Question 1

Inbound logistics and operations are part of the primary value activities.

Accepted Answer

A) True 
 B)False  True

Question 2

In a SWOT analysis, potential internal weaknesses are harmful when they identify all key areas that require improvement.Weaknesses focus on the absence of certain strengths, including absence of an Internet marketing plan, damaged reputation, problem areas for service, outdated technology, employee issues, and so on.

Accepted Answer

A) True 
 B)False  True

Question 3

When evaluating the value chain, which of the following is included in the support value activities?

Accepted Answer

A) Inbound activities 
B) Marketing and sales 
C) Firm infrastructure 
D) Finance and sales 
A) Inbound activities 
B) Marketing and sales 
C) Firm infrastructure 
D) Finance and sales C

Question 4

Your boss, Kerry Miller, has asked you to analyze the soft drink industry using Porter's Five Forces model.Which of the following represents supplier power in the soft drink industry?

Accepted Answer

A) Pepsi requires stores that carry Pepsi products to commit to minimum orders of 1,000 cases. 
B) Walmart negotiates a lower cost per bottle from Coke in exchange for premium shelf space in every Walmart store. 
C) Zevia Natural Diet Soda begins selling directly over the Internet. 
D) Vitamin water, fruit juice, coffee are all beverage options available to consumers. 
A) Pepsi requires stores that carry Pepsi products to commit to minimum orders of 1,000 cases. 
B) Walmart negotiates a lower cost per bottle from Coke in exchange for premium shelf space in every Walmart store. 
C) Zevia Natural Diet Soda begins selling directly over the Internet. 
D) Vitamin water, fruit juice, coffee are all beverage options available to consumers.

Question 5

Callie Crystal owns and operates one of the most successful local coffee shops in Denver, called The Edgewater Café.Each time customers purchases their 100th cup of coffee at The Edgewater Café, they receive a free pound of coffee of their choice.What is Callie attempting to create with her unique "Free Pound of Coffee" marketing program?

Accepted Answer

A) Reducing buyer power with a loyalty program. 
B) Increasing buyer power with a loyalty program. 
C) Decreasing supplier power with a differentiated product. 
D) Creating a substitute product. 
A) Reducing buyer power with a loyalty program. 
B) Increasing buyer power with a loyalty program. 
C) Decreasing supplier power with a differentiated product. 
D) Creating a substitute product.

Question 6

Which of the following demonstrates a company that has implemented a low cost, broad market strategy?

Accepted Answer

A) Neiman Marcus 
B) Payless Shoes 
C) The Sharper Image 
D) Walmart 
A) Neiman Marcus 
B) Payless Shoes 
C) The Sharper Image 
D) Walmart

Question 7

What executes business strategy?

Accepted Answer

A) SWOT Analysis 
B) The Five Forces Model 
C) Value Chain Analysis 
D) Three Generic Strategies 
A) SWOT Analysis 
B) The Five Forces Model 
C) Value Chain Analysis 
D) Three Generic Strategies

Question 8

Michael Porter defined the Five Forces Model and the potential pressures that can hurt sales.Which of the following is not one of the potential pressures that can hurt sales?

Accepted Answer

A) Suppliers can drive down profits by charging more for supplies. 
B) New market entrants can steal potential investment capital. 
C) Substitute products can steal customers. 
D) Competition can steal customers. 
A) Suppliers can drive down profits by charging more for supplies. 
B) New market entrants can steal potential investment capital. 
C) Substitute products can steal customers. 
D) Competition can steal customers.

Question 9

There are many different stakeholders found in an organization.Stakeholders drive business strategies, and depending on the stakeholder's perspective, the business strategy can change.Which of the following is a main concern for partners/suppliers?

Accepted Answer

A) Exceptional customer service 
B) Fair compensation 
C) Professional associations 
D) Reliable contracts 
A) Exceptional customer service 
B) Fair compensation 
C) Professional associations 
D) Reliable contracts

Question 10

Sandy Fiero works as the chief knowledge officer for Bend Lumbar Company.She has been given the responsibility to create a product or service that will bring an added value to its customers to increase the company's revenue.Sandy determines that the best value she can add is by creating a service that offers free next day shipping on any order over $50.Where in the value chain is Sandy adding value?

Accepted Answer

A) The primary value activity outbound logistics. 
B) The primary value activity inbound logistics. 
C) The primary value activity marketing and sales. 
D) The primary value activity operations. 
A) The primary value activity outbound logistics. 
B) The primary value activity inbound logistics. 
C) The primary value activity marketing and sales. 
D) The primary value activity operations.

Question 11

Describe Porter's Five Forces Model and explain each of the five forces.

Accepted Answer

Porter's Five Forces Model analyzes the

Question 12

What is the support value activity that provides employees with training, hiring, and compensation?

Accepted Answer

A) Procurement 
B) Operations resource management 
C) Human resource management 
D) Firm infrastructure 
A) Procurement 
B) Operations resource management 
C) Human resource management 
D) Firm infrastructure

Question 13

Porter identified three generic strategies that a business could follow after identifying a market it wanted to enter.Which of the following is not included as one of Porter's three generic strategies?

Accepted Answer

A) Broad differentiation 
B) Supplier cost differentiation 
C) Focused strategy 
D) Broad cost leadership 
A) Broad differentiation 
B) Supplier cost differentiation 
C) Focused strategy 
D) Broad cost leadership

Question 14

What is buyer power?

Accepted Answer

A) The ability of buyers to affect the price they must pay for an item. 
B) The suppliers' ability to influence the prices they charge for supplies (including materials, labor, and services). 
C) High when it is easy for new competitors to enter a market and low when there are significant entry barriers to joining a market. 
D) High when there are many alternatives to a product or service and low when there are few alternatives from which to choose. 
A) The ability of buyers to affect the price they must pay for an item. 
B) The suppliers' ability to influence the prices they charge for supplies (including materials, labor, and services). 
C) High when it is easy for new competitors to enter a market and low when there are significant entry barriers to joining a market. 
D) High when there are many alternatives to a product or service and low when there are few alternatives from which to choose.

Question 15

In a SWOT analysis, potential external opportunities are helpful when they identify all significant trends along with how the organization can benefit from each, including new markets, additional customer groups, legal changes, innovative technologies, population changes, competitor issues, and so on.

Accepted Answer

A) True 
 B)False

Question 16

According to Porter, companies that wish to dominate broad markets should operate using a ________ strategy.

Accepted Answer

A) Cost leadership with a low cost 
B) Differentiation with a low cost 
C) Cost leadership with a high cost 
D) All of these 
A) Cost leadership with a low cost 
B) Differentiation with a low cost 
C) Cost leadership with a high cost 
D) All of these

Question 17

Competitive advantages provide the same product or service either at a lower price or with additional value that can fetch premium prices.

Accepted Answer

A) True 
 B)False

Question 18

Updating business strategies is a continuous undertaking as internal and external environments ________.

Accepted Answer

A) Become less competitive 
B) Remain stagnant 
C) Rapidly change 
D) Become more consistent 
A) Become less competitive 
B) Remain stagnant 
C) Rapidly change 
D) Become more consistent

Question 19

Which of the following is not considered a category within the support value activities in a value chain analysis?

Accepted Answer

A) Technology development 
B) Outbound logistics 
C) Human resource management 
D) Firm infrastructure 
A) Technology development 
B) Outbound logistics 
C) Human resource management 
D) Firm infrastructure

Question 20

Rivalry among existing competitors refers to the ability of buyers to affect the price they must pay for an item.

Accepted Answer

A) True 
 B)False

Exam 2: Identifying Competitive Advantages

Inbound logistics and operations are part of the primary value activities.

When evaluating the value chain, which of the following is included in the support value activities?

Your boss, Kerry Miller, has asked you to analyze the soft drink industry using Porter's Five Forces model.Which of the following represents supplier power in the soft drink industry?

Which of the following demonstrates a company that has implemented a low cost, broad market strategy?

What executes business strategy?

Michael Porter defined the Five Forces Model and the potential pressures that can hurt sales.Which of the following is not one of the potential pressures that can hurt sales?

There are many different stakeholders found in an organization.Stakeholders drive business strategies, and depending on the stakeholder's perspective, the business strategy can change.Which of the following is a main concern for partners/suppliers?

Describe Porter's Five Forces Model and explain each of the five forces.

What is the support value activity that provides employees with training, hiring, and compensation?

Porter identified three generic strategies that a business could follow after identifying a market it wanted to enter.Which of the following is not included as one of Porter's three generic strategies?

What is buyer power?

According to Porter, companies that wish to dominate broad markets should operate using a ________ strategy.

Competitive advantages provide the same product or service either at a lower price or with additional value that can fetch premium prices.

Updating business strategies is a continuous undertaking as internal and external environments ________.

Which of the following is not considered a category within the support value activities in a value chain analysis?

Rivalry among existing competitors refers to the ability of buyers to affect the price they must pay for an item.

Business Driven Technology

Strategic Initiatives for Implementing Competitive Advantages

Measuring the Success of Strategic Initiatives

Organizational Structures That Support Strategic Initiatives

Valuing and Storing Organizational Information Databases

Accessing Organizational Information Data Warehouses

Understanding Big Data and Its Impact on Business

Enabling the Organization Decision Making

Extending the Organization Supply Chain Management

Building a Customer-Centric Organization Customer Relationship Management

Integrating the Organization From End to End Enterprise Resource Planning

Creating Innovative Organizations

E-business

Creating Collaborative Partnerships

Integrating Wireless Technology in Business

Developing Software to Streamline Operations

Methodologies for Supporting Agile Organizations

Managing Organizational Projects

B: Extension: A Business Basics

B: Extension: A Business Process

B: Extension: A Hardware and Software Basics

B: Extension: A Mis Infrastructures

B: Extension: A Networks and Telecommunications

B: Extension: A Information Security

B: Extension: A Ethics

B: Extension: A Operations Management

B: Extension: A Sustainable Mis Infrastructures

B: Extension: A Business Intelligence

B: Extension: A Global Information Systems

B: Extension: A Global Trends

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