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Question 1 of 25 Trunki, the beloved animal shaped suitcase on wheels for children, is an example of what competitive strategy: A. Focused differentiation B. Cost leadership C. Focused hybrid strategy D. Diversification Question 2 of 25 When an organization acquires its supplier, this is an example of: A. Downstream vertical integration B. Backwards vertical integration C. Horizontal integration D. Forwards vertical integration Question 3 of 25 A joint venture can be defined as: A. One firm licensing its intellectual property to another firm B. Two firms merging together C. Two firms collaborating together on a specific project D. Two firms coming together to form a third, legally separate firm Question 4 of 25 Which of the following describes a Nash equilibrium? A. All firms in an industry are earning zero economic profits. B. A firm chooses its dominant strategy if one exists. C. Every competing firm in an industry chooses a strategy that is optimal given the choices of every other firm. D. Market price results in neither a surplus nor a shortage. Question 5 of 25 Vertical integration is integration of: A. Products from different industries B. Production in the same part of the supply chain C. Production among members of a strategic alliance D. Different parts of the value chain Question 6 of 25 Which of the below examples represents strategic innovation: A. Airbnb B. The creation of Facebook C. The creation of fiber optic cables for transmission of data

D. The creation of the first iPhone Question 7 of 25 In Porter’s Five Forces analysis: A. A low C4 implies that the concentration is high. B. A high C4 (four firm concentration ratio) implies strong rivalry. C. High concentration implies that there are more firms in the industry. D. A low C4 will most likely result in lower average prices. Question 8 of 25 Consider the following news brief (Source: WSJ, May 21st, 2013): 'Alliance Boots, a drug wholesaler and pharmacy operator, announced a partnership with retailing chain Walgreen and with AmerisourceBergen, a pharmacy wholesaler. Integrating distribution and retailing, the three companies will buy branded and generic drugs together on both sides of the Atlantic'. Other factors being equal, the partnership described is going to: A. Increase the profitability of pharmaceutical firms by increasing the bargaining power of buyers. B. Decrease the profitability of pharmaceutical firms by decreasing the bargaining power of buyers. C. Decrease the profitability of pharmaceutical firms by increasing the bargaining power of buyers. D. None of the above. Question 9 of 25 Consider the following news excerpt: 'Amazon and its rivals are increasingly requiring warehouse employees to get used to working with robots. The company now has more than 200,000 robotic vehicles it calls “drives” that are moving goods through its delivery fulfillment centers around the US. That’s double the number it had last year and up from 15,000 units in 2014.' (Matt O’Brien, The Independent, 31 December 2019) The increasing number of robots employed in warehouses in this industry will result in: A. Increased vertical integration B. Increased buyer power C. Decreased supplier power D. Increased barriers to entry Question 10 of 25 In which of the below cases would the use of PESTEL be most useful: A. When UBER enters the Bulgarian market B. When a real estate developer is deciding whether to offer financing for first-time home buyers in Coventry C. When TESCO decides whether to open a new store in a neighborhood of Coventry D. When WBS is deciding to offer a new course of studies in Marketing Question

11 of 25 Below are three statements resulting from an analysis that an SAP student conducted for their video presentation for a drug company ABC. Based on their content, please decide what framework they most likely apply to. 1. 'With the increase in the average age of the population, consumption of drugs for Alzheimer’s disease has significantly increased.' 2. 'The company has multiple important patents that are due to expire in the year 2025 which will significantly impact their stock price.' 3. 'The NHS has been able to negotiate low prices for Alzheimer’s drugs.' A. Statement 1 – PESTEL, Statement 2 – VRIN, Statement 3 – PESTEL B. Statement 1 – PESTEL, Statement 2 – Porters Five Forces, Statement 3 – VRIN C. Statement 1 – PESTEL, Statement 2 – VRIN, Statement 3 – Porters Five Forces D. Statement 1 – PPF, Statement 2 – Porters Five Forces, Statement 3 – PESTEL Question 12 of 25 The U-form organizational design is most appropriate in which of the following cases? 1. A small ice-cream producer with a wide variety of ice-cream flavors (e.g., Ben and Jerry’s) 2. A highly diversified consumer products company (e.g., P&G) 3. A medium sized consulting firm that works in teams on a per project basis A. 1 B. 2 C. 3 D. Both 1 and 2 Question 13 of 25 A commercial bank, NationsBank (now Bank America) decides to enter a deal in 1997 with a securities firm, Montgomery Securities, to take advantage of specialized human capital and complementary expertise in investment and commercial banking. The domains of activity of each bank need to remain fairly independent. What kind of deal would be more appropriate in this case? A. A joint venture, to develop a new approach to banking and securities B. It would be better not to enter a deal at all, as there is too little ground to justify one C. An acquisition, to fully integrate the different competences of the human capital D. An alliance, to allow the different firms to retain their different corporate cultures Question 14 of 25 Greenfielding means that: A. An organization is entering an international market by acquiring a local company. B. An organization only exports products to a new international market without setting up production or service facilities.

C. An organization relies on a local partner to enter an international market. D. An organization builds operations from scratch in a new international market. Question 15 of 25 Which strategy is about how to compete successfully in particular markets? A. Alliance-based strategy B. Corporate-level strategy C. Operational-level strategy D. Business-level strategy Question 16 of 25 Which of the statements below is FALSE: A. The mechanistic model of organizational design entails the presence of crossfunctional teams B. The mechanistic model of organizational design entails narrower spans of control than the organic model C. Principal agent problems between a supplier and a producer can result in backward integration for the producer D. A principal agent problem is likely to occur when an agent acts on behalf of a principal under an incomplete contract Question 17 of 25 Pfizer was interested (1999) in a cholesterol reducing drug that Warner-Lambert had developed, called Lipitor. Lipitor is technically superior to competing products in some ways, but it was a late entrant in the market. Doctors and consumers were used to other categories of products, and it wasn’t clear if they would accept Lipitor. The market and the technology are characterized by high levels of uncertainty. What would be the best strategy for Pfizer in this case? A. An alliance to test the success of Lipitor, and a full acquisition if successful B. An alliance C. An acquisition D. A joint venture Question 18 of 25 Porter’s generic strategies are: A. Differentiation advantage and cost advantage B. Cost leadership and differentiation C. Price leadership and diversification D. Low cost, luxury, and differentiation Question 19 of 25 Diversification of a firm in industry A into industry B by acquisition creates internal capital markets when:

A. The CEO has prior experience in both industry A and industry B. B. Industry A and industry B are cyclical with opposite cycles. C. The firm in industry A has good projects but not significant money to invest in them and the firm in industry B has excess cash available for potential investment in new projects but not enough of its own projects. D. There are synergies between industry A and industry B. Question 20 of 25 When Coca-Cola acquired a large portion of its bottling plants, it: A. Increased buyer power in the carbonated soft drinks (CSD) industry B. Decreased supplier power in the concentrate production industry C. Created barriers to entry in the bottling industry D. None of the above Question 21 of 25 Functional structures are based on: A. The primary activities of an organization, such as production, finance, and marketing B. Business units C. Geographic divisions D. Product divisions Question 22 of 25 Apple’s superior user-friendly product design capabilities represent: A. Threshold capabilities B. An intangible resource C. Core competency D. Competitive advantage Question 23 of 25 You are thinking of creating your own company in which you will be the only employee. Which of the following industries has the strongest barriers to entry: A. Tutoring B. Cupcake production C. Medical practice D. Farming Question 24 of 25 Networks differ from joint ventures in that network: A. Are based on personal relationships of mutual trust between the management teams of the constituting enterprises. B. Are arrangements whereby two or more organizations work in collaboration without creating a new formal entity, but where there is mutual advantage in doing so. C. Are specific only to e-commerce businesses

D. Are arrangements whereby two or more organizations work in collaboration with the creation of a new formal entity. Question 25 of 25 Which of the following is typically NOT associated with strategic decisions? A. The scope of the organization’s activities B. The detailed planning of a department’s work over the next month C. The values and expectations of powerful actors in the organization D. The organization’s long-term direction...