Question 1 Which strategy has been used successfully by Yum! Brands to establish KFC and Pizza Hut restaurants across the globe?AnswerJoint ventureLicensing arrangementStrategic allianceMarketing strategy4 points Question 2 What is the technique that illustrates how management can match the external opportunities and threats with its strengths and weaknesses to yield four sets of strategic alternatives?AnswerIFAS TableEFAS TableSFAS TableTOWS Matrix4 points Question 3 The key to outsourcing is to purchase from the outside only those activities that:Answerare not key to the company’s distinctive competence.are very expensive.provide the company competitive advantage.are provided by an important supplier.4 points Question 4 Wal-Mart, McDonald’s, and Alamo are all examples of companies following which of Porter’s competitive strategies?AnswerDifferentiationCost leadershipDifferentiation focusCompetitive advantage4 points Question 5 What is a corporate strategy that cuts across divisional boundaries to build synergy across business units to improve the competitive position of one or more business units?AnswerVertical strategyHorizontal strategyHierarchical strategyPortfolio strategy4 points Question 6 When a firm internally makes 100% of its key supplies and completely controls its distributors, this is known as:Answerfull integration.vertical integration.mass integration.economical integration.4 points Question 7 Which type of pricing attempts to hasten market development and offers the pioneer the opportunity to utilize the experience curve to gain market share and dominate the industry?AnswerDemand pricingCompetitive pricingSkim pricingPenetration pricing4 points Question 8 Which of the following BEST describes a popular financial strategy in which a company is acquired in a transaction financed largely by debt · eventually paid off with money generated from the acquired company’s operations or by sale of its assets?AnswerIllegal in most countriesA good way to build a core competencyAn application of the capital asset pricing modelThe leveraged buyout4 points Question 9 In which type of industry will the focus strategies likely predominate when many small and medium sized local companies compete for relatively small shares of the total market?AnswerUnited industryFragmented industryConsolidated industryIsolated industry4 points Question 10 When a company determines how and where a product or service is to be manufactured, the level of vertical integration in the production process, the deployment of physical resources, and relationships with suppliers, the company is developing its __________ strategy.AnswermarketingR&DoperationsfinancialQuestion 11Question 12 What are the tradeoffs (pros and cons) between an internal and an external growth strategy? Which approach is best as an international strategy? Why? What is outsourcing? What are the seven major outsourcing errors that should be avoided?
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