Archive for October 2017

A variety of firm resources include interpersonal relations among managers in the firm, its culture, and its reputation with its suppliers and customers. Such competitive advantages are based upon ____.

A variety of firm resources include interpersonal relations among managers in the firm, its culture, and its reputation with its suppliers and customers. Such competitive advantages are based upon ____. 




A. path dependency

B. social complexity

C. physical uniqueness

D. tangible resources


Answer: B

A competitive advantage based on inimitability can be sustained for at least some time if it has the following characteristics:

A competitive advantage based on inimitability can be sustained for at least some time if it has the following characteristics: 




A. psychographic uniqueness, path dependency, causal ambiguity, and substitutability

B. physical uniqueness, path dependency, causal ambiguity, and social complexity

C. rarity, path dependency, causal ambiguity, and social substitutability

D. geographic uniqueness, cause dependency, social ambiguity, and path complexity



Answer: B

For a resource to provide a firm with the potential for a sustainable competitive advantage, it must have four attributes. Which of the following is not one of these attributes?

For a resource to provide a firm with the potential for a sustainable competitive advantage, it must have four attributes. Which of the following is not one of these attributes? 




A. rare

B. valuable

C. easy for competitors to substitute

D. difficult for competitors to imitate



Answer: C

In the resource-based view of the firm, examples of tangible resources include:

In the resource-based view of the firm, examples of tangible resources include: 




A. financial resources, human resources, and firm competencies

B. financial resources, physical resources, and technological resources

C. financial resources, physical resources, and the capacity to combine intangible resources

D. outstanding customer service, innovativeness of products, and reputation



Answer: B

The three key types of resources that are central to the resource-based view of the firm are:

The three key types of resources that are central to the resource-based view of the firm are: 




A. tangible resources, intangible resources, and organizational structure

B. culture, tangible resources, intangible resources

C. tangible resources, intangible resources, and organizational capabilities

D. tangible resources, intangible resources, and top management



Answer: C

The resource-based view (RBV) of the firm combines two perspectives:

The resource-based view (RBV) of the firm combines two perspectives: 




A. the primary and support activities of the firm

B. the interrelationships among the primary activities of the firm and corporate management

C. the internal analysis of the firm and the external analysis of the industry and competitive environment

D. the industry and the competitive environment


Answer: C

A marketing department that promises delivery faster than the ability of the production department to produce is an example of a lack of understanding of the _____________.

A marketing department that promises delivery faster than the ability of the production department to produce is an example of a lack of understanding of the _____________. 




A. organizational culture and leadership

B. interrelationships among functional areas and firm strategies

C. need to maintain the reputation of the company

D. synergy of the business units



Answer: B

For firms such as CarMax, information systems have been a source of competitive advantage. Their proprietary information system captures, analyzes, interprets, and disseminates information about all cars on the CarMax lot. Which of the following can be attributed to this information system?

For firms such as CarMax, information systems have been a source of competitive advantage. Their proprietary information system captures, analyzes, interprets, and disseminates information about all cars on the CarMax lot. Which of the following can be attributed to this information system? 




A. decrease in uncertainties in hard to forecast areas such as inventory management

B. decrease in operational efficiency

C. reduced customer service

D. decrease in sales




Answer: A

Although general administration is often viewed only as overhead expense, it can become a source of competitive advantage. Examples include all of the following EXCEPT:

Although general administration is often viewed only as overhead expense, it can become a source of competitive advantage. Examples include all of the following EXCEPT: 




A. negotiating and maintaining ongoing relations with regulatory bodies

B. marketing expertise increasing the revenues of the firm and enabling it to enter new markets

C. effective information systems contributing significantly to overall cost leadership strategy for the firm

D. top management providing a key role in collaborating with important customers



Answer: B

Human resource management consists of activities involved in the recruiting, hiring, training, development, and compensation of all types of personnel. It supports _______________.

Human resource management consists of activities involved in the recruiting, hiring, training, development, and compensation of all types of personnel. It supports _______________. 



A. only individual primary activities

B. both individual primary and support activities and the entire value chain

C. only individual support activities

D. mostly support activities but does have some impact on primary activities




Answer: B

Which of the following lists consists of support activities?

Which of the following lists consists of support activities? 




A. human resource management, technology development, customer service, and procurement

B. human resource management, customer service, marketing and sales, and operations

C. customer service, information systems, technology development, and procurement

D. human resource management, technology development, procurement, and firm infrastructure





Answer: D

Customer service includes ________.

Customer service includes ________. 




A. product promotion

B. parts supply

C. product distribution

D. procurement of critical supplies



Answer: B

________ is/are associated with collecting, storing, and distributing the product or service to buyers. They consist of warehousing, material handling, delivery operation, order processing, and scheduling.

________ is/are associated with collecting, storing, and distributing the product or service to buyers. They consist of warehousing, material handling, delivery operation, order processing, and scheduling. 




A. Services

B. Outbound logistics

C. Inbound logistics

D. Operations




Answer: B

XYZ Corp. is focusing on the objective of low-cost, high quality, on-time production by minimizing idle productive facilities and workers. The XYZ Corp. is taking advantage of a __________ system.

XYZ Corp. is focusing on the objective of low-cost, high quality, on-time production by minimizing idle productive facilities and workers. The XYZ Corp. is taking advantage of a __________ system. 




A. Last In, First Out (LIFO)

B. First In, First Out (FIFO)

C. Just-In-Time (JIT)

D. Highly mechanized




Answer: C

Which of the following examples demonstrates how successful organizations manage their primary activities?

Which of the following examples demonstrates how successful organizations manage their primary activities? 




A. Motorola has revised its compensation system to reward employees who learn a variety of skills.

B. Hewlett Packard has cut lead time from five days to one by employing JIT inventory management.

C. National Steel improved its efficiency by reducing the number of job classifications.

D. Wal-Mart implemented a sophisticated information system that resulted in reduced inventory carrying costs and shortened customer response times.



Answer: B

Inbound logistics include:

Inbound logistics include: 




A. machining and packaging.

B. repair and parts supply.

C. warehousing and inventory control.

D. promotion and packaging.



Answer: C

In value-chain analysis, the activities of an organization are divided into two major categories of value activities: primary and support. Which of the following is a primary activity?

In value-chain analysis, the activities of an organization are divided into two major categories of value activities: primary and support. Which of the following is a primary activity? 




A. purchasing key inputs

B. repairing the product for the consumer

C. recruiting and training employees

D. monitoring the cost of producing the product through a cost accounting system



Answer: B

Which of the following is NOT a limitation of SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis?

Which of the following is NOT a limitation of SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis? 




A. Organizational strengths may not lead to competitive advantage.

B. The SWOT focus on the external environment is too broad and integrative.

C. SWOT gives a one-shot view of a moving target.

D. SWOT overemphasizes a single dimension of strategy.




Answer: B

Which of the following statements about strategic groups is FALSE?

Which of the following statements about strategic groups is FALSE? 




A. Two assumptions are made: (1) no two firms are totally different, (2) no two firms are exactly the same.

B. Strategic groupings are of little help to a firm in assessing mobility barriers that protect a group from attacks by other groups.

C. Strategic groups help chart the future directions of firm strategies.

D. Strategic groups are helpful in thinking through the implications of each industry trend for the group as a whole.




Answer: B

Strategic groups consist of ________________.

Strategic groups consist of ________________. 




A. a group of top executives that makes strategies for a company

B. a group of firms within an industry that follows similar strategies

C. a group of executives drawn from different companies within an industry that makes decisions on industry standards

D. a group of firms within an industry that decides to collude rather than compete with each other so that they can increase their profits




Answer: B

In the value net analysis, complementors are _________________.

In the value net analysis, complementors are _________________. 




A. firms that produce substitute products

B. customers who compliment the company for their good products and services

C. firms that produce products or services that have a positive impact on the value of firm products or services

D. firms that supply critical inputs to a company



Answer: C

The value net is a game-theoretic approach that _____________.

The value net is a game-theoretic approach that _____________. 




A. extends the value chain analysis

B. is a way to analyze all the players in a game and analyze how their interactions affect the ability of a firm to generate and appropriate value

C. helps us to understand the evolution of the five forces over time

D. uses network analysis to understand the relationships among different companies



Answer: B

How do infomediaries and consumer information websites increase the intensity of competitive rivalry?

How do infomediaries and consumer information websites increase the intensity of competitive rivalry? 




A. by shifting customers away from issues of price

B. by making competitors in cyberspace seem less equally balanced

C. by consolidating the marketing message that consumers use to make a purchase decision to a few key pieces of information that the selling company has little control over

D. by highlighting unique selling advantages of a firm



Answer: C

Supplier power has increased because of the Internet for all of the following reasons EXCEPT:

Supplier power has increased because of the Internet for all of the following reasons EXCEPT: 




A. the growth of new Web-based businesses has created more outlets for suppliers to sell to

B. some suppliers have created Web-based purchasing systems that encourage switching

C. the process of disintermediation makes it possible for some suppliers to reach end users directly

D. software that links buyers to a supplier's website has created rapid, low-cost order capabilities




Answer: B

End users are not ____________.

End users are not ____________. 




A. the final consumers in a distribution channel

B. usually the C in B2C

C. likely to have greater bargaining power because of the Internet

D. the first customers in a distribution channel



Answer: D

Exit barriers do not arise from ________.

Exit barriers do not arise from ________. 




A. specialized assets with no alternative use

B. governmental and social pressures

C. strategic interrelationships with other business units within the same company

D. flexible costs of exit




Answer: D

The most intense rivalry results from _____________.

The most intense rivalry results from _____________. 




A. numerous equally balanced competitors, slow industry growth, high fixed or storage costs

B. few competitors, slow industry growth, lack of differentiation, high fixed or storage costs

C. numerous equally balanced competitors, manufacturing capacity increases only in large increments, low exit barriers

D. a high level of differentiation




Answer: A

Threat of substitute products comes from ____________.

Threat of substitute products comes from ____________. 




A. other companies in the same industry

B. foreign companies which can use cheap labor in their countries

C. firms in other industries that produce products or services that satisfy the same customer need

D. new companies in the same industry



Answer: C

A supplier group would be most powerful when _________.

A supplier group would be most powerful when _________. 




A. there are many suppliers

B. there are few substitute products

C. there is a low differentiation of products supplied

D. there is a high threat of backward integration by the buyers



Answer: B

The bargaining power of suppliers increases as ____________.

The bargaining power of suppliers increases as ____________. 




A. more suppliers enter the market

B. importance of buyers to supplier group increases

C. switching costs for buyers decrease

D. threat of forward integration by suppliers increases



Answer: D

Buyer power will be greater when _______.

Buyer power will be greater when _______. 




A. the products purchased are highly differentiated

B. there are high switching costs

C. the industry product is very important to the quality of the buyer end products or services

D. it is concentrated or when a buyer group purchases large volumes relative to seller sales




Answer: D

Which of the following would be an entry barrier?

Which of the following would be an entry barrier? 




A. large economies of scale

B. low switching costs

C. easy access to raw materials

D. low capital requirements




Answer: A

Product differentiation by incumbents act as an entry barrier because __________.

Product differentiation by incumbents act as an entry barrier because __________. 




A. new entrants cannot differentiate their products

B. incumbents will take legal action if new entrants do not differentiate their products

C. new entrants will have to spend heavily to overcome existing customer loyalties

D. it helps a firm to derive greater economies of scale




Answer: C

The threat of new entrants is high when there are _______.

The threat of new entrants is high when there are _______. 




A. low economies of scale

B. high capital requirements

C. high switching costs

D. high differentiation among competitors products and services


Answer: A

Which of the following firms would likely pose the least competitive threat?

Which of the following firms would likely pose the least competitive threat? 




A. a firm in the same industry and in the same strategic group

B. a firm that produces substitute goods to your product line

C. a competitor to your product where a high switching cost exists

D. a firm in the same industry and in the nearest strategic group looking to join your group




Answer: C

Which is considered a force in the Five-Forces model?

Which is considered a force in the Five-Forces model? 




A. increased deregulation in an industry

B. the threat of government intervention

C. rivalry among competing firms

D. recent technological innovation




Answer: C
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