MGT 409 Exam 1

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Which of the following are part of a firm's competitive environment? (Check all that apply.)

-customers -suppliers -competitors

Which of the following are examples of what companies do to gain customers? (Check all that apply.)

-decrease product/service prices -increase customer service -increase warranties

The Internet has increased the bargaining power of buyers by ___.

-decreasing switching costs -providing customers with more information to make buying decisions

Which of the following describe factors that result in intense rivalry? (Check all that apply.)

-high fixed or storage costs -numerous or equally balanced competitors -high exit barriers -capacity augmented in large increments -lack of differentiation or switching costs -slow industry growth

Strategic group analysis helps managers do which of the following? (Check all that apply.)

-identify barriers to mobility that protect a group from attacks by other groups -think through implications of industry trends for each company within the group -identify groups whose competitive position may be marginal or tenuous

Which of the following are examples of what companies do to gain customers? (Check all that apply.)

-increase customer service -decrease product/service parts -increase warranties

Which of the following must firms be able to do in order to capture greater profitability using technology and the Internet? (Check all that apply.)

-increase product selection -provide faster delivery -lower the cost of providing products or services

Which of the following statements about scenario analysis are true? (Check all that apply.)

-it draws on a range of disciplines -it is an in-depth approach to forecasting -it incorporates the ways in which societal trends may affect an issue

Which of the following are among the primary activities of a firm's value chains? (Check all that apply.)

-marketing and sales -operations -inbound and outbound logistics service

Which of the following statements are correct regarding strategic groups? (Check all that apply.)

-no two firms are totally different -strategic group s are clusters of firms that share similar strategies -no two firms are exactly the same

A good industry analysis does which of the following? (Check all that apply.)

-seeks to understand the underpinnings of competition in the industry -distinguishes short-term fluctuations from structural changes in the industry -identifies the root causes of profitability for the industry

High exit barriers include which of the following? (Check all that apply.)

-sometimes due to having specialized assets or strategic management -government an social pressures due to concern for job loss -high fixed or storage costs that create strong pressures for firms to increase capacity -high exist barriers can be economics, strategic, or emotional factors

The resource-based view of the firm combines which of the following perspectives?

-the company's internal analysis -an external analysis of the industry and its competitive environment

The number of middle-class consumers in which region is rapidly rising and thus influencing hiring practices of U.S. multinationals?

Asia

______ are products or services that have an impact on the value of a firm's products or services.

Complements

True or false: A key to successful strategic management is gathering industry information and understanding the competitive dynamics of the industry's companies.

True

True or false: Trends in one segment of the general environment can have an effect on other segments.

True

Which attributes must a resource have to provide a firm with a sustainable competitive advantage? pg.83

ability to exploit opportunities have no substitutes be rare among competitors

Michael Porter's five forces model is the most commonly used analytical tool for examining which of the following type of environment?

competitive

______ helps firms define and understand their industry and identify rivals' strengths and weaknesses.c

competitive intelligence

The Internet has intensified rivalry, because ______.

competitors seem more equally balanced

What are the strategies used by firms to leverage the value of its relationships with customers and other firms by seeking regular, low-friction, and customized interactions with them? pg.77-78

connected strategies

The _______ segment of the general environment consists of the characteristics of the economy, including national income and monetary conditions.

economic

______ involves the development of plausible projections about the direction, scope, speed, and intensity of environmental change.

environmental forecasting

______ tracks the evolution of environmental trends, sequences of events, or streams of activities.

environmental monitoring

The _________ environment is composed of segments external to an industry that are usually beyond a firm's control, such as demographics and economic factors, that can affect a firm's strategy.

general

The _______ segment of the general environment consists of influences from foreign countries, including market opportunities, foreign-based competition, and expanded capital markets.

global

Environmental monitoring enables firms to evaluate _________

how the dynamic competitive landscape is being changed by environmental trends

The Internet may ______ buyer power by providing consumers more information to make buying decisions and by ______ switching costs.

increase; lowering

A buying group is considered powerful when it_________

is responsible for a large volume of seller's sales

a buying group is considered powerful when it_____

is responsible for a large volume of sellers sales

A firm's strategy should be directly tied to_____

its SWOT analysis

Typically, resources ______

on their own do not yield a competitive advantage

Tangible Resources pg. 80when add

organizational assets that are relatively easy to identify, including physical assets, financial resources, organizational resources, and technological resources. ex of financial resources: cash, accounts receivable and borrowing power. ex of physical resources: company plant, equipment, and machinery ex of organizational resources: the company's strategic planning process and its employee development, evaluation and reward systems. ex of technological resources: trade secrets, patents, and copyrights

The purpose of environmental forecasting is to ______

predict change

______ activities are the sequential activities of the value chain that refer to the physical creation of the product or service, its sale and transfer to the buyer, and its service after sale.

primary

Competitive advantages are created and sustained through having_________

resources that are valuable, rare, and hard to duplicate and substitute

______ is an in-depth approach to environmental forecasting that involves experts' detailed assessments of social, economic, political, technology trends or other dimensions of the external environment.

scenario analysis

The _________ segment of the general environment consists of the values, beliefs, and lifestyles of a society. Multiple choice question.

sociocultural

All firms within an industry compete with industries producing __________ products and services. (Enter only one word in the blank.)

substitute

______ products and services limit the potential returns of an industry by placing a ceiling on the prices that firms in that industry can profitably charge.

substitute

______ may exert bargaining power by threatening to raise prices of the materials needed by a firm or reduce the quality of goods and services.

suppliers

A one-time cost that customers pay when changing vendors is known as______

switching costs

the ______ segment of the general environment is concerned with innovation and state of knowledge in industrial arts, engineering, applied sciences, and pure science, and their interaction with society.

technological

True or false: The only thing a firm needs to achieve a sustainable competitive advantage is a resource that is difficult to imitate. pg. 86

FALSE Reason: To achieve a sustainable competitive advantage, a firm must have resources and capabilities that are not only difficult to imitate or substitute but also are rare and valuable.

______ consists of activities involving recruiting, hiring, training, development, and compensating personnel. Pg. 76

Human Resource Management

Which of the following are examples of physical uniqueness? pg. 84

a beach resort location on a one-of-a-kind island patented products that cannot be copied a company's mineral rights

social complexity pg. 85

a characteristic of a firm's resources that is costly to imitate because the social engineering required is beyond the capability of competitors, including interpersonal relations among managers, organizational culture, and reputation with suppliers and customers.

Path Dependency pg. 84

a characteristic of resources that is developed and/or accumulated through a unique series of events. "simply means that resources are unique and therefore scarce because of all that has happened along the path followed in their development and/or accumulation.

When addressing the value-chain concept, it is important to focus on the interrelationship between the organization and its most important stakeholders, which are _________. pg. 77

customers

______ is a technique for measuring the performance of a firm according to its balance sheet, income statement, and market valuation. pg.89

financial ratio analysis

Resources are valuable only when they enable a firm to______ pg.83

formulate and implement strategies that improve its efficiency or effectiveness

______ consists of activities that support the entire value chain and not individual activities. pg. 76

general administration

Human resource management's activities include which of the following? pg. 76

hiring employees engaged in support activities training employees negotiations with labor unions

The bargaining power of buyers depends on the _____

importance of purchases from that group compared with the industry's overall business

The bargaining power of buyers depends on the________-

importance of purchases from that group compared with the industry's overall business

Just-in-time (JIT) inventory systems are designed to help companies with their____

inbound logistics

The ______ perspective measures how well a firm is changing its product and service offerings to adapt to changes in the internal and external environments.

innovation and learning

Which of the following are service activities? (Check all that apply.)

installation, training, repair

______ resources are organizational assets that are difficult to identify and account for and are typically embedded in unique routines and practices. pg.81

intangible

The ______ perspective involves measures of firm performance that indicate how well a firm's internal processes, decisions, and actions are contributing to customer satisfaction. pg.93

internal business

Outbound logistics pg. 74

is associated with collecting, storing, and distributing the product or service to buyers. These activities include finished goods, warehousings, material handling, delivery vehicle operation, order processing, and scheduling.

According to value-chain analysis, a firm______

is profitable when the value it receives exceeds total costs

According to value-chain analysis, a firm_______

is profitable when the value it receives exceeds total costs

The SWOT framework is popular with managers for several reasons, including which of the following?

it forces managers to consider both the internal and external factors simultaneously

The Sarbanes-Oxley Act of 2002 greatly increased the accountability of auditors, executives, and corporate lawyers. This law is an example of which segment of the general environment?

political/legal

Online shopping robots, or "bots," on the web have increased competitive rivalry by allowing the consumer to focus only on the best possible

price

Support activities add value by themselves or through their relationships with which kinds of activities?

primary and other support activities

______ refers to the function of purchasing inputs used in the firm's value chain.

procurement

Resources that not many firms possess are known as _____ resources

rare

Rather than analyzing its finances in isolation, a firm should make use of

reference points

An advantage that some existing competitors have over new entrants and that does not depend on economies of scale is having favorable access to _____ materials

Raw

______ analysis is a framework for analyzing a company's internal and external environments.

SWOT

True or false: The value-chain concept does not apply to service organizations. pg. 79

FALSE Reason: Although value-chain activities are applied differently, the value-chain concept is still valid.

Which of the following are ways that resource inimitability (difficulty to imitate) is a key to value creation? pg.

It constrains competition. It makes profits more likely to be sustainable

Which of the following is an example of a CEO with perceptual acuity?

Marga stars a ride sharing business in a city with few parking garages

True or false: The threat of substitutes has increased due to digital technologies and the Internet.

TRUE

The Internet and digital technologies are said to ______.

be a double-edged sword for suppliers

Internal business perspective measures should focus on the Blank______ processes that have the greatest effect on customer satisfaction pg. 93

business

Which of the following are examples of tangible resources? pg. 80

cash equipment

The Internet allows customers to shop around for the best price, thus it has ______ products that were previously regarded as rare or unique.

commoditized

Which of the following elements of the general environment is the easiest to understand and quantify?

demographic

______ is the process of removing the organizations or business processes responsible for intermediary steps in the value chain.

disintermediation

Which of the following is an example of when the bargaining power of suppliers may be low?

the suppliers provide an input that has many substitutes

Managers should understand how they can create win-win relationships with their suppliers and customers so that they can overcome_________

the zero-sum game issue

the _____ is the possibility that the profits of established firms in the industry may be eroded by new competitors

threat of new entrants

the______ is the possibility that the profits of established firms in the industry may be eroded by new competitors.

threat of new entrants

Firms use "Big Data" to accomplish which of the following goals?

to better customize their offerings to customers

A firm's expanded value chain includes pg. 77

customers

Which of the following statements about using the balanced scorecard method of evaluating a firm's performance are true? pg. 92

-It includes financial and customer satisfaction measures. -It takes into account organizational innovation and learning perspective. -It provides managers with a fast but comprehensive view of the business.

Which of the following are caveats of using industry analysis? (Check all that apply.)

-Managers should not always avoid low-profit industries. -Porter's model assumes a zero-sum game, meaning there is a winner and loser. -The five-forces model is essentially a static analysis.

Which of the following statements about the firm's innovation and learning perspective are correct? pg. 93

-The criteria for success are constantly changing due to rapid changes. -Human capital, information capital and organization capital are critical to this perspective. -Managers must make frequent changes to existing products and introduce new products.

Which of the following are reasons why competitors have difficulty imitating resources that were developed over time? pg. 84

-They cannot go out and buy these resources quickly and easily. -Their uniqueness is due in part to all that happened along the path of development.

High exit barriers include which of the following? (Check all that apply.)

-They sometimes are due to having specialized assets or strategic interrelationships. -high exit barriers can be economic, strategic or emotional factors -high fixed or storage costs that create strong pressures for firms to increase capacity -government and social pressures due to concern for job loss

Which of the following are among the five types of financial ratios that are used to analyze a firm's performance? pg.85

-asset management ratio -short-term and long-term solvency measures -profitability and market value ratios

Which of the following are among Porter's five forces? (Check all that apply.)

-bargaining power of suppliers -intensity of rivalry among competitors in an industry -the threat of new entrants -threat of substitute products and services

In which of the following ways can suppliers exert bargaining power? (Check all that apply.)

-by reducing the quality of purchased goods and services -by squeezing the profitability of firms by threatening to raise prices of raw materials

According to Porter, what are the two critical issues in conducting a good industry analysis? (Check all that apply.)

-conducting a rigorous quantification of the fie forces -choosing the appropriate time frame

JIT has helped companies like Dell to do which of the following?

-decrease storage costs, since parts arrive only hours before needed -decrease the time it takes to deliver products to customers

Which of the following help to explain the extent to which employees and managers may be able to obtain a proportionately high level of generated profits? pg. 88-89

-employee replacement cost -employee bargaining power -manager bargaining power -employee exit cost

Which of the following actions should firms take to build sustainability capabilities in both primary and support activities in the value chain?

-finance -procurement -research and development -marketing

Two approaches to evaluate firm performance include which of the following? pg. 89

-financial ratio analysis -stakeholder view (balance scorecard)

Which of the following should be included as reference points so that a firm's financial position is in the proper context for analysis? (Check all that apply.)

-historical comparisons -key competitor comparisons -comparisons with industry norms

Which of the following are reasons managers should use Porter's five forces model? (Check all that apply.)

-it can help them assess how to improve the firms competitive position within the industry - it can help them decide whether to enter, remain, or exit an industry -it can help them develop their supply chains through developing strong relationships with both suppliers and customers

Which of the following are examples of ways that the Internet has been positive for supplier bargaining power? (Check all that apply.)

-it has sped up and streamlined supply chain processes -it has created more 'downstream' outlets for suppliers -it has allowed buyers to link directly to a suppliers website to create rapid, low-cost ordering

Which of the following statements about an industry's composition are correct? (Check all that apply.)

-it includes companies that use similar methods of production -it includes companies that produce similar products or services -it includes companies that sell to similar customers

Which of the following statements about an industry's composition are correct? (Check all that apply.)

-it includes companies that use similar methods of production -it includes companies that sell to similar customers -it includes companies that produce similar products or services

Which of the following must firms be able to do in order to capture greater profitability using technology and the Internet? (Check all that apply.)

-lower the cost of providing products or services -increase product selection -provide faster delivery

Supplier groups are powerful under which of the following conditions? (Check all that apply.)

-one or more suppliers have built-in switching costs for buyers -the industry is not an important customer of the supplier group -the supplier group poses a credible threat of forward integration

Which of the following processes are associated with outbound logistics? (Check all that apply.) pg. 74

-order processing -delivery vehicle operation -warehousing

Which of the following are examples of resource characteristics that are inimitable due to causal ambiguity? (Check all that apply.)

-organizational capabilities that involve complex social interactions that make up a company's culture -processes that are difficult for outsiders to understand

Which of the following are included in the six segments of the general environment? (Check all that apply.)

-political/legal and technological -economic and global -demographic and sociocultural

Which of the following are examples of support activities? (Check all that apply.)

-procurement -human resources management -general administration

Which of the following are examples of socially complex resources? (Check all that apply.)

-reputation with suppliers and customers -interpersonal relationships among managers -organizational culture

A CEO can improve perceptual acuity by _________-

-seeking out information -meeting with and listening to others

Which of the following statements are correct regarding strategic groups? (Check all that apply.)

-strategic group share clusters of firms that share similar strategies -no two firms are exactly the same -no two firms are totally different

Examples of intangible resources include which of the following? pg. 81

-technical and scientific skills -the company's brand name -the experience and capabilities of employees

The resource-based view of the firm combines which of the following perspectives?

-the company's internal analysis -an external analysis of the industry and its competitive environment

Supplier groups are powerful under which of the following conditions? (Check all that apply.)

-the supplier group poses a credible threat of forward integration -the industry is not an important customer of the supplier group -one or more suppliers have built0in switching costs for buyers

Which of the following are among Porter's five forces? (Check all that apply.)

-the threat of new entrants -threat of new substitute products and services -intensity of rivalry among competitors in an industry -the bargaining power of suppliers

Which of the following are key arguments against H-1B visas?

-they take jobs away from americans -they drive down wages for american workers

Strategic group analysis helps managers do which of the following? (Check all that apply.)

-think through implications of industry trends for each company within the group -identify groups whose competitive position may be marginal or tenuous -identify barriers to mobility that protect a group from attacks by other groups

Which of the following processes are included in inbound logistics? (Check all that apply.) pg. 73

-warehousing, returns to suppliers, material handling

What are the four support activities in the value chain?

Pg. 74 procurement technology development general administration human resource management

______ is associated with receiving, storing, and distributing product inputs. pg. 73

Service Operations Inbound logistics Outbound logistics

Which of the following statements describe the relationships among value-chain activities? pg. 78

They are relationships among activities within the firm and other stakeholders. They are interrelationships among activities within the firm.

Substitute products or services must be Blank______ the industry's offerings.

able to perform the same function as

Operations

all activities associated with transforming inputs into the final product form such as machining, packaging, assembly, testing, printing, and facility operation. pg. 73

______ is a method of evaluating a firm's performance using performance measures from four perspectives: customer, internal, innovation and learning, and financial. pg. 92

balanced scorecard

The stakeholder view takes a(n)______ approach than the financial ratio analysis in evaluating the firm. pg.89

boarder

Two valuable firm resources are strategically equivalent (substitutes) when each

can be exploited separately to implement the same strategies

______ is a characteristic of a firm's resources that is costly to imitate because a competitor cannot determine what the resource is and/or how it can be re-created. pg.85

casual ambiguity

The Blank______ perspective provides a measure of firm performance that indicates how well firms are satisfying customer expectations. pg. 92

customer

Select three areas in which artificial intelligence can give a firm a better understanding than that of its competitors in order to build a sustainable competitive advantage. pg. 86-87

customer preferences the use of products in an industry efficient procedures

______ activities are associated with purchases of products and services by end users and the inducements used to get them to make purchases.

marketing and sales

Rivalry among competitors is likely to be ______ due to digital technologies and the Internet.

more intense

Resources must have _____ strategically equivalent and valuable substitutes in order to be a source of sustainable competitive advantage

no

General administration is often seen_______ pg. 77

only as overhead

______ includes all activities associated with transforming inputs into the final product. pg.73

operations

______ are the competencies and skills that a firm employs to transform inputs into outputs.

organizational capabilities

______ is collecting, storing, and distributing products or services to buyers. pg. 74

outbound logistics

Operations includes which of the following activities? (Check all that apply.) pg. 73

packaging, machining, testing

______ is a characteristic of resources that is developed and/or accumulated through a unique series of events.

path dependency

______ is the first source of resource inimitability due to being inherently difficult to copy.

physical uniqueness

What are the four components of connected relationships identified by professors Siggelkow and Terwiesch for leveraging the value of value-chain activities? pg. 77

requesting a desired option to help meet a customer's need responding to a customer's need by customizing their experience repeating connected interactions with customers recognizing a customer need

The ______ view of the firm states that a firm's competitive advantages are due to its endowment of strategic resources that are valuable, rare, costly to imitate, and costly to substitute. pg. 80

resource-based

______ is a characteristic of a firm's resources that is costly to imitate because the social engineering required is beyond the capability of competitors. pg.85

social complexity

Strategic resources must meet four criteria in order for them to provide a firm with the potential for a ______ competitive advantage. pg. 83

sustainable

Resources that are valuable, rare, difficult to imitate, and do not have substitutes provide a firm with a _____ pg. 86

sustainable competitive advantage

______ resources are organizational assets that include physical and financial assets and are relatively easy to identify.

tangible

match the following: tangible intangible organizational capability experience of employees outstanding customer service accounts recievable

tangible--> accounts receivable intangible--> experience of employees organizational capability--> outstanding customer service

Resources that competitors can easily imitate generate_______- pg. 84

temporary value

The application of value-chain activities is easily applied to service organizations when one understands________ pg.79

the focus is on adding value for customers

Which type of analysis views the organization as a sequential process of value-creating activities? pg. 72

value-chain


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