ADMS 2400 Study Guide - Final Guide: Cost Leadership, Product Differentiation, Franchising

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emeraldserval33

12 Aug 2020

School

York University

Department

Administrative Studies

Course

ADMS 2400

Professor

Anna Blake

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Document Summary

A business-level strategy consists of the competitive approach of a single line-of- business instead of the entire corporation. Competitive tactics are concerned with how the firm intends to position itself to create value for its customers. In general, firms create competitive advantage by offering a basic product at a premium price and/or a preferred product at a low price. Only one firm at a time can pursue a particular business-level strategy. Economies of scale can contribute to reduced costs per unit. In differentiation strategies, the emphasis is on creating value through uniqueness. A best cost strategy combines the elements of low-cost leadership and differentiation. The industry life cycle portrays how sales volume for a class of products changes over its lifetime. A competitive shakeout usually occurs at the beginning of the growth stage of the product life cycle. At the maturity stage of the life cycle, revenue growth accelerates rapidly. Exporting, licensing, and franchising are international expansion tactics.

Related Questions

Business management

QUESTION 1

Which of the following outlines the organization's purpose, assumptions, values, and direction?

Mission

Purpose

Strategic plan

Strategic goal

Tactical goal

2 points

QUESTION 2

Scientific management focuses on

		improving the efficiency of the individual worker.
		managing the overall organization.
		using capital more efficiently.
		enhancing the social aspects of the workplace.
		creating mathematical models of organization processes.

2 points

QUESTION 3

The idea that manufacturing costs per unit decrease as the number of units produced increases is known as

economies of scale.

venture capitalism.

a franchising agreement.

first-mover advantage.

None of these.

2 points

QUESTION 4

The component of strategy that indicates how the organization intends to allocate resources is

resource deployment.

scope.

competitive advantage.

synergy.

None of these.

2 points

QUESTION 5

The process of choosing one alternative from among many alternatives is called

satisficing.

problem solving.

bounded rationality.

decision making.

None of these.

2 points

QUESTION 6

Mercedes-Benz sells high quality automobiles at high prices. It uses a(n)

differentiation strategy.

low-cost strategy.

diversification strategy.

related diversification strategy.

BCG strategy.

2 points

QUESTION 7

Which of the following is NOT generally considered to be a role performed by small businesses?

		Creation of new jobs
		Development of new products
		Manufacture of materials for large businesses
		Distribution of products made by large businesses
		Provision of capital for expansion of large businesses

2 points

QUESTION 8

Which of the following is a disadvantage of group decision making?

		More alternatives are likely to be generated.
		More information will be brought to bear on the problem.
		More time will be needed to make the decision.
		More communication about the decision will result.
		All of these.

2 points

QUESTION 9

Which of the following is an example of an owner of a business?

		Individual investors who buy stock in that business
		Partners
		People who have legal property rights to that business
		Individuals who finance and start up a new business
		All of these.

2 points

QUESTION 10

The best alternative is the most ____ alternative.

efficient

controllable

profitable

effective

valid

2 points

QUESTION 11

Which of the following decision-making models is based on the belief that human behavior is often imperfect?

Rational

Emotional

Classical

Behavioral

Sequential

2 points

QUESTION 12

A disadvantage of using interacting groups to make decisions is

group politics.

a void of expert opinion.

an increase in programmed costs.

faster decision making.

too much brainstorming.

2 points

QUESTION 13

Nokia and Samsung make cell phones that operate on the Microsoft system. They operate in the ____ industry.

transportation

manufacturing

retailing

services

wholesaling

2 points

QUESTION 14

All of the following are advantages of group decision making EXCEPT

groupthink may occur.

better decisions generally emerge.

enhanced communication may result.

more information and knowledge are available.

None of these.

2 points

QUESTION 15

Facebook operates in which industry?

Construction

Wholesaling

Manufacturing

Services

All of these.

2 points

QUESTION 16

Four friends home from college want to start a moving business to earn money during the summer. To determine whether this is a good idea, they need to find the answer to which of the following questions?

		Who are my customers, and where are they?
		Who are my competitors, and where are they?
		How can I differentiate my product from that of my competitors?
		In what quantities and at what price will my customers buy my service?
		All of these.

2 points

QUESTION 17

The classical management perspective consists of

		scientific management and administrative management.
		management science and scientific management.
		behavioral management and the operations management.
		contemporary management and behavioral management.
		contingency management and universal management.

2 points

QUESTION 18

Which of the following persons is a manager?

		Cardinal Timothy Dolan, Archbishop of New York
		Nick Saban, football coach at the University of Alabama
		Linda Kaplan Thaler, chief creative officer of Kaplan Thaler Group
		Marissa Mayer, CEO of Yahoo
		All of these.

2 points

QUESTION 19

Organizations that provide resources to other organizations are known as

suppliers.

competitors.

regulators.

interest groups.

importers.

2 points

QUESTION 20

A(n) ____ strategy requires little initial investment, is heavily regulated, and provides little opportunity to modify products for local conditions.

importing/exporting

licensing

joint venture

direct investment

global sourcing

2 points

QUESTION 21

All of the following are included in the task environment of organizations EXCEPT

competitors.

customers.

regulators.

suppliers.

the economy.

2 points

QUESTION 22

"Decision making under risk" means the decision maker

		has no data on which to base his or her decision.
		is risk-averse, avoiding risky investments.
		knows all the risks involved in the decision.
		can estimate decision data with some probability.
		is making an important decision with long- term consequences.

2 points

QUESTION 23

A standing plan that outlines the steps to be followed in a particular circumstance is called a(n)

SOP.

single-use plan.

policy.

contingency plan.

program.

2 points

QUESTION 24

Which of the following is NOT one of the reasons for new business failure described in your text?

Sufficient capital

Incompetence

Neglect

Weak control systems

Inexperience

2 points

QUESTION 25

Interpersonal skills enable managers

		to take an overall view of how the parts of the organization interrelate and to think strategically.
		to solve detailed problems for their subordinates.
		to understand and interact effectively with others in the organization.
		to diagnose organizational problems correctly.
		None of these.

2 points

QUESTION 26

Herbert Simon noted that managers generally fail to make rational decisions because they are limited by their own values, skills, habits, and unconscious reflexes as well as by incomplete information. What name did Simon give this phenomenon?

Satisficing

Bounded rationality

Brainstorming

Rational decision making

Decision framing

2 points

QUESTION 27

Nike and Reebok are best described as

strategic allies.

competitors.

customers.

regulators.

suppliers.

2 points

QUESTION 28

The first person to identify the managerial functions of planning, organizing, leading, and controlling was

Elton Mayo.

Lillian Gilbreth.

Henri Fayol.

Hugo Munsterberg.

Mary Parker Follett.

2 points

QUESTION 29

Strategic goals are set by

first-line managers.

middle managers.

top managers.

stockholders.

All of these.

2 points

QUESTION 30

Using the BCG matrix, SBUs are classified on the basis of

		market growth rate and cash generation potential.
		market share and market growth rate.
		competitive advantage and financial strength.
		a strategic business unit and product life cycle.
		None of these.

2 points

QUESTION 31

____ skills are needed for specialized tasks within the organization.

Human

Organizational

Conceptual

Technical

None of these.

2 points

QUESTION 32

McGraw Hill operates in publishing and construction. This is an example of ____ diversification.

differentiation

unrelated

single-product

BCG

related

2 points

QUESTION 33

The management pioneer who performed the Hawthorne studies at Western Electric was

Lillian Gilbreth.

Elton Mayo.

Henry Gantt.

Frank Gilbreth.

Frederick Taylor.

2 points

QUESTION 34

An organization's obligation to protect and enhance the society in which it operates is called

legal responsibility.

ethical responsibility.

social responsibility.

cultural responsibility.

societal responsibility.

2 points

QUESTION 35

An entrepreneur does all of the following EXCEPT

operate.

organize.

plan.

assume risk.

hire a professional manager.

2 points

QUESTION 36

The primary purpose of the management process is to

		develop organizational goals and make logical decisions.
		organize the various functions in a logical manner.
		ensure that all employees are working together effectively.
		achieve organizational goals efficiently and effectively.
		make sure things go as planned.

2 points

QUESTION 37

How do top managers spend most of their time?

		Overseeing day-to-day operations
		Routine administrative tasks
		Implementing plans of first-line managers
		Making decisions and creating goals
		Coordinating the work of first-line managers

2 points

QUESTION 38

In the classical decision making model, "optimization" means

		implementing two or more alternatives simultaneously.
		choosing the alternative with the best overall expected outcomes.
		gathering the most complete information before making the decision.
		reaching a satisfactory level of performance.
		None of these.

2 points

QUESTION 39

A written summary of the business strategy and its implementation plan is known as

a niche summary.

a first-mover advantage.

a business plan.

economies of scale.

a franchise agreement.

2 points

QUESTION 40

The aspects of a business that the firm performs at a higher level than its competitors are known as the firm's

niches.

capital-intensiveness.

distinctive competencies.

strategic weakness.

first-mover advantage.

2 points

QUESTION 41

For a Perkins restaurant, which of the following would be considered to be a supplier?

A family of 5

Wendy

browntermite908

1. Terms of Payment found in international business contracts include:

a. CFR (cost and freight, foreign port)

b. Consignment

c. Documentary Drafts

d. all of the above

e. (b) and (c) above

2. Joint Ventures have the

a. advantage of utilizing the expertise of a local partner.

b. disadvantage of not being able to make all the decisions because control is shared.

c. advantage of being able to share the profits.

d. all of the above

e. (a) and (b) above

4. Businesses are using global or regional brands for the following reason(s):

a. private brands do not offer any meaningful competition.

b. economies of scale usually result in reduced costs.

c. satellite and cable TV are widely available.

d. all of the above

e. (b) and (c) above

6. E-Commerce Potential is

a) is higher for Jamaica than for Argentina.

b) is an index based on mobile phones, internet hosts, and number of PCs.

c) is a composite ranking of three indices.

d) (a) and (b) above

e) (a) and (c) above

7. Generally, industrial products require __________ adaptation than consumer products to meet the demands of the world market.

a) greater

b) less

c) the same amount of

d) only slightly less

e) only slightly more

13. Although global sourcing can be beneficial it may have some disadvantages such as

a. added costs

b. exchange rate fluctuations affecting prices

c. quality control

d. all of the above

e. (b) and (c) above

14. In staffing

a. an ethnocentric policy is always the most effective if qualified personnel are available.

b. a polycentric policy is always the least effective even when qualified personnel are available.

c. using third country personnel would be considered most frequently with regiocentric or geocentric policies.

d. all of the above

e. (a) and (c) above

16. In the most recent 40 years, union membership around the world has been in decline, in part because:

a) There are more women in the workforce.

b) The unions have been successful and priced themselves out of the market.

c) Employers have made efforts to keep business union-free.

d) (a) and (c) above only

e) All of the above.

17. When a firm has less than a majority interest in a subsidiary it can still have control by having

a) a management contract

b) the right to control the technology

c) the right to vote its shares

d) all of the above

e) (a) and (b) above only

18. The Female Wage Gap

a. is the percent of Male Wages earned by Female Employees.

b. younger females have less of a gap in all countries.

c. is the smallest for older females in Korea.

d. all of the above

e. (a) and (c) above

19. Income earned abroad by U.S. citizens:

a) incurs a tax liability in the US with some adjustments.

b) incurs tax liability only on the portions earned in the U.S.

c) incurs no tax liability.

d) incurs a tax liability in the US on all income earned with no adjustments for

taxes paid in other countries.

e) none of the above

20. The international structural stages model suggests that a typical evolutional path for an international company's structure would be:

a) from international division to geographical area division to worldwide product division.

b) from international division to worldwide product division to geographical area division.

c) from geographical area division to worldwide product division to global matrix.

d) from functional division to horizontal company to virtual corporation.

e) from international division to worldwide product division to global matrix.

21. Competitive advantage is acquired by developing competencies that

a. are common to all competitors so the firm can compete.

b. create value for customers even if the price is higher than customers want to pay.

c. are difficult to imitate.

d. all of the above

e. (a) and (c) above only

22. In their measurement and disclosure for accounting systems, less developed countries tend toward:

A.	transparency and conservatism.

B.	transparency and optimism.

C.	secrecy and optimism.

D.	secrecy and conservatism.

23. Export Marketing plans should be specific about:

A. The markets to be developed

B. The marketing strategy for servicing them.

C. the tactics required to make the strategy operational

D.	cash flow projections.
E.	A, B, and C.

24. Factors that are involved in the operation of a manufacturing system include:

A. Plant location

B. Plant layout

C. Material handling

D. Human asset

E. all of the above

26. A middle ground between an ad campaign that is standardized worldwide and an entirely local ad campaign is called a:

A.	hybrid advertising campaign.
B.	programmed-management approach.
C.	computerized-management approach.
D.	shared-management approach.
	E. none of the above.

27. In selecting a foreign market, a screening process is used by a firm. In regard to this process, answer the following:

a) The importance of the priority order of the steps in the screening process.

b) The reasons for participating in either a trade show or in a trade mission.(Select one)

c) The reasons for using cluster analysis in assessing global markets.

d) The importance of regional or ethnic subcultures in evaluating competitive forces.

28. Select any four of the following, explain each of them, and discuss the role each of them plays in international business activities:

a) Summarize any one of the videos from week six or eight (either one of them not both) and discuss the role the information in this video plays in international business activities.

b) Foreign (Free) Trade Zones

c) Countertrade

d) Explain why a manager with a global assignment needs a mentor in the host country and a mentor in the home country.

e) Quality and quantity of the labor force in a country

f) Labor Mobility and Guest Workers

Question 1

Which of the following approaches to understanding and predicting consumer behavior depends primarily on the knowledge and experience of a firm's employees and its suppliers?

		Test marketing and price experiments
		Analysis of historical data.
		Direct consumer surveys.
		Expert opinion.

Question 2

In which of the following situations would reliance on expert opinion as a basis for a managerial decision be most preferred?

		When the product being marketed is relatively new.
		When the level of economic activity can have a significant effect on the demand for the firm's output.
		When the product can be packaged with a variety of price and quality combinations.
		When the business in question serves as a supplier of inputs to other businesses, especially in multi-product situations where other strategies may be prohibitively expensive.

Question 3

The approach to analyzing consumer behavior that asks consumers to rank and choose among different product attributes to reveal their relative valuation of different characteristics is called:

		conjoint analysis.
		contingent valuation.
		the hedonic estimation technique.
		a direct consumer survey.

Question 4

All of the following are limitations of direct consumer surveys except:

		the possibility of response biases because survey respondents may not want to reveal their true preferences.
		the possibility that the type of questions asked may unintentionally bias the respondent's answers.
		the likelihood that respondents will deliberately and systematically mislead interviewers.
		the possibility that consumers' responses may not reflect their actual behavior in the market place.

Question 5

Which of the following approaches to understanding and predicting consumer behavior does not actually solicit any information from potential customers?

		Expert opinion.
		Test marketing.
		Analysis of historical data.
		Conjoint analysis.

Question 6

Data collected on a sample of individuals with different characteristics at a specific point in time are called:

		panel data.
		cross-section data.
		time series data.
		none of the above.

Question 7

Which of the following approaches to understanding and predicting consumer behavior provides the most insight into how consumers can be expected to respond in an actual market setting?

		Test marketing.
		Conjoint analysis.
		Expert opinion.
		Analysis of historical data.

Question 8

An approach to analyzing consumer behavior in which consumer reaction to different prices is analyzed in a laboratory situation or a test market is called:

		non-price experiments.
		focus groups.
		price experiments.
		none of the above.

Question 9

Data collected on the same observation unit at a number of points in time are called:

		panel data.
		time series data.
		cross-section data.
		none of the above.

Question 10

A measure of how much the coefficient would vary in regressions based on different samples is called:

		F-statistic.
		standard error of the estimated coefficient.
		t-statistic.
		partial F-statistic.

Question 11

The test statistic used to test the hypothesis of whether a regression coefficient is significantly different from zero, holding all other independent variables constant, is called a(n):

		t-test.
		F-test.
		multicollinearity test.
		autocorrelation test.

Question 12

Regression analysis that analyzes the relationship between one dependent variable and several independent variables is called:

		cluster analysis.
		correlation analysis.
		multiple regression analysis.
		simple regression analysis.

Question 13

The ratio of the regression coefficient to its standard error is called:

		F-statistic.
		t-statistic.
		coefficient of determination.
		partial F-statistic.

Question 14

The coefficient of determination will range between what values?

		-1 and +1
		0 and 1
		-3 and +3
		none of the above

Question 15

The range of values in which we can be confident that the true regression coefficient lies within a given degree of probability is called a:

		confidence interval.
		logistic regression.
		prediction interval.
		none of the above.

Question 16

The estimated regression equation is Y = 10 + 2.5X, if X =0 than the predicted value of Y is equal to

		2.5
		7.5
		12.5
		10

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ADMS 2400 Study Guide - Final Guide: Cost Leadership, Product Differentiation, Franchising

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Related Questions

		economies of scale.
		venture capitalism.
		a franchising agreement.
		first-mover advantage.
		None of these.

		resource deployment.
		scope.
		competitive advantage.
		synergy.
		None of these.

		satisficing.
		problem solving.
		bounded rationality.
		decision making.
		None of these.

		differentiation strategy.
		low-cost strategy.
		diversification strategy.
		related diversification strategy.
		BCG strategy.

		group politics.
		a void of expert opinion.
		an increase in programmed costs.
		faster decision making.
		too much brainstorming.

		groupthink may occur.
		better decisions generally emerge.
		enhanced communication may result.
		more information and knowledge are available.
		None of these.

		importing/exporting
		licensing
		joint venture
		direct investment
		global sourcing

		Sufficient capital
		Incompetence
		Neglect
		Weak control systems
		Inexperience

		Satisficing
		Bounded rationality
		Brainstorming
		Rational decision making
		Decision framing

		strategic allies.
		competitors.
		customers.
		regulators.
		suppliers.

		Mission
		Purpose
		Strategic plan
		Strategic goal
		Tactical goal

		efficient
		controllable
		profitable
		effective
		valid

		Rational
		Emotional
		Classical
		Behavioral
		Sequential

		transportation
		manufacturing
		retailing
		services
		wholesaling

		Elton Mayo.
		Lillian Gilbreth.
		Henri Fayol.
		Hugo Munsterberg.
		Mary Parker Follett.

		first-line managers.
		middle managers.
		top managers.
		stockholders.
		All of these.

		Lillian Gilbreth.
		Elton Mayo.
		Henry Gantt.
		Frank Gilbreth.
		Frederick Taylor.

		legal responsibility.
		ethical responsibility.
		social responsibility.
		cultural responsibility.
		societal responsibility.

		operate.
		organize.
		plan.
		assume risk.
		hire a professional manager.

		a niche summary.
		a first-mover advantage.
		a business plan.
		economies of scale.
		a franchise agreement.

		niches.
		capital-intensiveness.
		distinctive competencies.
		strategic weakness.
		first-mover advantage.