MNGT Exam 1 Quiz Questions
T/F Bitter rivalry between an industry's competitors can lead to increase in prices of their products or services, thereby harming consumers
False
T/F Most strategic ploys are illegal
False
_____ Refers to CEOS possessing both fame and strong reputations
Icons
Which of the following statements describes internal business process measures as a part of the balanced scorecard
They relate to organizational efficiency
Which of the following statements holds true for the book Strategy and Structure: Chapters in the History of the Industrial Enterprise?
It stressed how strategy and organizational structure need to be consistent with each other in order to ensure strong firm perfomrmance
Strategy as _____ refers to how executives interpret the competitive landscape around them.
Perspective
Which of the following statements describes customer measures as a part of the balanced scorecard?
They relate to client attraction, satisfaction and retention
Which of the following statements describes financial measures as a part of the balanced scorecard?
They relate to organizational effectiveness and profits
The likelihood of new entrants joining an industry is low if switching costs are high because:
This discourages customers from buying a new entrants offerings
All of the following individuals were mentioned as examples of entrepreneurs in chapter 2 except Michael Dell Howard Schultz Bill Gates Mark Zuckerberg Thomas Jefferson
Thomas Jefferson
T/F A value chain charts the path by which products and services are created and eventually sold to customers
True
T/F An organization cannot hope to create an enduring competitive advantage around common resources
True
T/F As buyers, large companies like Walmart have the power to insist on price concessions because their sales volumes are so high.
True
T/F One important aspect of a business model is providing customers with a good or service more cheaply then they can create it themselves
True
T/F Resource-based theory offers a complete framework for analyzing organizations
True
T/F Scoundrels are those CEOS who are closely monitored and scrutinized by the media
True
T/F The common element in all entrepreneurs is that they do something new and can make something out of opportunities that others cannot
True
A strategic ______ is a specific move desgined to outwik or trick competitors
Ploy
Farmers rely heavily on cheap labor provided by illegal immigrants. A tightening of the immigration policy would reduce their profit margins and potentially increase the prices of agricultural products. For these farmers, this aspect of illegal immigration represents the _____ segment of PESTEL analysis.
Political
An example of strategic _____ is the corporate ownerhsip and mangement of General motors brands Chevrolet (entry-level), Buick (Midlevel) and Cadillac (upscale) that represent three different points and markets within the vehicle industry
Positioning
Which of the following statements describes the term "innovativeness" as a dimension of entrepreneurial orientation?
Refers to the tendency to pursue creativity and experimentation
Which of the following is an example of a patent? Richard James Slinky McDonalds golden arches Nike Swoosh Formula of Coca Cola' Original artistic creations
Richard James Slinky
T/F During an economic crisis credit markets typically loosen their requirements
False
T/F The purpose of Porter's five forces analysis is to identify the factors that affect the profit potential of an industry
False
T/F Viable substitutes are available in all industries
False
T/f All difficult to imitate strategic resources are protected by various legal means including trademarks, patents, and copyrights.
False
T/F Internal business process measures of performance relate to customer attraction, satisfaction and retention
False (Customer Measures )
T/F A vision captures the key elements of the organization's past and present.
False (Mission)
The likelihood of new entrants joining an industry is low if access to distribution channels is limited because:
New entrants struggle to get their offerings to customers
The likelihood of new entrants joining an industry is low if existing competitors enjoy economies of scale because:
New entrants struggle to match incumbents' prices
SWOT analysis involves comparing two internal and two external factors. What are the two external factors?
Opportunities and Threats
_____ refers to how well a company is doing reaching its vision, mission and goals
Organizational performance
Which is an example of a copyright?
Original Artistic Creations, Like books
______ is a classic management tool that incorporates the idea of scanning elements such as strengths, weaknesses, opportunities and threats which are both external and internal to the firm
SWOT analysis
Which of the following conditions is most likely to cause fierce rivalry between competitors of an industry?
The growth rate of demand for the industry's offerings is low
Which of the following statements describes learning and growth measures as a part of the balanced scorecard
They focus on innovation and proceed with an understanding that strategies change over time.
The formulation of Coca-Cola is an example of a(n) _____.
Trade Secret
It would simply be too costly for an airline to pursue a backward integration strategy and enter the airplane manufacturing business. Which of the following theories for explaining a firms competitiveness is most likely to give executives such insights
Transaction Cost Economics (Build or Buy)
_____ refers to an approach to assessing performance that emphasizes the concerns of people and the planet in addition to profit
Triple Bottom Line
Developing a viable business model requires that a firm sell goods or services for more than it costs the firm to create and distribute those goods.
True
T/F The book "The Principles of Scientific Management," was a response to taylors observation that most tasks within organizations were organized in a haphazard way.
True
T/F The four Ps of marketing are : Product, price, place and promotion
True
T/F The idea of "stratego," from which the word strategy is derived, refers to the idea of defeating an enemy by effectively using resources.
True
T/f Innovativeness of an organization can be gauged by considering how many patents has the firm obtained
True
Skyway manufactures fighter jets. It aims to be the top aircraft manufacturing company in the world. This is an example of the _____ of the company.
Vision
Which of the following is least likely to meet the criteria for strategic Resources?
A firms raw material inventory
An automobile manufacturing company wants to be the first company in the world to launch a car that would require no human intervention to run on the road. It wants to do so by 2020. The task presents a challenge to the engineering skills of the organization the fact that the task presents a challenge to the organization reflects ____the dimension of a goal
Aggresive
Resources that do not have all four qualities can still be very useful, but they ________
Are unlikely to provide long term advantages
Strategic management is described as being part science and part _____
Art
_____ Provides exclusive rights to the creators of original artistic works such as books, movies, songs, and screenplays
Copyrights
New entrants are more likely to join an industry if:
Existing competition lacks economies of scale
Rivalry in _____ industries tends to become bitter and fierce.
Fragmented
The general environment, a component of the environment of an organization, is also called the:
Macroenvironment
A company manufacturing hockey sticks makes an annual assessment of its resources in terms of raw materials, technical expertise and technological knowhow. It assesses the type of competition that it faces in the sports goods market and also looks out for opportunities that would allow it to expand its business. This is an example of an
SWOT Analaysis
Textbook publishers can charge high prices because students enrolled in a class must purchase the specific book that the professor has selected. Used copies are sometimes a lower-cost option, but textbook publishers have cleverly worked to undermine the used textbook market by releasing new editions after very short periods of time. According to Porter what "force" do textbook publishers represent?
Suppliers
is one of the five secondary activities that value chains include Inbound Logistics Technology Operations Service Marketing and Sales
Technology
Which two pivotal events that took place in 1980 led to the establishment of strategic management as a field of study?
The creation of strategic management journal and the publication of Competitive Strategy: Techniques for Analyzing Industries and competitors
Apple has been able to reshape its environment by introducing products such as the iPhone and the iPad that transcend the traditional boundaries between the cell phone, digital camera, music player, and computer businesses. This is an example of _____ for explaining a firms competitiveness.
enactment
A ______ Strategy refers to the part of the intended strategy that are are abandoned
nonrealized
A supermarket purchases its vegetables from local farmers. The fact that the supermarket purchases its vegetables from local farmers and demonstrates social responsibility reflects the _____ aspect of the triple bottom line framework.
people
A strategic____ is a carefully crafted set of steps that firm intends to follow in order to be successful
plan
Economies of _____ refer to a cost advantage that is created when a firm can produce a good or service at a lower per unit price due to producing the good or service in large quantities.
scale
A viable business model requires that a firm:
sell goods or services for more than it costs the firm to create and distribute those goods.
Buyers are more likely to be powerful relative to the firms from which they purchase good and services if:
the industry's goods or services are standardized or undifferentiated
According to the resource-based theory, resources that provide a firm sustained competitive advantage are rare:
valuable, non substitutable, and difficult to imitate
When a buyer decides to enter its suppliers business, the strategy is referred to as _____
Backward vertigal integration
Textbook publishers can charge high prices because students enrolled in a class must purchase the specific book that the professor has selected. Used copies are sometimes a lower-cost option, but textbook publishers have cleverly worked to undermine the used textbook market by releasing new editions after very short periods of time. According to Porter what "force" do college student represent
Buyers
A ______ strategy is the part of the intended strategy that an organization continues to pursue over time
Deliberate
Which of the following qualities of an asset makes it a strategic resource for a business?
Difficult to imitate
When unemployment rises, discretionary income plummets. That hurts businesses selling costly but non-essential goods. This example represents the ____ segment of PESTEL
Economic
Which of the following theories for explaining a firms competitiveness treats executives as the masters of their domains?
Enactment
Breadmakers, Inc. produces and supplies fresh sandwich breads to various sandwich businesses. Breadmakers has recently decided to open its own stores for selling sandwiches to consumers. This is an example of:
Forward Vertical Integration
A ____ fee refers to the upfront fee paid by an organization which gets the right to use another organization's brand name, products and processes
Franchise
Marty's, a clothing company, has a number of outlets which are owned and managed by private individuals. These outlets are allowed to use the brand name and products of Marty's after paying a fee to the company. They also pay a part of their revenues to Marty's. Each of these outlets is a:
Franchisee
A ______ is an organization which grants the right to use its brand name, products, and processes to other organizations
Franchisor
Which of the following statements describes the term "risk taking" as a dimension of entrepreneurial orientation?
It refers to the tendency to engage in bold rather then cautious actions.
____Refers to CEOs displaying high levels of relative fame but low levels of reputation
Scoundrels
The Hebrews leaving Egypt, the Greek soldiers inside of the Trojan Horse, and King Arthur's famous round table are all examples of:
Strategy in Ancient times
Textbook publishers can charge high prices because students enrolled in a class must purchase the specific book that the professor has selected. Used copies are sometimes a lower-cost option, but textbook publishers have cleverly worked to undermine the used textbook market by releasing new editions after very short periods of time. According to Porter what "force" do used books industry represent?
Substitutes
Which of the following statements describes the "time-bound" aspect of a goal
The goal is achieved through the creation of deadlines