MGMT Exam 1

Which of these is a destructive part of creative destruction?

Existing jobs obsolete

A demographic macrotrend it could be understood as:

Firms adapt to customers that speak different languages

Q4.The threat of direct competition tends to be low when

Firms are able to differentiate their products.

When analyzing the industry's direct competitors rivalry:

Having a large number of direct competitors increase the rivalry due to the similarity to perfect competition market structures.

What better fits to what we understand as economies of scale?

High production efficiency and lower cost

In an industry that competes by cost and intensively uses electricity:

Using diesel fuel to generate electricity seems a bad idea.

Microsoft manufacturing the PCs known as Surface can be considered as:

Vertical integration forward

In terms of cost vs differentiation:

We could say that most PC industry participants compete, where the keyto success is to have low perational cost (low cost in general).

When can we say that a firm has a competitive advantage?

A firm has a competitive advantage when it can profit from it.

Q6.Which of the following is the best example of a tangible resource?

A firm's state-of-art computers

What does a patent give you?

A government granted monopoly

Q3.In general, first-mover advantages can arise from

The creation of customer switching costs.

In a nonprofessional's term, what is a definition of a data center?

The data center is a physical facility, which contains super computers, server, firewalls, and storage systems.

What classifies as the most import part of the search industry in terms of suppliers?

The data collection centers and the servers who store the data

In terms of new entrants, one could say:

Accessing distribution channels would be difficult.

In terms of recommendations to Tesla production and internal capability problems, would YOU recommend:

Acquiring a small car manufacturing firm that has more experience with production.

Which seems the most relevant Macrotrend

All of them may be equally impactful. (Technological, Socio-cultural, political)

When considering product mix and Apple we can say:

Apple is an infrequent case where its differentiation strategy emerges from a corporate strategy involving integration with other industries.

Economies of scale is beneficial to who?

The company and the consumer

Q1.Using ratio analysis, a firm earns ________ when its performance is lower than the industry average.

Below average accounting performance

When firms that compete in the same industry compete by cost, they tend to:

Between competitors, the rivalry is intense.

When firms that compete in the same industry are highly differentiated, they tend to:

Between competitors, the rivalry is moderate.

When referring to a differentiation strategy, we could say that as a general rule, that is what type of strategy:

Business-Level

What was Steve Jobs's most relevant strategic change in the PC Industry?

Change the Mac computers' CPU to intel.

Why may a 60 dollars of Chilean or Argentinian wine not be positioned correctly?

Chilean/Argentinian usually compete by cost in the $7.99 to $14.99 market.

Which of the following can be a substitute for Chilean wine?

Corona (beer), Pepsi, and Coke

According to what we talk in class, 90% of the wine sold in the USA is positioned as:

Cost competition

What are the two options for business level strategies?

Cost competition and differentiation

Which one of the below explains the main reason behind owning your own data center?

The external data center tend to have lower storage capacity

Apples entering CPU manufacturing seem consistent with their...

Differentiation Strategy

When considering firms internal capabilities:

Internal Capabilities are the source of potential competitive advantages.

How is Little Caesar's value chain different from other pizza places?

It begins with the manufacture

A value chain:

It contains the elements of a supply chain that the firm decided to have in-house.

What is Tesla's greatest internal capability?

It's vehicles' autopilot street learning and mapping function

Large exit barriers decrease the rivalry because..

Large exit barriers do not decrease the rivalry.

What is the most important part in terms of distribution channel in search engine industry?

Large number of consumer to whom the company has access to

Q7.The ________ focus(es) on the relationship between the cumulative volume of production and average unit costs, the ________ focus(es) on the relationship between the volume of production at a given point in time and average unit costs.

Learning curve; economies of scale

When thinking about the Car industry, we could say that the bargaining power of the dealers is:

Low

We can say that when the industry competes by cost:

Margins are low

Which of these is a creative part of creative destruction?

New jobs created

Q2.A firm has _________ when it earns its cost of capital.

Normal economic performance

When differentiation is based on product complexity, we can say that it will be frequent to observe.

Patent protecting intellectual rights

Why can name brand Tylenol obtain a higher price?

Product reputation

Q8.Ultimately, the ________ of a product differentiation strategy depends on the ability of individual firms to be creative in finding new ways to differentiate their products.

Rarity

Q5.The assumption that some of the differences in information technology capabilities among firms may be long lasting because it may be very costly for firms without certain resources and capabilities to develop or acquire them is known as

Resource immobility

Considering the industry analysis and Tesla. What would be the major concerns in terms of Tesla's future profitability?

Tesla seems to lack the internal capabilities to position in the luxury car segment.

Who are the buyers of the search industry?

The people/organizations who need to advertise

When considering internal capabilities and the resources involved to produce such capabilities:

The resources are required to be rare and difficult to imitate.

What is a difference between the search engine advertisements and magazine based advertisements?

The search engine advertisements can take people directly to the buying process, while magazine ads cannot

What are internal capabilities?

The source of profitable competitive advantages

When considering the forces affecting the wine industry.

The suppliers are commodities.

When comparing pizza hut and little caesars value chain:

Their primary activities are organized differently, even though they compete in the same industry.

We could say about the PC industry's storage cost:

Their storage cost is high, which increases the rivalry between direct direct competitors.

What was the original 2008 iPhone's differentiating feature

Touch screen

Which of the following is not a benefit of search engine advertisement?

You cannot target right audience by optimizing the advertisements

Which of the following is not a benefit of search engine advertisement?

You cannot target right audience by optimizing the advertisements.