Strategic Management - Study Mode

[#396] Which of the following factors does not increase the bargaining power of a supplier?
Correct Answer

(C) A buyer is important to the supplier

Explanation

Solution: A buyer is important to the supplier does not increase the bargaining power of a supplier. The idea is that the bargaining power of the supplier in an industry affects the competitive environment for the buyer and influences the buyer's ability to achieve profitability. Strong suppliers can pressure buyers by raising prices, lowering product quality, and reducing product availability.

[#397] Which of the following best describes the mode of international business used by most companies?
Correct Answer

(D) exporting and importing

Explanation

Solution: Exporting and importing best describes the mode of international business used by most companies. Exporting is the sale of products and services in foreign countries that are sourced or made in the home country. Importing refers to buying goods and services from foreign sources and bringing them back into the home country.

[#398] What is the danger of excessive monopoly power?
Correct Answer

(C) The organization will change strategy to seek to fully exploit its power

Explanation

Solution: The organization will change strategy to seek to fully exploit its power is the danger of excessive monopoly power. A pure monopoly is a single supplier in a market with no competitors, whereas monopoly power exists when a single firm dominates a particular market.

[#399] Exports and imports apply mostly to which of the following?
Correct Answer

(B) merchandise

Explanation

Solution: Exports and imports apply mostly to merchandise. Exporting is the sale of products and services in foreign countries that are sourced or made in the home country. Importing refers to buying goods and services from foreign sources and bringing them back into the home country.

[#400] Why should governments seek to regulate?
Correct Answer

(D) To control competition, minimize resource wastage, and inhibit the exploitation of weak buyers and suppliers

Explanation

Solution: Governments seek to regulate to control competition, minimize resource wastage, and inhibit the exploitation of weak buyers and suppliers.