Question 1

Based on the chapter, a firm's resources are:

Accepted Answer

A)  Used to support the firm's market targeting.
B)  Tangible
C)  Reusable
D)  None of the above. D

Question 2

Industrial analysis seeks to:

Accepted Answer

A)  Assess industry and the firm within an industry.
B)  Analyze trends and risk associated with them.
C)  Segment industries into vertical and horizontal segments.
D)  Trace product elements through the value chain. A

Question 3

The process of disaggregating industries based on certain characteristics is called:

Accepted Answer

A)  Positioning
B)  Segmentation
C)  Strategic Grouping
D)  Industrial Analysis B

Question 4

The critical component to developing a sound strategy is:

Accepted Answer

A)  Transparency of purpose with all stakeholders and their agents.
B)  Developing a strong competitive advantage by exploiting resources.
C)  Analyzing the industry from various perspectives to identify risks.
D)  Developing clear principles to guide operations and decision-making.

Question 5

The following are all limitations of Porter's Five Forces except

Accepted Answer

A)  It ignores changes in consumer tastes and income.
B)  It is overall quantitative rather than qualitative.
C)  It does not account for all external pressures on firms.
D)  It takes a very narrow view of firm strategy.

Question 6

Perfectly competitive industries:

Accepted Answer

A)  Have no barriers to entry or exit.
B)  Offer a variety of products and services.
C)  Are similar to oligopolies
D)  Have limited number of firms.

Question 7

Tools and frameworks to inform strategy includes all of the following except:

Accepted Answer

A)  Porter's Five Forces Framework
B)  SLEEP-AT Model
C)  Strategic Group Analysis
D)  Margin Analysis

Question 8

The Value Net Framework includes:

Accepted Answer

A)  Competitors and Barriers
B)  Substitutes and Legislators
C)  Complementors and Suppliers
D)  Customers and Pressures

Question 9

The Resource Based view of the firm states:

Accepted Answer

A)  The major source of competitive advantage is within the firm.
B)  Exploitation of resources creates superior economic value.
C)  Both A and B
D)  Neither A and B

Question 10

Which of the following is FALSE:

Accepted Answer

A)  Most firms spend more time discovering how to compete rather than where to compete
B)  Sustainability creates additional costs, but is supported by most stakeholders.
C)  Firms are unique and the key to profitability is exploiting that uniqueness.
D)  Environmental Sustainability is a method to increase a firm's value.

Exam 5: Strategy Principles and Analyses to Inform Strategy