Weekly Review Quiz as of 2009-06-11
Strategic Management

Food Truck Nation
by Katy McLaughlin
06/05/2009
http://online.wsj.com/article/SB10001424052970204456604574201934018170554.html

1. Gourmet food trucks could be considered to exemplify

a) a low-cost strategy.
b) a differentiation strategy.
* c) a best value strategy.
d) vertical integration.
e) cutting out the middleman.

2. The real attractiveness of food trucks to gourmet chefs lies in

a) the publicity effect.
b) the ease of turning them into a national chain.
c) the opportunity for chefs to meet and serve customers directly.
d) barter agreements with truck-leasing agencies.
* e) the high return on capital invested.

Fixed Costs Chafe at Steel Mills
by Robert Guy Matthews
06/10/2009
http://online.wsj.com/article/SB124459213013500159.html

3. What justification do steel mills give for raising prices?

a) Demand, although low, is rising unexpectedly
b) The recession has eliminated spare capacity in the industry
c) The dollar has depreciated, making rival imports more expensive
d) Raw materials represent only a tiny fraction of customers' total costs
* e) Low capacity utilization raises unit costs of production

4. Which of the following factors gives steelmakers one reason to think that the price hikes will stick?

* a) Tight credit restricts the stockpiling of imported steel
b) Steel production is exempt from antitrust laws
c) A flood of public subsidies to car makers makes major buyers disinclined to bargain over price
d) The Obama administration will support the demands of unionized labor
e) Tariffs on steel imports will rise

Probe of Google Book Deal Heats Up
by Elizabeth Williamson, Jeffrey A. Trachtenberg and Jessica E. Vascellaro
06/10/2009
http://online.wsj.com/article/SB124458396782799555.html

5. How does Google view the Justice Department's increased scrutiny of its deals and operations?

a) As a stab in the back after supporting the Obama administration
b) As a tactic instigated by Microsoft
* c) As a routine issue confronting dominant firms
d) As a necessary step to receive an eventual stamp of approval
e) As an infringement on entrepreneurial initiative