QUESTION Which of the following is a part of the organization architecture that consists of the metrics used to measure the performance of subunits and make judgments about how well managers are running those subunits? A. Reports B. Controls C. Rewards D. Knowledge flows E. Dominions ANSWER B
Date: September 3rd, 2020
QUESTION If a value creation activity of a firm can take place in Mexico most effectively, then that activity of the firm must be based in Mexico. Firms that pursue such a strategy are most likely to realize: A. a position inside the efficiency frontier. B. the experience curve. C. economies of scale. D. location […]
Date: September 3rd, 2020
QUESTION A firm’s ability to increase its profitability and profit growth by expanding globally is constrained: A. by the imperative of localization. B. by the economies of scale. C. due to customer surplus. D. due to the leveraging of skills developed in foreign operations. E. due to the dispersion of individual value creation activities. […]
Date: September 3rd, 2020
QUESTION A company can increase its growth rate by taking goods or services developed at home and selling them internationally. The returns from such a strategy are likely to be greater if: A. the product is already being offered by local companies in the nations that the company enters. B. the product is a generic […]
Date: September 3rd, 2020
QUESTION How does possessing a core competence help a firm? A. It helps a firm to create value in such a way that premium pricing is impossible. B. It reduces a firm’s dependence on its logistics function. C. It enables a firm to reduce the costs of value creation. D. It reduces the scope of […]
Date: September 3rd, 2020
QUESTION Which of the following refers to systematic reductions in production costs that have been observed to occur over the life of a product? A. Experience curve B. Learning effects C. Location economies D. Efficiency slope E. Economies of scale ANSWER A
Date: September 3rd, 2020
QUESTION Which of the following caveats is most likely to discourage global expansion of businesses? A. Economies of scale B. High consumers’ reservation prices C. Trade barriers D. Mass customization E. Low transportation costs ANSWER C
Date: September 3rd, 2020
QUESTION Which of the following is most likely to be the advantage of locating a value creation activity in the optimal location for that activity? A. It increases the costs of value creation. B. It decreases consumer surplus. C. It helps the firm to achieve a high-cost position. D. It nullifies all trade barriers. E. […]
Date: September 3rd, 2020
QUESTION For services such as banking or health care, “production” typically occurs when the: A. customer specifies the service requirements. B. service is paid for by the customer. C. service is designed in-house. D. service is delivered to the customer. E. customer provides feedback. ANSWER D
Date: September 3rd, 2020
QUESTION By dispersing different stages of its value chain to those locations around the world where the value added is maximized or where the costs of value creation are minimized, a firm creates a(n): A. integral circle. B. dispersal chain. C. global web. D. international mesh. E. worldwide circle. ANSWER C
Date: September 3rd, 2020
