MGMT 304 Quiz Questions

Economies of scale allow firms to do which of the following __________________________ A. employ specialized systems and equipment B. spread their fixed costs over a larger output C. take advantage of certain physical properties D. all of the above E. none of the above

Economies of scale allow firms to do which of the following __________________________ D. ALL OF THE ABOVE ____________________________________________________________ A. employ specialized systems and equipment B. spread their fixed costs over a larger output C. take advantage of certain physical properties

In general, ROE evaluates how satisfied (or not) are which stakeholder group: A. neighbors B. customers C. investors D. suppliers

In general, ROE evaluates how satisfied (or not) are which stakeholder group: C. investors

In the airline industry, which of the following contribute to a company's cost leadership strategy? A. initial use of a single type of airplane (e.g., A320) B. minimizing reservation expenses C. cumulative experience with the same aircraft D. all of the above E. none of the above

In the airline industry, which of the following contribute to a company's cost leadership strategy? D. ALL OF THE ABOVE ____________________________________________________________ A. initial use of a single type of airplane (e.g., A320) B. minimizing reservation expenses C. cumulative experience with the same aircraft

Which competitive strategy supports a low‑cost position to give the company a defense against rivals while allowing it to earn profits during times of heavy competition? A. cost-leadership B. competitive advantage C. differentiation D. differentiation focus

Which competitive strategy supports a low‑cost position to give the company a defense against rivals while allowing it to earn profits during times of heavy competition? A. cost-leadership

Which decision is an example of a consumer facing switching costs? A. Vijay must decide between ketchup, mustard, relish or other condiments B. Vijay decides he wants a wrap instead C. Vijay goes without a condiment D. Vijay must decide between Joe's soy ketchup vs. HJ Heinz tomato ketchup

Which decision is an example of a consumer facing switching costs? A. Vijay must decide between ketchup, mustard, relish or other condiments

Starbucks ability to create a unique customer experience with worldwide consistency is an example of what type of generic competitive strategy? A. differentiation strategy B. a grandiose strategy C. a benchmarking strategy D. focus strategy E. cost-leadership strategy

Starbucks ability to create a unique customer experience with worldwide consistency is an example of what type of generic competitive strategy? A. differentiation strategy

Starbucks encourages baristas to focus on no more than 1 or 2 drinks at a time, brews coffee regularly throughout the entire day to have the fresh smell of coffee, provides unique seasonal offerings, builds a cozy ambiance with music and comfortable chairs and expanded its product offerings to include take-a-way food and desserts. These activities are examples of: A. Objectives B. Strategies C. Tactics D. None of the above

Starbucks encourages baristas to focus on no more than 1 or 2 drinks at a time, brews coffee regularly throughout the entire day to have the fresh smell of coffee, provides unique seasonal offerings, builds a cozy ambiance with music and comfortable chairs and expanded its product offerings to include take-a-way food and desserts. These activities are examples of: C. Tactics

Technology does which of the following ....... A. Overcome barriers to entry B. Create substitutes C. Makes rivalry more intense D. Changes how firms compete E. Two of the above F. All of the above G. None of the above

Technology does which of the following ....... F. ALL OF THE ABOVE ______________________________________________________ A. Overcome barriers to entry B. Create substitutes C. Makes rivalry more intense D. Changes how firms compete E. Two of the above

The PESTEL framework is a model regarding a firm's A. strategic group B. industry conditions C. external macro-level environment D. internal issues

The PESTEL framework is a model regarding a firm's C. external macro-level environment

The ____________ is t he centerpiece of corporate governance and is composed of inside and outside members. A. Board of Directors B. Shareholders C. Chief Executive's Office (C-Suite) D. Scientific Advisory Board

The ____________ is t he centerpiece of corporate governance and is composed of inside and outside members. A. Board of Directors

The major theme of stakeholder theory is that ______________________________. A. Stakeholders usually create problems for the firm B. Stakeholders are only useful as a part of the firm's supply chain C. Stakeholders' interests are less important D. The relationships among stakeholders and the the firm is a complex network and the relationships need to be carefully managed

The major theme of stakeholder theory is that ______________________________. D. The relationships among stakeholders and the the firm is a complex network and the relationships need to be carefully managed

The objective of Porter's five forces model is to: A. Assess firm profitability B. Assess the potential for profits within an industry C. Analyze the economic conditions of the industry D. Emphasize the intensity of rivalry within an industry

The objective of Porter's five forces model is to: B. Assess the potential for profits within an industry

The real value of modern strategic management is more A. In the strategic thinking and organizational learning B. In the resulting written strategic plan C. In the formality of the process D. In the planning

The real value of modern strategic management is more A. In the strategic thinking and organizational learning

Under the PESTEL framework, external economic factors that are important to a firm's strategy include deflation and levels of employment. A. True B. False

Under the PESTEL framework, external economic factors that are important to a firm's strategy include deflation and levels of employment. A. True

Using Tesla as an example in the automobile industry, barriers to entry can be overcome by: A. government subsidies B. patent for electric battery C. technology D. all of the above E. none of the above

Using Tesla as an example in the automobile industry, barriers to entry can be overcome by: D. ALL OF THE ABOVE ___________________________________ A. government subsidies B. patent for electric battery C. technology

What are the two generic competitive strategies that are used as the means for outperforming other corporations in a particular industry? A. diversification and concentration B. cost leadership and differentiation C. competitive scope and differentiation D. lower cost and competitive scope

What are the two generic competitive strategies that are used as the means for outperforming other corporations in a particular industry? B. cost leadership and differentiation

What types of decisions are made at the Board level? A. Aspirations of the corporation B. Evaluation of corporate projections, 3-5 years out C. Validating the purpose, vision, objectives of the corporation D. All of the above E. None of the above

What types of decisions are made at the Board level? D. ALL OF THE ABOVE ____________________________________________________________ A. Aspirations of the corporation B. Evaluation of corporate projections, 3-5 years out C. Validating the purpose, vision, objectives of the corporation

Why do firms in highly competitive industries bother creating product extension or product/service bundling (complements)? A. Decreases barriers to entry for the industry B. Customers are loyal C. Suppliers want them D. Keeps the power to set prices with the manufacturer

Why do firms in highly competitive industries bother creating product extension or product/service bundling (complements)? D. Keeps the power to set prices with the manufacturer

__________________ is a theoretical framework that is concerned with how various stakeholders create and trade value. A. Shareholder theory B. Stakeholder theory C. Agency theory D. The groupthink model

__________________ is a theoretical framework that is concerned with how various stakeholders create and trade value. B. Stakeholder theory

A low-cost leader optimizes all of its ___________ in order to achieve a low cost position. A. value chain activities B. strategic group activities C. immobility barriers D. five forces activities

A low-cost leader optimizes all of its ___________ in order to achieve a low cost position. A. value chain activities

All of the following are roles played by the board of directors except ______________________ A. Providing leads for acquisition candidates B. Transporting information from external sources C. Providing advice for the CEO and other executives D. Creating the firm's strategy

All of the following are roles played by the board of directors except ______________________ D. Creating the firm's strategy

As competitors attempt to imitate another company's activities (e.g., the intense rivalry between Coke and Pepsi), what was once an advantage becomes A. an intangible resource B. a complementary resource C. a minimum requirement to compete in the industry D. a critical success factor

As competitors attempt to imitate another company's activities (e.g., the intense rivalry between Coke and Pepsi), what was once an advantage becomes C. a minimum requirement to compete in the industry

For a manufactured product what would be the beginning and ending of the value chain? A. Primary Manufacturing, Distributor B. Raw Material, Distributor C. Fabrication, Product Producer D. Raw material, Retail E. Retail, Fabrication

For a manufactured product what would be the beginning and ending of the value chain? D. Raw material, Retail

From a Porter's Five Forces Industry Analysis, Coke and Pepsi are an example of: A. switching costs B. substitutes C. intense rivals D. fragmented industry E. all of the above F. none of the above

From a Porter's Five Forces Industry Analysis, Coke and Pepsi are an example of: C. intense rivals Answer: Intense rivals. From an industry perspective they are rivals—they compete with one another. They are essentially the only two players in the worldwide carbonated soft drink industry and many consumers may easily substitute one for another. Take a taste test. Note: it was asked but Coke and Pepsi are NOT substitutes in the Five Forces Industry model. Substitutes (page 81-82, 3e) 'meet the same basic customer needs as the industry's product but in a different way'. Thus a substitute for a soft drink beverage might be water, fruit juices, or non-carbonated sports drinks. Note: from an individual consumers' perspective the two firms and their products might be interchangeable with little/no preference for one or the other which might lead you to think they are 'substitutes' in local parlance from a consumers perspective. Porters Five Forces model, however, asks you to elevate your thinking to the industry level (and not examine products of firms at the consumer/individual level). Looking too myopically at the individual/consumer/product level may lead a strategist to miss opportunities or to miss technical threats that can significantly change your business and how your industry competes.

Inside directors are important to an effective Board because they: A. Have information pertaining to the company's workings B. Are part of the senior management team such as the CEO (chief executive officer), the CFO (chief financial officer), and/or the CIO (Chief information officer) C. Appointed by shareholders D. All of the above E. None of the above

Inside directors are important to an effective Board because they: D. ALL OF THE ABOVE ____________________________________________________________ A. Have information pertaining to the company's workings B. Are part of the senior management team such as the CEO (chief executive officer), the CFO (chief financial officer), and/or the CIO (Chief information officer) C. Appointed by shareholders

Performance is measured by __________________ A. profits B. return on equity C. market share D. market penetration E. revenues F. all of the above G. none of the above

Performance is measured by __________________ F. ALL OF THE ABOVE ____________________________________________________________ A. profits B. return on equity C. market share D. market penetration E. revenues

Which of the following is NOT one of Porter's five forces? A. Buyers B. Complements C. Suppliers D. Substitutes

Which of the following is NOT one of Porter's five forces? B. Complements

Which of the following is a strategic (competitive challenge) question: A. Do we need more inventory during this busy season? B. What should our wages be for starting sales employees? C. How do we differentiate from other companies? D. Should we give Jan, our floor manager, a raise?

Which of the following is a strategic (competitive challenge) question: C. How do we differentiate from other companies?

Which of the following is a tool that is typically used to achieve differentiation? A. operational efficiency B. leveraging economics of scale C. offering products that have superior value D. controlling the costs of inputs

Which of the following is a tool that is typically used to achieve differentiation? C. offering products that have superior value

Which of the following is an example of a corporate strategy? A. Divide a sales region into a group of sales districts B. Increase sales by 10% over last year. C. Develop and sell quality appliances worldwide D. Pay highest salaries to keep high quality employees

Which of the following is an example of a corporate strategy? C. Develop and sell quality appliances worldwide