Experience effects mean: (Points : 5) Employees learn to do jobs more efficiently with repetition An employee can easily learn to do several different jobs within a firm The time required to complete a task will decrease as a predictable function of the number of times the task is repeated Both B and D are correct Employees who are slow to learn new tasks will require additional training According to the theory of transaction cost economics, a market is likely to fail if: Question 2.2. (Points : 5) The future is highly certain The future is highly uncertain Assets may be used to produce a variety of products or services There are a large number of suppliers All parties to the transaction have the same level of knowledge Related diversification differs from unrelated diversification in which of the following Question 3.3. (Points : 5) Single business firms use related diversification and never use unrelated diversification Related diversification is connected to the organization's dominant business; unrelated diversification is not A firm that uses related diversification always uses vertical integration; a firm that uses unrelated diversification never uses vertical integration Unrelated diversification is connected to the organization's dominant business; related diversification is not Single business firms use unrelated diversification and never use related diversification As corporate-level strategies develop, any of the following strategies might be expected to directly follow a concentration strategy except: Question 4.4. (Points : 5) Restructuring Diversification of products/services Diversification of resource conversion processes (technologies) Diversification of markets Vertical integration Question 5.5. Generic strategies are concerned with: (Points : 5) Functional strategies the firm will pursue The competitive tactics firms use to protect their competitive positions How the firm intends to position itself to create value for its customers None of the above Selection of the business areas in which the firm will compete In a typical vertical supply chain, the major stage of the industry that immediately follows raw materials extraction is: Question 6.6. (Points : 5) Primary manufacturing Final product manufacturing Retailing Wholesaling None of these Which of the following is typically a corporate-level strategy formulation responsibility? Question 7.7. (Points : 5) Establishment of short-term operating goals Selection of businesses in which to compete Direct supervision of research and development programs None of the above Choice of generic strategy for each business unit Which of the following is an accurate statement about economies of scale? Question 8.8. (Points : 5) Economies of scale are identical to throughput Production costs per unit are less in a large facility than in a small facility Companies with economies of scale have high capacity utilization Doubling factory size typically doubles fixed costs The more product a company makes, the lower its variable production costs The risks associated with pursuing a cost leadership strategy include all of the following except: Question 9.9. (Points : 5) Preoccupation with costs may lead a firm not to detect required product changes Efforts to cut costs could lead to unsafe products The firm's products are likely to become targets for imitators Large investments could cause reluctance to change Cost cutting could lead to products of very poor quality A strategy that is a combination of low cost leadership and differentiation is: Question 10.10. (Points : 5) Best cost Unlikely to be successful because of limited resources Very rare in today's business climate None of the above Cost focus Only one firm at a time can pursue a particular businesslevel strategy. Question 11.11. (Points : 5) True False In general, firms create competitive advantage by offering a basic product at a premium price and/or a preferred product at a low price. Question 12.12. (Points : 5) True False Managers sometimes choose to diversify because they are motivated by power, income, and status. Question 13.13. (Points : 5) True False Question 14.14. unit. (Points : 5) True False Economies of scale can contribute to reduced costs per Transaction cost economics is used primarily to determine when unrelated diversification is appropriate. Question 15.15. (Points : 5) True False The industry life cycle portrays how sales volume for a class of products changes over its lifetime. Question 16.16. (Points : 5) True False A competitive shakeout usually occurs at the beginning of the growth stage of the product life cycle. Question 17.17. (Points : 5) True False Exporting, licensing, and franchising are international expansion tactics. Question 18.18. (Points : 5) True False In differentiation strategies, the emphasis is on creating value through uniqueness. Question 19.19. (Points : 5) True False A common criticism that applies to many portfolio models is that they are based on the past instead of the future. Question 20.20. (Points : 5) True False