MAN$&@)

Billie needs a model that will help examine both internal and external metrics that will help her monitor her competitive advantage.

A.) Economic value creation model B.) the accounting profitability model C.) the shareholder value creation model D.) the balanced scorecard model (D)

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

A.) Fall in the purchasing power of the firm's customers B.) Increased competition in the industry where a firm operates C.) Irregularity in the raw material supply throughout the industry D.) Decline in the firm's market share (D)

Why are differentiation and cost leadership referred to as the generic strategies?

All Businesses fall under one of these two categories

Polygon 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 Polygon implementing?

Razor Blade

Core competencies are created by combining

Resources and Core Competencies

Razorblade model

offer the high margin razor below cost to boost sales of low margin razor blades

Name and describe all tools when performing external analysis

1.) Porters Fives Forces 2.) Pestel 3.) Strategic Group Mapping 4.) SAP framework

How is a cost-leader protected from threats from powerful suppliers?

A cost-leader is fairly well isolated from threats of powerful suppliers to increase input prices, because it is more able to absorb price increases through accepting lower profit margins.

In a focused cost leadership strategy

A.) A firm caters to a market that is the least cost sensitive B.) Provides low priced products for many segments C.) Delivers low cost products to a narrow market

Which of the following summarizes the difference between a firm's vision and a mission statement?

A.) A vision is what a firms wants to accomplish and a mission states how a firm plans to accomplish this vision B.) A vision states the ethical values ; a mission states the monetary goals of a firm C.) A vision states how much a firm wants to earn and a mission states how these earnings will be accomplished D.) A vision states the management values of a firm; a mission states the values of the other workers (A)

Pasta Pronto and Enzos on the lake both make Italian food. Pasta Pronto focuses on creating quick affordable pasta. Enzo's by the lake focuses on serving upscale dishes in a romantic setting. Both companies are able to gain a competitive advantage. This is most likely due because

A.) Benefited from economies of scale B.) Focused on the same Customer market C.) Pursued distinct positioning strategies D.) engaged in direct substitution and imitation (C)

Which pestel category fits this 10K statement? "If our cash flows and capital resources are insufficent to fund our debt obligations, we may be forced to reduce or delay investments and capital expenditures, or to sell assets, seek additional capital or restructure or refinance our indebtedness"

A.) Competitive Rivalry B.) Economic C.) Socio-cultural D.) None of the Above (D)

A client of ASI that manufactures hockey sticks makes an annual assessment of its resources in terms of raw materials, technical expertise, and technological knowhow; they also assess the type of competition they face in the sports goods market and scans the environment for potential opportunities that would allow them to expand its business. Which strategic tool would you recommend they use to accomplish this analysis?

A.) PESTEL B.) Porter's Five forces C.) Value Chain D.) SWOT Analysis (D)

Trace Co. sells a coffee machine at an extremely low price. However, they make their money charging premium rates for the refill coffee pods. Which of the following business models does this best represent?

A.) Razor Razor Blade B.) Subscription based C.) Freemium D.) Pay-as-you-go (A)

Clean Rinse operated with a competitive advantage for 4o years but never refined or upgraded its product. As a result other shampoo companies began to offer organic shampoo to gain a competitive advantage over clean rinse. This is an example of

A.) Resource Flow B.) Dynamic Capabilities C.) Core rigidity D.) Value Chain (C)

Which of the following accurately summarizes the difference between the resources and capabilities of a firm?

A.) Resources are tangible; capabilities are tangible and intangible B.) Resources are intangible; capabilities are tangible C.) Resources are tangible and intangible; capabilities are intangible D.) Resources are tangible; Capabilities are intangible (C)

In the five forces model developed by Michael Porter, [BLANK] is not defined narrowly as a firm's closest competitors but rather more broadly to include other factors in an industry like buyers, suppliers, potential of new entry and the threat of substitutes.

A.) Stakeholder B.) Regulation C.) Competition D.) a barrier to entry (C)

According to your ASI corporate training session, [Blank] are best described as unique strengths, embedded deep within a firm that allows a firm to differentiate its products and services from those of its rivals, creating higher value for the customer or offering products and services of comparable value at lower cost.

A.) Strategic Strength B.) Inbound Logistics C.) Core Competencies D.) Absolute Advantage (C)

Hotel has the highest market share despite charging some of the most premium prices. They are committed to a 100% customer service satisfaction rate. What is this businesses key value driver?

A.) Superior Customer Service B.) low cost of Inputs C.) Availability of compliments D.) Economies of Scale (D)

The internet service provider industry in the country of Wakanda is an industry characterized by the presence of strong network effects, high brand loyalty, high economies of scale, and proprietary technology among incumbent firms. Thus, in the internet service provider industry, the

A.) Threat of substitutes is high B.) Threat of new entrants is low C.) Bargaining power of buyers is low D.) Entry barriers are most likely nonexistent (B)

We use the multi-Dimensional perspective when trying to measure competitive advantage. Those three metrics are economic value creation, opportunity costs, and accounting profitability

A.) True B.) False (B) should be share holder value not opportunity costs

What is the AFI Strategy Framework?

Analysis: Diagnose the competitive challenge Formulate: Guiding policy to address the problem Implement: A set of coherent actions

Baz's Bargain Styles Inc. is an apparel company that caters to the highly price-conscious customers. Through its simple apparel designs, acceptable quality levels, and minimal customer service, the company has been able to sell its merchandise at the lowest prices in the industry. Which of the following generic business strategies is Baz's Bargain Styles applying

Cost Leadership

What strategy is best able to navigate unfavorable forces?

Cost Leadership strategies

What effects are more powerful firm or industry?

Firm effects should be focused on as you have more control over them and are more powerful

When a competitor charges a similar price but has a product that has a perceived higher value?

Has a propensity to gain market share

Primary Activities

Inbound logistics, outbound logistics, sales, marketing and service

A firm has 30 million shares outstanding, and each share is traded at $100. Also, each shareholder gets a dividend of $2,000 annually. In this case, the market capitalization is:

Market capitalization (or market cap) captures the total dollar market value of a company's outstanding shares at any given point in time (Market cap = Number of outstanding shares × Share price). Therefore, market cap is equal to $3 billion, that is, 30 million shares × $100.

Is there such thing as a growth strategy?

NO!

Enterprise Holdings, The Hertz Corporation, and Avis Car Rental, the three largest firms in the car rental industry, hold close to 94 percent of the industry's market share. These companies mainly compete against each other by providing unique features in their products rather than pricing them low. These firms are interdependent, and each firm must consider the strategic actions of its competitors. Which of the following industry competitive structures does this scenario best illustrate?

Oligopoly

When companies that manufacture shipping containers want to buy iron ore, the purchase decision is solely based on price. This is because there are a large number of sellers in the iron ore industry, and iron ore is a highly undifferentiated commodity. Which of the following industry competitive structures does the iron ore industry best illustrate?

Perfect Competition

Strategy Soups and Sauces LLC is a new client of ASI and competes in the food manufacturing industry. They wish to implementing new equipment in their production plants to reduce the amount of time it takes to apply packaging to its finished products. By doing this, Strategy Soups and Sauces LLC is addressing a ________ in the value chain analysis.

Primary Activity

What is the definition of competitive advantage?

The ability to generate above average returns for your shareholders

Freemium

basic services are offered for free, but a premium is charged for special features

Congratulations on completing your ASI strategy training! As a result of your recent accomplishment, you've been chosen for a very prestigious position at a fortune 500 company. During your interview, your new potential employer asked, "If you get this job, will you focus more on industry effects or firm effects?" You smile for a moment and then respond by saying:

While all these effects can change a firm's performance, firm effects have the biggest impact—up to 55%. Because firm effects come from the actions managers take, Elena would be able to have the most impact on those.

Can you offer a sustained competitive advantage?

You can never promise a sustained advantage

pay-as-you-go

charge for actual, metered usage

Companies in the same strategic group

direct competitors

Crowdsourcing

get people to contribute content for free to have acess to other users content

Define Strategy

the goal directed actions a firm takes to gain and sustain a competitive advantage

Subscription-based model

users pay for access to the product or service whether they use it

strategic positioning

value your able to provide to consumer while keeping in mind the costs to do so

Industry Convergence

when unrelated industries satisfy the same need caused by technological advances