MGMT-310 Ch. 5 Review Questions

Which of the following factors discourages the entry of new players into a market by reducing consumers' preference to purchase from them?

Demand-side benefits of scale

Companies that focus on reducing costs by making large quantities of product are looking for _______.

Economies of scale

_______ refer(s) to cost savings achieved when the volume of a product produced by a firm enables it to reduce per unit costs.

Economies of scale

Differentiation strategies increase competition because they reduce customer loyalty.

False

Plant managers receive meat and vegetables from suppliers and store them before they are distributed to Sonic franchises for cooking.

Inbound logistics

Servers on roller skates deliver orders to customers.

Outbound logistics

Which of the following refers to activities involved with collecting, storing, and physically distributing a final product to customers?

Outbound logistics

When workers at Swarovski cut crystal figurines, they are engaged in _______ for the company.

Primary activities

Managers at Sonic meet to determine where to purchase the hot dogs sold by the company.

Procurement

Which of the following customer groups would have significant amounts of power over their indicated suppliers? Check all that apply.

-Amazon, which purchases an extremely large amount of shipping from UPS -Reebok, which purchases rubber from many different suppliers, often buying all of the products an individual company has to sell

The company Proctor & Gamble gained _______ by creating a new sponge product for its Mr. Clean brand, the Magic Eraser. People like the sponge's texture and its ability to clean surfaces throughout the house.

A first-mover advantage

All of the following are part of Porter's 5-Forces Model except:

Bargaining power of competitors.

When conducting a SWOT analysis, budgets, ratios, and sales reports can be used to identify:

Company strengths and weaknesses

Wal-Mart, Dollar Tree, and 99 Cents Only Stores operate under a ________ strategy, appealing to the price-conscious consumer of everyday items.

Cost leadership

Sonic managers hired Batrus Hollweg International (BHI) to create new tests that can be used to select individuals with outstanding customer service skills.

HR management

Business Insider released a list of the 50 best U.S. employers, and the number one company was a surprise: the biopharmaceutical firm Celgene. Firms invest in their _______ resources by offering excellent pay and benefits.

Human

Sonic decided to create new commercials in 2012 using the "two guys" spokesmen who were popular from 2002 to 2010.

Marketing and sales

Which of the following is true of a differentiation strategy?

More than one firm can compete successfully based on differentiation in an industry.

Therivalry among competitors is influenced by all of the other competitive forces.

Rivalry among competitors

Considering all of the factors listed in the preceding SWOT analysis question, which of the following strategies would make the most sense for the Giants in the upcoming season?

Sign a free-agent outfielder to bolster the current roster and sign the current pitchers to long-term contracts.

During the 1990s, consumers started to drink bottled water instead of soft drinks. The Coca-Cola Company and PepsiCo decided to change their product lineup to include water products, indicating _______ on the part of both companies.

Strategic flexibility

In SWOT analysis, human resource skills would be considered a(n):

Strength

Deelited Inc. is a company that manufactures soft toys for children. The company operates on a very large scale, and this has enabled it to price its toys at competitive rates while still retaining good product quality. Since it is extremely difficult for a new entrant to sell toys at such low prices, few competitors have emerged for Deelited in the past five years. In this case, the low threat that Deelited Inc. faces from new entrants can be attributed to:

Supply-side economies of scale

Real estate, inventory, raw materials, and computing systems are considered:

Tangible resources

Which of the following functions is a support activity of a firm?

Technological development

A supplier industry group will be powerful when all of the following occur except:

The supplier industry is less concentrated than the industry it sells to.

The fact that people can stream on-demand television shows and movies instead of watching a video on YouTube is an example of _______ , which in this case is _______.

The threat of substitutes, High

Which of the following factors should be classified as an opportunity for the team?

There are a number of free-agent outfielders who are available for signing by the Giants this year, many of whom have better statistics than the current team members.

When referring to a SWOT analysis, the letter T stands for _______, and it refers to factors that are _______ to the organization.

Threats, External

A company that actively tries to become more efficient is likely to be pursuing a cost leadership strategy.

True

A company that creates a distinctive product is likely to use a differentiation strategy.

True

Managers are engaged in _______ when they look at what a company does to determine what advantage the company has over its competitors.

Value chain analysis