Question 1.1.Experience effects mean:(Points : 5)Employees learn to do jobs more efficiently with repetitionAn employee can easily learn to do several different jobswithin a firmThe time required to complete a task will decrease as apredictable function of the number of times the task is repeatedBoth B and D are correctEmployees who are slow to learn new tasks will requireadditional trainingAccording to the theory of transaction cost economics, amarket is likely to fail if:Question 2.2.(Points : 5)The future is highly certainThe future is highly uncertainAssets may be used to produce a variety of products orservicesThere are a large number of suppliersAll parties to the transaction have the same level ofknowledgeRelated diversification differs from unrelateddiversification in which of the followingQuestion 3.3.(Points : 5)Single business firms use related diversification and never useunrelated diversificationRelated diversification is connected to the organization’sdominant business; unrelated diversification is notA firm that uses related diversification always uses verticalintegration; a firm that uses unrelated diversification never usesvertical integrationUnrelated diversification is connected to the organization’sdominant business; related diversification is notSingle business firms use unrelated diversification and neveruse related diversificationAs corporate-level strategies develop, any of the followingstrategies might be expected to directly follow a concentrationstrategy except:Question 4.4.(Points : 5)RestructuringDiversification of products/servicesDiversification of resource conversion processes(technologies)Diversification of marketsVertical integrationQuestion 5.5.Generic strategies are concerned with:(Points : 5)Functional strategies the firm will pursueThe competitive tactics firms use to protect their competitivepositionsHow the firm intends to position itself to create value for itscustomersNone of the aboveSelection of the business areas in which the firm will competeIn a typical vertical supply chain, the major stage of theindustry that immediately follows raw materials extraction is:Question 6.6.(Points : 5)Primary manufacturingFinal product manufacturingRetailingWholesalingNone of theseWhich of the following is typically a corporate-levelstrategy formulation responsibility?Question 7.7.(Points : 5)Establishment of short-term operating goalsSelection of businesses in which to competeDirect supervision of research and development programsNone of the aboveChoice of generic strategy for each business unitWhich of the following is an accurate statement abouteconomies of scale?Question 8.8.(Points : 5)Economies of scale are identical to throughputProduction costs per unit are less in a large facility than in asmall facilityCompanies with economies of scale have high capacityutilizationDoubling factory size typically doubles fixed costsThe more product a company makes, the lower its variableproduction costsThe risks associated with pursuing a cost leadershipstrategy include all of the following except:Question 9.9.(Points : 5)Preoccupation with costs may lead a firm not to detectrequired product changesEfforts to cut costs could lead to unsafe productsThe firm’s products are likely to become targets for imitatorsLarge investments could cause reluctance to changeCost cutting could lead to products of very poor qualityA strategy that is a combination of low cost leadershipand differentiation is:Question 10.10.(Points : 5)Best costUnlikely to be successful because of limited resourcesVery rare in today’s business climateNone of the aboveCost focusOnly one firm at a time can pursue a particular businesslevel strategy.Question 11.11.(Points : 5)TrueFalseIn general, firms create competitive advantage byoffering a basic product at a premium price and/or a preferredproduct at a low price.Question 12.12.(Points : 5)TrueFalseManagers sometimes choose to diversify because theyare motivated by power, income, and status.Question 13.13.(Points : 5)TrueFalseQuestion 14.14.unit.(Points : 5)TrueFalseEconomies of scale can contribute to reduced costs perTransaction cost economics is used primarily todetermine when unrelated diversification is appropriate.Question 15.15.(Points : 5)TrueFalseThe industry life cycle portrays how sales volume for aclass of products changes over its lifetime.Question 16.16.(Points : 5)TrueFalseA competitive shakeout usually occurs at the beginningof the growth stage of the product life cycle.Question 17.17.(Points : 5)TrueFalseExporting, licensing, and franchising are internationalexpansion tactics.Question 18.18.(Points : 5)TrueFalseIn differentiation strategies, the emphasis is on creatingvalue through uniqueness.Question 19.19.(Points : 5)TrueFalseA common criticism that applies to many portfoliomodels is that they are based on the past instead of the future.Question 20.20.(Points : 5)TrueFalse
