Question 1

The emergence of a multipolar world where the US no longer exercises a dominant role has meant that the "G7" leading economies now collaborate address the world's most pressing economic and environmental problems.

Accepted Answer

The statement is incorrect as the G7 leading economies still include the US as a dominant player, so the emergence of a multipolar world has not affected the composition of the G7.

Question 2

Companies such as Toyota,Wal-Mart,3M,and Samsung have sustained strong performance over long periods of time by basing their competitive advantage on a single core competence.

Accepted Answer

These companies have multiple core competencies as the basis for their sustained strong performance, rather than relying on a single one.

Question 3

In a more complex business environment where companies must pursue multiple dimensions of competitive advantage is consistent with Jim Collins' recommendation that companies should seek to be "hedgehogs" rather than "foxes." (Drawing upon the categorization of intellectuals made by Isaiah Berlin. )

Accepted Answer

Jim Collins, in his book "Good to Great," suggests that companies should strive to be like hedgehogs, focusing on one big thing they can be best at, rather than pursuing multiple dimensions like a fox. This is contrary to the idea of pursuing multiple dimensions of competitive advantage.

Question 4

The financial crisis of 2008-9,a series of corporate scandals,and increasing inequality have undermined the legitimacy of market capitalism.

Accepted Answer

The statement is true. The financial crisis of 2008-9, corporate scandals like Enron and WorldCom, and increasing income inequality have led to a growing sense of dissatisfaction with market capitalism and its ability to deliver equitable outcomes for all.

Question 5

For shareholder value maximization to be a helpful goal for top management it needs to focus not on stock market value but on the fundamental drivers of value.

Accepted Answer

Shareholder value maximization should focus on the long-term drivers of value, such as revenue growth, profitability, and return on investment, rather than short-term stock market fluctuations. This approach ultimately benefits both shareholders and the company as a whole.

Question 6

Applying real options thinking to industry analysis implies that industry attractiveness is less about an industry's profit potential and is more concerned with the range of strategic opportunities that an industry offers.

Accepted Answer

Real options thinking emphasizes the importance of flexibility and the ability to adapt to changing circumstances. Therefore, when applying real options thinking to industry analysis, the focus is on the range of strategic options that an industry offers, rather than solely on its profit potential. This approach recognizes that industries may have different types of strategic options, such as expansion, contraction, switching between products or customers, or investing in new technologies, which can create value and increase competitiveness. By considering the value of these options, decision-makers can make more informed and dynamic decisions about investing in or exiting from an industry.

Question 7

According to the economist Brian Arthur,the main impact of digital technologies will be the emergence of "external intelligence": intelligence and decision making that existing machines rather than in humans.

Accepted Answer

According to the economist Brian Arthur, the main impact of digital technologies will be the emergence of "external intelligence," which refers to intelligence and decision-making in machines rather than in humans.

Question 8

Of the 109 Chinese companies that were members of the Fortune Global 500 in 2018,few were state-owned enterprises.

Accepted Answer

According to the Fortune Global 500 list for 2018, out of the 109 Chinese companies on the list, 65 were state-owned enterprises.

Question 9

The increasing number of companies delisting from US stock exchanges to become private companies is a response to the increasingly onerous legal responsibilities of public companies and the increasing scrutiny to which they are subject.
public corporations.

Accepted Answer

The statement correctly identifies the reasons why companies are delisting from US stock exchanges.

Question 10

The growth of the freelance economy,in which taxi services,short-term accommodation,and home maintenance is provided by self-employed individuals rather than by firms,has little to do with technology,its mainly due to the preferences of individuals for the flexibility of self-employment over the rigidities of a full-time employment.

Accepted Answer

The growth of the freelance economy is significantly driven by technology, particularly through platforms like Uber, Airbnb, and TaskRabbit, which connect freelancers with customers, making it easier for individuals to offer and find these services.

Question 11

Rising concentration and growing monopoly power in the 21^st century is a feature of mature industries such as beverages,chemicals,and mining.In technology-based sectors,the disruptive effects of digital technologies ensure robust,dynamic competition.

Accepted Answer

The statement is incorrect. Rising concentration and growing monopoly power are also a feature of technology-based sectors, as seen in the dominance of companies like Google, Amazon, and Facebook in their respective markets. While digital technologies can disrupt markets, they can also contribute to the growth of dominant players.

Question 12

The growing interconnectedness of the world economy and human society cannot be regarded as a contributing factor to the increasing volatility and unpredictability of global environment of business.

Accepted Answer

The growing interconnectedness of the world economy and human society is a major factor contributing to the increasing volatility and unpredictability of the global environment of business. This interconnectedness brings about new challenges, risks, and opportunities, including economic, social, political, and environmental factors that affect the global business landscape. The most successful global companies recognize and adapt to these changes, but the volatility and unpredictability of the global business environment remain as major challenges for businesses operating in the interconnected world.

Question 13

The forces reshaping business during the first two decades of the 21st century bear no resemblance to those which reshaped business during the first two decades of the 20th century.

Accepted Answer

The forces reshaping business in both periods include technological advancements, globalization, and shifts in consumer behavior, although the specific technologies and global context may differ.

Question 14

"Managing real options" means that firms should take a greater interest in how share option packages are managed,to achieve the best value for shareholders

Accepted Answer

"Managing real options" refers to the process of managing choices or opportunities that a firm has to invest in, expand, or alter its projects or operations in the future, based on the evolving business environment, not to how share option packages are managed.

Question 15

Among industries based upon digital technologies,the presence of network externalities is critical in determining whether the industry tends towards monopoly or fragmentation.

Accepted Answer

The presence of network externalities in digital technology industries can lead to a winner-takes-all market, where one dominant company gains a significant market share due to the value derived from a large user base. This can lead to monopoly tendencies in the industry. In contrast, industries without significant network externalities are less prone to monopoly tendencies and may tend towards fragmentation.

Question 16

The three major societal issues that companies are being forced to address are: fairness,ethics,and sustainability

Accepted Answer

Companies are facing increasing pressure from consumers and stakeholders to address issues of fairness, ethics, and sustainability, and are being held accountable for their actions in these areas.

Question 17

The poor performance of the shares of Goldman Sachs after the 2008 financial crisis,News Corp.after the phone hacking scandal,and VW after its emissions cheating scandal provide support to the argument that maintaining legitimacy is critical to an organization's success.

Accepted Answer

The poor performance of these companies suggests that losing public trust and legitimacy can have significant negative impacts on an organization's reputation and financial success.

Question 18

Increasing levels of interconnectedness within a complex,nonlinear systems help to stabilize the impact of potentially disruptive forces.

Accepted Answer

In complex, nonlinear systems, increasing levels of interconnectedness can actually amplify the impact of disruptive forces, making the system more susceptible to cascading failures and unpredictable behavior.

Question 19

The current business environment is unusually perplexing and unpredictable because many of the trends of the late 20^th century-internationalism,the spread of constitutional democracy,and faith in market capitalism-have now gone into reverse.

Accepted Answer

The statement accurately describes the current business environment as perplexing and unpredictable due to the reversal of trends such as internationalism, constitutional democracy, and faith in market capitalism.

Question 20

12 A growing source of competition to western companies has been new computers from emerging market countries which have made the transition from supplying OEM products to Western manufactures and distributors to providing products under their own brand names.

Accepted Answer

The statement is true as emerging market countries have increasingly been able to produce their own branded computers, competing with western companies.

Quiz 15: Current Trends in Strategic Management