MGT 4335 Exam 1

When a company chooses a low cost strategy, it will be successful by keeping its focus on cost to the exclusion of everything else. Entry field with correct answer True False

false

Which of the following is the most relevant direct competitor that BMW should pay attention to? Entry field with correct answer Hyundai Ferrari Lamborghini Lexus

Lexus

Which one of the following is NOT an internal factor? Entry field with correct answer Land Better Serve Processes to lower cost Brand Patents Market trends

Market trends

A group of four people wants to start an office supply chain. They realize that if their company has to function well, they must set the primary aim for which the company has entered that particular business. This aim will help the company function in an organized manner and provide the staff with a focus to meet their goals. Which of the following does this scenario depict? Mission Integration Resources Capabilities

Mission

The management of GNH Corp., a chemical plant in the city of Werkshore, has promised to take care of its surroundings. It assured to dispose its factory wastes in a way that does not affect the habitat. In order to do so, the company had to go through renovations that allow the plant to take up green initiatives. Which of the following is the source of change for GNH Corp.? Entry field with correct answer Regulatory forces Complementary services Global forces Natural environment

Natural environment

Substitutes are: Entry field with correct answer Products/services that companies temporarily use before launching their real product/service Not a threat to incumbents Products/services that perform a similar function as an industry's products/services by different means Products/services that enhance an industry's products/services

Products/services that perform a similar function as an industry's products/services by different means

What barriers make it costly for competitors to imitate? Entry field with correct answer Path dependence Causal ambiguity Social complexity All of the choices are correct

All of the choices are correct

The employees at Voyage Ink Corp. were asked to draw a chart that explains the elements which go into making one of their products. They were asked to create a diagram showing the different types of materials that help create the whole product. Which of the following are the employees at Voyage Ink Corp. creating in this scenario? Entry field with correct answer A product line A virtuous circle A value chain A growth-share matrix

A value chain

In the context of rivalry, which of the following statements is true of products by a firm? Differentiated products engender loyalty in customers. Standardized products make it difficult for people to switch brands. Firms that sell differentiated products often have to compete by offering discounts. Product price wars decrease rivalry and increase profits.

Differentiated products engender loyalty in customers.

Porter's five forces have no limitations when conducting an industry analysis. True False

False

Where does IKEA compete? Global low-end furniture market High-end furniture market Home appliances market Interior design market

Global low-end furniture market

The managers at Spring Hotels want to find out how their competitor, Crimson Valley Hotels, consistently outdoes them. Spring Hotels have the same facilities and equipment as Crimson Valley Hotels, but each month its efforts to reach the benchmark set by Crimson Valley Hotels fails. This is because Crimson Valley has elements such as great location, beautiful architectural design, and customer-friendly employees that create an edge over other companies in its industry. Which of the following does this scenario exemplify? Complementary products or services Attractiveness of an industry Resource-based view of firm Segmentation analysis

Resource-based view of firm

A good strategy provides clear answers to four key questions. Which one of the following is NOT one of the four questions? What resources and capabilities do we utilize? Where do we compete? Where will we be as a company in 10 years? How do we sustain our value or competitive advantage?

Where will we be as a company in 10 years?

Which of the following statements best describes a firm's capabilities? Entry field with correct answer They depict a firm's strength relative to its competitors. They represent how firms do things. They refer to what a firm employs to create value and competitive advantage. They explain why firms allocate critical resources to achieve key objectives.

They represent how firms do things.

_________ can be most accurately defined as conditions in the competitive environment that endanger the profitability of a firm. Entry field with correct answer Threats Integrations Rivalries Weaknesses

Threats

The airline industry is a profitable industry. The firms in this industry create barriers to entry through patents and regulations in order to reduce the threat of new entrants. It also minimizes the threat of substitutes while keeping rivalry to a minimum. The airline industry can be best categorized as a(n) _________. Entry field with correct answer unattractive industry attractive industry concentrated industry fragmented industry

attractive industry

Satchels Corp. has been in the retail bag business for 10 years. It has created unique value and attained brand loyalty from its customers. Recently, a new bag company started up in the same area as Satchels. In order to retain the reputation that it has established and avoid competition with the new company, Satchels introduced a new line of fashion bags, conducted a sale, and also increased its advertising. This made it difficult for the new company to gain profits. This scenario best illustrates ________. Entry field with correct answer barriers to entry barriers to exit backward integration forward integration

barriers to entry

Clearly defining your industry tells you where you _______. win compete need to improve lose

compete

Gems Corp. is a leading jewelry brand that finds it hard to make as much profit as its competitors. In order to overcome this, the employees of Gems Corp. decide to work harder to provide unique value to customers and increase the sales of the company. After a year, it is able to make more profits than its competitors. This scenario best illustrates ________.

competitive advantage

The household appliance industry has few major manufacturers like Nebula Corp., Cook Well Inc., and Mercury Corp. and a few smaller manufacturers. There is not much competition in this industry because the smaller companies cannot afford to compete aggressively with the large firms which do not engage in price wars. This scenario best illustrates a ________. Entry field with correct answer fragmented industry concentrated industry quaternary industry quandary industry

concentrated industry

Sweetmeats Inc., a deli, produces its own grains, such as corn, wheat, rice, and oats. The employees create different types of breads without having to buy the grains from other sources. This has helped them sell their bread items to customers at much lower prices than other neighboring delis. This scenario best illustrates a(n) ________. emergent strategy cost advantage complementary service unique value

cost advantage

The goal of a strategic business plan is to ________. create competitive advantage drive competitors out of business create a monopolistic market improve employee morale

create competitive advantage

The managers at Marker Inc., a movers and packers company, wants to formulate a plan of action to implement their mission, "We deliver what we promise. Always." To achieve this, the company chooses the best markets to invest in, buys state-of-the-art transportation vehicles, employs spill and damage proof style of packaging equipment, and develops a service-oriented mentality. This method of conducting business earns them a reputation. This scenario is an example of ________. evolving strategy accidental strategy emergent strategy deliberate strategy

deliberate strategy

OneTick Shop Inc. experienced a loss of finances in the small town of Brightland as a lot of people from the town moved to bigger cities in search of jobs. This resulted in a loss of both returning as well as new customers. This scenario primarily reflects ________. Entry field with correct answer global forces regulatory forces environmental forces demographic forces

demographic forces

Procedures, processes, and routines that continuously expand existing resources or improve operating capabilities most accurately define the term __________. Entry field with correct answer competitive parities dynamic capabilities network externalities operating capabilities

dynamic capabilities

The management of Winters Corp., a small company, pursued an unexpected opportunity and gained huge profits over a period of 10 years. At the end of this period, Winters Corp. grew as a company and successfully established itself as a highly valued brand in the industry. This is an example of a(n) ________. deliberate strategy functional strategy accidental strategy emergent strategy

emergent strategy

According to Porter and McGahan's study, external factors have a bigger impact on firm performance than internal factors. Entry field with correct answer True False

false

Being in the best industry guarantees outstanding profits. Entry field with correct answer True False

false

Bright Inc. is a toothpaste manufacturing company that is facing intense competition from its rivals. In order to encourage higher consumption of its products as well as minimize brand switching among its existing consumers, Bright introduced sweepstakes as a consumer sales promotion strategy. However, its rivals retaliated by introducing deals such as a featured price which is lower than the regular price, buy one, get one free offers, and large package offers that give a percentage more free. This scenario best illustrates a ________. Entry field with correct answer fragmented industry secondary industry concentrated industry primary industry

fragmented industry

LuxeDrive Inc. is an automobile company with unmatched competition because it has certain qualifications and assets that set it apart from the rest of the companies selling similar products. These act as qualifications that rival companies find hard to configure and replicate. This scenario regarding LuxeDrive Inc. can be best categorized as an example of __________. Entry field with correct answer serviceability inimitability reliability parity

inimitability

Which of the following statements is true of standardization of products? Entry field with correct answer These products are usually inimitable and of high quality. They meet customer needs in unique ways. It is easier to convince the customers to switch brands. It makes buyers more loyal to a particular brand.

it is easier to convince the customers to switch brands.

The industry and geographic area that a company competes in, is referred to as its ________.

market

GetYoung Inc., a cosmetic company, recently launched a beauty bar soap that claims to soften the users' skin, giving it a natural glow, and also make them look up to 5 years younger. A lot of women eagerly tried out this soap and received positive results and thus encouraged their friends to try out the soap. GetYoung Inc. gained profits very fast through this word-of-mouth advertising. This scenario best illustrates ________. Entry field with correct answer barriers to entry network effects backward integration forward integration

network effects

The procedures, processes, or routines for delivering value to customers, employees, suppliers, or investors most accurately define the term __________. Entry field with correct answer dynamic capabilities network externalities competitive parities operating capabilities

operating capabilities

The ways of taking advantage of conditions in the environment to become more profitable most accurately defines the term ________. Entry field with correct answer substitution opportunities standardization strengths

opportunities

Pancake Platter Inc. opens a new breakfast deli in the small town of Lakeville. It makes a lot of profit during its first year because it is the only deli in the area. Customers choose to have breakfast at this deli because their only other options for availing this type of service would be to travel several miles to the next town. This scenario best illustrates ________. Entry field with correct answer integration opportunity substitution rivalry

opportunity

A firm's values and rankings of what is most important most accurately defines the term __________. Entry field with correct answer assets priorities resources capabilities

priorities

A patent makes a product: Entry field with incorrect answer Valuable Rare Costly to imitate Organized

rare

Rize Inc. has been running efficiently as a real estate organization for 25 years. It has consistently provided customer satisfaction by maintaining a customer-friendly culture in the organization. Their competitors have not been able to replicate Rize's services. This has helped them generate and hold on to profits accrued by its vast and rare resource pool. This is an example of __________. Entry field with correct answer competitive failure sustained competitive advantage competitive parity inconsistent competitive advantage

sustained competitive advantage

Jupiter Bank was one of the first banks to adopt intelligent imaging that helps in classifying, storing, and retrieval of data. It was also among the first to practice virtual banking and transfer data electronically. As such, Jupiter Bank was an early adopter of these new and faster techniques of banking. This helped the bank to gain a large market share which consequently enabled it to generate huge profits. Jupiter Bank yielded such profits because it paid importance to ________. Entry field with correct answer legal and regulatory forces technology changes population demographics general economic conditions

technology changes

The attractiveness of an industry is ________. Entry field with incorrect answer dependent on the number of large firms that are operating in an industry unregulated by the general environment the extent to which a firm has control over its profitability the degree to which an average firm in the industry can earn good profits

the degree to which an average firm in the industry can earn good profits

A survey is conducted among the customers of a supermarket chain. This survey reveals that the majority of these customers prefer to buy Lia, a brand of soap, because they feel that the company Lia Products Inc. has created a product that is of worth to the customers. The reason for the customers' preference is because the company constantly delivers what it promises. In this scenario, the factor that has made the brand of soap named Lia popular among these customers can be best categorized as __________. Entry field with correct answer prestige value inimitability rarity

value

ZipTag Inc. is an online company that allows venders of varied products to display their products to prospective buyers. This company has been providing service to both customers and sellers and has established itself in the market as a credible company to conduct business with. This has caused more dealers to display their products in ZipTag as they trust that the company will provide the necessary advertising to pull in prospective customers. This is an example of a __________. Entry field with correct answer tacit knowledge virtuous circle path dependence time compression diseconomy

virtuous circle

Great generals/CEOs think about the ______. whole competitors first short-term goals only task at hand, without a big picture

whole

Value is usually created when ________. Entry field with correct answer a company survives but has no real competitive advantage over rivals a company eliminates quality control processes as much as possible the end user enjoys direct pleasure and satisfaction from a company's product the steps in the production chain of a company are reduced

the end user enjoys direct pleasure and satisfaction from a company's product

SevenCloud Inc., a soft drink company, provided service to fair amount of customers for a whole year until a new company called Sparkle Inc. came up. Sparkle provided flavored water as a new product in the beverage market. Customers were eager to try out this new product and purchased it because they believed that it a better substitute for aerated beverages. SevenCloud was afraid that if the trend continued, it would soon run the risk of going out of business. In this scenario, which of the following did SevenCloud Inc. experience? Entry field with correct answer Opportunity Merger Threat Weakness

threat

Hyundai is more of potential entrant rather than a direct competitor to BMW. Entry field with correct answer True False

true

Intangible assets are resources. Entry field with correct answer True False

true

________ can be best defined as the reason a firm wins with customers or the value proposition it offers to customers, such as a low cost advantage or differentiation advantage.

unique value

For a luxury high-end product, which of three "job" dimensions is not as important? Entry field with incorrect answer Functional Emotional Social

Functional

Violet Inc. has been undertaking a lot of responsibilities as a company in order to be the best in its industry. Over time, however, these responsibilities become tough to handle and the company finds it difficult to efficiently manage the time and effort to perform its activities. In contrast, other firms in the industry that outsource some of their activities to smaller companies find it easier to generate more profit than Violet Inc. The situation faced by Violet Inc. in this example illustrates one of the important disadvantages of vertical integration that is _________. Entry field with correct answer loss of facility loss of frequency loss of focus loss of flexibility

loss of focus

Having more flexibility, or being less vertically integrated, is more valuable when _________. Entry field with correct answer the cost to perform an activity remains the same new technologies are innovated technology used is outdated a firm can create its own raw materials

new technologies are innovated

Bertha, a business analyst, wants to analyze Shop Wise Inc., a software company. She wants to know how the company, supplying its products and services for over a decade, still maintains competitive advantage over other companies. She does the analysis simply by walking around the company and taking notes. She even tries out one of the company's software programs and finds it useful. This scenario illustrates the use of __________. Entry field with correct answer focus groups archival data interviews observation

observation

North Road LLC, an apparel company, found that its fashion supplies and accessories section was not generating much profit. Thus, the company contracted this section of its business to another company that designs and manufactures these products in a better way. The management of North Road realized that the employees of North Road could use the time to focus on other aspects that bring profit to the company. This scenario best illustrates _________. Entry field with correct answer market penetration vertical integration horizontal diversification outsourcing

outsourcing

A car has to go through several different levels of manufacturing processes before it can be painted. The painting process cannot be initiated until a car is externally assembled and then inspected. This type of interdependence can be best termed as _________. Entry field with correct answer reciprocal interdependence sequential interdependence extensive interdependence modular interdependence

sequential interdependence

A product that is fundamentally different yet serves the same function or purpose as another product best defines the term ________. Entry field with correct answer substitute rivalry threat opportunity

substitute

As a company experiences economies of scale, Entry field with correct answer overall costs decrease with increases in volume. volume sold decreases with overall costs. the cost per unit decreases with increases in volume. the cost per unit increases with increases in volume.

the cost per unit decreases with increases in volume

In the context of the experience curve, what did early work by the Boston Consulting Group show? Entry field with incorrect answer A company's relative market share was a key indicator of competitive advantage and profit performance. Learning and experience curve slopes tend to be steeper in the later stages of production. The slope of an experience curve is described by the reduction in costs. Scale curves and experience curves tend to be steeper in service industries when compared to manufacturing industries.

A company's relative market share was a key indicator of competitive advantage and profit performance.

Which one of the following is NOT an important danger to consider when vertically integrating? Entry field with correct answer A loss of flexibility A loss of focus A loss of control Both a loss of flexibility and a loss of control

A loss of control

What is the value chain? Entry field with correct answer The chain or sequence of events that financial people use to value a private company. A set of options that a manager will create that could bring more value to a business unit. A sequence of activities where each activity adds value to the prior activity turning raw material into a finished product. Both the chain or sequence of events that financial people use to value a private company and a sequence of activities where each activity adds value to the prior activity turning raw material into a finished product.

A sequence of activities where each activity adds value to the prior activity turning raw material into a finished product.

What is meant by diseconomies of scale? Entry field with correct answer A reduction in costs per unit due to increases in efficiency of production The smallest level of output (unit volume) that a plant or firm can produce to minimize its long-run average costs The average total cost of production decreases as a result of increasing the number of different goods produced An increase in marginal cost when output is increased

An increase in marginal cost when output is increased

Every "job" has three dimensions. Which of the following is NOT one of those three dimensions Entry field with correct answer Functional Aesthetical Social Emotional

Aesthetical

Scale and experience curves are useful tools for making which of the following strategic decisions? Entry field with correct answer Growth/Investment strategy Pricing strategy Cost-Management strategy Acquisition strategy All of these are correct

All of these are correct

Which of the following companies is most likely to experience the benefits of outsourcing? Entry field with correct answer Carbon LLC, an automobile manufacturer, which has the capability to produce more of its raw materials in house Black Inc., a consumer electronics company, which has been importing its supplies from other companies and focuses only on the critical aspects of its work Beta Corp., a computer manufacturer, which has been trying hard to adapt new technologies in order to gain competitive edge in the industry Pulsar Corp., a shoe manufacturer, which has invested huge an amount of capital in order to afford its suppliers

Black Inc., a consumer electronics company, which has been importing its supplies from other companies and focuses only on the critical aspects of its work

Which of the following best illustrates a vertically integrated company with control? Entry field with correct answer Runners Corp., a shoe manufacturing company, which has a say in how much of its assets are divided among the company's shareholders Blueberry Inc., a confectionery company, which has a stronghold over an important resource of the company that helps in differentiating its final product Trendsetters LLC, an apparel manufacturing company, which has a stronghold over the number of employees that the company can afford to recruit, train, and retain Coders Corp., a software development company, which successfully deflects any possibilities of hostile takeovers

Blueberry Inc., a confectionery company, which has a stronghold over an important resource of the company that helps in differentiating its final product

Identify an intangible resource from the following choices. Entry field with correct answer Brand Cash Machinery Land

Brand

Suede Inc., a company that manufactures bags, makes extensive use of advertising to compete in the market. The features of its product are similar to existing products in the market. It uses other promotional tools such as discounts, coupons, and rebates to increase its customer base. In this scenario, which of the following elements does Suede rely on to differentiate its products? Entry field with correct answer Product reliability Convenience Brand image Quality

Brand image

_________ is defined as products that are differentiated through marketing, via advertisements, promotions, and other marketing activities. Entry field with correct answer Product differentiation Prestige brands Product prestige Brand image

Brand image

Which one of the following is not a way to lower input costs? Entry field with incorrect answer Buying in large volume (greater supplier power) Working cooperatively with suppliers Building a new business model To source inputs from the lowest cost locations

Building a new business model

________ requires acquiring and allocating resources. Entry field with correct answer Analyzing a company's differentiation strategy Building the capacity to deliver unique value Mapping the consumption chain Segmentation of the market

Building the capacity to deliver unique value

Identify a primary way in which companies achieve cost advantage through lower-cost inputs. Entry field with correct answer By allowing suppliers to exercise strong bargaining power By cooperating especially well with suppliers By getting inputs from far-off locations By blocking access to inputs for other companies

By cooperating especially well with suppliers

Identify a way in which companies can create a new business model to achieve cost advantage. Entry field with correct answer By exercising strong bargaining power over suppliers By eliminating activities in the value chain By lowering the wages of the human resources By automating the production line

By eliminating activities in the value chain

How did Amazon create a different business model? Entry field with incorrect answer By focusing on economies of scale By eliminating steps in the value chain Performing different activities altogether Selling higher quality books

By eliminating steps in the value chain

How do companies pursuing customer segmentation as a differentiation strategy become successful? Entry field with correct answer By grouping customers based on similar needs By allowing customers to customize their products based on their individual preferences By designing a specific product for each customer By creating products that meet the needs of their entire customer base

By grouping customers based on similar needs

Which is not one of the three reasons a company should vertically integrate? Entry field with correct answer Capabilities Coordination Capacity Control

Capacity

Speed Express, a courier company, proves to be a definite challenge to its competitors. The technology, personnel, services, and organizational structure of the company are intricately bound together to create a system that is widely appreciated by its customers. Speed Express has state-of-the-art facilities for its transportation, delivery, or packaging operations. Speed Express also has a range of travelling bags and brand of wrist watches. The company's success rests on the complex interplay between all of its functions, products, and operations. Customers remain loyal to the company and prefer it over other brands and services. Which of the following factors of inimitability does Speed Express have? Entry field with correct answer Time compression diseconomy Tacit knowledge Path dependence Complexity

Complexity

McDonald's can be found on many street corners in cities across the world. Because of its many locations, McDonald's is differentiated through _________. Entry field with correct answer Brand image Quality or reliability Convenience Product features

Convenience

String Line Inc has established a loyal supplier base. The management at String Line had created a system in which it chooses a supplier that is reasonably affordable, and instead of quoting the company's price and demanding that it be met, it complies with the supplier's quotes. Over time, this has established a bond of loyalty with the supplier. When String Line opened a new branch, the supplier built its plant close to the branch so as to save transportation costs. Which of the following has String Line Inc established with the supplier? Entry field with correct answer Rivalry Cooperation Competition Access

Cooperation

What are the two generic strategies for offering unique value to customers? Entry field with correct answer Cost advantage or broad line advantage Differentiation advantage and cost advantage Cost advantage and international advantage Differentiation advantage and resource advantage

Differentiation advantage and cost advantage

Identify a true statement about competition among firms within an industry. Entry field with correct answer Moves and countermoves do not affect the profit margins of most firms in an industry. Competition among firms in an industry is responsible for a significant reduction in motivation toward profitability. Firms' moves and countermoves primarily take the form of sales and promotions. Each move by a firm provokes countermoves among competitors, resulting in a constantly shifting competitive landscape.

Each move by a firm provokes countermoves among competitors, resulting in a constantly shifting competitive landscape.

Li, the president of Lavender Inc , believes that when employees are trained, they should work on one particular task till they know how to perform it perfectly. Thus, the employees are usually encouraged to repeatedly perform their designated tasks. Li claims that the more an employee engages in a particular task, the more skilled he or she will become at it. Which of the following statements strengthens Li's belief? Entry field with incorrect answer Employees will feel a sense of job dissatisfaction and will lose their overall enthusiasm for their jobs. The work of employees will speed up while compromising their attention to detail. This method of training requires a lot of time, effort, patience, and finances. Employees will find better ways at completing the same task.

Employees will find better ways at completing the same task.

Why should we care about internal analysis? Entry field with correct answer External analysis is often incomplete Factors outside a company don't really affect the company Some research suggests internal factors explain more of the variance in company profitability than external factors External analysis is often incomplete and Factors outside a company don't really affect the company External analysis is often incomplete and Some research suggests internal factors explain more of the variance in company profitability than external factors

External analysis is often incomplete and Some research suggests internal factors explain more of the variance in company profitability than external factors

Which of the following is true about economies of scale? Fixed costs of production are spread from a higher volume of sales A lower volume of goods is sold Cost/unit is higher

Fixed costs of production are spread from a higher volume of sales

Which of the following questions denotes the last step in a consumption chain? Entry field with correct answer How do consumers find your offering? How is your product repaired, serviced, or disposed of? How is your product/service delivered? How is your product stored/moved around?

How is your product repaired, serviced, or disposed of?

Which of the following is a feature of task specialization? Entry field with correct answer It causes workers to be confused about the task at hand. It enables employees to choose tasks that they are most capable of performing. It enables workers to be more efficient and thus enables them to avoid loss of time. It results in job dissatisfaction because employees have to repeat the same functions over time.

It enables workers to be more efficient and thus enables them to avoid loss of time.

Which of the following statement is true of a fragmented industry? It has a few competitors and tend to be dominated by the few large firms. None of these statements is correct. It is characterized by rivalry that is typically less intense. It has a lot of competitors responding to one another and tend to create intense rivalry.

It has a lot of competitors responding to one another and tend to create intense rivalry.

Which of the following is true of a tangible resource? Entry field with correct answer It includes employee and management skills and talents. It is an economically valuable asset such as brands and patents. It includes organizational assets like knowledge and reputation. It has a physical presence such as land, machinery, and cash.

It has a physical presence such as land, machinery, and cash.

Which of the following is an advantage of the value chain? Entry field with correct answer It helps to identify which activities represent a firm's competitive strength. It provides guidance about a firm's strength relative to its competitors. It provides customers with an insight into a company's production processes. It can be used to know what a firm is better at than relevant competitors.

It helps to identify which activities represent a firm's competitive strength.

Identify a true statement about the role of external analysis in creating a business strategy. It involves the examination of a company's set of resources and capabilities that can be deployed to deliver unique value to customers. It involves an examination of the competition and the forces that shape industry competition and profitability. It involves the study of a firm's operational practices to improve efficiency. It involves standardized surveys to gauge employee satisfaction.

It involves an examination of the competition and the forces that shape industry competition and profitability.

Which of the following is true of product differentiation? Entry field with correct answer It cannot occur when two companies use similar technologies. It does not typically require higher costs. It is independent of intangible features such as brand image and value. It is a matter of customer thought and perception.

It is a matter of customer thought and perception.

Identify a true statement about substitutes. Entry field with correct answer It is a product with the same basic characteristics and is made using the same general set of inputs. It is a product that is fundamentally different yet serves the same basic function as another product. Substitutes give a firm the freedom to charge customers high prices for their products. Substitutes put upward pressure on the price that firms in an industry can charge.

It is a product that is fundamentally different yet serves the same basic function as another product.

Identify a true statement about the Net Promoter Score. Entry field with correct answer It is used to build resources and capabilities to deliver value. It is a useful tool for assessing customer satisfaction. It is a tool used to assess a business model. It is used to measure the brand image of a product.

It is a useful tool for assessing customer satisfaction.

Which of the following best describes rarity? Entry field with correct answer It refers to an organization's ability to exploit profit returns generated by its unique and valuable resources. It refers to the characteristics that make a resource or capability difficult to imitate. It is an attribute of a resource that describes its worth or utility. It is an attribute of a resource which means to be uncommon, or not available to other competitors

It is an attribute of a resource which means to be uncommon, or not available to other competitors

Which of the following statements is true about rivalry? It helps increase losses for an organization to a large extent. It is an important driving force to increase profitability. It is a force that is best avoided in an industry to increase profits. It is an expensive method that treats other companies amicably.

It is an important driving force to increase profitability.

Which of the following is true of tacit knowledge? Entry field with correct answer It is difficult to imitate by competitors. It refers to the notion that one thing causes another. It creates competitive advantage through scarcity. It refers to easy-to-codify-and-learn knowledge.

It is difficult to imitate by competitors.

Which of the following statement is true of the learning curve? Entry field with correct answer It is simpler to calculate than a scale curve. It is a tool that managers use to determine the emotional quotient of an employee. It is the concept that labor costs per unit decrease with increases in volume due to learning. It is a graphic representation of the relationship between cost per unit and scale of production.

It is the concept that labor costs per unit decrease with increases in volume due to learning.

Identify a true statement about network effects. Entry field with correct answer It is the growth in demand for a firm's product that results from a growth in the number of existing customers. It is the cumulative effect produced when one firm enters an industry and makes a profit which triggers other firms to enter the same industry. It makes it easier for new entrants to steal business from incumbent firms. It decreases the switching costs for customers, making it easier for them to choose between different brands.

It is the growth in demand for a firm's product that results from a growth in the number of existing customers.

Identify a true statement about a functional strategy. It refers to decisions made at the level of the strategic business unit about how to gain and sustain advantage. It refers to decisions about functional activities and strategic choices such as make versus buy. It refers to decisions that are made by senior corporate executives about what markets to compete in. It refers to decisions about how to effectively implement the business unit strategy within functional areas.

It refers to decisions about how to effectively implement the business unit strategy within functional areas.

Which of the following is true of competitive advantage? It is usually achieved by firms that provide general as well as imitable products. It can be measured by using only tangible outcomes. It requires a company to consistently outperform its rivals in generating above-average profits. It should be avoided by not-for-profit organizations.

It requires a company to consistently outperform its rivals in generating above-average profits

What is true about a minimum efficient scale? Entry field with correct answer It shows the optimal quantity for a company to produce. It can be most efficiently maintained in large industries by increasing the level of production. It proves that the costs per unit decrease with increases in volume till they reach and then maintain the minimal level. It can be achieved by large industries during economic downturns because they can easily spread their fixed costs when demand declines.

It shows the optimal quantity for a company to produce.

Which of the following statements is true of external analysis? It is capable of analyzing only the threats that a company might come across. It focuses on the factors that influence employees of an organization to leave. It analyzes a firm's resources and capabilities to assess how effectively it is able to deliver unique value. It studies the factors that influence an organization's appeal and environment.

It studies the factors that influence an organization's appeal and environment.

The exclusive sofa company, Seaterz Inc., has the best resources in terms of equipment, employees, infrastructure, and technology. Yet, it is not able to keep pace with its competitor SoftSofa Corp. After extensive analyses, the CEO of Seaterz stated the reason for their limitation. He stated that their company did not have a definite administrative system to audit and retain the profits created by the employees. Which of the following statements can be inferred about Seaterz Inc. from this scenario? Entry field with correct answer It has a successful virtuous circle. It was not organized to exploit. It does not have competitive parity. It was not organized to perform.

It was not organized to exploit.

A product that is differentiated with quality or reliability does which of the following: Entry field with correct answer Lasts longer A better "job" Looks better than other products Easy to find

Lasts longer

"Practice makes perfect" applies to which cost advantage? Entry field with correct answer Proprietary knowledge Economies of scale Learning and experience A different business model

Learning and experience

________ consists of identifying all the steps through which customers pass, from the time they first become aware of your product to the time when they finally have to dispose of it or discontinue using it. Entry field with correct answer Network effects Customer segmentation Product differentiation Mapping the consumption chain

Mapping the consumption chain

Which of the following is a source of differentiation advantage? Entry field with correct answer Manufacturing products with similar features More convenient to find, purchase, or use Manufacturing different products for each feature Reduced quality or reliability

More convenient to find, purchase, or use

Nate, the managing director of Juniper Inc., believes that instead of making auto parts on its own, it should rather outsource these tasks to other companies so that the company can focus only on the critical aspects of the final product. His colleague, Salma, believes that the company would have more competitive advantage if it made its own auto parts. Which of the following statements strengthens Nate's belief? Entry field with incorrect answer Outsourcing will lessen the pressure of crowdsourcing so that lesser and more stable options are sought. Outsourcing will minimize suppliers' bargaining power as Juniper Inc. chooses its suppliers. Outsourcing will minimize the capital investment Juniper Inc. requires to grow. Outsourcing will help minimize Juniper Inc.'s need to innovate its assets or activities.

Outsourcing will minimize the capital investment Juniper Inc. requires to grow.

Gear-up Inc., an apparel brand, differentiates its products by manufacturing jeans that last longer than those of other brands. The fabric is durable and does not wear out even after years of regular use. This attracts customers despite Gear-up's high prices. Which of the following elements of product differentiation is Gear-up primarily providing? Entry field with correct answer Quantity Aesthetics Quality Convenience

Quality

Lavender Furniture established itself in 1965 as a small firm. It was situated on a small stretch of land located miles away from the town. Over the years, due to the high quality of its products, it acquires enough profits to own multiple assets, such as a bigger plot and machinery, recruit employees and establish itself as a brand. Which of the following is an element of the strategic management process that Lavender Furniture has acquired? Capabilities Resources Fame Values

Resources

What exactly are internal factors? Entry field with correct answer Resources and capabilities that allow companies to deliver unique value to customers Factors in your industry that affect you, such as competitors Substitute or complement products/capabilities that other companies are selling Factors such as government decisions or market trends that affect the use of your resources and capabilities

Resources and capabilities that allow companies to deliver unique value to customers

What is the difference between resources and capabilities? Resources are assets (tangible or intangible) whereas capabilities are the potential of those assets to be put to use. Resources are assets (tangible or intangible) whereas capabilities are processes or ways a company uses resources towards an end goal. Capabilities are assets (tangible or intangible) whereas resources are the potential of those assets to be put to use. Capabilities are assets (tangible or intangible) whereas resources are processes or ways a company uses resources towards an end goal.

Resources are assets (tangible or intangible) whereas capabilities are processes or ways a company uses resources towards an end goal.

Which correctly lists Porter's five forces? Entry field with correct answer Rivalry, Buyer Power, Supplier Power, Entrants, Complements Rivalry, Buyer Power, Value Chain, Entrants, Complements Government Regulations, Buyer Power, Supplier Power, Entrants, Substitutes Rivalry, Buyer Power, Supplier Power, Entrants, Substitutes

Rivalry, Buyer Power, Supplier Power, Entrants, Substitutes

Which of the following statements is true of cost advantage? Entry field with correct answer Large firms are guaranteed to secure a wide cost advantage. Size and scale do not always guarantee a cost advantage. Firms with high production volumes are sure to gain a cost advantage. Firms which produce standardized products have a cost advantage.

Size and scale do not always guarantee a cost advantage.

The management of Neptune Inc. creates a definite plan of action that will surely create profits for the company. It allocates and sectionalizes its machinery and personnel. The main office is moved to a prime location that helps attract customers and facilitates competitive development. This plan of action helps Neptune Inc. retain its competitive advantage and has also grow as a company. Which of the following terms does this scenario best illustrate? Functional strategy Strategic management process Business unit strategy Strategic tools

Strategic management process

The top executives of Willow Inc., a furniture company, have decided what markets to compete in. Willow Inc. now has to adopt a set of organizational processes that enables it to effectively carry out these decisions. In order to translate these decisions into organizational action in a successful manner, the functional activities of the company are being measured for their efficacy to support organizational decisions. Which of the following does this scenario best illustrate? Emergent strategy Business unit strategy Strategy implementation Strategy vehicles

Strategy implementation

Readmore Publishing House, the publisher of a regional daily, has been slowly losing profits as its readers prefer to get news through the television. A recent study on the readers who made the switch stated that it is more accessible and faster to attain up-to-date news through the television rather than to wait for the next day for an update on current events. Which of the following is Readmore Publishing House is facing? Entry field with correct answer Substitute New entrant Producer power Network effect

Substitute

A popular food company, Crunchez Corp., is finding it difficult to retain its buyers as another food company, MidnightSnax Inc., has started to provide the same product with the same taste for a lesser price. Which of the following is a threat to Crunchez Corp.? Entry field with correct answer Unused production capacity Switching cost Cost push inflation Supplier power

Switching cost

Weavers Inc., a popular clothing brand, has been providing its customers with the best quality silk products for many years. The employees of Weavers Inc. use pink berry silkworms for their silk products and weave their greased silk threads in such a way that they produce different shades of colors when held at different angles. Weavers Inc. has been providing unmatched service toward millions of customers around the world. Other companies have tried to imitate their products and services, but have not been successful. Few competitors who captured these silkworms did not know the precise temperatures that were essential for their breeding and survival. Which of the following factors of inimitability does this scenario regarding Weavers Inc. best reflect? Entry field with correct answer Causal ambiguity Time compression diseconomies Tacit knowledge Positive network externalities

Tacit knowledge

MouseTag Inc. has incorporated a new type of technology that has increased the potential of the company by two fold. Its machinery can now work faster and produce more products in a day than any of its previous machines ever could. This has also helped increase the profits of the company. Which of the following trends does this scenario best illustrate? Entry field with correct answer Demographic change Technology change Complementary products Global competitive forces

Technology change

To a strategist, what does the logic of the experience curve suggest? Entry field with correct answer The company with the highest volume in an industry will also be the lowest-cost producer. The company with the steepest learning and experience curves will also be the lowest-cost producer. The company with the lowest market share in an industry will also be the highest-cost producer. The company spending the most on advertising in an industry will also be the lowest-cost producer.

The company with the highest volume in an industry will also be the lowest-cost producer.

In the context of the primary reasons for vertical integration in companies, which of the following statements is true of coordination? Entry field with correct answer The greater the interdependence between activities, the more a company should vertically integrate. Activities that require low levels of coordination are known to be reciprocal in nature. Activities that require high levels of coordination are known to be modular in nature. The greater the interdependence between activities, the more a company should rely on outsourcing.

The greater the interdependence between activities, the more a company should vertically integrate.

Mercury Corp., a startup company, is sure that it will achieve a steep curve of 75 percent as it is selling a unique product that has not been introduced into the market before. The company is confident that this product will be sold at a fast rate due to two reasons: the product is a necessity in every home and it is a break-through solution. Mercury sees this product as helping the company grow at a fast pace. Which of the following strategies has Mercury Corp. adopted? Entry field with correct answer The growth/investment strategy The pricing strategy The cost-management strategy The acquisition strategy

The growth/investment strategy

Juan, the manager of Pvari, a chain of jewelry stores, claims that mass customization is the best way to create value for their products. Nate, the senior designer, believes that every product must be customized from the pre-production stage. Which of the following statements will strengthen Juan's claim? Entry field with incorrect answer Their clientele includes a niche group that prefers highly customized products. The production costs will reduce to half if products are made in large scale. Customers love the idea of designing their own jewelry from scratch. Designers feel their creative skills will be underutilized in mass production.

The production costs will reduce to half if products are made in large scale.

If a resource is the tool, then a capability is ___________. Entry field with correct answer The tool box that holds the tool The skill to use the tool that brings unique value to customers The unique value that the tool brings to customers The object that the tool has an effect on

The skill to use the tool that brings unique value to customers

Which of the following BEST describes the products sold on Amazon's website? Entry field with correct answer Most are manufactured by Amazon itself. They are manufactured by third parties. They are all manufactured abroad. Vendors must advertise on Amazon in order to sell products.

They are manufactured by third parties.

Which of the following statements is true of the strategies of successful companies? They are partly deliberate and partly emergent. They are partly established by the owners of the company. They are wholly deliberate due to effective strategic planning processes. They are solely a result of obtaining ideas from within the firm.

They are partly deliberate and partly emergent.

Which of the following statements is true of strategic leaders? They are involved in investing in stable firms with a long history of profitability. They are responsible only for formulating a business strategy. They are responsible for explaining strategy in a way that employees will understand. They are usually the owners of a company.

They are responsible for explaining strategy in a way that employees will understand.

Which of the following statements best describes a firm's priorities? Entry field with correct answer They depict the production processes a firm uses. They represent how firms do things. They refer to what a firm employs to create value and competitive advantage. They explain why firms allocate critical resources to achieve key objectives.

They explain why firms allocate critical resources to achieve key objectives.

Which of the following accurately defines a firm's values? Entry field with correct answer They refer to factors of production that create economic value for the firm when employed. They refer to a firm's ranking of what is most important. They refer to procedures, processes, and routines that continuously expand existing resources or improve operating capabilities. They refer to its leaders' beliefs about what is right and wrong, good and bad, desirable and undesirable.

They refer to its leaders' beliefs about what is right and wrong, good and bad, desirable and undesirable.

Which of the following statements best describes a firm's resources? Entry field with correct answer They refer to what a firm employs to create value and competitive advantage. They explain why firms allocate critical resources to achieve key objectives. They depict the production processes a firm uses. They represent how firms do things and which processes they use.

They refer to what a firm employs to create value and competitive advantage.

What is VRIO used for? Entry field with correct answer To determine which competitors are most direct To look for potential partnerships To make an industry analysis To assess whether a resource or capability is likely to create a competitive advantage

To assess whether a resource or capability is likely to create a competitive advantage

Which of the following is NOT a way to differentiate with product features? Entry field with correct answer To have products that do a "better job" To have products that do more jobs To have products that do a "unique job" To have products that do less-expensive job

To have products that do less-expensive job

Historically, which company has differentiated through quality or reliability? Entry field with correct answer Walmart BMW Toyota Lamborghini

Toyota

Microsoft (supplier) has more power than PC makers (buyer)? True False

True

Timing matters in strategy. True False

True

Which of the following statements is true about customer needs? Entry field with correct answer They should be addressed only when many customers have similar needs that require attention. Understanding them can be very helpful in defining the boundaries of an industry. Two firms cannot be considered part of the same industry even if their products do the same job for customers. Companies that meet the need for communication by manufacturing mobile handsets or mobile ham radios are considered part of the same industry.

Understanding them can be very helpful in defining the boundaries of an industry.

What does VRIO stand for? Entry field with correct answer Valuable, Rare, Innovative, Organized Valuable, Rare, Imitate, Organized Viable, Rare, Innovative, Organized Valuable, Rare, Imitate, Original

Valuable, Rare, Imitate, Organized

Which of the following scenarios illustrates the concept of outsourcing? Entry field with correct answer Red Inc., a company that sells all its assets to another company TechOn Inc., a company that buys raw materials from a supplier company BNX Corp., a company that procures raw materials and supplies them to a different company Virgo Corp., a company that contracts out a business activity to another company

Virgo Corp., a company that contracts out a business activity to another company

What key question can you use to help define an industry and determine your direct competitors? What job are customers hiring our product/service to do? What are the profit margins of similar companies to us? What is our unique value? Where key resource/capabilities can we leverage?

What job are customers hiring our product/service to do?

Which of the following best describes competitive parity? Entry field with correct answer When firms combine the legal, administrative, and cultural elements to produce an inimitable product When firms introduce valuable products that are also unique and rare When a company survives but has no real competitive advantage over rivals When firms that can't create value for their stakeholders don't survive

When a company survives but has no real competitive advantage over rivals

Identify a true statement about product differentiation. Entry field with correct answer It is a strategy whereby companies attempt to gain advantage by producing similar products in bulk to reduce costs. When the perceived value of a product increases in the mind of the customer, it also increases the customer's willingness to pay a higher price. Companies that invest resources to create unique features in their products often charge a lower price. It exists only when the products of two different companies are different in terms of technical features.

When the perceived value of a product increases in the mind of the customer, it also increases the customer's willingness to pay a higher price.

Generally, how does the number of buyers affect buyer power? Entry field with correct answer When there are many buyers, buyer power is high. When there are few buyers, buyer power is low. Buyer power is difficult to determine looking at the number of buyers. When there are few buyers, buyer power is high.

When there are few buyers, buyer power is high.

In the context of the primary reasons for vertical integration in companies, what do capabilities refer to? Entry field with correct answer Whether a company knows when it should establish and exercise strict rules and regulations Whether a company can economize on scarce inputs in order to reduce transaction costs Whether a company has the right resources to perform an activity better than other firms Whether a company has the finances to handle and overcome organizational criticism

Whether a company has the right resources to perform an activity better than other firms

Browns Inc., a well-established suitcase brand, started manufacturing its own suitcases. It added new features in its suitcases such as water-resistance and extra storage space. The initiation by Browns Inc. to manufacture its own suitcases best illustrates _________. Entry field with correct answer backward integration linked diversification forward integration assisted development

backward integration

When products are differentiated through marketing, via advertisements, promotions, and other marketing activities, it is known as __________. Entry field with correct answer brand image brand loyalty brand availability brand conflict

brand image

Vertical integration can be best defined as _________. Entry field with correct answer bringing business processes or activities previously conducted by outside companies in-house the sequence of all activities that are performed by a firm to turn raw materials into a finished product a graphic representation of the relationship between cost per unit of a product and its scale of production breaking a large process into smaller tasks that require specialized knowledge

bringing business processes or activities previously conducted by outside companies in-house

SunLite Corp. runs fitness centers which are owned by the parent company Cyan Inc. Ryan, the manager of Cyan Inc., needs to decide on how to overcome competition by other fitness centers. He finally decides to bring in advanced facilities, such as imported gym equipment, to give faster results and keep SunLite centers open for patrons 24×7. Ryan feels that this will allow the company to gain more profits. This scenario best illustrates a ________. strategy vehicle functional strategy business unit strategy emergent strategy

business unit strategy

Dave's is a retail chain that offers all utility products ranging from home appliances, stationery, and groceries. Its customers prefer the store as they can buy everything they need under one roof. Dave's has more than a 100 outlets across the state, which makes the store easily accessible for customers easy. These features of Dave's best exemplify the element of __________. Entry field with correct answer quantity preference quality convenience

convenience

White Flower Corp. and DLG Inc. are competitors in the crockery industry. Claude, the head of operations at White Flower, says that the company is able to undertake its in-house business processes and activities much better than DLG. This, Claude says, helps White Flower produce better quality products that DLG. In the context of vertical integration, Claude's statements refer to the concept of _________. Entry field with correct answer priorities networking control coordination

coordination

Orange Superstore is largely customer centric and economical in its methods. The store sells the best quality products at prices that are lower than other stores. The store depends on the fact that its salespeople get better at completing their tasks over time. This method used by Orange Superstore is an example of _____. Entry field with correct answer cost limitation strategy cost advantage strategy proprietary knowledge strategy sustained competitive advantage strategy

cost advantage strategy

Trends Inc has been awarded the best branded clothing company award for three years consecutively. The CEO of the company stated that this was possible due to the company strategically lowering the cost of each unit produced, and successfully maintaining that method in order to effectively contain finances. While comparing Trends with other similar production companies, it was found out that the company did certainly collect more profit than the others. The scenario best illustrates the: Entry field with correct answer acquisition strategy. investment strategy. pricing strategy. cost-management strategy.

cost-management strategy.

Delivering unique value requires ________. investing in a stable firm with a long history of profitability, such as a utility company that supplies power to customers with few choices producing more products than rivals improving employee satisfaction developing resources and capabilities that allow a company to perform activities better than competitors

developing resources and capabilities that allow a company to perform activities better than competitors

Taurus Inc usually produces 5,000 handcrafted products in a day. Recently, the demand for handcrafted products drastically increased as one of its products became a popular item for home décor. Due to this increase, the company had to up its production level to 10,000 products per day. This, however, decreased the price of individual products. This scenario best illustrates _____. Entry field with correct answer economies of wealth economies of finance economies of scope economies of scale

economies of scale

The relatively fixed costs such as the costs of plant and equipment, which do not increase with an increase in the number of units manufactured, are known as _____. Entry field with correct answer fixed cost of production fixed cost of supply fixed cost of demand fixed cost of scale

fixed cost of production

CharmingBells Inc. has been running into a loss gradually, but the board of directors are reluctant to shut the company down because it has invested millions of dollars' worth of equipment which can only be used in that industry. Moreover, the people in CharmingBells Inc. have become emotionally attached to the company and do not want the company completely shut down. This scenario best illustrates ________. Entry field with correct answer high fixed costs used production capacity unused production capacity high exit barriers

high exit barriers

In terms of product differentiation, convenience refers to ________. Entry field with correct answer how easy it is for customers to purchase a product how unique a product is when compared to others how efficient a product is in meeting consumers' primary needs how long a product functions optimally

how easy it is for customers to purchase a product

Which of the following statements is true of buyer power? Entry field with correct answer If firms cannot switch suppliers easily, then buyers have decreased power. If buyers can switch to substitute products easily, then buyers have decreased power. If buyers can easily switch firms, then buyers have increased power. If firms offer differentiated products, then buyers have increased power.

if buyers can easily switch firms, then buyers have increased power.

Proprietary knowledge refers to _____. Entry field with correct answer resources such as people, information, or financing that are put into a system the plan and set of activities implemented by a company the sequence of all activities that are performed by a firm information that is not public and that is viewed as the property of the holder

information that is not public and that is viewed as the property of the holder

The board of directors of Colors Corp., a new startup, chalked out a list of resources that would be needed to optimize the efficiency of the company. It needed a human resources department to take care of recruitment, a few suppliers to provide raw materials, a few data recording equipment such as computers to store and manage data, and a large geographical area to start the company. The board stated that these provisions would help the company obtain desired profits. The resources and provisions mentioned in this scenario are examples of _____. Entry field with correct answer outputs incomes inputs outcomes

inputs

Which of the following business-level strategies best describes Amazon's on-line marketplace? Entry field with correct answer stuck-in-the middle focus differentiation focus low-cost integrated low-cost and differentiation

integrated low-cost and differentiation

Lavender Inc , a computer manufacturing company, sells its products at costs that are lesser than its competitors as it wishes to gain profits in order to cover more of the competitive market. The company follows this method as it has high unit volumes. The scenario best illustrates the _____. Entry field with correct answer acquisition strategy cost-management strategy pricing strategy investment strategy

pricing strategy

Todd & Tyler Inc. is an organization that has gained reputation in the market primarily because of its values. The managers of this organization have created a list that ranks the most important job of the day and then consecutively lists the other jobs according to a descending order of importance. In this way, the managers of Todd & Tyler Inc. ensure that the organization's deadlines are handled efficiently. From the information given in this scenario, we can infer that Todd & Tyler Inc. has worked out its __________. Entry field with correct answer capabilities parities attributes priorities

priorities

The marketing department of a cosmetics brand conducts a research. 40% of its customers said that they prefer the brand because they do not need to reapply the product often, while 30% said that they chose the brand because the products are organic. If the brand segments the customers by the features of the cosmetics they prefer, the segmentation is primarily based on __________. Entry field with correct answer psychographics of wholesalers brand image demographics product attributes

product attributes

the marketing function within companies is typically charged with the challenge of market segmentation. One way to segment customers is based on product attributes, which involves ________. Entry field with correct answer mapping the consumption chain product customizability psychographics the job-to-be-done view

product customizability

A strategy whereby companies attempt to gain competitive advantage by offering value that is not available in other products or services or that other products don't do as well is known as ________. Entry field with correct answer product differentiation sustained competitive advantage prestige branding brand imaging

product differentiation

Purple Inc., an interior design company, offers its clients unique design solutions. Clients can choose from Purple's in-house products, customize them to meet their needs, and see how their home would appear using a 3D visualization software in a mini-theatre at Purple's office. This gives Purple a competitive advantage over its rivals since none of them offer this unique combination of services. Purple's advantage is due to its __________. Entry field with correct answer mass customization strategy product differentiation strategy service standardization strategy supply-driven strategy

product differentiation strategy

UniFront Corp., a telecommunications company, has launched a new limited edition smartphone called zNINE that has advanced technology features and is built using high-grade material. The company has made only 99 of these zNINE cellphones and customers are ready to pay more than what the cellphone is worth because it is so limited in number. This scenario can be best categorized as an example of __________. Entry field with correct answer inimitability rarity parity complexity

rarity

CoolDrink Inc., a beverage company, had to change its medical insurance policies because of a new federal law. The new law required all companies with over 50 full-time employees to provide health insurance for their employees. In case these companies are unable to do so, they would have to face penalty. CoolDrink Inc. had to implement changes due to ________. Entry field with correct answer demographic forces natural forces global forces regulatory forces

regulatory forces

All assets, capabilities, organizational processes, firm attributes, information, knowledge, and so on, controlled by a firm that enable the firm to conceive of and implement strategies that improve its efficiency and effectiveness most accurately defines the term __________. Entry field with correct answer resources functions capabilities priorities

resources

The companies LaceThings Inc. and BellePrints Corp. sell the same product. They constantly try to outdo each other in terms of resources, price, and customer satisfaction. The companies try to outperform each other in order to gain customer loyalty and generate more sales. This scenario is an example of ________. Entry field with correct answer partnership integration rivalry switching

rivalry

Companies focus most on establishing brand image when _________. Entry field with correct answer the quality of their products is higher than that of others in the market the familiarity principle doesn't work for their products they can differentiate their products based on their features they have trouble differentiating their product based on convenience

they have trouble differentiating their product based on convenience

According to consultant and researcher Fred Reichheld, the answer to the question, "What metric can I use to assess how well my differentiation strategy is working?" lies in whether you can satisfy customers to such a degree that they are willing to recommend your company (or product) to a friend or colleague. Entry field with correct answer True False

true

If an oil exploring company wants to start refining the oil that they find, this company is forward integrating. Entry field with correct answer True False

true

In most industries there is a strong correlation between market share and profitability.

true

Large firms may be at a disadvantage during economic downturns because they have more difficulty spreading fixed costs when demand declines. Entry field with correct answer True False

true

Product differentiation is always a matter of customer perception. Entry field with correct answer True False

true

Tata Nano represents how a company can be the low-cost producer through proprietary knowledge. Entry field with correct answer True False

true

Two products with the exact same technical features can be differentiated because of customer perception.

true

Activities closer to the beginning of the industry value chain are referred to as _________. Entry field with correct answer downstream activities forward activities upstream activities middle activities

upstream activities

The sequence of all activities that are performed by a firm to turn raw materials into a finished product that is sold to a buyer best describes the term _________. Entry field with correct answer task specialization virtuous circle product line value chain

value chain

Activities with great interdependence should highly consider being ________. Entry field with incorrect answer horizontally integrated vertically integrated outsourced controlled

vertically integrated

When a company takes on more activities in the value chain, it is ________. Entry field with correct answer horizontally integrating vertically integrating becoming more focused vertically specializing

vertically integrating

A company that participates in just one activity in the value chain is _____. Entry field with correct answer vertically specialized vertically integrated backward integrated focus integrated

vertically specialized

A company that participates in only one activity in the value chain is ________. Entry field with correct answer vertically specialized vertically integrated vertically downstream vertically upstream

vertically specialized

Yellow Express LLC is a company in the computer hardware industry that solely manufactures microchips. Yellow Express LLC is _________. Entry field with correct answer horizontally diversified vertically specialized diagonally integrated vertically integrated

vertically specialized