Weekly Review Quiz as of 2008-05-22
Strategic Management
CEO Gambles on a Novartis Makeover
by Jeanne Whalen
05/20/2008
http://online.wsj.com/article/SB121123031157404841.html
1. Pharmaceutical industry profits are under strain for all of the following reasons EXCEPT
a) generic companies are undercutting on price.
b) generic companies are becoming much more aggressive at copying brand-name drugs.
* c) consumers require fewer drugs due to improving health care.
d) health insurers are less willing to pay for expensive drugs.
e) government regulators are getting tougher on new drug approvals.
2. To combat bureaucracy, the pharmaceutical division at Novartis
a) holds "town meetings" at least twice a week.
* b) is being reorganized into smaller teams.
c) has been told it must achieve 20% ROI by 2012 or it will be sold off.
d) has hired a charismatic new managing director from rival Pfizer.
e) is studying the methods used by Swiss sports teams.
3. Novartis is practicing "key account management," that is, developing closer relations to
a) very rich individuals in need of medicine.
b) government regulators and other watchdogs.
c) bulk buyers of medicine like the US military.
d) large companies with comprehensive health plans for employees.
* e) health insurance organizations.
Toys 'R' Us Unwraps Plans for Expansion
by Joseph Pereira
05/22/2008
http://online.wsj.com/article/SB121141423500012507.html
4. By building Toys "R" Us stores next to Babies "R" Us stores, the toy store chain
a) is engaging in value innovation.
b) is limiting business risk.
c) is leveraging its financial resources more effectively.
d) exemplifies the resource-based view of the firm.
* e) is exploiting economies of scope.
5. In what sense is the toy store chain practicing segmentation with this dual-store model?
* a) By targeting buyers with more than one child
b) By differentiating itself from Wal-Mart and other discounters
c) By specializing in suburban locations with large parking lots
d) By specializing in electronic toys
e) By avoiding merchandise overlap with the other major toy store chains