QUESTION The rate of return that a firm makes on its invested capital is referred to as: A. stakeholder return. B. profitability. C. profit growth. D. process value. E. strategic fit. ANSWER B
Date: September 3rd, 2020
QUESTION Strategic alliances allow firms to share the fixed costs of developing new products or processes. Indicate whether the statement is true or false. ANSWER TRUE Strategic alliances allow firms to share the fixed costs (and associated risks) of developing new products or processes.
Date: September 3rd, 2020
QUESTION Successful global expansion requires the transfer of core competencies to foreign markets where indigenous competitors lack them. Indicate whether the statement is true or false. ANSWER TRUE Since core competencies are, by definition, the source of a firm’s competitive advantage, the successful global expansion is based not just on leveraging products and selling […]
Date: September 3rd, 2020
QUESTION According to researchers, firms facing strong pressures for local responsiveness should pursue a global standardization strategy. Indicate whether the statement is true or false. ANSWER FALSE When a firm simultaneously faces both strong cost pressures and strong pressures for local responsiveness, it should pursue a transnational strategy.
Date: September 3rd, 2020
QUESTION The term organizational structure refers to the totality of a firm’s organization, including organization architecture, control systems and incentives, organizational culture, processes, and people. Indicate whether the statement is true or false. ANSWER FALSE The term organization architecture can be used to refer to the totality of a firm’s organization, including formal organizational […]
Date: September 3rd, 2020
QUESTION An international strategy involves taking products first produced for their domestic market and selling them internationally with only minimal local customization. Indicate whether the statement is true or false. ANSWER TRUE International strategy involves taking products first produced for their domestic market and selling them internationally with only minimal local customization. The distinguishing […]
Date: September 3rd, 2020
QUESTION Maintaining the company infrastructure is a support activity. Indicate whether the statement is true or false. ANSWER TRUE The company infrastructure, a support activity, is the context within which all the other value creation activities occur. The infrastructure includes the organizational structure, control systems, and culture of the firm.
Date: September 3rd, 2020
QUESTION The amount of value a firm creates is measured by: A. the difference between the previous year’s profitability and the current year’s profitability. B. dividing the market price of its products by the price that customers are actually willing to pay. C. the difference between its costs of production and the value that consumers […]
Date: September 3rd, 2020
QUESTION Location economies are the economies that arise from performing a value creation activity in the optimal location for that activity, wherever in the world that might be. Indicate whether the statement is true or false. ANSWER TRUE Location economies are the economies that arise from performing a value creation activity in the optimal […]
Date: September 3rd, 2020
QUESTION In general, the more value customers place on a firm’s products: A. the lesser the profitability of the firm. B. the higher the competitive pressure from other firms. C. the lesser the quality of the product. D. the lesser the consumer surplus for those products. E. the higher the price the firm can charge […]
Date: September 3rd, 2020
