EXAMINATION #1 STUDY GUIDE

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 A) AFI strategy framework. B) business model analysis. C) Six Sigma tool. D) Stakeholder Impact analysis.

A) AFI strategy framework.

3) Jill is exploring multiple suppliers in order to find the best price. However, instead of calling all eight potential suppliers, she only reaches out to the first three and bases her selection on those instead of contacting all suppliers. Jill's action best describes the concept of A) cognitive limitations. B) optimal decision making. C) the illusion of control. D) escalating commitment.

A) cognitive limitations.

Tesla is addressing environmental concerns regarding the carbon emissions of gasoline powered cars by building zero-emission battery-powered vehicles. This best represents which of the following PESTEL categories? A) ecological B) economic C) political D) technological

A) ecological

When performing internal analysis of firms, how would you answer the question, "why do companies exist?" A) Companies exist because they create value for customers in ways that customers are unable to replicate on their own. B) Companies exist because they provide a means of investment income for shareholders, who otherwise would be able to invest only in government securities. C) Companies exist because they provide a tax base for government to draw upon in creating and maintaining public works projects. D) Companies exist because they give college professors something to teach about.

A) Companies exist because they create value for customers in ways that customers are unable to replicate on their own.

Core competencies are derived from the combination of A) key strategic resources and a firm's capabilities. B) export barriers, trade barriers, and credit barriers faced recently by the company. C) tax policy changes driven by federal programs and R&D grants at the state level. D) knowledge brought in by new graduates and the mentoring they receive from existing employees.

A) key strategic resources and a firm's capabilities.

Bob is exploring multiple suppliers in order to find the best price. However, instead of calling all eight potential suppliers, he only reaches out to the first three and bases his selection on those instead of contacting all suppliers. Bob's action best describes the concept of A) satisficing. B) optimal decision making. C) the illusion of control. D) escalating commitment.

A) satisficing.

In recent years a growing number of U.S. consumers have become more health-conscious about what they eat. According to the PESTEL Framework this trend could best be classified as a ________ trend. A) sociocultural B) healthy eating C) political D) legal

A) sociocultural

Fresher Corp. produces electric bathroom fragrance diffusers and sells the electric outer device at a market rate price. However, they lock their clients into a two-year agreement to purchase the perfume refills solely from them on a monthly basis. Which business models does this best illustrate?

A) subscription-based

Jill is interested in the concept of strategy and decides to create her own. As a result, Jill says that her strategy is to focus on growth and marketing to achieve competitive advantage. How would you evaluate Jill's statement? A) Jill's strategy makes sense and she should move forward with it. B) Jill's strategy reveals a clear strategic position and tradeoff, so she should proceed. C) Jill should reevaluate her statement because it fails to mention human resources and finance. D) Jill should reevaluate her statement because it fails to meet the principles of what a strategy should be.

D) Jill should reevaluate her statement because it fails to meet the principles of what a strategy should be.

LinkedIn, a professional social media website, allows its users to create their profiles for free, but charges a premium price for additional services. This is an example of a ________ business model. A) subscription-based B) peer-to-peer C) crowdsourcing D) freemium

D) freemium