success factors when analyzed
    Are not the same forces. Actually they are not part of the 5 forces analysis. They are
    part of the strategic group analysis
    Are not the same forces since they have completely different structural determinants
    and need to be considered as key success factors of any market analysis
    Can be (but not always) key success factors of the market

Answer 55

Can be (but not always) key success factors of the market

Question 56

59. Why is it important to undertake macro-environmental analysis when the
    micro-environment has more impact on day-to-day operations?
    Because managers ought to be aware only of the current threats represented by
    PESTEL factors.
    Because understanding trends in PESTEL factors enables an organisation to deal
    with changes and to get the bigger picture of the environment thus having more
    diverse strategic options to explore.
    Because the macro and micro analyses are two key parts of the overall company
    analysis and you would have an incomplete analysis otherwise.
    Because changes in the macro-environment are only barriers to the daily operations
    of the organisation.
    Because otherwise Macro will be jealous

Answer 56

Because understanding trends in PESTEL factors enables an organisation to deal
with changes and to get the bigger picture of the environment thus having more
diverse strategic options to explore.

Question 57

61. According to 5 Forces analysis and thinking of the airline industry in Europe
    (British Airways, Air France, Lufthansa etc) a substitute is:
    Other companies that offer flights both in Europe and overseas
    Other companies like Norwegian or Air Italia
    Other companies that offer services such as trains , cars, buses etc
    Other companies that supply all raw material for the major competitors

Answer 57

Other companies that offer services such as trains , cars, buses etc

Question 58

62. According to RBV what are the 3 major types of resources every company has?
    Intangible-Human-Tangible
    Competitive - Dynamic - Rare
    Smart - Measurable - Specific
    Tangible- Aesthetic- Dynamic

Answer 58

Intangible-Human-Tangible

Question 59

63. How is ‘‘rising affluence’’ (increasing average global income) going to affect the
    fast food industry?
    In a positive way. Fast food market will increase since developing markets are
    increasing and the number of poor people is increasing as population is increasing
    as well. It can also lead to the creation of healthy fast food market
    In a negative way. Fast food market will decrease. Richer people will seek higher
    quality food
    It will not be affected. Due to the mixed trends it will stay the same
    It will stop to exist completely very soon

Answer 59

In a positive way. Fast food market will increase since developing markets are
increasing and the number of poor people is increasing as population is increasing
as well. It can also lead to the creation of healthy fast food market

Question 60

64. A threshold capability…
    Is not essential since it does offer competitive advantage and cannot be easily
    imitated
    Is essential for the company since we need it to be able to operate but it does not
    offer competitive advantage to the company
    Is not essential since it supports other activities and can be easily copied by
    competitors
    Is essential for the company since it leads to competitive advantages

Answer 60

Is essential for the company since we need it to be able to operate but it does not
offer competitive advantage to the company

Question 61

65. The micro environment analysis refers to..?
    External broader environment analysis such as political economical and social
    factors
    Internal Environment analysis/the company
    External environment analysis, the competitive or industry or market environment
    All the abov

Answer 61

External environment analysis, the competitive or industry or market environment

Question 62

66. According to Value Chain framework the value created must..?
    Be created analysing precisely every activity
    Be created through the right combination of resources
    Be perceived by and delivered to the customer otherwise it is a waste of money
    Be sustained constantly under patents

Answer 62

Be perceived by and delivered to the customer otherwise it is a waste of money

Question 63

67. Which of the following is not a Blue Ocean Strategy’s key action ?
    Promote
    Create
    Eliminate
    Reduce

Answer 63

Promote

Question 64

68. Which of the following international entry modes has the highest control level
    and at the same time the highest resource commitment?
    Foreign Direct Investment/Wholly Owned Subsidiary
    Licensing
    Franchising
    Joint Ventures and Alliances

Answer 64

Joint Ventures and Alliances

Question 65

69. When it comes to managing change as crisis situations, what is ‘‘fire-fighting’’?
    It is pretending to change. Fighting the effects and not the causes of a crisis
    It is about changing fundamentally and transforming into something new as a
    person or a company
    It is about solving the actual causes of a crisis
    It is about putting out the fire - solving both the effects and the causes

Answer 65

It is pretending to change. Fighting the effects and not the causes of a crisis

Question 66

70. Porter’s Diamond framework:
    Explains how developing a national competitive advantage as an organisation
    allows you to become successful internationally.
    Helps us understand the complexity levels in a company.
    Offers a better explanation of how macro trends affect a company.
    Identifies value creation activities across the RBV
    Is actually a useless model

Answer 66

Explains how developing a national competitive advantage as an organisation
allows you to become successful internationally.

Question 67

Problems of swot

Answer 67

all (simplistic, not dynamic, subjective, not support decision making

Question 68

When we do industry analysis, we look for

Answer 68

profitability, attractiveness, key success factors - the strongest forces from 5 forces
(+driving forces?

Question 69

How does value chain work

Answer 69

the way we combine any primary to any support activity to 1) increase customer
value or 2) reduce operating costs or both

Question 70

You can go from cost leadership to differentiation, but you should not go from
differentiation to cost leadership

Answer 70

(it’s strategic stupidity)

Question 71

All stability corporate strategies are short-term

Answer 71

(apart from the caution strategy) because
there can be no long-term stability

Question 72

What are the processes involved with downsizing

Answer 72

1) how you decide it
2) how do (implement) you do it
3) how do you live after this

Question 73

What comes first strategy or structure

Answer 73

they are interconnected like the left foot follows the right, reciprocal connection

Question 74

What is a global approach on the international level?

Answer 74

the ability to economize a lot when it comes to your costs but you don’t customize
your product

Question 75

Which of the following is not part of Porter’s 5 Forces Framework?
A) Threat of substitutes
B) Power Suppliers
C) Rivalry among existing firms
D) Threat of Supplementary products
D) Barriers to Entry

Answer 75

D) Threat of Supplementary products