WPC480 Quizzes

$180

A firm incurs $100 to manufacture an office table. It fixes the market price of the table as $250, and discounts the price to $200. However, the maximum a person is willing to pay for it is $180. What is the amount of total perceived consumer benefits in this scenario? a. $180 b. $250 c. $200 d. $100

motorcycles

WeBreak4Bikes Inc. has a new US-based client in the bicycle industry. The client's company produces only bicycles for riding on the road. The bicycles are used for reliable general purpose transportation. When asked to identify a potential substitute for the bicycle industry from the Five Forces perspective you would select... a. motorcycles b. none of these c. hot air balloons d. tractors

overall attractiveness

according to Porter's five forces approach, the overall goal of applying the five forces analysis to an industry is to make a judgement about its... a. overall attractiveness b. revenue streams c. market share d. future volatility

corporate strategy

all foods is the parent company of several chain restaurants offering a variety of cuisines. the top management at all foods has decided to enter the frozen foods industry based on its assessment of the profit potential in that industry. which of the following strategies does this best illustrate? a. divisional strategy b. business strategy c. functional strategy d. corporate strategy

she has failed to account for external factors such as a customer perceptions and shareholder perceptions

amber is the manager of gardening supplies wholesaler Digit Inc. The company's vision is to become the leading supplier of gardening materials in the northeast. in assessing the firm's current state, amber has determined that the firm could differentiate itself from competitors with an easy to use online ordering system and a two day delivery guarantee. To accomplish this, amber has determined that digit must spend the next two quarters honing its capabilities for sourcing materials quickly and improving its web development competencies. According to the balanced scorecard approach, what is wrong with Amber's thinking? a. she has not addressed the question of which core competencies the firm needs b. she has not addressed the question of how digit will create value c. she has failed to account for external factors such as customer perceptions and shareholder perceptions d. she has not considered the opportunity costs associated with launching an online ordering system

design batteries without the chemical and market them as environmentally friendly

batt packs recently came under criticism when a newspaper article revealed that the company's production plant had leaked a chemical compound into a sensitive wetland ecosystem. although use of the chemical was not technically prohibited by law, the local government levied a small fine for cleaning up the spill. environmental groups, however, argued that continued use of the chemicals was damaging to the local wildlife and threatened to organize a boycott against batt packs. what should batt packs do to ensure that it meets it ethical responsibilities? a. take out an advertisement arguing that the use of chemicals is perfectly legal b. pay the fine levied by the local government and resume operations c. design batteries without the chemical and market them as environmentally friendly d. move its production facilities to an area that is less concerned with environmental issues

subscription-based

bioplex requires its members to pay a quarterly or an annual fee to use its services. irrespective of whether they frequently use the services duing the payment period or not, members have to pay in advance. which of the following business models does this best illustrate?

pay-as-you-go

blackzim wireless is a cellular service provider that charges its customers $1 for 3 hours of talk time. So, if customer's talk time for a month is 60 hours, the company charges him or her $20 at the end of the month. Which of the following business models does this best illustrate? a. subscription based b. freemium c. razor-razor-blade d. pay-as-you-go

upgrade its engineering department and improve its supply chain

cartsar inc is a manufacturer of autmobile parts, which it sells to retail auto supply stores. its core competencies include superior design and engineering capabilities, as well as a highly integrated and efficient supply chain. to sustain its competitive advantage, CarTsar should first... a. attempt to cost costs by replacing assembly line workers with robots b. seek to replicate its nearest competitor's competency in innovative marketing c. upgrade its engineering department and improve its supply chain d. diversify its product offerings by developing parts for construction equipment

external stakeholder

contour inc, a vendor, regularly supplies capacitors to all purpose electronics for use in its products. therefore, contour inc is all purpose electroncs' a. internal stakeholder b. director c. external stakeholder d. shareholder

sustainable strategy

denise is the CEO of a profitable business called $-Ever-Sun inc which harnesses solar power, a renewable energy source that is sustainable over time. Instead of pursuing a sustainable competitive advnatage, denis decides to focus on minimizing detrimental effects on society and the planet. this strategy is known as... a. cost leadership strategy b. the balanced scorecard. c. sustainable strategy d. corporate diversification strategy

core competency

frozen gold 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 Frozen gold best exemplifies... a. capital gain b. markup c. resource flow d. core competency

HD and good ole cinemas will not be direct competitors to each other, and their customer segments will overlap very little

good old cinemas inc and HD inc are two companies that own and run movie theaters in malls and other commercial areas. while good old cinemas inc pursues a cost-leadership strategy, HD inc adopts a differentiation strategy. which of the following statements is likely true of the scenario? a. good ole cinemas will charge a premium price for its customers, while HD will implement every day low pricing b. hd and good ole cinemas will not be direct competitors to each other, and their customer segments will overlap very little c. hd will keep its customer service at an acceptable level, while good ole cinemas will provide superior customer service d. good ole cinemas and HD will use a similar approach to create value for customers by attempting to offer everything to everybody

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

how is a cost-leader protected from threats from powerful suppliers? a. it is more able to absorb price increases through generating higher profit margins b. it is able to create a significant different between perceived value and current market prices c. it is more able to absorb price increases through accepting lower profit margins d. it is able to create a significant different between actual value and future market prices

delivers low-cost products and services to a specific, narrow part of the market

in a focused cost-leadership strategy, a firm... a. focuses on reducing the economic value created to drive down costs b. provides high-priced products for many different segments of the mass market d. delivers low-cost products and services to a specific, narrow part of the market

firm will have a sustained competitive advantage because of its unique resources that are difficult for others to replicate

in the context of the resource-based model of competitive advantage, if a successful firm exhibits resource immobility it means that the... a. resources of the firm cannot be effectively deployed within its own organization b. firm will have a sustained competitive advantage because of its unique resources that are difficult for others to replicate c. rival firms have better accessibility to quality resources, which they will be able to acquire and deploy to their benefit d. competitors can easily replicate or copy the firm's resource bundles and capabilites

corporate social responsibility

most consumers and investors today want the firms they do business with to look beyond just the profit motive. In fact, they want firms that behave legally and ethically while also giving back to their communities via philanthropic activities. The framework that attempts to reconcile these wants is known as a. value chain driven decision making b. stakeholder impact analysis c. business model analysis d. corporate social responsibility

a major winter storm shuts down pete's production for several days

pete's bikes enjoys a competitive advantage as a cost-leader because high demand for its products has allowed it to operate at the minimum efficient scale. Which of the following scenarios would be most concerning to the managers of Pete's bikes? a. a wheat shortage raises input costs across the industry b. a major winter storm shuts down Pete's production for several days c. pete's leading competitor develops a new low-sodium product d. pete's most reliable production worker take a job in another industry

low

pharmacat pharmaceuticals invested 3.4 billion dollars to develop a new drug for individuals with diabetes. after pharmacat receives FDA approval of the drug, its marginal cost to product the drug for market will be a. unpredictable b. moderate c. high d. low

escalating commitment

sam, owner of sam's hand sanitizer inc, is in the middle of the strategy formulation stage. he has already allocated a substantial amount of money that covered his employees' salaries from the prior year (sunk costs) but has failed to see any positive outcomes. given the money he has already spent, he feels as if he needs to recover those costs and pushes forward even thought the outcome seems dim. This best illustrates the concept of a. illusion of control b. escalating commitment c. optimal decision making d. cognitive limitations

increased competition in the future and therefore he should recommend that the company update its products to slow the entry of rival companies

silvio is a manager at a software firm. the CEO tells him that the industry as a whole has become increasingly profitable over the past 5 years. Based on this information, silvio is most likely to expect... a. increased profitability in the future and therefore he should recommend that the company remain on its current course b. a leveling off of profitability in the next few years and therefore he should recommend that the company cooperate with its rivals to stimulate the industry c. increased competition in the future and therefore he should recommend that the company upgrade its products to slow the entry of rival companies d. decreased competition in the next few years and therefore he should recommend that the company upgrade its products to slow the entry of rival companies

dynamic capabilities perspective

the ______________ suggests that because the external environment changes, strategic leaders must choose their current and future investments carefully over time in order to best maintain their firm's competitive advantage a. SWOT analysis framework b. law of diminishing returns c. VRIO framework d. dynamic capabilities perspective

threat of new entrants is most likely low

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 new entrants is most likely low b. entry barriers are most likely non-existent c. threat of substitutes is most likely high d. bargaining power is most likely low

analysis

which of the following tasks in the AFI strategy framework involves evaluating the internal and external environments in which a firm operates? a. analysis b. formulation c. implementation d. competitive advantage

backward integration

weclean inc, a manufacturer of cleaning agents, supplies its products to goodings inc, a supermarket chain. it demands that goodings create more shelf space in its stores for WeCleans products. however, goodings inc refuses to do this. instead it decides to produce its own range of cleaning agents with its own label "all wash". In this scenario Goodings has exercised its bargaining power as a buyer through... a. backward integration b. price stability c. enhanced technology d. retroactive market share

gains market share from other firms

when a differentiator charges a similar price as its competitors in the same strategic group but offers more perceived value, it... a. loses its competitive advantage b. gains market share from other firms c. lowers the economic value created d. results in diseconomies of scale

availability of complements

when wireless service providers offer free or discounted mobile phones for subscriptions to their wireless voice and data service, the perceived value, of the service offering increases. In this case, the value driver would be. a. availability of complements b. economies of scale c. experience-curve effects d. learning curve effects

at desks.com, all employees are motivated to make the best desks on the market

which of the following examples reflects the strongest vision? a. at desks.com, many employees get paid well but do not feel their work is important b. at desks.com, some employees do not understand the main goal of the company c. at desks.com, most employees want to create a better desk than their closest competitor d. at desks.com, all employees are motivated to make the best desks on the market

a corporate strategy must be able to create synergies across business unites that are quite different

which of the following is true? a. formulating a corporate strategy involves general managers answering questions relating to how to compete in order to achieve superior performance b. a corporate strategy must be able to create synergies across business unites that are quite different c. deciding whether to adopt a differentiation strategy or a cost-leadership strategy is part of formulating the corporate strategy d. the objective of corporate-level strategy is to ensure that the sum of the values of individual business units is greater than the overall corporate value

a vision states what a firm wants to accomplish; a mission states how a firm plans to accomplish this vision

which of the following summarizes the differences between a firm's vision and mission? a. a vision states the management values of a firm; a mission states the values of the other workers b. a vision states the ethical values of a firm; a mission states the monetary goals of a firm c. a vision states what a firm wants to accomplish; a mission states how a firm plans to accomplish this vision d. a vision states how much a firm wants to earn; a mission states how these earnings will be accomplished