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Royal Dutch Shell has been recognized as one of the most effective corporations

01 / 10 / 2021 Projects

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Royal Dutch Shell has been recognized as one of the most effective corporations

1.
Royal Dutch
Shell has been recognized as one of the most effective corporations to use
scenarios as part of their environmental scanning and forecasting process. The
use of scenariosinvolves:

a.
Extrapolating or extending
current trends into thefuture
b.
Quantitatively analyzing data to
create statistical models of what impactsperformance
c.
Having a group of experts
independently evaluate the likelihood of future eventsoccurring
d.
Developing descriptions of
likely future events that may impact the firm’sperformance

2.
If Industry B has a high
threat of new entrants, we would expect to see that ithas:

a.
Low barriers ofentry
b.
High barriers ofentry
c.
Hostile competitive reactions
from firms in the industry to newentrants
d.
Both b &c

3.
If an industry has high
economies of scale, this meansthat:

a.
Bigger firms have larger market
share & sales than smallerfirms
b.
There are much lower per unit
costs associated with operating on a largerscale
c.
Customers purchasing larger
quantities of the industry’s product pay lowerprices

4.
Industry H has higher average
profitabilitythan most industries so you would expect tosee:

a.
A high threat of newentrants
b.
High intensity ofrivalry
c.
Low threat of substituteproducts
d.
Both a &c
e.
Both b &c

5.
Given how we
defined the soft drink industry in class and the definition for substitute
products, if your firm produces Coca-cola, substituteswouldinclude:

a.
Pepsi
b.
Icedtea
c.
Water
d.
All of theabove
e.
Both b &c

6.
The soft drink industry,
as we defined it inclass,has intensity
of rivalry, due in partto
.

a.
Low; high differentiation of
products & production capacity added in largeincrements
b.
Low; a large number of
competitors in the industry & high growth in theindustry
c.
High; high number of substitute
products and high bargaining power ofsuppliers
d.
High; low/declining growth in
the industry & two very large firms competing to dominate themarket

7. Bottlers and distributors in the soft drinkindustry have bargaining power as
buyers, due in partto
.

a.
Low; a large number of
bottlers/distributors owned or contracted by firms in theindustry
b.
Moderate; a large number of
bottlers/distributors and buyers threatening backwardintegration
c.
High; low product
differentiation and a small number of buyers purchasing in largequantity

8. Consumers, as buyers to the smartphoneindustry,have bargaining power as buyers,
due in partto
.

a.
Low; one dominant firm in the
industry and consumers having no substitute products to those in theindustry
b.
Low; high
number of buyers, low volume of purchases by each buyer & no/low threat of
vertical integration by buyers
c.
Moderate; high
number of suppliers producing commodity-type products & suppliers not able
to forward integrate
d.
High; low growth in the industry
& too many firms in the industry competing for shrinking marketshare
e.
High; highly differentiated
products in the industry and few substitutes to products in theindustry

9.
We said that
service providers to the smartphone industry such as Verizon, T-Mobile, Sprint
and so on have moderate or balanced bargaining power as buyers relative to
firms in the industry, dueto:

a.
A relatively small number of
very large buyers who buy in largevolume
b.
Smartphone firms not likely to
pursue forward integration into the buyers’industries
c.
Both a & b contribute to
explaining the level of bargaining power of suppliers insmartphones
d.
None of theabove

10.
The smartphone industry as we
defined it for our analysis in class,has:

a.
High access to
distributionchannels
b.
High productdifferentiation
c.
Low switching costs toconsumers
d.
All of theabove
e.
Both a &b

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Assume that Heidi Swiss decides she wants to start
a downhill skiing business in the Rocky Mountains of Colorado. She realizes
that there are already a number of established skiing operations in existence
near Denver, Colorado but she’s convinced that the mountainside her family has
owned for years provides a great basis for creating a new type of skiing
business. Use this information to answer questions 19-23.

11.
Suppose Heidi
creates a downhill skiing company that saves money by: purchasing used towing
equipment from failed skiing operations; relying on self-service equipment
rental and self-service storage facilities (to reduce HR expenditures); and
charging the lowest fees for daily ski passes, Heidi is pursuing the generic
competitive strategyknownas:

a.
Costleadership
b.
Differentiation

c.
Focus
d.
Sloping

12.
Ignoring
question 19, if Heidi chooses to create a downhill skiing business for
physically challenged children from ages 3-10, with equipment available to
enable any of these children to ski (including quadriplegics in wheelchairs),
specially designed ski lifts, and a higher-than-normal number of expert staff
on the slopes to assist and encourage child skiers, this would indicate Heidi
has chosen the generic competitive strategyknownas:

a.
Costfocus
b.
Differentiationfocus
c.
Nichefocus

13. Ignore the information in questions 19 and 20 for
answering this question. If Heidi decides to develop her business into a
low-cost skiing facility aimed at families (allowing the whole family to ski
all day for one low price), would this be an example of a blue oceanstrategy?

a.
Yes,definitely
b.
No, definitelynot
c.
Maybe, but only if there aren’t
any family skiing businesses nearHeidi’s

14.
Suppose Heidi
decides to work with a company that designs downhill skiing equipment. She
focuses her skiing business on providing a training facility for competitive
skiers and the equipment design company agrees to make their equipment/gear
available to the skiers at a significant discount. The skiers will agree to let
both companies use their photos and video of them in marketing campaigns for
the two firms. This is an example of the cooperative strategyknownas:

a.
Strategicalliance
b.
Collusion
c.
Blueocean
d.
Franchising

15.
Heidi has grown
up working in her family’s business ventures so she has a lot of knowledge of
how to develop a firm’s strategy, lead a company, and how the skiing industry
operates (due to working in it for over 10 years); however, Heidi isn’t aware
of how much she really knows and cannot easily explain it to others. This
provides Heidi’s business with a valuable resource, a type of knowledge
knownas:

a.
Tacitknowledge
b.
Explicitknowledge
c.
Transparentknowledge

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16.
A Strategic Factors Analysis
Summary (SFAS) Matrixdoes which of thefollowing:

a.
Quantifies competitors’
strategies so they can be compared against your own firm’sstrategy
b.
Converts an industry analysis
into key factors that your firm can use to improve your strategicposition
c.
Combines internal & external
factors of a SWOT analysis in one table with weights for theirimportance
d.
Both a &b

17.
Top managers may
analyze the set of activities involved in acquiring raw materials, building
component parts, assembling the products, packing and shipping products,
marketing and advertising, and service and repairs. This type of analysis would
be known asa/an:

a.
Strategicaudit
b.
Imitabilityassessment
c.
Value chainanalysis

18. If your firm is organized into departments for accounting,
marketing, production/operations, finance and human resources, this would be an
example of the organizational structure knownas:

a.
Functionalstructure
b.
Divisionalstructure
c.
Simplestructure
d.
Strategic business units(SBUs)

19.
Chapter 5
discussed a number of strategic issues that managers may need to consider in
each of the functional areas when they engage in internal scanning (looking at
strengths and weaknesses of the firm). These include which of the following
issues related to Research and Development(R&D):

a.
How the firm can increase its
R&D intensity since this increases the number of innovations a firmdevelops
b.
Preventing technological
transfer so new innovations are kept safe in the R&Dlaboratory
c.
Considering the likelihood and
impact of technological discontinuities or disruptivetechnologies
d.
All of theabove

20.
The experience curve, an
important factor to consider when analyzing a firm’s operations, illustratesthat:

a.
Managers with
more years of experience working in an industry get higher productivity than
less experiencedmanagers
b.
Per unit production costs
decrease as the firm doubles the volume of products itmanufactures
c.
As a firm
manufactures more products, its equipment assets decrease in value and increase
in maintenancecosts

21.
The concept of hypercompetitionsuggests
that managers need to recognizethat:

a.
Most industries
have more firms competing against one another and low entry barriers that allow
new firms to continuallyenter
b.
A sustainable
competitive allows the firm to move above their competitors and pursue a
stability strategy to maintainposition
c.
Their firm must
continually work to maintain their competitive advantage in environments
characterized by constant change anddisequilibrium

22.
Cirque du Soleil used a blue
ocean strategyby doing which of thefollowing:

a.
Focusing on beating competitors
such as traditional circuses in attractingcustomers
b.
Exploiting existing demand by
offering higher value and pursuing a strategy ofdifferentiation
c.
Creating uncontested market
space and attracting customers who were not interested incircuses
d.
All of theabove



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