MGT-455 Exam 2

Intangible Resources

According to the resource-based view, a firm's competitive advantage often stems from its

Network effects

All Signal Inc., a telephone service provider, has a large user base mainly because phone calls and messages between all All Signal users are free. When a person switches to an All Signals network, his or her entire network of family and friends is likely to switch to the same network to receive the benefit of free calls and messages. In addition, an existing user who gets a new user to register with All Signal Inc. is given a free wireless connection. This has helped to keep competition away from All Signal. In this scenario, which of the following factors is acting as an entry barrier for All Signal Inc.?

Single Business

Because Facebook receives almost all of its revenues from online advertising, we would conclude that Facebook would be characterized as an) form, which has the lowest levels of corporate diversification related diversification single business dominate business unrelated diversification.

Economic Growth rate will fall

Bill is researching sociocultural factors related to his employer, a sporting goods manufacture, which of the following would be art of the sociocultural forces in a firm's external environment

any advantage that one firm has will be short lived

Cartzy Inc., Cartific Inc., and Clustercart Inc., are three consumer-product retailing companies. Their products consist primarily of day-to-day items that are easy to imitate and sell. All three companies use the same resources and capabilities in the production and distribution of their products. Judging from the market conditions described in this scenario, which of the following statements is true?

Forward Vertical Integration

Condax Electronics relied on a large chain of consumer electronics stores to sell its tablet computers, cell phones, and televisions and also to provide customer service and technical support. However, that retailer outsourced its service departments, and customers began to complain that they could not get reliable tech support for Condax products. In response, Condax Electronics decided to set up its own tech support department, and it also began to investigate opening its own brand-based retail stores. What does this scenario best illustrate?

Not costly to imitate by competitors

Crocs Shoes was unable to sustain its competitive advantage over their rivals because its key strategic resource was

Pursue taper integration

Doncon Guitars is interested in pursuing backward integration to take greater ownership of the extraction of raw materials and production of components used in its signature line of guitars. Although this approach would lower the overall cost of producing a guitar, the costs associated with producing electronic pickups for sound amplification are far greater than those associated with sourcing pickups from a reliable supplier. Which of the following approaches is likely to produce superior results?

more competitive rivalry than firms outside their strategic group

Firms that compete within the same strategic group generally experience

Core Competency

Frozen Gold is a fast-growing chain of ice cream shops. It has acquired an edge of its competitors through its ability to provide a wide array of unique flavors and a hip atmosphere in stores. This advantage of Frozen Gold best exemplifies a

Backward Integration

Golddex Autos currently sources components such as airbags, upholstery, and brake pads from various suppliers in the industry value chain. In order to lower costs and reduce the risk of interruptions in the supply of components, Golddex should pursue

The firm will have more flexibility in purchasing and comparing prices of goods and services

Hooli Computers has decided to procure processing chips required for its laptops from external suppliers instead of manufacturing them in their own facilities. How will this decision affect the firm? The firm will have more flexibility in purchasing and comparing prices of goods and services.

An equity alliance involves taking ownership in a partner; a joint venture involves two or more entities owning a firm

How is an equity alliance different from a joint venture?

Firm will have a sustained competitive advantage because of its unique resources that are difficult for others to replicate.

In the context of the resource-based model of competitive advantage, if a successful firm exhibits resource mobility it means that the

Consumer demand will increase

Managers at SunTrustUs properties are surprised to hear that interest rates are likely to remain low for the next six months. Which of the following is an implication of low interest rates?

A Dominant-Business Firm

Sonron Auto Corporation generates 85 percent of its annual revenues by manufacturing luxury cars. The company derives 15 percent of its annual revenues by selling its sports merchandise that includes apparel, shoes, and other accessories under the same brand name. Which of the following terms best describes Sonron Auto Corporation?

The punch presses that produce parts

The management of a company is assessing the value of all tangible resources the company owns. Which of the following will be included in this assessment?

The incumbent firms will spend more to satisfy their existing customers.

TicToc Corp. is a manufacturer of smart watches that track the wearer's heart rate and sleep patterns. Which of the following is most likely an implication of new firms entering this industry.

Procurement

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

Equipment necessary for mining bauxite and aluminum smelting

Which of the following best illustrates site specificity?

It increases the potential of legal repercussions

Which of the following is a drawback of vertical integration?

levels of employment

Which of the following is a macroeconomic factor that can affect a firm's strategy?

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

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

Threat of new entrants

if you examine various barriers to entry facing firms that might wish to enter the airline industry, this would be most helpful in assessing which of the five forces in that industry

Substitutes are readily available in the forms of trans, buses, and cars, thus reducing the profit potential in the industry.

keeping in mind the five forces in the airline industry, which of the following best explains the difficulty airlines have in generating profit?