Which of the following terms best describes what Rest & Sleep Inc. is practicing?
15. Rest & Sleep Inc. is a mattress manufacturing firm. By manufacturing related products such as bed covers, comforters and quilts, and pillows, it has gained significant competitive advantage as it has managed to create profits in all these markets as well. Rest & Sleep creates a challenge for the other companies in the market by providing unique value through its customer services and warranties. Which of the following terms best describes what Rest & Sleep Inc. is practicing?
Unrelated diversification
Corporate strategy
Business unit strategy
Market penetration
16. CharmingBells Inc. has been running into a loss gradually, but the board of directors are reluctant to shut the company down because it has invested millions of dollars’ worth of equipment which can only be used in that industry. Moreover, the people in CharmingBells Inc. have become emotionally attached to the company and do not want the company completely shut down. This scenario best illustrates _____.
high fixed costs
used production capacity
unused production capacity
high exit barriers
17. Jason, a visually impaired employee of Melony Inc., believes that his workplace has given him independence and self-confidence, thereby increasing his morale. Which of the following has been exemplified by Melony in this scenario?
Superordinate goal
Capacity building
Social value
Legal responsibility
18. Which of the following is the main purpose of a strategic management process?
Ensuring that all employees have managers and supervisors to lead their teams
Creating an organization that functions systematically according to its vision, mission, and goals
Creating a high-level plan that can be implemented without fierce competition and undue risk
Specifying a high-level plan that an organization will employ to achieve competitive advantage
19. Which of the following statements best describes the term internal analysis?
It examines the efficiency of employees through the help of standardized tests and group discussions.
It examines the emotions of a firm’s employees in order to identify their weaknesses.
It studies the infrastructure of a company to gauge the number of employees it can recruit.
It examines a company’s resources and capabilities to configure a firm’s ability to deliver unique value.
20. BizTechno Inc. has always retained competitive advantage over its competitors. The company has offered customer satisfaction for many years by providing the best services and benefits for them. The resources, capabilities, and the organizational structure of the organization have also created an increased edge over its competitors. Which of the following does this scenario best illustrate?
Value chain
Employee specialization
Business model
Task specialization
21. Which of the following statements is true of a fragmented industry?
It involves companies selling the same brand of products that are scattered in different locations.
It is characterized by rivalry that is typically less intense.
It is difficult to keep track of the pricing and competitive moves of multiple players.
It usually has very few competitors and tends to be dominated by a few large firms.
22. A software industry implements a new structural change in the corporate hierarchy. Employees are provided with a clear statement of desired outcomes and endpoints for organizational change. This is an example of _____.
building a guiding coalition
agenerating urgency
creating a vision
creating a response profile
23. A(n) _____ is a legal structure for organizing a business where the organization is a distinct and separate entity from its owners.
general partnership
limited partnership
proprietorship
corporation
24. Walker and Harris are senior research fellows at a global non-profit organization. They are working on a project that studies the growth trend of a multinational corporation, Garcia Inc. When Walker and Harris decide to consolidate their study findings, Walker is of the opinion that Garcia is in the ‘change process’ phase, while Harris believes that the company is in the ‘refreeze’ phase. Which of the following statements, if true, would strengthen Harris’ belief?
Garcia Inc. decides to adapt to its environment and learn new growth-inducing behaviors.
Garcia Inc. adopts a trial and error method to decide on the best growth strategy.
Garcia Inc. formalizes and institutionalizes its new growth strategies.
Garcia Inc. publicly admits that the current situation is not working.
25. A reduction in costs per unit due to increases in efficiency of production as the number of goods being produced increases best defines the term _____.
economies of finance
economies of wealth
economies of scale
economies of scope
26. Katherine is the CEO of a car dealership company called Red Cars. When looking for new investors for the company, she usually says that Red Cars wants to, “Be the best automotive retailer in the eyes of its customers, employees, and shareholders.” Which of the following does this statement best reflect?
Red Cars’ strategy
Red Cars’ resource
Red Cars’ mission
Red Cars’ capabilities
27. A tool that measures four broad areas of organizational performance which are financial results, customer goals, internal business processes, and learning and growth is called the _____.
balance scorecard
manager’s log
performance indication register
metric tool
28. The relatively fixed costs such as the costs of plant and equipment, which do not increase with an increase in the number of units manufactured, are known as _____.
fixed cost of supply
fixed cost of demand
fixed cost of scale
fixed cost of production
29. Godwel Inc., an insurance company, wants to assign accountability for particular tasks. It wants to measure the performance of every unit of the company. Which of the following organizational elements will help Godwel accomplish the given task?
Style
Strategy
Skill
Structure
30. SevenCloud Inc., a soft drink company, provided service to fair amount of customers for a whole year until a new company called Sparkle Inc. came up. Sparkle provided flavored water as a new product in the beverage market. Customers were eager to try out this new product and purchased it because they believed that it a better substitute for aerated beverages. SevenCloud was afraid that if the trend continued, it would soon run the risk of going out of business. In this scenario, which of the following did SevenCloud Inc. experience?
Threat
Weakness
Opportunity
Merger
