MGT 460 Business Strategy & Policy - Exam
I) Please select the most plausible alternatives from the choices given below (20 x 2 = 40 points):
1. Which of the following is an example of the resource-based view of the firm?
a. Philip Morris diversified by purchasing Kraft foods, because they did not want to put money back in the high-risk cigarette business.
b. Google hires employees by asking them to fill out a 200-item questionnaire; many of the questions have nothing to do with computers.
c. Halliburton takes advantage of the US war budget to bill the government at over $5 per gallon of gasoline.
d. Canon manufactures scanners, printers, copiers and cameras, all using its capability in imaging.
2. Apple has a unique ability to design products that are better looking than competition. IMacs often sell because of their looks as much as for their power and ease of use. This quality of Apple is a:
3. Ford is considering moving its Taurus plant from Edison, NJ to Buenos Aires in Argentina, but is intimidated by the fact that the inflation rate in the nation is too high, and their dollar investments may be compromised. Which segment of the general environment does this statement refer to?
4. Which of the following is an example of economies of scale?
a. Johnson & Johnson makes fourteen different varieties of Band-Aid for various product segments.
b. Intel has a big plant making Centrino chips, reducing the per-unit cost of each chip.
c. Mutual funds invest their stocks in several different companies, to offset the risk of one company failing suddenly.
d. Wal-Mart sells certain products very economically, in order to attract customers, while other products may be at par with, or even more expensive than competition.
5. The term strategy can be defined as:
a. A company’s market share, which allows it to outperform competition.
b. A coordinated deployment of a firm’s resources to achieve competitive advantage.
c. The sum total of a company’s financial, organizational, physical and human resources.
d. All of the above.
6. EB Company sells a large pack of “Cutie” diapers for $20. One pack of diapers requires two pounds of raw material and one hour of direct labor for manufacture. Raw material costs $3 per pound and direct production labor is paid $4 per hour. Fixed supervisory costs are $2,000 per month and EB rents its factory for $4,000 per month. How many packs of diapers should EB sell every month to break even?
7. Cynthia Buchelli, the Vice President (Sales) of MGT 460 Inc. manages a portfolio of three products in the computer division. The new Intel M ULV 773 processor-based Sleekline model has a low market share of around 5%, but has just been introduced, and since the market is booming, Cynthia is hopeful that it will grow into maturity. Stallion, the Xenon-based system, has a market share of 88% in the industry segment it operates in, but the market is stable and not growing too fast. Finally, there is the Pentium4-based Thunderbird, which only sells in discount markets in rural areas.
Which of the following describes the product portfolio under Cynthia?
a. Sleekline-question mark, Stallion-star, Thunderbird-cash cow
b. Sleekline-question mark, Stallion-cash cow, Thunderbird-dog
c. Sleekline-Star, Stallion-cash cow, Thunderbird-dog
d. Sleekline-question mark, Stallion-dog, Thunderbird-cash cow
CONTINUED TILL PART III