MGMT Practice 2

Which of the following best represents a customer-oriented vision statement?

"We provide solutions to professional communication needs."

Which of the following statements with regard to industry structures is true?

A consolidated industry tends to be more profitable than a fragmented one.

Which of the following below is NOT categorized as a primary activity on Porter's Value Chain?

procurement

Which of the following is an external performance metric?

total return to shareholders

WeComput Inc.'s competency in designing and manufacturing efficient microprocessors has made its laptops the most advanced computers in the market. This competency, along with the just-in-time manufacturing system, has enabled WeComput Inc. to increase its profitability by lowering its production costs. Thus, WeComput's competency in designing and manufacturing microprocessors will be considered a(n) _____ resource in the VRIO framework.

valuable

One of the reasons that Circuit City filed for bankruptcy was due to its inability to reinvest, hone, and upgrade its once impressive resource base. Ultimately, Circuit City's core competences became

core rigidities.

Bill Lewis wants to become a business strategy consultant and doesn't understand how emerging consultants get started. Bill should familiarize himself with the ________ framework that outlines the important process when examining the concept of strategic management.

AFI: Analyze-Formulate-Implement

Jill is interested in the concept of strategy and decides to create her own. As a result, Jill says that her strategy is to focus on growth and marketing to achieve competitive advantage. How would you evaluate Jill's statement?

Jill should reevaluate her statement because it fails to meet the principles of what a strategy should be.

Which of the following summarizes the difference between corporate strategy and business strategy?

Corporate strategy deals with where to compete; business strategy deals with how to compete.

Bill's Auto & Airplane Repair shop is able to generate a positive net income of $10,000 a week; this is the industry average. We can conclude that since he has a positive net income, he also has a competitive parity in the industry.

Correct—competitive parity is achieved by generating average returns, relative to competition in a given industry.

According to Porter's Five Forces approach, the overall goal of applying the Five Forces analysis to an industry is to make a judgment about its

overall attractiveness.

Which of the following is a drawback of Porter's five forces model?

Managers cannot determine the changing speed of an industry or the rate of innovation.

Which of the following below are not one of the three dimensions that make up the Triple Bottom Line framework?

None of the answers are correct.

________ are considered the ethical standards and norms that govern the behavior of individuals within a firm.

Organizational core values

When conducting a _______________, it's best to examine both PESTEL and Porter's five forces analyses because these tools focus on the external environment.

SWOT analysis

Susan is trying to determine if her company has a competitive advantage. She must be able to accomplish two critical tasks before she can substantiate this claim. First, she must assess the performance of her company accurately; second, she must

compare and benchmark her firm's performance to other competitors in her same industry.

All of the following are external stakeholders except which of the following?

competitors

Tesla is addressing environmental concerns regarding the carbon emissions of gasoline-powered cars by building zero-emission battery-powered vehicles. This best represents which of the following PESTEL categories?

ecological

Visionary companies differ from their competition in that

employees in visionary organizations find meaning in their work and are motivated.

LinkedIn, a professional social media website, allows its users to create their profiles for free, but charges a premium price for additional services. This is an example of a ________ business model.

freemium

The first step in stakeholder impact analysis involves

identifying the stakeholders that currently have, or potentially can have, a material effect on a company.

Firms that compete within the same strategic group generally experience

more competitive rivalry than firms outside their strategic group.

Which of the following will most likely be considered as an airlines core competency?

the airline's ability to make its fleet more fuel efficient than their competitors

Tom is attempting to measure how his customers views his firm. To do this, he uses the balanced-scorecard framework because he knows that

the customer perspective is directly linked to firm revenues and profits.

In strategic management, strategists engage in three pillars. Which of the following is not one of these three pillars?

the unification of major goals and objectives