BUS 445 Quiz Questions

What does USLP stands for? A. Unilever Sustaining Life Program B. Universal Sustainable Life Plan C. Unilever Sustainable Living Plan D. Universal Sustainable Living Plan

C. Unilever Sustainable Living Plan

A firm's ________ determines how the work efforts of individuals and teams are orchestrated and how resources are distributed. A. structure B. control C. norm D. culture

A. structure

A blue ocean strategy differs from a low-cost strategy in that: A. the intent of a blue ocean strategy is not to be the absolute lowest-cost provider because a blue ocean must also increase perceived value. B. the focus of a blue ocean strategy is on lowering the economic value created, whereas a cost-leader focuses on increasing the economic value created. C. economies of scale are more important to a blue ocean strategy, while economies of scope are more important to a cost-leader. D. a blue ocean's research and development focus is on process technologies, and a cost-leader's focus is on product technologies.

A. the intent of a blue ocean strategy is not to be the absolute lowest-cost provider because a blue ocean must also increase perceived value.

Which of the following is an advantage offered by a functional structure? A. It facilitates a lower level of specialization. B. It allows for a higher degree of specialization and deeper domain expertise. C. It facilitates a lower division of labor, which is linked to higher productivity. D. It allows for an efficient top-down communication chain and thus relies on a relatively tall structure.

B. It allows for a higher degree of specialization and deeper domain expertise.

Which of the following statements is true of the balanced-scorecard? A. Its primary focus is to base a firm's strategic goals entirely on external performance dimensions. B. It attempts to provide a holistic perspective on firm performance. C. It is a more or less a one-dimensional metric of measuring competitive advantages of a firm. D. It is one of the traditional approaches of measuring firm performance.

B. It attempts to provide a holistic perspective on firm performance.

What must a cost-leadership strategy accomplish to be successful? A. It must increase the firm's cost above that of its competitors while offering adequate value. B. It must reduce the firm's cost below that of its competitors while offering adequate value. C. It must increase the firm's cost above that of its competitors while offering superior value. D. It must reduce the firm's cost below that of its competitors while offering superior value.

B. It must reduce the firm's cost below that of its competitors while offering adequate value.

How did Marriott use economies of scope to achieve greater economic value than its competitors? A. Marriott sees decreases in cost per hotel unit as number of customers increases. B. Marriott lowered its cost structure by sharing its production assets over several types of hotels, which increased the diversity of its hotel line and thus its differentiated appeal. C. Marriott lowered its cost structure by focusing its production assets on one type of hotel, which increased the diversity of its hotel line and thus its differentiated appeal. D. Marriott sees increases in cost per hotel unit as number of customers increases.

B. Marriott lowered its cost structure by sharing its production assets over several types of hotels, which increased the diversity of its hotel line and thus its differentiated appeal.

Starfish Sodas has successfully achieved a competitive advantage in the soft drink industry as a differentiator. Which of the following scenarios would undermine Starfish's position? A. Starfish introduces a new biodegradable bottle that raises cost and perceived value. B. Starfish's customers start to consider soda a commodity. C. Starfish's product has not established an acceptable standard of quality. D. Starfish improves the recipe for its most popular soda without increasing the price.

B. Starfish's customers start to consider soda a commodity.

Threadbare Industries is a new high-end textile company that has raised sufficient capital from multiple sources. It is planning to use its capital to purchase certain assets. Which of the following assets will be the most difficult for Threadbare Industries to acquire using its capital? A. software B. brand name C. a new CEO D. a lease for a new building

B. brand name

Cloud Cones 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 Cloud Cones best exemplifies a ____ A. markup. B. core competency. C. capital gain. D. resource flow.

B. core competency.

To reduce the amount of time it takes to apply packaging to its finished products, North Star Foods is implementing new equipment at its production plants. By doing this, North Star is addressing a ________ in the value chain analysis. A. secondary activity B. primary activity C. premier activity D. support activity

B. primary activity

Gladiator Apparel is the market leader in the sportswear industry. Though most of its resources are common to those of its competitors, a few rare resources have helped the company gain and sustain a competitive advantage. Which of the following assets of Gladiator Apparel is most likely to be considered a rare resource that is contributing to its competitive advantage? A. the company's raw material supplies B. the company's design patents C. the company's land and buildings D. the company's plant and machinery

B. the company's design patents

What does TAC stand for in the case of Clearwater Seafoods? A. Transportation Advisory Committee B. Technical Advisory Catch Liability C. Total Allowable Catch Limits D. Total Acceptable Cod Limits

C. Total Allowable Catch Limits

The balanced-scorecard can accommodate: A. only short-term performance metrics. B. only long-term performance metrics. C. both short- and long-term performance metrics. D. neither short- or long-term performance metrics.

C. both short- and long-term performance metrics.

Which of the following statements accurately brings out the difference between tangible and intangible resources? A. Tangible resources contribute to a company's competitive advantage, whereas intangible resources have little effect on competitive advantage. B. Tangible assets are difficult for competitors to imitate, whereas intangible assets can be easily replicated. C. Tangible resources take a longer time to build, whereas intangible assets can be built comparatively easily. D. Tangible assets can be bought on the open market by anyone with the necessary cash, whereas intangible assets cannot be easily purchased.

D. Tangible assets can be bought on the open market by anyone with the necessary cash, whereas intangible assets cannot be easily purchased.

The collapse of cod fisheries is a common example of ___________? A. Tragedy B. Tragedy of the fisheries C. Public common problem D. Tragedy of the commons

D. Tragedy of the commons

W. L. Gore & Associates is organized in such a way that it has no formal job titles, job descriptions, or chains of command. This implies that it has A. a formalized structure. B. organizational inertia. C. a top-down management style. D. a decentralized structure.

D. a decentralized structure.

According to the Toyota case study, what is the Fuel Efficiency rate for Gas Hybrid Vehicle powertrain? A. 1.50 miles/liter B. 3.00 miles/liter C. 3.75 miles/liter D. 2.30 miles/liter

2.30 miles/liter

________ define appropriate employee attitudes and behaviors. A. Values B. Artifacts C. Norms D. Appraisals

C. Norms

Who is Gail Klintworth? A. Chief Marketing Officer B. Chief Executive Officer C. Speaker at World Economic Forum at Davos D. Chief Sustainability Officer

D. Chief Sustainability Officer

Which of the following real-world scenarios best exemplifies formalization? A. McDonald's use of standard operating procedures across the world B. Zappos' focus on allowing its customer service employees to use their own approach rather than depend on scripts C. W. L. Gore's associates organizing themselves in project-based teams that are led by sponsors, not bosses D. Yahoo's decision to fire its CEO after incurring huge losses

A. McDonald's use of standard operating procedures across the world

According to the Toyota case study, what does CAFE stand for? A. Corporate Average Fuel Economy B. The law required for safety standards C. Corporate Average Freight Efficiency D. The meeting place for the auto industry

A. Corporate Average Fuel Economy

What is a primary feature of the five forces model? A. It views competition within an industry broadly to include forces such as buyers, suppliers, and the threat of substitutes. B. It helps managers determine the changing speed of an industry or the rate of innovation. C. It is concerned exclusively about the intensity of rivalry among direct competitors. D. It takes into account a firm's internal resources, capabilities, and core competencies.

A. It views competition within an industry broadly to include forces such as buyers, suppliers, and the threat of substitutes.

In which of the following situations is the power of suppliers high in an industry? A. Suppliers' industry is more concentrated than the industry it sells to. B. Suppliers offer products that are undifferentiated. C. Suppliers depend heavily on the industry for their revenues. D. Suppliers can credibly threaten to backward integrate into the industry.

A. Suppliers' industry is more concentrated than the industry it sells to.

Organizational and managerial skills that find their expression in a company's structure, routines, and culture are referred to as _____ A. capabilities. B. tangible resources. C. reserves. D. capital gains.

A. capabilities.

In the context of the SWOT matrix, which of the following best exemplifies a firm's internal strength? A. increase in a firm's customer loyalty B. loss of a competitor's reputation C. growth in the size of the market in which a firm operates D. rise in the income of the demographic segment to which a firm caters

A. increase in a firm's customer loyalty

When a firm diversifies into different product lines and geographies, a ________ structure is preferred. A. multidivisional B. network C. functional D. simple

A. multidivisional

What year does Unilever target for achieving its goals? A. 2015 B. 2020 C. 2018 D. 2025

B. 2020

________ is best described as decreases in cost per unit as output increases. A. Economies of scope B. Economies of scale C. Economies of replication D. Time compression economies

B. Economies of scale

Invoro is a market leader in consumer electronics. If Finolo and Ethver, companies that manufacture televisions, develop the same customer knowledge base and create products with the same customer appeal as Invoro, then _____ A. Invoro will have a resource that is rare but no longer valuable. B. Invoro will have a resource that is valuable but no longer rare. C. Finolo and Ethver will have a VRIO resource. D. Invoro will have a sustainable competitive advantage in the industry.

B. Invoro will have a resource that is valuable but no longer rare.

Which one of the following is not a product line of Clearwater Seafoods? A. Clams B. Oyster C. Lobster D. Crab

B. Oyster

In the aircraft manufacturing industry, at least for large commercial jets, Boeing and Airbus are the only competitors. There is not a significant threat of entry because ______ A. entering the aircraft manufacturing industry means violating government policies. B. entering the aircraft manufacturing industry requires huge capital investments. C. there is expected to be a huge return on investment within this industry. D. there is no credible threat of retaliation from the incumbents.

B. entering the aircraft manufacturing industry requires huge capital investments.

True Moto Corp. (TMC) is a leading automobile company. The company has been able to sustain its competitive advantage primarily due to its high-quality and efficient electric motors. Most of its competitors have failed to develop similar electric motors at a reasonable price. Which resource attributes listed in the VRIO framework has helped TMC sustain its competitive advantage? A. resource mobility B. high costs involved in imitation C. inexhaustible nature D. intangibility of the company's resource

B. high costs involved in imitation

Economies of scale are cost advantages that accrue for firms with ______ A. low employee turnover. B. larger output. C. high capital risks. D. high fixed costs.

B. larger output

Eon Inc., Electravia Inc., and FC Inc., the three largest firms in the consumer electronics industry, hold close to 85 percent of the industry's market share. These companies mainly compete against each other by providing unique features in their products rather than pricing them low. These firms are interdependent, and each firm must consider the strategic actions of its competitors. Which of the following industry competitive structures does this scenario best illustrate? A. perfect competition B. oligopoly C. monopolistic competition D. monopoly

B. oligopoly

Which of the following statements is true of accounting data? A. Accounting data do not have to be adjusted in any manner to compare companies with different capital structures. B. Accounting data consider off-balance sheet items, such as pension obligations of a firm. C. Accounting data are historical data and thus backward-looking. D. Accounting data focus mainly on intangible assets, rather than tangible assets.

C. Accounting data are historical data and thus backward-looking.

Which of the following statements about competitive advantage is true? A. Competitive advantage is a one-dimensional concept. B. Competitive advantage is permanent and not transitory; once gained by a firm it stays with the firm. C. Competitive advantage can be assessed by measuring accounting profit, shareholder value, or economic value. D. Competitive advantage is an absolute measure; it is not relative.

C. Competitive advantage can be assessed by measuring accounting profit, shareholder value, or economic value. Explanation: We can assess competitive advantage by measuring accounting profit, shareholder value, or economic value. More recently, competitive advantage has been linked to a firm's triple-bottom-line, the ability to maintain performance in the economic, social, and ecological contexts to achieve a sustainable strategy.

According to the Toyota case study, which of the following were among the top three US automaker? A. Chevrolet B. Jeep C. Ford D. Dodge

C. Ford

The ________ allows the scanning, monitoring, and evaluating of changes and trends in a firm's macro environment. A. SWOT analysis B. VRIO framework C. PESTEL framework D. BCG matrix

C. PESTEL framework

O'Ryan Plastics maintains a manufacturing plant overseas. The local government has just been overthrown by a military group that opposes foreign influence in the country. According to the SWOT analysis, the political situation in this location is considered to be an _____ A. internal strength. B. internal weakness. C. external threat. D. external opportunity.

C. external threat.

A differentiation strategy works best when a A. firm's differentiated products are commoditized, and costs of providing uniqueness do not rise above the customer's willingness to pay. B. firm has tangible resources, its focus of competition shifts to price, and equivalent substitutes are readily available. C. firm has intangible resources, is able to pass on increases in supplier cost to the customer, and its differentiation appeal creates customer loyalty. D. firm's focus of competition shifts to price, and when increasing differentiation of product features do not create additional value.

C. firm has intangible resources, is able to pass on increases in supplier cost to the customer, and its differentiation appeal creates customer loyalty.

How does a sustainable strategy typically help a firm? A. It helps the firm focus solely on its financial goals. B. It reduces the need for corporate social responsibility within the firm. C. It facilitates the firm in effectively isolating its external stakeholders. D. It helps the firm achieve positive results along the social and ecological dimensions.

D. It helps the firm achieve positive results along the social and ecological dimensions.

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 difference between perceived value and current market prices. C. It is able to create a significant difference between actual value and future market prices. D. It is more able to absorb price increases through accepting lower profit margins.

D. It is more able to absorb price increases through accepting lower profit margins.

A strategic group will typically include: A. employees within a firm earning the same amount in salary. B. firms employing similar number of employees, irrespective of their industries. C. customers belonging to a particular socioeconomic class. D. firms within the same industry.

D. firms within the same industry.

BioCure Inc. is a pharmaceutical company that has many breakthroughs in medicine to its credit. Unlike many other pharmaceutical companies, BioCure has a relaxed work environment where employees are free to discuss projects with each other. Employees are encouraged to choose the projects that interest them; communication between team members and their supervisors is open and easy. Because of the company's work culture, its employees feel motivated to work harder and display more entrepreneurial behaviors. In this scenario, BioCure Inc. is most likely an organization that is A. centralized. B. mechanistic. C. formalized. D. organic.

D. organic.

________ are the legal owners of public companies.

Shareholders

The tenet behind the triple-bottom-line is that ____

a firm should achieve positive results along the economic, social, and ecological dimensions to gain a sustainable strategy.

How does a firm capture its producer surplus for a good or service?

as profit per unit sold

A firm incurs $400 to manufacture a television. In the market, customers are willing to pay a maximum of $600 for the television priced at $500. The difference of $200 ($600 minus $400) is the ____

economic value created

A high percentage of R&D/Revenue ratio indicates a _____

strong focus on innovation to improve current products and services.