WPC 480 EXAM 1

which of the following statements is true of accounting data

accounting data are historical data and thus backward looking

As manager of a major producer of automobile airbags, you have recently introduced the following vision statement: to protect the health of every driver and passenger. How can you ensure that your employees feel invested in and inspired by the firm's vision?

ask employees for feedback on the vision statement and revise based on their input

when pursing a cost leadership strategy, a business must remember that

buyers will be reluctant to pay for a product unless the quality is acceptable

what part of the AFI strategy framework does the question "how does the firm make money" relate to

competitive advantage, firm performance, and business models

All Foods is the parent company of several chain restaurants offering a variety of cuisines. The top management at All Foods has decided to enter the frozen foods industry based on its assessment of the profit potential in that industry. Which of the following strategies does this best illustrate?

corporate strategy

which of the following statements is true of customer-oriented visions

customer oriented vision statements are not the same as listening to your customer

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

entering the aircrafter manufacturing industry requires huge capital investments

Industrial drills, a company that manufactures industrial tools, incurs higher costs because of its refusal to outsource its manufacturing to countries where labor costs are lower. This reflects industrial drills' _____ responsibility

ethical

lightningdrive is a leading automobile company. the company has been able to sustain its competitive advantage primarily due to its high-quality and efficient electric motors. most of its competitors have failed to develop similar electric motors at a reasonable price. which of the following resource attributes listed in the VRIO framework has helped lightningdrive sustain its competitive advantage

high costs involved in imitation

the natural nourishment granola bars manufactured by global good foods have been the top-selling granola bars in the market. through the market for granola bars is flooded with competitors, global good has been able to maintain its market position for a long time. this is mainly attributed to the pleasant texture of its granola, which comes from a proprietary processing technique used by the company. This competency of global good foods will be considered as an ___ resource in the VRIO framework

imitable

which of the following statements accurately brings out the difference between monopolistic competition and an oligopoly

in monopolistic competition many firms compete against each other; in an oligopoly there are few large firms competing against each other

in the context of the SWOT matrix, which of the following best exemplifies a firms internal strength

increase in a firms customer loyalty

which of the following statements is true of the balanced score card

it attempts to provide a holistic perspective on firm performance

Suger & Sweet Sodas has seen its market share erode in recent years, as consumers increasingly turn toward healthier beverage choices such as unsweetened sparkling water. Hoping to rekindle interest in sugary sodas, Suger & Sweet decides to produce a limited run of "throwback" cans using labeling first introduced in the 1980s. What is wrong with this strategy?

it fails to face the competitive challenge

which of the following best describes a level 5 manager in the level 5 leadership pyramid

jim is the CEO of eco inc, he has helped his company in gaining and sustaining a competitive advantage through ethical decision making

core competencies are derived from the combination of

key strategic resources and a firm's capabilities

Both Acme Inc. and Farma & Farma Corp. have discovered similar vaccines to prevent cancer. While Farma & Farma Corp.'s vaccine sells at $100 per unit, Acme sells its vaccine at $90 per unit. This price differentiation has mainly been attributed to the companies' capital decisions. While Acme used its retained earnings to develop the vaccine, Farma & Farma Corp. borrowed funds from banks to develop the vaccine. Thus, Farma & Farma Corp. pays a higher interest on its capital, which makes it necessary to price its vaccine higher. Thus, the key driver for Acme's competitive advantage is

low cost input factors

firms that compete within the same strategic group generally experience

more competitive rivalry than firms outside their strategic groups

firms that are classified as operating in an oligopoly tend to have some pricing power if they are able to differentiate their product or service offerings from those of their competitors so the recommended mode of competition is

non-price based competition

Blackzim Wireless is a cellular service provider that charges its customers $1 for three hours of talk time. So, if a customer's talk time for a month is 60 hours, the company charges him or her $20 at the end of the month. Which of the following business models does this best illustrate?

pay as you go

value chain analysis consists of systematically analyzing a firm's key activities that for analysis purposes are categorized into two groups

primary activities and support activities

Nam-zim sells its e-book readers at the cost price of $15 each. However, the company makes its profits when users have to download or buy books online. Which of the following business models is Nam-zim implementing?

razor-razor blade

a traditional top down strategic planning process typically begins with

strategic leaders adjusting a company's vision and mission based on environmental analysis

the market capitalization of a public company is $5 billion. each share of the company is traded at $200 what do you infer from this financial data

the firms number of outstanding shares is 25 million

Which of the following is an implication of all firms in an industry pursuing a low cost position through application of competitive benchmarking

the firms would eventually have no resources to invest in product and process improvements

when examining all the generic strategies, which of the following below is inherently superior in every industry

there is no single superior business level strategy

a perfectly competitive industry is one that

usually exhibits low profitability, have difficulty achieving even a temporary competitive advantage, and has commodity product offerings

the goal of strategic position is to create the largest gap possible between the _____ that a firm creates through its offerings and the ______ required to create these offerings

value, cost

Ticker Inc. is a wristwatch company known for its luxury watches, and it follows a differentiation strategy. In this scenario, Ticker Inc. should ideally compare its strategic position with a

watch maker that sells high end premium watches

which of the following best represents a customer oriented vision statement

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