Question 1

Supply-side economies of scale arise

Accepted Answer

A)  when a buyer's willingness to pay for a product increases. 
B)  when the demand for a firm's product keeps fluctuating. 
C)  when the number of buyers for a firm's product decreases. 
D)  when a firm manufactures products or services in high volumes. 
A)  when a buyer's willingness to pay for a product increases. 
B)  when the demand for a firm's product keeps fluctuating. 
C)  when the number of buyers for a firm's product decreases. 
D)  when a firm manufactures products or services in high volumes.

Question 2

In a focus strategy, a firm seeks to be unique in its industry along a dimension or a group of dimensions that are valued by consumers.

Accepted Answer

A) True 
 B)False

Question 3

Briefly describe the 5-Forces Model.

Accepted Answer

The model's original intent was to provi

Question 4

Which of the following belongs to the support activities of a firm's value chain?

Accepted Answer

A)  Marketing 
B)  Procurement 
C)  Logistics 
D)  Service 
A)  Marketing 
B)  Procurement 
C)  Logistics 
D)  Service

Question 5

For which of the following companies is human resources the primary resource?

Accepted Answer

A)  Morgan & Morgan Law Firm 
B)  Daisy Hill Puppy Farm 
C)  The Gold and Diamond Supply Store 
D)  Marathon Oil Corporation 
A)  Morgan & Morgan Law Firm 
B)  Daisy Hill Puppy Farm 
C)  The Gold and Diamond Supply Store 
D)  Marathon Oil Corporation

Question 6

Managers must view the firm's value chain in the context of a larger value system that includes the value chains of suppliers and distribution channels.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following belongs to the primary activities of a firm's value chain?

Accepted Answer

A)  Technological development 
B)  Human resource management 
C)  Firm infrastructure 
D)  Marketing and sales 
A)  Technological development 
B)  Human resource management 
C)  Firm infrastructure 
D)  Marketing and sales

Question 8

Inside CHS Company, there is a culture of frugality, discipline, and efficiency. The firm pays its employees a competitive wage, but there are no perks. CHS Company is likely using a

Accepted Answer

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

Question 9

A substitute could be a competitor's product or some other product that satisfies the same consumer need.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is the best example of a barrier to entry created by a firm's incumbency advantages?

Accepted Answer

A)  A company with superior technology when compared to its competitors 
B)  A company that engages in extensive advertising to gain consumer loyalty 
C)  A company that is marked by overcrowded distribution channels 
D)  A company that manufactures its products in high volumes 
A)  A company with superior technology when compared to its competitors 
B)  A company that engages in extensive advertising to gain consumer loyalty 
C)  A company that is marked by overcrowded distribution channels 
D)  A company that manufactures its products in high volumes

Question 11

Which of the following statements is a drawback of Porter's 5-Forces Model?

Accepted Answer

A)  It cannot be used to evaluate the structural components of an industry. 
B)  This tool is particularly not useful in helping managers decide where to focus. 
C)  Evaluating the attractiveness of industries and developing business-level strategy is seldom possible. 
D)  The 5-Forces Model typically looks at an industry at one point in time. 
A)  It cannot be used to evaluate the structural components of an industry. 
B)  This tool is particularly not useful in helping managers decide where to focus. 
C)  Evaluating the attractiveness of industries and developing business-level strategy is seldom possible. 
D)  The 5-Forces Model typically looks at an industry at one point in time.

Question 12

Rivalry among existing competitors is higher when

Accepted Answer

A)  fixed costs are low and marginal costs are high. 
B)  exit barriers are low. 
C)  industry growth is slow. 
D)  the product is not perishable. 
A)  fixed costs are low and marginal costs are high. 
B)  exit barriers are low. 
C)  industry growth is slow. 
D)  the product is not perishable.

Question 13

John signed a two-year contract with Z-Gadget to get a subsidized price on his new iPhone. He had Z-Gadget's service for only six months when he became dissatisfied and wanted to cancel the contract. However, he did not do so because of high cancellation fees as well as new activation fees with another service. Which of the following characteristics of a powerful supplier group does Z-Gadget have with respect to its contract with John?

Accepted Answer

A)  The supplier industry is more concentrated than the industry to which it sells. 
B)  Industry participants face switching costs in changing suppliers. 
C)  Suppliers offer differentiated products. 
D)  No substitutes exist for what the supplier group provides. 
A)  The supplier industry is more concentrated than the industry to which it sells. 
B)  Industry participants face switching costs in changing suppliers. 
C)  Suppliers offer differentiated products. 
D)  No substitutes exist for what the supplier group provides.

Question 14

The idea that a firm is a collection of resources is often referred to as the resource-based view of the firm.

Accepted Answer

A) True 
 B)False

Question 15

The most recognizable resources that a firm uses to manufacture its products, such as the firm's plant and equipment, are categorized as _____ resources.

Accepted Answer

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

Question 16

Describe the three strategies of competitive advantage.

Accepted Answer

Competitive advantage derives from a fir

Question 17

Toyota's unique philosophy, processes, and organizational culture

Accepted Answer

A)  are tangible resources. 
B)  are human resources. 
C)  make up its value chain. 
D)  are intangible resources. 
A)  are tangible resources. 
B)  are human resources. 
C)  make up its value chain. 
D)  are intangible resources.

Question 18

XYZ Company is a low-cost provider. XYZ is most susceptible to

Accepted Answer

A)  the bargaining power of suppliers. 
B)  the threat of substitutes. 
C)  new innovations from rival competitors. 
D)  the bargaining power of customers. 
A)  the bargaining power of suppliers. 
B)  the threat of substitutes. 
C)  new innovations from rival competitors. 
D)  the bargaining power of customers.

Question 19

_____ analysis separates a firm into its various activities to better understand total costs in the system and potential sources of firm differentiation.

Accepted Answer

A)  SWOT 
B)  Value chain 
C)  Stakeholder 
D)  Trend 
A)  SWOT 
B)  Value chain 
C)  Stakeholder 
D)  Trend

Question 20

CB Company lowered its price temporarily, then tried to differentiate its product, then tried to appeal to a niche group. CB company is

Accepted Answer

A)  using a focus strategy. 
B)  using a cost leadership strategy. 
C)  using a generic strategy. 
D)  stuck in the middle. 
A)  using a focus strategy. 
B)  using a cost leadership strategy. 
C)  using a generic strategy. 
D)  stuck in the middle.

Supply-side economies of scale arise

In a focus strategy, a firm seeks to be unique in its industry along a dimension or a group of dimensions that are valued by consumers.

Briefly describe the 5-Forces Model.

Which of the following belongs to the support activities of a firm's value chain?

For which of the following companies is human resources the primary resource?

Managers must view the firm's value chain in the context of a larger value system that includes the value chains of suppliers and distribution channels.

Which of the following belongs to the primary activities of a firm's value chain?

Inside CHS Company, there is a culture of frugality, discipline, and efficiency. The firm pays its employees a competitive wage, but there are no perks. CHS Company is likely using a

A substitute could be a competitor's product or some other product that satisfies the same consumer need.

Which of the following is the best example of a barrier to entry created by a firm's incumbency advantages?

Which of the following statements is a drawback of Porter's 5-Forces Model?

Rivalry among existing competitors is higher when

The idea that a firm is a collection of resources is often referred to as the resource-based view of the firm.

The most recognizable resources that a firm uses to manufacture its products, such as the firm's plant and equipment, are categorized as _____ resources.

Describe the three strategies of competitive advantage.

Toyota's unique philosophy, processes, and organizational culture

XYZ Company is a low-cost provider. XYZ is most susceptible to

_____ analysis separates a firm into its various activities to better understand total costs in the system and potential sources of firm differentiation.

CB Company lowered its price temporarily, then tried to differentiate its product, then tried to appeal to a niche group. CB company is

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

Supply-side economies of scale arise

In a focus strategy, a firm seeks to be unique in its industry along a dimension or a group of dimensions that are valued by consumers.

Briefly describe the 5-Forces Model.

Which of the following belongs to the support activities of a firm's value chain?

For which of the following companies is human resources the primary resource?

Managers must view the firm's value chain in the context of a larger value system that includes the value chains of suppliers and distribution channels.

Which of the following belongs to the primary activities of a firm's value chain?

Inside CHS Company, there is a culture of frugality, discipline, and efficiency. The firm pays its employees a competitive wage, but there are no perks. CHS Company is likely using a

A substitute could be a competitor's product or some other product that satisfies the same consumer need.

Which of the following is the best example of a barrier to entry created by a firm's incumbency advantages?

Which of the following statements is a drawback of Porter's 5-Forces Model?

Rivalry among existing competitors is higher when

The idea that a firm is a collection of resources is often referred to as the resource-based view of the firm.

The most recognizable resources that a firm uses to manufacture its products, such as the firm's plant and equipment, are categorized as _____ resources.

Describe the three strategies of competitive advantage.

Toyota's unique philosophy, processes, and organizational culture

XYZ Company is a low-cost provider. XYZ is most susceptible to

_____ analysis separates a firm into its various activities to better understand total costs in the system and potential sources of firm differentiation.

CB Company lowered its price temporarily, then tried to differentiate its product, then tried to appeal to a niche group. CB company is

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