Multiple Choice
Identify the
choice that best completes the statement or answers the question.
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1.
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Applying the European Commission revised definition of an SME (2003),
classify the following company
Company B has approximately 200 employees and a turnover of 30
Million Euros
a. | Micro | c. | Medium | b. | Small | d. | Large |
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2.
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Identify which primary activity would be used to describe “assembly”
work
a. | Inbound logistics | c. | Outbound logistics | b. | Operations | d. | Marketing and
sales |
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3.
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Identify which primary activity would be used to describe “channel
management” work
a. | Inbound logistics | c. | Outbound logistics | b. | Operations | d. | Marketing and
sales |
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4.
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There are other ways to add value or make profit without the need for
transformational activities, select the option that is generally accepted to be an alternative value
adding method
a. | Integration | c. | Innovation | b. | Arbitrage | d. | Mercantilism |
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5.
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According to Dunning (1977) cited in Brakeman et al (2006: 91) three conditions
need to be satisfied in order for a firm to become a multinational, select the item that is NOT one
of those conditions
a. |
Ownership advantage |
b. |
Commercial advantage |
c. |
Location advantage |
d. |
Internationization advantage |
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6.
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According to Dunning (1977) cited in Brakeman et al (2006: 91) three conditions
need to be satisfied in order for a firm to become a multinational - which advantage type is referred
to below:
is associated with low skilled production processes which may be
fragmented
a. |
Ownership advantage |
b. |
Commerical advantage |
c. |
Location advantage |
d. |
Internalization advantage |
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7.
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When considering “Global” companies as described by Bartlett and
Ghoshal’s technology of strategic postures, which statement is least true?
a. | “Global” companies promote a convergence of consumer’s preferences
| b. | “Global” companies make centralisation and integration
profitable | c. | “Global” companies strive to maximise standardisation of
production | d. | “Global” companies develop strategies for national
responsiveness |
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8.
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Select the statement that is least correct when considering the concept of
Globalisation
a. |
It is the opposite of protectionism |
b. |
Leads to a reduction in
outsourcing |
c. |
Refers to the growing interdependency between nations and organisations through
international trade |
d. |
A trend away from distinct national economic
units |
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9.
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Porter identified four elements -the Porter Diamond, present to varying
degrees in every country that form the basis of the national competitiveness. Select the item that
does not refer to one of the four elements
a. |
Factor conditions |
b. |
Firm strategy, structure and
rivalry |
c. |
Demand conditions |
d. |
Related and supporting
industries |
e. |
Free trade |
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10.
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The resource-based approach has been attributed to several scholars - which in
the list would least be associated with the theory?
a. | Barney | c. | Penrose | b. | Porter | d. | Wernerfelt |
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11.
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The dominant paradigm in the 1980s was the competitive forces approach
developed by Porter which focused on the external environment. The key aspect of the firm’s
environment is the industry or industries within which it competes. Industry structure strongly
influences the competitive rules of the game as well as the strategies available to firms. In the
competitive forces model, five industry- level forces are identified, select the item below
that is not one of those forces
a. |
Rivalry |
c. |
Threat of substitution |
b. |
Agility |
d. |
Bargaining power of buyers |
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12.
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Of the top 100 TNCs, 58 belonged to six industries - select the industry not one
of those six
a. |
Motor vehicles |
b. |
Pharmaceuticals |
c. |
Banking |
d. |
Petroleum |
e. |
Electrical and
electronic equipment |
f. |
Telecommunications
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13.
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Select the option which best depicts the the value system, in the correct
dequence
a. | Buyer Value Chainà Supplier Value Chain à Firm Value Chain à
Channel Value Chain | b. | à Supplier Value Chain à Firm
Value Chain à Channel Value Chain à Buyer Value Chain | c. | à Supplier
Value Chain à Channel Value Chain àFirm Value Chain à Buyer Value
Chain | d. | Firm Value Chain à Channel Value Chainà Supplier Value Chain à
Buyer Value Chain |
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14.
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Select the least true statement about operational effectiveness (and
efficiency)
a. |
Initiatives change how international organizations perform activities in order
to eliminate inefficiencies, improve customer satisfaction, and achieve best
practice. |
b. |
Some companies are able to get more out of their resources than others because they
eliminate wasted effort, employ more advanced technology, motivate employees better, or have greater
insight into managing particular activities or sets of activities. |
c. |
About performing
similar activities better (through operational improvements) than rivals perform
them |
d. |
Improvements can be made in productivity, quality, or speed (see for example total
quality management (TQM), continuous improvement, benchmarking, time-based competition, outsourcing,
partnering, reengineering and change management) |
e. | Operational effectiveness refers to any number
of practices that allow a company to better utilize its resources, resulting in differences in
profitability among competitors because relative cost positions and levels of differentiation are
directly affected. | f. |
Companies frequently compete successfully on
the basis of operational effectiveness over an extended period |
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15.
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Consider Competitive strategy and Strategic positioning. Which
statement is least true about Positioning and what it can be based upon?
a. | Positioning can be based on serving most or all the needs of a particular group of
customers | b. | Positioning can be based on segmenting customers who are accessible in different
ways | c. | Positioning can be based on producing a subset of an industry's products or
services (variety) | d. | The essence of strategic positioning is to
choose activities that are similar to rivals but performed better. |
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