Uri Bus 345 chapter quizzes

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

increase in a firm's customer loyalty

In which of the following situations is the power of suppliers high in an industry?

A. Suppliers' industry is more concentrated than the industry it sells to.

According to the Toyota case study, what is the Fuel Efficiency rate for Gas Hybrid Vehicle powertrain?

A. 2.30 miles/liter

According to the Toyota case study, what does CAFE stand for?

A. Corporate Average Fuel Economy

Which of the following is an advantage offered by a functional structure?

A. It allows for a higher degree of specialization and deeper domain expertise.

Which of the following real-world scenarios best exemplifies formalization?

A. McDonald's use of standard operating procedures across the world

Which of the following statements is true of accounting data?

Accounting data are historical data and thus backward-looking.

What year does Unilever target for achieving its goals?

B. 2020

Which of the following is a primary feature of the five forces model?

B. It views competition within an industry broadly to include forces such as buyers, suppliers, and the threat of substitutes.

A strategic group will typically include

B. firms within the same industry.

Which of the following statements accurately brings out the difference between tangible and intangible resources?

C. Tangible assets can be bought on the open market by anyone with the necessary cash, whereas intangible assets cannot be easily purchased.

Which of the following statements about competitive advantage is true?

Competitive advantage can be assessed by measuring accounting profit, shareholder value, or economic value.

Invoro is a market leader in consumer electronics. If Finolo and Ethver, companies that manufacture televisions, develop the same customer knowledge base and create products with the same customer appeal as Invoro, then

D. Invoro will have a resource that is valuable but no longer rare.

Economies of scale are cost advantages that accrue for firms with

D. larger output.

When a firm diversifies into different product lines and geographies, a ________ structure is preferred.

D. multidivisional

A firm's ________ determines how the work efforts of individuals and teams are orchestrated and how resources are distributed.

D. structure

________ is best described as decreases in cost per unit as output increases.

Economies of scale

According to the Toyota case study, which of the following were among the top three US automaker?

Ford

Which of the following statements is true of the balanced-scorecard?

It attempts to provide a holistic perspective on firm performance.

How does a sustainable strategy typically help a firm?

It helps the firm achieve positive results along the social and ecological dimensions.

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

It is more able to absorb price increases through accepting lower profit margins.

What must a cost-leadership strategy accomplish to be successful?

It must reduce the firm's cost below that of its competitors while offering adequate value.

How did Marriott use economies of scope to achieve greater economic value than its competitors?

Marriott lowered its cost structure by sharing its production assets over several types of hotels, which increased the diversity of its hotel line and thus its differentiated appeal.

Which one of the following is not a product line of Clearwater Seafoods?

Oyster

________ are the legal owners of public companies.

Shareholders

Starfish Sodas has successfully achieved a competitive advantage in the soft drink industry as a differentiator. Which of the following scenarios would undermine Starfish's position?

Starfish's customers start to consider soda a commodity.

What does TAC stand for in the case of Clearwater Seafoods?

Total Allowable Catch Limits

The collapse of cod fisheries is a common example of ___________?

Tragedy of the commons

The tenet behind the triple-bottom-line is that

a firm should achieve positive results along the economic, social, and ecological dimensions to gain a sustainable strategy.

How does a firm capture its producer surplus for a good or service?

as profit per unit sold

Tragedy of the commons

is a situation in a shared-resource system where individual users, acting independently according to their own self-interest, behave contrary to the common good of all users by depleting or spoiling the shared resource through their collective action.

The balanced-scorecard can accommodate

both short- and long-term performance metrics.

Organizational and managerial skills that find their expression in a company's structure, routines, and culture are referred to as

capabilities.

A firm incurs $400 to manufacture a television. In the market, customers are willing to pay a maximum of $600 for the television priced at $500. The difference of $200 ($600 minus $400) is the

economic value created.

O'Ryan Plastics maintains a manufacturing plant overseas. The local government has just been overthrown by a military group that opposes foreign influence in the country. According to the SWOT analysis, the political situation in this location is considered to be an

external threat.

A differentiation strategy works best when a

firm has intangible resources, is able to pass on increases in supplier cost to the customer, and its differentiation appeal creates customer loyalty.

True Moto Corp. (TMC) is a leading automobile company. The company has been able to sustain its competitive advantage primarily due to its high-quality and efficient electric motors. Most of its competitors have failed to develop similar electric motors at a reasonable price. Which of the following resource attributes listed in the VRIO framework has helped TMC sustain its competitive advantage?

high costs involved in imitation

Eon Inc., Electravia Inc., and FC Inc., the three largest firms in the consumer electronics industry, hold close to 85 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

To reduce the amount of time it takes to apply packaging to its finished products, North Star Foods is implementing new equipment at its production plants. By doing this, North Star is addressing a ________ in the value chain analysis.

primary activity

A high percentage of R&D/Revenue ratio indicates a(n)

strong focus on innovation to improve current products and services.

A blue ocean strategy differs from a low-cost strategy in that

the intent of a blue ocean strategy is not to be the absolute lowest-cost provider because a blue ocean must also increase perceived value.

Cloud Cones is a fast-growing chain of ice cream shops. It has acquired an edge over its competitors through its ability to provide a wide array of unique flavors and a hip atmosphere in stores. This advantage of Cloud Cones best exemplifies a

A. core competency.

BioCure Inc. is a pharmaceutical company that has many breakthroughs in medicine to its credit. Unlike many other pharmaceutical companies, BioCure has a relaxed work environment where employees are free to discuss projects with each other. Employees are encouraged to choose the projects that interest them; communication between team members and their supervisors is open and easy. Because of the company's work culture, its employees feel motivated to work harder and display more entrepreneurial behaviors. In this scenario, BioCure Inc. is most likely an organization that is

A. organic.

Gladiator Apparel is the market leader in the sportswear industry. Though most of its resources are common to those of its competitors, a few rare resources have helped the company gain and sustain a competitive advantage. Which of the following assets of Gladiator Apparel is most likely to be considered a rare resource that is contributing to its competitive advantage?

A. the company's design patents

________ define appropriate employee attitudes and behaviors.

B. Norms

The ________ allows the scanning, monitoring, and evaluating of changes and trends in a firm's macro environment.

B. PESTEL framework

W. L. Gore & Associates is organized in such a way that it has no formal job titles, job descriptions, or chains of command. This implies that it has

B. a decentralized structure.

What does USLP stands for?

C. Unilever Sustainable Living Plan

Threadbare Industries is a new high-end textile company that has raised sufficient capital from multiple sources. It is planning to use its capital to purchase certain assets. Which of the following assets will be the most difficult for Threadbare Industries to acquire using its capital?

D. brand name

In the aircraft manufacturing industry, at least for large commercial jets, Boeing and Airbus are the only competitors. There is not a significant threat of entry because

D. entering the aircraft manufacturing industry requires huge capital investments.