Question 1

Which of the following statements best describes competitive advantage?

Accepted Answer

A)  It refers to the pressure a supplier or buyer can exert on a company. 
B)  It is the advantage that occurs when a firm offers products to all customers at higher prices. 
C)  It derives from a firm's ability to create value for its customers that exceeds the cost of producing the product or service. 
D)  It is the capability to identify and react to changes in the external environment and to mobilize internal resources to deal with those changes. 
A)  It refers to the pressure a supplier or buyer can exert on a company. 
B)  It is the advantage that occurs when a firm offers products to all customers at higher prices. 
C)  It derives from a firm's ability to create value for its customers that exceeds the cost of producing the product or service. 
D)  It is the capability to identify and react to changes in the external environment and to mobilize internal resources to deal with those changes. C

Question 2

Which of the following is one of the generic strategies through which a manager can create a firm's competitive advantage?

Accepted Answer

A)  Global strategy 
B)  Market-entry strategy 
C)  Transnational strategy 
D)  Differentiation strategy 
A)  Global strategy 
B)  Market-entry strategy 
C)  Transnational strategy 
D)  Differentiation strategy D

Question 3

Many people in large cities are starting to use Uber to find rides. The taxi industry in these cities is facing

Accepted Answer

A)  the bargaining power of suppliers. 
B)  the bargaining power of customers. 
C)  rivalry among existing competitors. 
D)  the threat of substitutes. 
A)  the bargaining power of suppliers. 
B)  the bargaining power of customers. 
C)  rivalry among existing competitors. 
D)  the threat of substitutes. D

Question 4

What are the tangible and intangible resources of an organization? Give examples.

Accepted Answer

A firm's tangible resources tend to be m

Question 5

A cosmetics company owns a patent for a particular kind of shampoo, which is a bestseller in the market. It enables the firm to extract a high level of discretion over product pricing. The patent for the shampoo is an example of a firm's _____ resource.

Accepted Answer

A)  tangible 
B)  human 
C)  natural 
D)  intangible 
A)  tangible 
B)  human 
C)  natural 
D)  intangible

Question 6

First-mover advantage occurs when a firm is first to offer desirable products or services that secure customer loyalty.

Accepted Answer

A) True 
 B)False

Question 7

Primary activities of a firm's value chain refers to

Accepted Answer

A)  the activities completed to improve a firm's product and the processes used to manufacture it. 
B)  the activities involved with recruiting, hiring, training, developing, and compensating all personnel. 
C)  the activities such as general management, planning, finance, accounting, legal support, and governmental relations. 
D)  the activities involved in the physical creation of a product and its sale and transfer to the buyer. 
A)  the activities completed to improve a firm's product and the processes used to manufacture it. 
B)  the activities involved with recruiting, hiring, training, developing, and compensating all personnel. 
C)  the activities such as general management, planning, finance, accounting, legal support, and governmental relations. 
D)  the activities involved in the physical creation of a product and its sale and transfer to the buyer.

Question 8

Define value chain analysis. Discuss the two types of activities in a firm's value chain.

Accepted Answer

Value chain analysis is a systematic way

Question 9

Which of the following is an example of a weakness in an organization's SWOT analysis?

Accepted Answer

A)  Competitors with highly skilled employees 
B)  Money spent on machineries with updated technology 
C)  Overdependence on a particular supplier for core materials 
D)  The increasing number of competitors 
A)  Competitors with highly skilled employees 
B)  Money spent on machineries with updated technology 
C)  Overdependence on a particular supplier for core materials 
D)  The increasing number of competitors

Question 10

Which of the following is one of the fundamental questions a manager must answer in developing a business-level strategy?

Accepted Answer

A)  Who do we serve? 
B)  Who are our competitors? 
C)  What are our objectives? 
D)  Where should we do business? 
A)  Who do we serve? 
B)  Who are our competitors? 
C)  What are our objectives? 
D)  Where should we do business?

Question 11

Which of the following statements is true about Porter's 5-Forces Model?

Accepted Answer

A)  The level of threat of entry from competition is generally the same across all industries. 
B)  Every industry and market is different in terms of who maintains the power in the buyer-supplier relationship. 
C)  The buyer or customer has no power to force down prices in an industry. 
D)  Not all companies face the threat of substitutes. 
A)  The level of threat of entry from competition is generally the same across all industries. 
B)  Every industry and market is different in terms of who maintains the power in the buyer-supplier relationship. 
C)  The buyer or customer has no power to force down prices in an industry. 
D)  Not all companies face the threat of substitutes.

Question 12

A buyer industry will tend to have less power relative to the supplier industry when the buyer purchases in very large volumes.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following refers to the cost savings achieved when the large volume of a product manufactured by a firm enables it to reduce per-unit cost?

Accepted Answer

A)  Economies of scale 
B)  Return on equity 
C)  Demand-side benefits scale 
D)  Tangible resources 
A)  Economies of scale 
B)  Return on equity 
C)  Demand-side benefits scale 
D)  Tangible resources

Question 14

The 5-Forces Model is one of the most important tools for evaluating the attractiveness of industries.

Accepted Answer

A) True 
 B)False

Question 15

In conducting its SWOT analysis, a baseball team notes that most of its players are among the best in the world and that its coach was a distinguished major-league player. To which part of the SWOT analysis is this information pertinent?

Accepted Answer

A)  Strengths 
B)  Weaknesses 
C)  Opportunities 
D)  Threats 
A)  Strengths 
B)  Weaknesses 
C)  Opportunities 
D)  Threats

Question 16

Inside Patagonia, Inc., there is a culture that encourages innovation and risk taking. Employees are encouraged to experiment with products and fabrics to produce better designs. In addition, Patagonia encourages employees to leave work early to surf or rock-climb. Patagonia is likely using a

Accepted Answer

A)  differentiation strategy. 
B)  cost leadership strategy. 
C)  low-cost focus strategy. 
D)  stuck in the middle strategy. 
A)  differentiation strategy. 
B)  cost leadership strategy. 
C)  low-cost focus strategy. 
D)  stuck in the middle strategy.

Question 17

Sara, a manager at DEM Company, is examining all of the activities the firm performs and determining how they interact to form a source of competitive advantage. Sara is using

Accepted Answer

A)  Porter's 5-Forces Model. 
B)  SWOT analysis. 
C)  SWAT analysis. 
D)  value chain analysis. 
A)  Porter's 5-Forces Model. 
B)  SWOT analysis. 
C)  SWAT analysis. 
D)  value chain analysis.

Question 18

Which of the following barriers to entry occurs when a buyer's willingness to pay for a product increases as the number of other buyers for the industry's product increases?

Accepted Answer

A)  Supply-side economies of scale 
B)  Restrictive government policy 
C)  Demand-side benefits of scale 
D)  Customer switching costs 
A)  Supply-side economies of scale 
B)  Restrictive government policy 
C)  Demand-side benefits of scale 
D)  Customer switching costs

Question 19

Gary, a manager at ABC Company, is evaluating the firm's internal strengths and weaknesses as well as the opportunities and threats that are evident in the firm's external environment. Gary is using

Accepted Answer

A)  Porter's 5-Forces Model. 
B)  SWOT analysis. 
C)  SWAT analysis. 
D)  value chain analysis. 
A)  Porter's 5-Forces Model. 
B)  SWOT analysis. 
C)  SWAT analysis. 
D)  value chain analysis.

Question 20

Outline the features of SWOT analysis.

Accepted Answer

One tool that has been useful in helping

Which of the following statements best describes competitive advantage?

Which of the following is one of the generic strategies through which a manager can create a firm's competitive advantage?

Many people in large cities are starting to use Uber to find rides. The taxi industry in these cities is facing

What are the tangible and intangible resources of an organization? Give examples.

A cosmetics company owns a patent for a particular kind of shampoo, which is a bestseller in the market. It enables the firm to extract a high level of discretion over product pricing. The patent for the shampoo is an example of a firm's _____ resource.

First-mover advantage occurs when a firm is first to offer desirable products or services that secure customer loyalty.

Primary activities of a firm's value chain refers to

Define value chain analysis. Discuss the two types of activities in a firm's value chain.

Which of the following is an example of a weakness in an organization's SWOT analysis?

Which of the following is one of the fundamental questions a manager must answer in developing a business-level strategy?

Which of the following statements is true about Porter's 5-Forces Model?

A buyer industry will tend to have less power relative to the supplier industry when the buyer purchases in very large volumes.

Which of the following refers to the cost savings achieved when the large volume of a product manufactured by a firm enables it to reduce per-unit cost?

The 5-Forces Model is one of the most important tools for evaluating the attractiveness of industries.

In conducting its SWOT analysis, a baseball team notes that most of its players are among the best in the world and that its coach was a distinguished major-league player. To which part of the SWOT analysis is this information pertinent?

Inside Patagonia, Inc., there is a culture that encourages innovation and risk taking. Employees are encouraged to experiment with products and fabrics to produce better designs. In addition, Patagonia encourages employees to leave work early to surf or rock-climb. Patagonia is likely using a

Sara, a manager at DEM Company, is examining all of the activities the firm performs and determining how they interact to form a source of competitive advantage. Sara is using

Which of the following barriers to entry occurs when a buyer's willingness to pay for a product increases as the number of other buyers for the industry's product increases?

Gary, a manager at ABC Company, is evaluating the firm's internal strengths and weaknesses as well as the opportunities and threats that are evident in the firm's external environment. Gary is using

Outline the features of SWOT analysis.

Introduction to Management

The Global Business Environment

Ethics and Corporate Social Responsibility

Introduction to Strategy

Corporate-Level Strategy

Organizational Design

Organizational Culture

Managing Human Capital

Performance Management

Organizational Change

Leadership in Organizations

Becoming a Leader: Knowing Yourself

Power and Influence

Decision Making

Conflict and Negotiation

Leading Teams

Motivation

Communication

Networking

Filters

Exam 5: Business-Level Strategy

Which of the following statements best describes competitive advantage?

Which of the following is one of the generic strategies through which a manager can create a firm's competitive advantage?

Many people in large cities are starting to use Uber to find rides. The taxi industry in these cities is facing

What are the tangible and intangible resources of an organization? Give examples.

A cosmetics company owns a patent for a particular kind of shampoo, which is a bestseller in the market. It enables the firm to extract a high level of discretion over product pricing. The patent for the shampoo is an example of a firm's _____ resource.

First-mover advantage occurs when a firm is first to offer desirable products or services that secure customer loyalty.

Primary activities of a firm's value chain refers to

Define value chain analysis. Discuss the two types of activities in a firm's value chain.

Which of the following is an example of a weakness in an organization's SWOT analysis?

Which of the following is one of the fundamental questions a manager must answer in developing a business-level strategy?

Which of the following statements is true about Porter's 5-Forces Model?

A buyer industry will tend to have less power relative to the supplier industry when the buyer purchases in very large volumes.

Which of the following refers to the cost savings achieved when the large volume of a product manufactured by a firm enables it to reduce per-unit cost?

The 5-Forces Model is one of the most important tools for evaluating the attractiveness of industries.

In conducting its SWOT analysis, a baseball team notes that most of its players are among the best in the world and that its coach was a distinguished major-league player. To which part of the SWOT analysis is this information pertinent?

Inside Patagonia, Inc., there is a culture that encourages innovation and risk taking. Employees are encouraged to experiment with products and fabrics to produce better designs. In addition, Patagonia encourages employees to leave work early to surf or rock-climb. Patagonia is likely using a

Sara, a manager at DEM Company, is examining all of the activities the firm performs and determining how they interact to form a source of competitive advantage. Sara is using

Which of the following barriers to entry occurs when a buyer's willingness to pay for a product increases as the number of other buyers for the industry's product increases?

Gary, a manager at ABC Company, is evaluating the firm's internal strengths and weaknesses as well as the opportunities and threats that are evident in the firm's external environment. Gary is using

Outline the features of SWOT analysis.

Introduction to Management

The Global Business Environment

Ethics and Corporate Social Responsibility

Introduction to Strategy

Corporate-Level Strategy

Organizational Design

Organizational Culture

Managing Human Capital

Performance Management

Organizational Change

Leadership in Organizations

Becoming a Leader: Knowing Yourself

Power and Influence

Decision Making

Conflict and Negotiation

Leading Teams

Motivation

Communication

Networking

Filters