MGMT 699 Exam 1

Tommy wants to open his own food truck but doesn't know anything about business. He needs help determining who his competition is, how he should craft his strategy to compete and how he'll implement his strategy to achieve a competitive advantage. He's hired you to help him get started. As a result, you know that you will probably use the

AFI strategy framework.

Big Wheel, Inc. is a company that manufactures a variety of generators that run on wind power. The company envisions that wind technology will replace all forms of exhaustible energy sources in the near future. Which of the following statements will make an accurate vision for Big Wheel?

All nations around the globe should be able to provide energy produced by sustainable sources.

In the context of SWOT analysis, which of the following best exemplifies a firm's external opportunity?

An increase in its customers' disposable income

Which of the following fundamental insights was provided by Porter's five forces framework from the completion of the Alta Velocidad Española (AVE) in 2008?

Any of the five forces on its own, if sufficiently strong, can extract industry profitability.

Nuke It is a major manufacturer of microwave ovens. Which of the following statements will best inspire the organization with a shared vision for Fuentes Electronics?

At Nuke It employees at all levels are motivated to make the best microwave ovens on the market.

In the context of SWOT analysis, which of the following best exemplifies a firm's internal weakness?

Decline in the firm's market share

The _______suggest(s) that because the external environment changes, strategic leaders must choose their current and future investments carefully over time in order to best maintain their firm's competitive advantage.

Dynamic capabilities perspective

Visionary companies differ from their competition in that

Employees in visionary organizations find meaning in their work and are motivated.

A SWOT analysis would provide a definitive answer as to whether a firm's growing footprint in overseas markets is a strength or weakness.

F

Apple releases new version....disruptive innovation

FALSE

A firm is required by society and its shareholders to meet its ethical and philanthropic responsibilities.

False

Apple developed iTunes as a complement to drive iPod sales...

False

As a rule of thumb, the stronger the five forces, the higher the industry's profit potential, .....

False

One of Howard Schultz's strategic initiatives after retaining the reins of ... to shut the company's 7,000 stores for one day so baristas could relearn; this initiative reflects a focus on blue ocean strategy

False

One of Tiffany & Co's tangible resources is...

False

Which of the following scenarios illustrates a firm that has a sustainable competitive advantage?

GoNow Inc. was able to hold its market share of 68 percent in the social networking industry for more than three years.

Alan has been an employee with Starts Inc. for 15 years. He started with an entry-level job, and today he is a manager of an entire division. Over the years, Alan has acquired a reputation for doing the right things in the company. Hence, as an efficient leader, he is capable of effectively communicating and motivating his subordinates to work toward the company's vision and mission. According to the Level-5 leadership pyramid, which is the highest level of leadership Trung has reached so far?

Level 4

Toy sales have declined by 10 percent each year ....

No. Bargain's strategy and competitive advantage are unsustainable

Which of the following statements should ideally reflect a firm's strategy for competitive advantage?

Our aim is to create superior customer value while controlling costs

The _____ allows the scanning, monitoring, and evaluating of changes and trends in a firm's macro environment.

PESTEL framework

STRIKEBYTE. is a software company, which has built and acquired numerous assets over the years. According to the resource-based view of a firm, which of the following assets will best enable it to gain and sustain a competitive advantage?

The expertise acquired by the employees in the company

A surprise event that leads to a change in strategic initiatives, such as the accidental discovery of a new use for an existing product, is known as serendipity.

True

Between 2004 and 2008, Starbucks diversified into businesses like ice cream....; Starbucks performance in the period showed.... ??competitive parity??

True

Which of the following features about a buyer indicates that the buyer has high bargaining power?

When the buyer operates in an industry where products are undifferentiated.

You are the manager of value printing.....

You have failed to take into account resource immobility

21) Threadbare Industries is a new high-end textile company that has raised sufficient capital from multiple sources. It is planning to use its capital to purchase certain assets. Which of the following assets will be the most difficult for Threadbare Industries to acquire using its capital?

brand name

TransNational Inc., is a large conglomerate that operates in 17 different countries. The corporate executives at the headquarters have decided that the company's objective for the next two years will be to increase its customer equity, or the value of potential future revenues generated by all its customers in a lifetime. Based on this guideline received from the top management team, the product leader of the home audio division has decided to adopt a cost-leadership strategy in all his 17 units. Thus, the decision made by the product leader best illustrates a ________ strategy.

business

Which of the following factors best contributes to the U.S. automotive industry being characterized by high entry barriers?

car manufacturers require large scale production in order to be cost competitive

Due to resource immobility, a critical assumption in the resource-based model of a firm, the

d) resource differences between firms last for a long time.

The best example of a firm's external stakeholder is a(n)

government agency that regulates the prices of products manufactured by the firm.

ECO Jeans, Inc. had a mission to become the leading producer of environmentally friendly blue jeans, an emerging and in-demand category in the apparel industry. Its strategy involved leveraging a network of organic cotton farmers and suppliers of environmentally responsible synthetic materials to create a product that is durable, attractive, affordable, and 100% recyclable. However, because it did not upgrade its outdated production facilities, Green Jeans could not assemble its products at a low-enough cost to offer the jeans at a price that was attractive to customers. ECO's strategy failed because

it was not backed up with strategic commitments.

Which of the following is a macroeconomic factor that can affect a firm's strategy?

levels of employment

Hot Wok cuisine is a premium Asian restaurant chain that differentiates itself from a large number of competitors by providing exclusively organic Chinese cuisine. It has some pricing power because it provides differentiated products and therefore, has some entry barriers in place. In this scenario, Hot Wok is most likely operating in a(n) _____.

monopolistically competitive industry

Three large firms dominate the telecommunications industry: AD Telecom Inc., Mystic Telecom Corp., and Total Talk Inc. Instead of cutting prices competitively, these firms have resorted to non-price competition through branding and product differentiation. Which of the following industry competitive structures are these companies most likely in?

oligopoly

A customer-oriented vision statement focuses employees to think about how best to

solve a problem for a consumer.

EverMart Inc. is a large company that sells a variety of products such as apparel, jewelry, canned foods, consumer electronics, and automobiles. Apart from this, the company also has a strong presence in the service industry through its chain of hotels, fast food restaurants, and amusement parks. Each of its product divisions operates as an individual business and is responsible for its own profits and losses. Thus, these product divisions under Red Million can be referred to as _____.

strategic business units

Amazon.com's network of distribution centers allow it to drastically reduce its delivery times compared to other online retailers. These distribution centers are examples of Amazon's

tangible resources.

A firm's strategic position is likely to be strong when

the gap between the value the firm's product generates and the cost to produce it is large.

A key feature of an oligopoly is that competing firms behave interdependently with each other

true

The relationship between Phil Knight and Bill Bowerman and their contributions to Nike's success exemplify ?SOCIAL? competitive advantage

true

a company that owns failing movie theaters could leverage existing assets by turning the buildings into.....sites

true

In the aircraft manufacturing industry, at least for large commercial jets, Boeing and Airbus are the only competitors. There is not a significant threat of entry because

Entering the aircraft manufacturing industry requires huge capital investments

a firms strategic resources and capabilities are the unique assets and skills it possesses

True?

We Build & Build's core competency is building multi-family housing in urban areas. This competency is based primarily on the decisions made by the company's top management over several years to focus on building in densely populated cities. This process is called

path dependence.

Dimitre Corp. has been able to gain and sustain a competitive advantage due to its strong relationship with its employees, customers, suppliers, and local communities. The company believes in lifetime employment and ensures that its employees grow along with the company. Investors are more than satisfied with the returns on their investments. Also, 3 percent of the company's profit is spent on community development. With initiatives like these, customers feel privileged to associate themselves with RedSteel products. This scenario best illustrates the implementation of a _____

stakeholder strategy