Question 1

Which of the following functions creates a perception of superior value in the minds of consumers by solving consumer problems and by supporting them after they have purchased the product?

Accepted Answer

A)  production
B)  marketing and sales
C)  human resources
D)  customer service
E)  logisticsF) A) and E)
G) D) and E)

Question 2

Discuss the significance of value creation.According to Michael Porter,what are the two primary strategies for creating value?

Accepted Answer

The way to increase the profitability of...

Question 3

The ability to spread fixed costs over a large volume is one of the sources of economies of scale.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is true of a transnational strategy?

Accepted Answer

A)  It is easy to implement because it does not place any conflicting demands on a company.
B)  It is used when the pressures for cost reductions are low.
C)  It is usually used when the pressure for local responsiveness is relatively low.
D)  It enables the one-way flow of core competencies.
E)  It is used by firms that try to achieve low costs through location economies,economies of scale,and learning effects.F) None of the above
G) B) and E)

Question 5

American Apparel produces in-house all the products that it sells through its network of stores.It has a function in its value chain that controls the transmission of physical materials through the value chain,from procurement through production and into distribution.For American Apparel,that function is

Accepted Answer

A)  human resources.
B)  finance.
C)  marketing.
D)  logistics.
E)  research and development.F) A) and B)
G) B) and D)

Question 6

_____ are 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.

Accepted Answer

A)  Reports
B)  Controls
C)  Rewards
D)  Knowledge flows
E)  DominionsF) A) and B)
G) A) and C)

Question 7

According to researchers,firms facing strong pressures for local responsiveness should pursue a global standardization strategy.

Accepted Answer

A) True 
 B)False

Question 8

Omega recently found that its flagship product had cost the company $129 to manufacture when the company launched it ten years ago.Now,the same product cost just $72 to manufacture.Which of the following terms best represents the systematic reductions in production costs that Omega has achieved over the ten-year life of its flagship product?

Accepted Answer

A)  global web
B)  dispersion linkage
C)  economies of scale
D)  experience curve
E)  efficiency frontierF) B) and C)
G) A) and E)

Question 9

Who among the following should be viewed as part of a firm's infrastructure?

Accepted Answer

A)  procurement manager
B)  top management
C)  production manager
D)  research and development scientist
E)  marketing personnelF) B) and C)
G) D) and E)

Question 10

Omega,Inc.sells its fitness wrist band for $100.It cost the company $62 to make the product.While Tom values the Omega wrist band at $122,his friend Dan values it at $105.The value placed by Tom and Dan are what economists would call

Accepted Answer

A)  producer's surplus.
B)  each customer's reservation price.
C)  each customer's value price.
D)  the efficiency frontier.
E)  competitive advantage.F) C) and D)
G) D) and E)

Question 11

The actions that managers take to attain the goals of the firm are referred to as a firm's strategy.

Accepted Answer

A) True 
 B)False

Question 12

According to Michael Porter,superior profitability goes to a firm that

Accepted Answer

A)  creates similar products as their competitors.
B)  keeps the gap between value and cost of production smaller than the gap attained by competitors.
C)  drives down the cost structure of its business.
D)  has the highest cost structure in the industry.
E)  has the least valuable product in the industry.F) C) and D)
G) A) and B)

Question 13

What are operations of a firm? How can operations be categorized?

Accepted Answer

The operations of a firm can be thought ...

Question 14

For Bank of America,"production" typically occurs when the

Accepted Answer

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.F) B) and D)
G) A) and E)

Question 15

Omega,Inc.sells its fitness wrist band for $100.It cost the company $62 to make the product.Customers value the wrist band at $110.While Omega's pricing practice results in a consumer surplus,it typically charges a lower price for the wrist band than the value placed on it by customers because

Accepted Answer

A)  the value creation results in a corresponding reduction in costs of production.
B)  it is highly unlikely that the same good or service will be available to the customers from other firms.
C)  the firm is competing with other firms for the customer's business.
D)  the firm charges a price that reveals a consumer's assessment of the product's value.
E)  the firm creates value for the customer by producing a wide range of products.F) A) and B)
G) A) and C)

Question 16

Managing an alliance successfully requires building interpersonal relationships between the firms' managers,or what is sometimes referred to as

Accepted Answer

A)  relational capital.
B)  interorganizational synergy.
C)  power equilibrium.
D)  symbiotics.
E)  intraorganizational coordination.F) All of the above
G) A) and E)

Question 17

Processes are the

Accepted Answer

A)  manner in which decisions are made and work is performed within the organization.
B)  metrics used to measure the performance of subunits.
C)  devices used to reward appropriate managerial behavior.
D)  metrics used to make judgments about how well managers are running the subunits.
E)  norms and value systems that are shared among the employees of an organization.F) B) and E)
G) A) and B)

Question 18

In terms of attaining a competitive advantage,support activities can be as important as the primary activities of the firm.

Accepted Answer

A) True 
 B)False

Question 19

A firm's profitability is maximized when it

Accepted Answer

A)  creates products similar to the products of its competitors.
B)  strips all the value out of its product offering.
C)  ensures that it has the right organization structure in place to execute its strategy.
D)  picks a position on the efficiency frontier that is not viable.
E)  does not configure its internal operations to reduce costs.F) B) and E)
G) B) and D)

Question 20

The experience curve refers to systematic increases in production costs that have been observed to occur over the life of a product.

Accepted Answer

A) True 
 B)False

Exam 12: The Strategy of International Business

Omega,Inc.sells its fitness wrist band for $100.It cost the company $62 to make the product.While Tom values the Omega wrist band at $122,his friend Dan values it at $105.The value placed by Tom and Dan are what economists would call

Correct Answer
verified

For Bank of America,"production" typically occurs when the

Correct Answer
verified

A firm's profitability is maximized when it

Correct Answer
verified

The experience curve refers to systematic increases in production costs that have been observed to occur over the life of a product.

Correct Answer
verified

Correct Answer
verified

Discuss the significance of value creation.According to Michael Porter,what are the two primary strategies for creating value?

Correct Answer
verified
The way to increase the profitability of...
View Answer

The actions that managers take to attain the goals of the firm are referred to as a firm's strategy.

Correct Answer
verified

What are operations of a firm? How can operations be categorized?

Correct Answer
verified
The operations of a firm can be thought ...
View Answer

Which of the following functions creates a perception of superior value in the minds of consumers by solving consumer problems and by supporting them after they have purchased the product?

Correct Answer
verified

Processes are the

Correct Answer
verified

In terms of attaining a competitive advantage,support activities can be as important as the primary activities of the firm.

Correct Answer
verified

Managing an alliance successfully requires building interpersonal relationships between the firms' managers,or what is sometimes referred to as

Correct Answer
verified

_____ are 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.

Correct Answer
verified

Which of the following is true of a transnational strategy?

Correct Answer
verified

Omega,Inc.sells its fitness wrist band for $100.It cost the company $62 to make the product.Customers value the wrist band at $110.While Omega's pricing practice results in a consumer surplus,it typically charges a lower price for the wrist band than the value placed on it by customers because

Correct Answer
verified

According to researchers,firms facing strong pressures for local responsiveness should pursue a global standardization strategy.

Correct Answer
verified

The ability to spread fixed costs over a large volume is one of the sources of economies of scale.

Correct Answer
verified

Correct Answer
verified

Who among the following should be viewed as part of a firm's infrastructure?

Correct Answer
verified

According to Michael Porter,superior profitability goes to a firm that

Correct Answer
verified

Exam 12: The Strategy of International Business

Omega,Inc.sells its fitness wrist band for $100.It cost the company $62 to make the product.While Tom values the Omega wrist band at $122,his friend Dan values it at $105.The value placed by Tom and Dan are what economists would call

Correct AnswerverifiedShow Answer

For Bank of America,"production" typically occurs when the

Correct AnswerverifiedShow Answer

A firm's profitability is maximized when it

Correct AnswerverifiedShow Answer

The experience curve refers to systematic increases in production costs that have been observed to occur over the life of a product.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Discuss the significance of value creation.According to Michael Porter,what are the two primary strategies for creating value?

Correct AnswerverifiedThe way to increase the profitability of...View AnswerShow Answer

The actions that managers take to attain the goals of the firm are referred to as a firm's strategy.

Correct AnswerverifiedShow Answer

What are operations of a firm? How can operations be categorized?

Correct AnswerverifiedThe operations of a firm can be thought ...View AnswerShow Answer

Which of the following functions creates a perception of superior value in the minds of consumers by solving consumer problems and by supporting them after they have purchased the product?

Correct AnswerverifiedShow Answer

Processes are the

Correct AnswerverifiedShow Answer

In terms of attaining a competitive advantage,support activities can be as important as the primary activities of the firm.

Correct AnswerverifiedShow Answer

Managing an alliance successfully requires building interpersonal relationships between the firms' managers,or what is sometimes referred to as

Correct AnswerverifiedShow Answer

_____ are 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.

Correct AnswerverifiedShow Answer

Which of the following is true of a transnational strategy?

Correct AnswerverifiedShow Answer

Omega,Inc.sells its fitness wrist band for $100.It cost the company $62 to make the product.Customers value the wrist band at $110.While Omega's pricing practice results in a consumer surplus,it typically charges a lower price for the wrist band than the value placed on it by customers because

Correct AnswerverifiedShow Answer

According to researchers,firms facing strong pressures for local responsiveness should pursue a global standardization strategy.

Correct AnswerverifiedShow Answer

The ability to spread fixed costs over a large volume is one of the sources of economies of scale.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Who among the following should be viewed as part of a firm's infrastructure?

Correct AnswerverifiedShow Answer

According to Michael Porter,superior profitability goes to a firm that

Correct AnswerverifiedShow Answer

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The way to increase the profitability of...
View Answer

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The operations of a firm can be thought ...
View Answer

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Correct Answer
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