Question

1. The role of managers in corporate level strategy is to:

1. Identify markets or industries in which a company should compete to maixmise long term profitability
2. Invent products that ensure the long run success of the company
3. Use their corporate power to ensure the profitability of functional level strategies
4. All the above
5. None of the above

2. outsourcing can add value to the product provided to the customers

true

false

3. Zara has developed capabilities to compete in the “fast fashion” portion of the clothing market, including quickly copying runway fashions; vertical integration from design to point of sale; flexible, just-in-time manufacturing systems; and a time to market for new items of just three weeks compared to an industry average of nine months. These are all characteristics of what business level strategy?

1. Cost leadership
2. differentiation
3. Integrated, low cost differentiated
4. Stuck in the middle

4. The CEO of Ridgeway, Inc., realizes that the company’s survival depends on developing and acquiring knowledge. Which of the following actions by the CEO would be most consistent with this need?

1. Ensuring that all current unique knowledge of the firm is protected by patents
2. Planning extensive employee training and recruiting programs
3. Investing in sophisticated databases in relevant knowledge areas
4. Establishing a system of organizational intelligence gathering

5. Vice President Chung is responsible for executing decisions about human resources. Mr. Chung is

1. A corporate level general manager
2. Both a corpate and business level general manager
3. A business level general manager
4. A functional manager
5. A corporate level, business level, and functional manager

Answer 1

1) A

The corporate strategy focuses on market and industries for long term profitability

2) True

The outsourcing of activities like promotional packs, attractive packaging etc. can be used to increase value of item

3) C

It is the integrated strategy through vertical integration as well as quick adaptability to market requirement

4) d

The organizational intelligence gathering system can help to collect relevant information and thus support to build knowledge database