Question 1

When analyzing the book store industry, some of today's businesses compete with different business strategies and cost strategies. Which of the following is using a broad market competitive scope along with a low cost strategy?

Accepted Answer

A)   Amazon.com
B)   Any local independent book store that specializes in antique books
C)   Barnes & Noble
D)   Borders books. A

Question 2

In a SWOT analysis, potential internal strengths are helpful when they identify all key strengths associated with the competitive advantage, including cost advantages, new and/or innovative services, special expertise and/or experience, proven market leader, and improved marketing campaigns.

Accepted Answer

A) True 
 B)False  True

Question 3

In a SWOT analysis, potential external threats are harmful when they identify all threats or risks detrimental to your organization, including new market entrants, substitute products, employee turnover, differentiating products, shrinking markets, adverse changes in regulations, and economic shifts.

Accepted Answer

A) True 
 B)False  True

Question 4

Some industries' competition is much more intense than others. Retail grocery stores such as Kroger, Safeway, and Albertson's in the United States experience fierce competition and offer similar marketing campaigns to compete. What is this an example of in terms of Porter's Five Forces?

Accepted Answer

A)   Rivalry among new entrants
B)   Rivalry among existing competitors
C)   Threat of substitute products or services
D)   Buyer power

Question 5

Where would you categorize strengths in a SWOT analysis?

Accepted Answer

A)   Internal, helpful
B)   Internal, harmful
C)   External, helpful
D)   External, harmful

Question 6

The threat of substitute products or services refers to the power of customers to purchase alternatives.

Accepted Answer

A) True 
 B)False

Question 7

Which business tool assists in executing business strategy?

Accepted Answer

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

Question 8

The Mifflin Cable store in Buffalo is currently offering a fabulous marketing strategy for potential new cable and Internet customers. Mifflin Cable offers new customers who purchase a cable and Internet package a DVR, modem, and all other necessary equipment with a two year contract. In terms of Porter's Five Forces what is Mifflin Cable attempting to achieve with this marketing strategy?

Accepted Answer

A)   Increase buyer power
B)   Increase substitute products
C)   Decrease supplier power
D)   Decrease buyer power

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 the government?

Accepted Answer

A)   Maximize profits
B)   Adhere to regulations/laws
C)   Exceptional customer service
D)   Reliable contracts

Question 10

Which of the following evaluates a project's position?

Accepted Answer

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

Question 11

Which of the following are included as potential external weaknesses in a SWOT analysis that are harmful to an organization?

Accepted Answer

A)   Core competencies, market leaders, cost advantages, excellent management.
B)   Lack of strategic direction, obsolete technologies, lack of managerial talent, outdated, product line.
C)   Expanded product line, increase in demand, new markets, new regulations.
D)   New entrants, substitute products, shrinking markets, costly regulatory requirements.

Question 12

What is threat of substitute products or services?

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

Question 13

The lettuce, tomatoes, patty, bun, and ketchup are included in which category of making a hamburger?

Accepted Answer

A)   Input
B)   Process
C)   Output
D)   All of the choices are correct

Question 14

Buyer power is the ability of buyers to affect the price they must pay for an item.

Accepted Answer

A) True 
 B)False

Question 15

Shelby Black runs a very successful hair salon in downtown Los Angeles. One of Shelby's tasks is to input positive and negative customer reviews into her computer system. What type of information is Shelby gathering?

Accepted Answer

A)   Feedback.
B)   Processing.
C)   Output management.
D)   Sales processing.

Question 16

Where would you categorize opportunities in a SWOT analysis?

Accepted Answer

A)   Internal, helpful
B)   Internal, harmful
C)   External, helpful
D)   External, harmful

Question 17

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 employees?

Accepted Answer

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

Question 18

Which of the following represents a reason why competitive advantages are typically temporary?

Accepted Answer

A)   The competitor will hire away your key employees.
B)   The competitor quickly seeks ways to duplicate your business operations.
C)   The competitor will purchase new technology.
D)   All of these.

Question 19

Your boss, David Ferrell, has asked you to analyze the soft drink industry using Porter's Five Forces Model. Which of the following represents a substitute product 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, and coffee are all beverage options available to consumers.

Question 20

Businesses rarely need to update business strategies as the business environment remains relatively stable.

Accepted Answer

A) True 
 B)False

Exam 2: Identifying Competitive Advantages

When analyzing the book store industry, some of today's businesses compete with different business strategies and cost strategies. Which of the following is using a broad market competitive scope along with a low cost strategy?

In a SWOT analysis, potential internal strengths are helpful when they identify all key strengths associated with the competitive advantage, including cost advantages, new and/or innovative services, special expertise and/or experience, proven market leader, and improved marketing campaigns.

Some industries' competition is much more intense than others. Retail grocery stores such as Kroger, Safeway, and Albertson's in the United States experience fierce competition and offer similar marketing campaigns to compete. What is this an example of in terms of Porter's Five Forces?

Where would you categorize strengths in a SWOT analysis?

The threat of substitute products or services refers to the power of customers to purchase alternatives.

Which business tool assists in executing business strategy?

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 the government?

Which of the following evaluates a project's position?

Which of the following are included as potential external weaknesses in a SWOT analysis that are harmful to an organization?

What is threat of substitute products or services?

The lettuce, tomatoes, patty, bun, and ketchup are included in which category of making a hamburger?

Buyer power is the ability of buyers to affect the price they must pay for an item.

Shelby Black runs a very successful hair salon in downtown Los Angeles. One of Shelby's tasks is to input positive and negative customer reviews into her computer system. What type of information is Shelby gathering?

Where would you categorize opportunities in a SWOT analysis?

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 employees?

Which of the following represents a reason why competitive advantages are typically temporary?

Your boss, David Ferrell, has asked you to analyze the soft drink industry using Porter's Five Forces Model. Which of the following represents a substitute product in the soft drink industry?

Businesses rarely need to update business strategies as the business environment remains relatively stable.