b. getting to the market first.
c. being the first to imitate a product.
d. being the first company to acquire a competitor.
34. According to the Hedgehog concept, a company succeeds by:
a. entering the market ahead of competition.
b. following the benchmarks set by another company.
c. entering many fields at the same time.
d. becoming very good at one thing.
35. A company engages in the brand-leadership strategy when it:
a. imitates leading brands.
b. diversifies into several successful brands.
c. develops the reputation of its brand name.
d. develops products that other companies do not offer.
36. A powerful strategy for gaining competitive advantage is to:
a. hire talented, well-motivated people throughout the firm.
b. develop the talents among the least talented employees.
c. hire the occasional candidate with a poor employment history to be socially responsible.
d. promote employees on the basis of seniority to encourage company loyalty.
37. Which one of the following is NOT one of the three components of knowledge management?
a. Knowledge creation
b. Knowledge hoarding
c. Knowledge dissemination
d. Knowledge application
38. The most frequent activity in knowledge management is:
a. knowledge development.
b. knowledge application.
c. knowledge dissemination.
d. knowledge creation.
39. A key part of knowledge management in organizations is:
a. selecting intelligent people for key positions.
b. spying on what competitors are doing.
c. conducting training programs.
d. sharing information systematically.
40. To achieve best results, advanced technology for knowledge management should be:
a. centralized in a department headed by the chief knowledge officer.
b. combined with an organizational culture that values knowledge management.
c. installed on every computer in a company.
d. installed first in staff departments and then in line departments.
41. A major responsibility of a chief knowledge officer is to:
a. systematically collect information.
b. encourage workers to track down coworkers who have the information they need.
c. develop and deliver classroom-based training.
d. develop and deliver online training.
42. A major leadership initiative for enhancing a learning organization is to:
a. establish supervisory training programs.
b. get workers to focus almost entirely on their own work.
c. create a vision to be shared mostly by the top-management team.
d. create a strategic intent to learn.
43. Peter and his teammates engage in action learning when they:
a. learn at a fast pace.
b. bring company-relevant cases into the classroom.
c. use the Internet as a primary source of learning.
d. learn while attacking a significant organizational problem.
44. Weston Corp., a dairy processing company, is located close to the local dairy farms from where it procures its daily
inputs. In the context of SWOT analysis, under which of the following components can this fact be included in the
company’s strategic planning analysis?
a. External opportunities
b. External threats
c. Internal strengths
d. Internal weaknesses
45. Daisy Inc. enjoys a monopoly in the procurement and distribution of coffee beans. The company undertakes a strategic
analysis of its market position. A local daily newspaper has published a report stating that a global coffee beans producer
is entering the region to set up retail stores in order to increase its efficiency in distribution. Daisy Inc. is most likely to
include this fact under which of the following components of a SWOT analysis?
a. External opportunities
b. External threats
c. Internal strengths
d. Internal weaknesses
46. Maddox Corp., a smartphone manufacturer, in the initial years of its entry into the market, adopted a deliberate
strategy of quickly capturing a sizeable portion of the market share by lowering the selling price of its smartphones.
Which business strategy has the company adopted in the given example?
a. First-mover strategy
b. Imitation strategy
c. Focus strategy
d. Cost-leadership strategy
47. Simon Corp., a global financial services firm, has entered a region whose per capita income is very high. To make its
financial products more attractive, it introduces new schemes that specifically cater to high income groups. This is an
example of:
a. a strategic alliance.
b. a cost-leadership strategy.
c. a focus strategy.
d. an acquisition strategy.
48. Amber Corp. and Kyler Corp., two major technology firms, have decided to operate together in specific areas such as
distribution and marketing for better utilization of the expertise available in both firms. This can be referred to as:
a. an imitation.
b. a strategic alliance.
c. a differentiation strategy.
d. a cost-leadership strategy.
49. Lorenzo Inc., a pharmaceutical company, has decided to purchase two major biotechnology research firms in order
expand its operations and enhance its market presence. This is an example of:
a. growth through acquisition.
b. product diversification.
c. a strategic alliance.
d. a first-mover strategy.
50. In the past several years, Dawson Inc., a consumer durables company, has been focusing only on a particular region
due to its forecasted potential for the durables industry. Due to recessionary conditions in the region, the sales of
Dawson’s products have been hit hard, resulting in severe losses. Which of the following strategies could prevent such a
scenario?
a. Brand leadership
b. First-mover strategy
c. Global diversification
d. Niche strategy
51. Caiden Inc., a leader in the apparel industry, wants to infuse change and add variety to its existing collection. The
company makes extensive use of social media to receive feedback, suggestions, and ideas from existing and potential
customers. This is an example of:
a. knowledge hierarchy.
b. knowledge application.
c. knowledge dissemination.
d. knowledge creation.
52. Felix Inc., a real estate company, wants to increase efficiency at work and improve customer experience. In pursuit of
this goal, it creates an online portal that could store relevant information on various aspects in a systematic manner. Users
can easily access required information. Which of the following captures the above mentioned scenario?
a. Knowledge hierarchy
b. Knowledge dissemination
c. Knowledge creation
d. Knowledge application
53. Arthur is the CEO of an export company. Over the years, the company has been highly successful at delivering
consistent results. Several analysts attribute this to Arthur’s leadership style, which allows his subordinates to take up
leadership roles and deliver efficient results. Which of the following best describes Arthur’s leadership style?
a. Servant leadership
b. Cost leadership
c. Brand leadership
d. Transactional leadership
54. Which of the following is true of the cost-leadership strategy?
a. Competitors can easily enter the field.
b. Profits can be maintained at a constant level in the long-run.
c. Brand loyalty becomes more intense.
d. Advertisement costs will decrease.
55. Which of the following is a contributing factor to team learning?
a. Brand leadership
b. Cost leadership
c. Personal mastery of the job
d. Exploitative innovation
56. Which of the following is a key characteristic of servant leadership?
a. Focus on niche groups
b. High power distance
c. Hierarchical boundaries
d. Caring for people
57. Jett Inc., an automobile manufacturer, has decided to create an electric vehicle that, while not as efficient as its market
competitors, can be sold a much reduced price. What strategy is Jett implementing?
a. Focus strategy
b. Imitation strategy
c. Differentiation strategy
d. Green strategy.
58. Bradley Inc., a cell phone manufacturing company, has been experiencing a downward trend in its sales and profit in
recent times. The CEO of Bradley approaches its marketing advisor to suggest ideas and ways to regain market share and
sales. If you were the marketing advisor, what would you suggest to improve the company’s prospects?
59. Derek, the CEO of Kellen Inc., approaches his management consultant to ask for his suggestions on how to improve
his leadership skills to sustain and improve organizational performance. If you were the management consultant and
believed that Derek was capable of implementing a servant leadership style, what would you suggest he do?
60. Desmond Inc., a high-end automobile company, aims to develop the firm into one that consistently endeavors to create
new knowledge and innovations. To gain more insights into this strategy, the CEO approaches the regional marketing
head of the company to ask for his advice. If you were the marketing head, what advice would you provide to the CEO?