Question

31.          Strategy is

                1. a central complex secret               2. A staff responsibility       

                3. A tactical weapon

                4.a unifying definition of the business            5. Defined by financial goals

32.          Synergy often results in cost saving from

                1. Layoffs               2. The Value proposition   3. Corporate creativity        

                4. Ethical sensitivity                             5. Customer reduction

                                                              \                                                               

Mark Smith was the Widget division manager.     His was the largest of 5 divisions of International Widgets and Things. The other divisions made parts his division used or used his widgets to make more complex products. A major African supplier was the sole source of an essential raw material. This supplier was attacked by terrorists. Mark was not sure he could maintain his widget’s unique broad market quality appeal without the materials from Africa. The Marketing manager suggested that a new group of consumers could be reached by the internet who would buy widgets without the African materials if they could be made the cheapest in the industry. (Us this case to answer Questions 33-37)

33.          The internet in this case creates a

                1. buyer                 2. low Barrier to entry        3. Channel

                4. Related              5. Substitute

  

34.          The African supplier would be in the Porter model

                1. a buyer              2. A segment         3. Powerful

                4. Related              5.a substitute

  

35.          The marketing manager is suggesting switching from a _______ to a __________ strategy

                1.Focus to Differentiation.                 2. Differentiation to Cost   

                3. Related to Unrelated

                                4. Retreat to stability                           5.Star to $ cow

36.          In the Grand strategy model, International Widgets and Things is

                1. a matrix organization    2. Dominant            3. An Analyzer

                4. Unrelated         5. vertically integrated

  

37.          At the Corporate level, International Widgets and Things is organized

                1. simply                2. Functionally      3.Divisionally

                4. As a Matrix        5. As a.Combinatorally S Corp

Answer 1

33. Channel.

Explanation: The case describes that the internet can be used to reach a new group of customers. Hence it opens up a new channel of trade.

34. Powerful.

Explanation: In the case the African supplier is the only source of an essential raw material. Hence the power of the supplier is clearly indicated here.

35. Differentiation to Cost strategy.

Explanation: Differentiation strategy is used when the company uses a unique product or service or method of supply or experience to the targeted market. Here the products were made out of African materials which made it unique. In the absence of the essential raw material, the company is advised to offer the products as the cheapest in the industry.

36. Vertically integrated

Explanation: The case mentions that there 5 divisions of the company. The other divisions either create parts for the widgets for Mr. Mark's division or use his product as the raw material to create a further complex product. It means that these divisions act as suppliers for each other. An organization that owns its supply chain can be called as vertically integrated.

37. Divisionally.

Explanation: The case mentions that the organization has 5 separate divisions and each division creates different subparts of a product.