Schlumberger success can be attributed to use of strategy

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Reference no: EM132185484

1. Schlumberger is the world's leading supplier of technology to the oil and gas industry. Decisions are made at the center and also as close to the customer as possible. Schlumberger's success can be attributed to its use of the strategy

a) multidomestic

b) global

c) international

d) transnational

2. Which of the following statements correctly compares/contrasts economies of scale and economies of scope?

a) economies of scale result from decline in the average cost of production as volume increases, whereas economies of scope result from decline in the average cost of production due to the outsourcing of resources across products and services.

b) Economies of scope result from decline in the average cost of production per unit as volume increases whereas economies of scale result from decline in the average cost of production due to the sharing of resources across product and services.

c) Economies of scope result from decline in the aggregate cost of production as volume increases, whereas economies of scale result from decline in the aggregate cost of production due to the outsourcing of resources across product and services

d) economies of scale result from decline in the average cost of production per unit as volume increases whereas economies of scope result from decline in the average cost of production due to the sharing resources across products and services.

3. Because it holds a patent for technology that increases an automobile's reliability, Company A has 80% of market for a specialized component. Auto manufactures pay a high premium for this component. As result, the auto manufactures realize:

a) reduce profit margins due to the bargain power to their supplier

b) increases profit margins due to the bargain power to their buyer

c) increases profit margins due to minimal threat of product substitution

d) reduced profit margins due to the intensity of competitor

4. A company that experienced problems with its wholesales decided to replace them by building warehousing facilities from which to distribute its products and to hire its own sales force. This strategy is called:

a) imitation b) horizontal integration c) substitution d) vertical integration

Reference no: EM132185484

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