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MBA5006 BUSINESS STRATEGY EXAM Q & A WITH RATIONALES 2024.
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MBA5006 BUSINESS STRATEGY EXAM Q & A WITH RATIONALES 2024.
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MBA5006Business Strategy
Q & A w/ Rationales
2024
,A:
1. A company that operates in a highly competitive and
dynamic industry decides to adopt a differentiation strategy
to gain a competitive advantage over its rivals. Which of
the following actions is most likely to support this strategy?
a) Reducing the costs of production and distribution to
offer lower prices than competitors
b) Offering standardized products and services that appeal
to a broad market segment
c) Investing in research and development to create
innovative and unique products and services*
d) Focusing on a narrow market segment and meeting its
specific needs and preferences
Rationale: A differentiation strategy involves creating
products and services that are perceived as distinctive and
superior by customers, and that can command a premium
price. Investing in research and development is one way to
achieve this, as it can lead to innovation and uniqueness.
The other options are more consistent with a cost
leadership or a focus strategy.
2. A company that operates in the global fast-food industry
faces intense competition from local and regional players,
as well as changing consumer preferences and regulations.
To cope with these challenges, the company decides to
pursue a transnational strategy. Which of the following
capabilities is most essential for the success of this
strategy?
a) The ability to standardize operations and products across
, different markets
b) The ability to adapt operations and products to the
specific needs and conditions of different markets*
c) The ability to centralize decision-making and control at
the headquarters
d) The ability to operate independently from the local
governments and stakeholders
Rationale: A transnational strategy involves balancing the
trade-offs between global integration and local
responsiveness, which means that the company needs to
adapt its operations and products to the specific needs and
conditions of different markets, while also achieving
economies of scale and efficiency. The other options are
more consistent with a global or a multi-domestic strategy.
3. A company that operates in the online retail industry has
a large customer base and a wide range of products.
However, it faces increasing competition from other online
retailers, as well as traditional brick-and-mortar stores. To
maintain its market position and profitability, the company
decides to implement a customer relationship management
(CRM) system. Which of the following benefits is most
likely to result from this implementation?
a) Increasing customer loyalty and retention by providing
personalized offers and recommendations*
b) Reducing operational costs by automating order
processing and inventory management
c) Enhancing product quality by soliciting customer
feedback and reviews
d) Expanding market share by reaching new customers
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