MGMT344 EXAM QUESTIONS AND CORRECT ANSWERS (VERIFIED ANSWERS)
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Course
MGMT344
Institution
MGMT344
MGMT344 EXAM QUESTIONS AND CORRECT ANSWERS (VERIFIED ANSWERS)
Which of the following is a known difficulty with the cost leadership strategy? a) Always charging low prices leads to inherently low margins b) Cost leaders cannot imitate new product features introduced by differentiators c) Excessive...
MGMT344 EXAM QUESTIONS AND
CORRECT ANSWERS (VERIFIED
ANSWERS)
Which of the following is a known difficulty with the cost leadership strategy? a) Always
charging low prices leads to inherently low margins b) Cost leaders cannot imitate new
product features introduced by differentiators c) Excessive focus on lowest costs can
reduce attention paid to technical and environmental shifts d) The price-sensitive part of
the market is always the most vulnerable to economic downturns e) It is often
unsustainable because consumers associate low price with low quality - Answer ✅ C
Potential pitfalls in the design and use of strategic control measures and incentives
include a) That tight financial control allows too much scope for innovation b) The
possibility that managers who are subject to them find ways to meet the targets that fail
to serve the wider strategic interests of the organisation c) The possibility that managers
who are subject to them find ways to fail the targets in order to serve the wider strategic
interests of the organisation d) That managers' passion and intrinsic motivation is
suppressed by flexibility in the system of measures and controls e) That measuring only
inputs or only outputs can create unhelpful distortions - Answer ✅ B
Systems of performance measures used to support strategic decisions should ideally be
simultaneously a) Sales volumes, market share and revenue b) Based on gap analysis
c) Limited to GAAP measures d) Strategic planning style and financial control style e)
Accurate, flexible and timely - Answer ✅ E
When an industry's growth rate slows and it approaches maturity, firms should do all of
the following, except: a) Invest in process innovation b) Set clear strategic priorities to
avoid being stuck in the middle c) Avoid investing based on past growth patterns d)
Analyse prevailing conditions and decide to harvest, divest, find a good niche, or
dominate the industry e) Maintain competitiveness over short-term financial
performance - Answer ✅ D
4 Which of the following best suits a small firm that comes up with a novel but readily
imitated mass-market product? a) License the design to an established firm that can
distribute to the mass market quickly b) Establish and enforce systematic design and
intellectual property protection c) Use a systematic process to develop and launch the
product in the most expedient fashion d) Use the disruptive innovation method to out-
, compete industry incumbents e) Enter into a strategic alliance for mass-market
distribution whilst retaining in-house design and production - Answer ✅ A
An established firm seeking to move into an up-and-coming product area realises it
faces considerable uncertainty in both the technology and market. What stance does
the MacMillan/McGrath model suggest it should take initially? a) It should initially focus
on launching a product platform, which would reduce uncertainty prior to full commercial
launch b) It should limit itself to product areas with low technical and market uncertainty,
which have the highest chance of success. c) It should carry out in-depth analysis to
reduce the levels of uncertainty prior to committing the resources involved in
commercial launch. d) It should see its initial moves as stepping stones, and make sure
it learns from their likely failure. e) It should ensure it invests sufficient resources to
ensure first-time success. - Answer ✅ D
Henry Mintzberg's five P's for strategy include all of the following except: a) An
organisation's shared mindset. b) An organisation's position in relation to its
environment. c) The pattern in an organisation's actions over time. d) An organisation's
portfolio of products. e) An organisation's consciously intended plan of action. - Answer
✅D
Which of the following accurately characterises contemporary views on the role of
strategic planning? a) Critics argue that it can be too inflexible and too close to the
annual budgeting process. b) It facilitates extinction by instinct as well as paralysis by
analysis. c) It is about experimentation and learning from side-bets and sub-systems. d)
It is known to be effective in preventing the influence of political behaviour in strategy-
making. e) It is about making strategy in logical fashion from the top down, avoiding the
confusion that results otherwise. - Answer ✅ A
Assuming that human beings are rational, self-interested, and opportunistic, managers
as agents are inclined to practice managerial opportunism if: a) They previously worked
for a competitor. b) Effective corporate governance mechanisms are in place. c) No
effective corporate governance mechanisms are in place. d) The prevailing legislation
does not allow for such behaviour. e) The managers are also shareholders in the
company - Answer ✅ C
Which of the following was set out in class as a desirable characteristic in a scenario
planning exercise carried out by a business? a) Scenarios should be derived from the
two most important strategic drivers. b) Scenarios should be imaginative and not tied to
identifiable drivers. c) Scenarios should be determined from the maximum number of
drivers that can be identified. d) A distinct scenario should be built around each of the
main individual drivers. e) Scenarios should be established around a specified future
timeframe. - Answer ✅ E
In carrying out a 5-force competitive analysis on supermarket retailing in New Zealand,
which of the following would be a sensible statement? a) There are a large number of
competitors in the industry when the names of all the different chains are taken into
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