bus 4950 midterm practice

Strategy is defined best as: A unique value proposition supported by synergies in operations A unique value proposition supported by aggressive marketing A unique value proposition supported by a complex supply chain A unique value proposition supported by sound financial decisions

A unique value proposition supported by synergies in operations

Amazon.com is a great example of a company that has consistently delivered: Above average share value appreciation Profits year over year Above average return on investment Spectacular profit growth

Above average share value appreciation

Which of the following companies best exemplifies broad cost leadership? Amazon Costco Toyota WalMart

Costco

Porter's Five forces helps with all of the following objectives except: Evaluate opportunities and threats Evaluate the strengths and weaknesses of a firm Evaluate the attractiveness of an industry Decide entry or exit from an industry

Evaluate the strengths and weaknesses of a firm

Boeing with it's 787 program initially tried to use a Build to Print strategy to ensure quality and timeliness in the delivery of the first customer orders. T/F

False

Shareholder returns are primarily derived from Growth in share value and dividend payments Growth in the share value only dividend payments only Growth in company profits

Growth in share value and dividend payments

Incumbents typically have a cost advantage as compared to new entrants because: Incumbents have greater fixed costs but lower variable relative to new entrants typically Incumbents typically have a technogical edge compared to new entrants Incumbent market shares lead to greater economies of scale Incumbents have deeper connections to government and regulatory bodies

Incumbent market shares lead to greater economies of scale

The efficient frontier has a concave shape (i.e. a bulging shape) because: It costs progressively more for every increment in quality levels Quality is free at lower levels of quality Greater levels of efficiency come at a steep cost but only for high-end segments There is a quadratic relationship between higher quality and efficiency

It costs progressively more for every increment in quality levels

The cost of attracting new customers is the highest with which of the following groups? Laggards Late majority Innovators Early adopters

Laggards

A highly capable brick and mortar electronics retailer with a loyal regional customer base (such as Fry's) should adopt which of the following medium term strategies? Niche or harvest Divest "50% off" sale every month Invest in R&D

Niche or harvest

There is often limited capacity relative to demand in the early growth period of an industry because: Many companies compete for early advantage in an emerging industry Prices tend to be low in the embryonic stage Capacity is very expensive in the later stages of an industry Only few companies have products or technologies in a budding industry

Only few companies have products or technologies in a budding industry

An equation that best describes customer valuation is: Quality/Product Price Quality/Product Cost Price/Quality Product Cost x Quality

Quality/Product Price

Strategy formulation and execution is ultimately a service to: Shareholders Employees Customers Government regulators

Shareholders

The best possible context within which to apply Porter's Five Forces model is for: Market segment Industry Strategic group Sector

Strategic group

Which of the following companies best exemplifies a blue ocean strategy? Fedex Tesla Amazon.com Costco

Tesla

In the context of the Differentiation (Quality) vs Efficiency trade-off curve, Amazon is best described as a company: That has been a value innovator Just below and to the left of the efficient frontier On the same frontier but a different position compared to brick and mortar competitors A company that values quality over price every single day

That has been a value innovator

Apple's core competency lies in its capabilities and technologies that deliver enhanced user experience and service. T/F

True

Which of the following companies best exemplifies broad differentiation? Volkswagen Amazon WalMart Costco

Volkswagen

Which of the following companies best exemplifies focus differentiation? WalMart Amazon Apple Costco

apple

Absolute cost advantages for incumbents (over new entrants to an industry) typically derive from: All of the above Control of inputs Higher levels of experience Economies of scale from market share

All of the above

If the willingness to pay of a customer for an automobile is $18000, and the cost to produce that automobile is $14000, the consumer surplus is: Cannot be determined with data provided $4000 Less that $4000 More than $4000

Cannot be determined with data provided

In the context of the Differentiation (Quality) vs Efficiency trade-off curve, the efficient frontier refers to: The company that provides maximum quality for a given cost The company that provides minimum cost The company that provides maximum quality The company that maximizes efficiency

The company that provides maximum quality for a given cost