Weekly Review Quiz As of 2010-12-16 Strategic Management

Weekly Review Quiz as of 2010-12-16
Strategic Management

Rising Computer Prices Buck the Trend
by Ben Worthen
12/14/2010
http://online.wsj.com/article/SB10001424052748704681804576017883787191962.html

1. Computer prices are rising because of

a) a chip shortage.
b) rising Chinese wages.
c) recent industry consolidation and concentration.
* d) higher willingness to pay on the part of customers.
e) inventory shortages caused by pessimistic demand forecasts.

2. Which strategy among PC makers is currently proving to be quite lucrative under these conditions?

a) a niche strategy
b) a cost leadership strategy
* c) a broad differentiation strategy
d) a strategy based on co-opetition
e) a global integration strategy

Drug Research Gets New Asian Focus
by Shirley S. Wang and Jonathan D. Rockoff
12/15/2010
http://online.wsj.com/article/SB10001424052748703531504575623891891473992.html

3. The Asian deficit in the global strategy of Western pharmaceutical firms involved, above all, a lack of

a) an Asian sales force.
b) top managers of Asian descent.
c) products for the affluent middle class.
d) products for the bottom of the pyramid.
* e) products for medical conditions specific to Asia.

4. "Local differentiation" to address this gap involves, above all,

a) developing a global mind-set.
b) developing truly global managers.
* c) making fairly long-term R&D investments in Asia.
d) adapting existing products to the specific requirements of Asians.
e) adapting the packaging and labeling of products to Asian conditions.

5. In Asian countries like China, Western drug firms may need strategies to cope with substitutes. These substitutes (in Porter's sense) take especially the form of

* a) traditional medicines.
b) legal copycat products.
c) counterfeit placebo pills.
d) rival pharmaceutical products.
e) vaccinations rather than cures.