Business Growth Strategy Coursera Quiz Answers

All Weeks Business Growth Strategy Coursera Quiz Answers

Get the tools you need to analyze, evaluate and recommend specific actions organizations can take to grow their value and avoid common growth pitfalls. In this course, developed at the Darden School of Business at the University of Virginia and taught by top-ranked faculty, you will learn to determine how best to build value, whether by scaling existing markets, entering established markets or creating new markets through innovation and acquisitions.

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Business Growth Strategy Coursera Quiz Answers

Week 1: Growth through Scaling

Q1. Which of the following is the most strategic reason for growth?

  • Media outlets report that market analysts are predicting a company is ripe for a merger or other growth opportunity.
  • A competitor recently acquired another firm.
  • A company grows to take advantage of growth opportunities that present themselves.
  • A business grows in order to pursue an opportunity that advances the company’s missions and goals.

Q2. How is a firm most likely to achieve profitability via strategic growth?

  • Companies that grow can capture more market share.
  • Larger companies are more efficient, which increases profits.
  • Growth may create economies of scale and more value for stakeholders.
  • Larger companies inherently have more profitability.

Q3. Using the lens of the strategist’s challenge, evaluate which of the following potential growth opportunities is most likely to enhance a firm’s valuable competitive position.

  • A small coffee shop chain has an opportunity to acquire a fair trade, sustainable coffee bean importer. The acquisition would allow the coffee chain to source beans that fit with company’s values and missions and reduce costs. With staff experienced in importing beans, the change is within its capabilities.
  • The owner of a successful custom designed and hand-lettered stationary business is considering an expansion to online sales. This would expand her current popular products to more clients and the owner has found a reasonably priced sales platform. However, she’s not sure how the small company will keep up with demand for its handmade products.
  • A small clothing boutique chain targeting college students with its preppy clothing and accessories has an opportunity to expand with a product line aimed at young professionals. With current stores located in southern U.S. college towns, the growth opportunity would require new store locations as well as advertising campaigns to introduce this line to a new demographic.
  • A provider of K-12 math educational games and study aids is thinking of expanding to include English language arts games and study resources. They would have to hire new staff members to develop the content and conduct research on current products and rivals in the language arts field.

Q4. Which of these would be most likely to pursue a more rapid growth strategy?

  • A vacation rental company that specializes in managing properties in a specific geographic location
  • A niche family-owned hotel and restaurant
  • An established company that has created innovative ski gloves with bluetooth capabilities
  • A successful ice cream retailer with a very small organic supply chain due to its mission and company values

Q5. A company that makes wall calendars and book-style planners has elected to add new book-style planners and calendars to its product line rather than pursuing online resources that allow remote digital access and syncing between multiple users. How is this decision a potential growth risk?

  • Overextending
  • Growing at the top line
  • Growing too fast
  • Growing in the wrong direction

Q6. Assess the following scenarios and determine which company most likely has the greatest growth risk.

  • A tech firm is growing at a slower pace than its competitors.
  • A retail clothing chain is growing at a pace its resources and capabilities can sustain.
  • A big box electronics store has extensively changed the product lines offered in stores in order to keep up with consumer demands.
  • A popular cookie bakery decides not to pursue an opportunity to sell cookie mixes in stores.

Q7. A software company is considering growth through scaling and needs to identify a high growth potential market segment. Which of the following strategic frameworks would offer the most comprehensive analysis?

  • Capabilities, stakeholder, internationalization and diversification analyses + scenario planning
  • Competitor, environmental, and competitive life cycle analyses + analyses of industry structure, competitive dynamics, and competitive position
  • Capabilities, stakeholder, environmental, diversification and competitive life cycle analyses + analyses of competitive position and scenario planning
  • Competitor, capabilities, diversification, and competitive life cycle analyses + analyses of industry structure and scenario planning

Q8. How can company leadership best use scenario planning?

  • Scenario planning is ideally used to pinpoint a single-point forecast in the middle of the strategic process.
  • Scenario planning is most effectively used in the beginning of a strategic process when leaders are generating possible options.
  • Scenario planning can be used in the beginning of a process to generate options or later to test the robustness of a range of possible futures.
  • Scenario planning is best used later in the strategic process, after a strategy has been formulated, to test the robustness of a range of possible futures.

Q9. How might a company best identify a key strategic issue for scenario planning?

  • Focus on identifying uncertainties rather than the time horizon.
  • Determine an important strategic decision that will have potential for significant future impact.
  • Avoid getting bogged down in contextual or organizational issues.
  • Remain competitive by not asking questions about the key strategic issue to anyone outside the firm.

Q10. Candy company executives have created a list of possible trends and uncertainties. As a strategist, which item would you identify as the key uncertainty?

  • Large portions of the world-wide candy market are facing market saturation and an uncertain economy as many consumers seem reluctant to pay higher prices for some candies.
  • Experts agree that consumers increasingly want snacks that are easy to eat on the go and have fewer calories than traditional candy bars.
  • Sugar confectionary sales are down and industry insiders think this could be attributed to more health-conscious consumers or to a lack of product innovation and diversification.
  • Data shows that consumers consistently favor chocolate products with a higher quality and percentage of chocolate.

Q11. How do the four scenarios compare to one another in the scenario planning quadrant above?

  • The quadrants ideally should be mutually exclusive.
  • Outcomes should be the same across all quadrants.
  • Trends should be reflected in the vertical axis.
  • The uncertainties represented in the matrix are the same in all quadrants.

Q12. After writing scenarios, how might strategists best reflect and proceed with the information?

  • Avoid any of the scenarios that yield a risky outcome.
  • Identify opportunities to make a company’s strategic moves more robust.
  • After writing four scenarios for one combination of two key uncertainties, use these possible futures to reconsider strategic options.
  • After carefully considering all options, choose a single-point forecast and build a vision around that future.

Week 2: Growth through Entry

Q1. How does rivalry most often impact firms?

  • Rivalry decreases margins and increases the number of competitors.
  • Rivalry decreases margins and eliminates some competitors.
  • Rivalry increases prices, lowers costs, and encourages competitors to enter the market.
  • Rivalry increases margins and eliminates competitors.

Q2. In which scenario would a firm be most likely to benefit from a game theory analysis?

  • A firm has many competitors and known objectives and payoffs.
  • A large group of firms have known objectives and some expectation of payoffs.
  • A firm has a limited number of competitors and known objectives and payoffs.
  • A small competitive field needs to analyze objectives and payoffs.

Q3. How might a payoff matrix help a firm engaged in a simultaneous move game?

  • It illustrates payoffs when rivals’ actions are uncertain.
  • It determines payoffs limited by the horizon effect.
  • It assesses payoffs in sequential move games.
  • It helps the firm understand payoffs to specific actions given rivals’ likely counter moves.

Q4. How might communication best help competitors reduce the likelihood of negative outcomes?

  • Firms can communicate plans to irreversibly eliminate strategic options.
  • Firms can lessen the transparency of most company data in order to reduce competition.
  • Firms can initiate a competitive lock-out.
  • Firms can signal their intent by communicating selective information.

Q5. You’ve been tasked with identifying potential rivals to your rug textile company. Which of the following will you most likely eliminate from your list of potential rivals?

  • A firm that manufactures woven pillows and loom wall hangings
  • A company that has taken a minority ownership stake in a rival rug manufacturing company
  • The home furnishing chain that sells most of your rugs
  • The supplier of the polypropylene material used in your company’s most popular rugs

Q6. How might a large, established firm use a deterrence strategy to prevent other firms from entering their market?

  • Keep prices low to deter rivals
  • Intimidate rivals by revealing your company’s strengths and capabilities
  • Establish structural barriers to entry, such as licensing and other industry regulations
  • Communicate industry cost structures and demand

Q7. How could firms best use pricing strategies to reduce market competition?

  • A firm can lower factor costs.
  • A firm can make sure the prices are not segmented in the market.
  • Firms can agree to best price clauses.
  • A large firm with a dominant market position can reduce prices.

Q8. Why are high network externalities advantageous?

  • Value increases as more people use goods and services.
  • They encourage creation of niche markets.
  • Less market competition increases value.
  • They prevent market domination.

Q9. Which of the following is the strongest market strategy to restructure an industry?

  • Avoid making the first move so you have more time to assess the market.
  • Lobby to establish license requirements in order to eliminate a sector of the market.
  • Innovate by creating a new product or service.
  • Create incentives for cooperation by creating a repeated gain.

Q10. Which of the following is the best interpretation of the payoff matrix above?

  • If one firm cuts prices, the other should as well.
  • There is not a dominated strategy available in the scenario.
  • If Firm 1 cuts prices and Firm 2 doesn’t, Firm 1 decreases its market share and loses demand.
  • Firm 2 should not cut prices.

Q11. Review: An organic market and sandwich shop with several locations has decided to pursue a slow and careful growth strategy, focusing on the model that has brought them much success. Which of the following would most likely be the best fit?

  • Innovation
  • Scaling
  • Acquisition
  • Market entry

Q12. Review: After writing scenarios, how might strategists best reflect and proceed with the information?

  • After writing four scenarios for one combination of two key uncertainties, use these possible futures to reconsider strategic options.
  • Identify opportunities to make a company’s strategic moves more robust.
  • Avoid any of the scenarios that yield a risky outcome.
  • After carefully considering all options, choose a single-point forecast and build a vision around that future.

Week 3: Growth through Acquisition

Q1. How do friendly takeovers differ from hostile takeovers?

  • In a friendly takeover, one firm solicits an offer from an acquirer.
  • Hostile takeovers are the most common growth strategy.
  • In a friendly takeover, the acquired firm is not actively soliciting offers.
  • Hostile takeovers result in integrated operations solicited by the acquired firm.

Q2. A small sports video game development company with a unique product offering and loyal fan base solicits an offer from Electronic Arts (EA), a global gaming company. How might EA benefit from acquiring the smaller company?

  • EA would be able to roll up a segment of the gaming industry.
  • EA would be able to diversify.
  • EA would have an opportunity for a risk-free, low cost and simple growth opportunity.
  • The risk of resistance from the video game development company would actually outweigh EA’s potential benefits.

Q3. Why might an acquisition be advantageous for a firm?

  • Acquisitions are one of the most successful strategic growth options for firms.
  • Acquisitions prevent consolidation strategies.
  • Acquisitions allow for simpler integration.
  • Acquisitions help an organization overcome barriers to entry.

Q4. A mid-market company is considering the acquisition of a smaller company that will cost a great deal but enable the acquiring firm to experiment in a new industry. How would you advise the CEO of the acquiring company in order to best ensure the success of the merger?

  • Prioritize possible immediate profits over analyzing the long-term potential for synergy.
  • Proceed with acquisition as mid-market companies are flexible and have the best rate of success with acquisitions.
  • Outbid competitors because the merger is conceptually sound.
  • Consider your firm’s ability to manage the post-merger integration and to pay the asking price.

Q5. How might an executive best analyze an upcoming merger to ensure that the viability of the transaction is still sound?

  • Consult research on agency problems and the role of egocentric executive behavior.
  • Use competitive bids and auction results to confirm value paying for acquiree.
  • Confirm the value of the merger with transaction intermediaries.
  • Realize that any serious acquisition obstacles would present themselves before closing.

Q6. Which of the following might be the strongest strategic move for a mid-market company specializing in handheld flashlights seeking to diversify?

  • Acquire a company that produces toys featuring light-up technology.
  • Scale into market opportunities by venturing into retail stores rather than relying on resellers.
  • Vertically integrate with the supplier of the firm’s popular flashlight wrist straps.
  • Form an alliance with a company manufacturing spy kits containing small flashlights.

Q7. When can an acquisition most likely be successful?

  • When synergies between the companies are very strong
  • When the acquisition helps a firm advance or maintain a valuable competitive position
  • When the acquisition helps a firm roll up a segment of the industry
  • When a firm needs to vertically integrate

Q8. Which of the following strategic benefits of a merger or acquisition is most likely to present potential problems for the acquiring firm?

  • Efficiency gains
  • Complementarity gains
  • Diversified risks
  • Market consolidation

Q9. If a company believes there is a conceptual benefit to acquiring another firm, how have they assessed the value creation potential?

  • Potential efficiency and complementarity gains are comparable with the acquisition cost
  • The purchase price, factoring in integration costs, is comparable to or lower than the independent value of the acquired firm
  • Value created through synergy is higher than the purchase price
  • Value creation potential exceeds acquisition costs

Q10. Which of the following most likely indicates that an acquisition may be a viable growth move?

  • There are varied and robust options for achieving net benefit.
  • The strategic benefit of the acquisition is comparable to the benefit of scaling the existing company.
  • A hostile takeover allows the acquiring firm to dramatically increase its capabilities.
  • The net benefit of the acquisition is larger than the benefit of alternative strategies.

Q11. Review: Which of the following scenarios has the strongest approach to identifying a key strategic issue for scenario planning?

  • A management team takes responsibility for identifying key issues.
  • Ask questions to reveal industry uncertainties that are most likely to impact future success.
  • A company that sells novelty gifts based on popular TV shows and movies has a time horizon of one year.
  • A tech company has a time horizon of ten years.

Q12. Review: A large hobby company is considering whether or not to launch a new product line. Research indicates the product may have strong payoffs and that its primary competitor is also considering adopting a similar product. How might the hobby company best analyze its options and determine how to move forward?

  • Analyze the competitor firm’s capabilities, performance, and strategies.
  • Use Porter’s five forces analysis to predict the overall intensity of rivalry with the primary competitor.
  • Align the mission, purpose and capabilities of the firm with market opportunities.
  • Analyze the potential payoffs and the strategic moves of competitors and then reason backwards.

Week 4: Growth through Innovation

Q1. Which of the following is the most accurate assessment of innovation?

  • Most innovations occur via technology pushes rather than demand pulls.
  • Heavy investments in research and development do not necessarily result in breakthrough products.
  • Depth of expertise is more critical to innovation than breadth of expertise.
  • Most investments in innovation occur in small companies with an entrepreneurial spirit.

Q2. Which of the following descriptions best classifies a second-mover innovation strategy?

  • An inventor of a revolutionary phone charging station continues to innovate on this design before economic rents are diluted
  • A teen clothing firm leverages complementary capabilities to out-compete rivals
  • A sporting goods company invests heavily in designing a new material for tents
  • An innovator of a music sharing service captures the market

Q3. How can a firm best develop innovative capability?

  • Incentivize experimentation
  • Promote teams and individuals with a track record of successful innovations
  • Encourage departments to focus on developing deep expertise of their own functions
  • Avoid uncertainty in the development process

Q4. Which type of team is optimal for sharing knowledge that leads to innovation?

  • A cross-functional team that brings together people from multiple units
  • A team that focuses and invests its energy on a single goal rather than juggling multiple projects
  • A team that reduces meeting time by focusing on their own business unit or department
  • A team led by managers who focus on discrete developmental processes rather than having too much responsibility for the overall innovation process

Q5. A firm is working on a complex scientific solution to reducing water scarcity. A market opportunity requires that the device is ready sooner rather than later. How could an organizational structure minimize costly downstream mistakes?

  • Set up sequences and approvals for each group before handing off development to the next function
  • Build cross-functional teams that work together throughout the project
  • Create opportunities for early project interaction via overlapping cross-functional design teams
  • Minimize costly management bureaucracies by encouraging individuals to innovate and act quickly

Q6. Using the data in the graph above, what conclusion can you draw about the appropriation of gains from an innovative medical device?

  • The innovator does not control many of the complementary assets.
  • The innovator has strong intellectual property protection.
  • Consumers will gain little value from this product.
  • Market competition for this product will be fierce.

Q7. Which of the following scenarios has the strongest intellectual property protection?

  • A company’s innovation has a deep learning curve.
  • A company lacks the resources to defend a patent.
  • A company has less brand identity and customer loyalty than a major competitor.
  • A company disruption makes leaking of trade secrets likely.

Q8. A pioneering innovation in virtual reality sports training software is used with a specialized camera and requires collaboration with sport teams to obtain video footage. How would you best categorize the complementary assets in this situation?

  • The software firm’s success is dependent on these complementary assets, with video footage being more freely available and camera hardware being more tightly controlled.
  • The asset holders and the software firm have bilateral dependence.
  • The virtual reality sports training program has generic complementary assets.
  • The software firm is dependent on support services, including marketing and distribution.

Q9. In the following scenarios, who would you predict would be most likely to profit if intellectual property protection of an innovation is strong?

  • The innovator of a product that is not very dependent on assets
  • The holder of an asset on which the innovation is not very dependent
  • The innovator of a service that needs an asset provider
  • A rival seeking to imitate the innovation that lacks complementary assets

Q10. What is an innovator’s optimal strategic move when intellectual property protection is weak and complementary assets are tightly held?

  • The innovator does not have a viable strategic option.
  • The innovator should attempt to license its product or service.
  • The innovator should bring the product or service to the market.
  • The innovator should attempt to integrate with the asset holder.

Q11. Review: Which of the following is the strongest market strategy to restructure an industry?

  • Innovate by creating a new product or service.
  • Create incentives for cooperation by creating a repeated gain.
  • Lobby to establish license requirements in order to eliminate a sector of the market.
  • Avoid making the first move so you have more time to assess the market.

Q12. Review: How can acquisitions be disadvantageous for the acquiring firm?

  • Acquiring firms can become overleveraged.
  • Acquisitions increase the lead time of internal development.
  • Acquisitions are unlikely to yield many intangible assets.
  • Acquiring firms have a slower market entry.
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