WPC 480 midterm

How are the critical assumptions of the resource-based model of a firm fundamentally different from the way in which a firm is viewed in the perfectly competitive industry structure?

in perfect competition, all firms have access to same capabilities whereas in resource based model, resouce differences exist between firms in same industry

Tony's Pizza Shop is able to net $10,000 a week; this makes his shop profitable. His number one competitor, Leo's Pies is also profitable, netting $12,000 a week. Lil Anthony's Pizza Palace nets $13,000 a week. Since Tony's Pizza Shop is profitable, we can conclude that he has a competitive advantage in the industry.

False- competitive advantage is only achieved by generating above average returns, relative to competition

during an interview for CEO position, Jennifer potential employers ask her if you get this job will you focus on industry effects of firm effects

Firm effects because it will have most impact

first pharma and Geovax are two competing firms in pharmaceutical industry. While first pharma vision is to be preeminent drug manufacturer in the industry GeoVax vision is to make good health a reality for everyone around the world. Which of the following is an implication of these different visions?

Geovax will be more flexible than first pharma when adapting to changing environments

maria is the chief operating officer of the start up Apps4U. In which of the following scenarios does Maria exhibit strategic leadership?

Maria schedules a meeting with manager of marketing department and overcomes his skepticism about new campaign aimed at customers in the 55 and over age group. Over the next three months, AppPalance gains 250,000 new users in that group

jennifer a manger at a mutinational org is trying to carefully scan and link the firms internal environment to its external environment. The insights from this analysis will allow her to effectively leverage companys internal strengths to exploit external opportunities while mitigating internal weaknesses and external threats. In this scenario which of the following managerial tools in jennifer employing

SWOT Analysis

Dora's supplies manufactures medical devices. The firms profitability depends on several variables that are subject to occasional change, including cost of parts and labor, changes in med practices and price of oil used in both manufacturing and shipping. To account for potential impact of changes to any of these variables. Dora's supplies managers should implement a ____ approach

Scenario planning

ever mart is a large company that sells variety of products such as cosmetics, jewelry, frozen foods, navigation electronics, and airplanes. Apart from this the company has strong presence in service industry through its chain of dance studios, casinos, and nightclubs. Each of its product division operates as individual business and is responsible for its own profits and losses. These product divisions under EverMart can be referred to as

Strategic business Units

which of the following examples uses a focused differentiation strategy

a cosmetics brand that offers superior skin lotion for sensitive skin prices at $100 per bottle

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 major winter strom shuts down petes production for several days

in the context of SWOT analysis which of the following best exemplifies firms external opportunity

an increase in its customers disposable income

Which of the following tasks in the AFI strategy framework involves evaluating the internal and external environments in which a firm operates?

analysis

which of the following is an advantage of triple bottom line

approach takes integrative and holistic view in assessing a companys performance

In an industry, the threat of entry is high when

capital requirements are low.

What part of the AFI strategy framework does the question "How does the firm make money?" relate to?

competitive advantage, firm performance, and business models

Threadless allows customers to submit their own designs and to vote on which designs they would like to see printed on a T-shirt. This business uses a ________ technique.

crowdsourcing

Pam owns Discount Auto Zone, a company that got its start making auto parts related for hybrid vehicles, but her firm has had difficulty establishing itself as a maker of parts for the more profitable internal combustion engine. What is most likely contributing to Discount Auto Zone's problem in this area?

entry barriers usually protect incumbent players in profitable industry

Whole Foods focuses on a small market segment, affluent consumers who want to buy high-end, organic groceries. What is the appropriate name for Whole Foods's scope of competition?

focused

the working capital turnover of complete systems corp is 6.0 what does the financial data suggest

for every dollar complete systems puts to work the company realizes $6 of sales

A firm's strategic position is likely to be strong when

gap between value the firms product generates and the cost to product it is large

you are the manager in charge of setting the strategy for a new fast casual restaurant. Which of the following questions would be appropriate for you to ask during the analysis phase of the AFI strategy framework?

how have consumer preferences in the fast casual restaurant industry changed in the last five years.

In which of the following situations is a company that exists in telecommunications industry most likely to face highest threat of entry

if entry has recently become deregulated

which of the following is an accurate statement about learning effects?

learning effects occur overtime as output accumulates

Mohawk is a leader in sustainable and innovative carpeting and floorings, as evidenced by its signature product, the world's first organic cotton carpet. Its product is unique and has appealing customer attributes. If Mohawk's raw material costs increased by 12 percent this year, what would be the likely outcome?

mohawk would pass a major portion of this increase along as price increase to its customers

value chain analysis consists of systematically analyzing firms key activities that for analysis purposes are categorized into two groups

primary activities and support activities

Nam-zim sells its e-book readers at the cost price of $15 each. However, the company makes its profits when users have to download or buy books online. Which of the following business models is Nam-zim implementing?

razon razon blade

An observer may conclude that the organizational culture of Zappos, an online retailer for shoes and clothing, might be the basis for its competitive advantage. However, reverse social engineering to crack Zappos' code of success might be much more difficult for a company trying to exactly imitate its strategy. Thus, the source of Zappos competitive advantage is said to be

socially complex

which of the following is a implication of all firms in an industry pursuing a low cost position through application of competitive benchmarking

the firms would eventually have no resources to invest in product and process improvement

during the process of formulating an effective business model, a firms managers should

transform their strategy of how to compete into a blueprint of actions and initiatives

which of the following best represents a customer oriented vision statement

we provide solutions to professional communicatin needs