Question 1

How can a company reduce the threat of substitute products or services?

Accepted Answer

A)   Market the product to less than 10 customers
B)   Ignore competitive forces
C)   Offer additional value through wider product distribution
D)   Offer less value making the product far more generic and similar to the competitionE) B) and D)
F) None of the above

Question 2

If a supplier has high power, what can it do to influence its industry?

Accepted Answer

A)   Charge higher prices.
B)   Shift costs to industry participants.
C)   Limit quality or services.
D)   All of these.E) A) and B)
F) None of the above

Question 3

If a business is following a focused strategy, then its competitive scope is ________.

Accepted Answer

A)   Broad market
B)   Narrow market
C)   Broad range products
D)   Broad range of servicesE) B) and C)
F) A) and B)

Question 4

Increasing costs and decreasing sales are examples of business strategies.

Accepted Answer

A) True 
 B)False

Question 5

Primary value activities are standardized activities that accomplish a specific task, such as processing a customer's order.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following represents a typical supply chain?

Accepted Answer

A)   Company - Customers - Suppliers
B)   Company - Suppliers - Customers
C)   Suppliers - Company - Customers
D)   Suppliers - Customers - CompanyE) A) and B)
F) B) and C)

Question 7

Amazon.com uses a customer profiling system whenever a customer visits its website. Using this system, Amazon can offer products tailored to that particular customer's profile and buying pattern. What is Amazon using to achieve this competitive advantage?

Accepted Answer

A)   Rivalry
B)   Buyer power
C)   Product differentiation
D)   Substitute productE) A) and D)
F) A) and C)

Question 8

Which of the following statements is correct when considering a SWOT analysis?

Accepted Answer

A)   Strengths and weaknesses originate inside an organization.
B)   Opportunities and threats originate inside an organization.
C)   Strengths and threats originate inside an organization.
D)   Opportunities and weaknesses organization outside an organization.E) B) and C)
F) A) and D)

Question 9

Your boss, Pam Anderson, has asked you to analyze the music industry using Porter's Five Forces Model. Which of the following represents supplier power in the music industry?

Accepted Answer

A)   Established record labels like EMI, Sony, Universal
B)   Walmart, Target, iTunes
C)   Game systems like Wii, social networks like Facebook
D)   Taylor Swift, Beyoncé, The Beatles, The Stones.E) None of the above
F) A) and D)

Question 10

Cars, groceries, and clothing belong in which category?

Accepted Answer

A)   Goods
B)   Services
C)   Production
D)   ProductivityE) A) and B)
F) B) and C)

Question 11

Inbound logistics and operations are part of the primary value activities.

Accepted Answer

A) True 
 B)False

Question 12

What is production?

Accepted Answer

A)   Material items or products that customers will buy to satisfy a want or need
B)   Tasks performed by people that customers will buy to satisfy a want or need
C)   The process where a business takes raw materials and processes them or converts them into a finished product for its goods or services
D)   The rate at which goods and services are produced based upon total output given total inputsE) None of the above
F) B) and D)

Question 13

When analyzing Porter's three generic strategies for entering a market, if you have a focused strategy what market should you target?

Accepted Answer

A)   A niche market
B)   A broad market
C)   Neither niche nor broad markets
D)   Both niche and broad marketsE) A) and D)
F) A) and C)

Question 14

When applying Porter's three generic strategies, Tiffany & Co. has a competitive scope and cost strategy that is ________.

Accepted Answer

A)   Broad market - high cost strategy
B)   Narrow market - low cost strategy
C)   Narrow market - high cost strategy
D)   Broad market - low cost strategyE) B) and C)
F) C) and D)

Question 15

Which four elements are included in systems thinking?

Accepted Answer

A)   Output, Process, Feedback, and Accounting.
B)   Process, Output, Operations, and Accounting.
C)   Input, Process, Output, and Feedback.
D)   Input, Output, Sales, and Feedback.E) B) and C)
F) A) and B)

Question 16

Your boss, Pam Anderson, has asked you to analyze the music industry using Porter's Five Forces Model. Which of the following represents buyer power in the music industry?

Accepted Answer

A)   Established record labels like EMI, Sony, Universal
B)   Walmart, Target, iTunes
C)   Independent record labels
D)   Game systems like Wii, social networks like FacebookE) A) and B)
F) A) and C)

Question 17

Feedback is information that returns to its original transmitter and modifies the transmitter's actions. What would the original transmitter include?

Accepted Answer

A)   Input, Transform, Output.
B)   Input, Transform, Outnumber.
C)   Output, Input, Performer.
D)   Input, Process, Transform.E) A) and B)
F) C) and D)

Question 18

Which of the following is not considered a category within the support value activities in a value chain analysis?

Accepted Answer

A)   Technology development
B)   Outbound logistics
C)   Human resource management
D)   Firm infrastructureE) All of the above
F) B) and C)

Question 19

A SWOT analysis evaluates an organization's strengths, worries, opportunities, and technologies to identify significant influences that work for or against business strategies.

Accepted Answer

A) True 
 B)False

Question 20

Firm infrastructure and human resource management are part of the primary value activities.

Accepted Answer

A) True 
 B)False

Exam 2: Identifying Competitive Advantages

When analyzing Porter's three generic strategies for entering a market, if you have a focused strategy what market should you target?

Correct AnswerverifiedShow Answer

A SWOT analysis evaluates an organization's strengths, worries, opportunities, and technologies to identify significant influences that work for or against business strategies.

Correct AnswerverifiedShow Answer

Your boss, Pam Anderson, has asked you to analyze the music industry using Porter's Five Forces Model. Which of the following represents buyer power in the music industry?

Correct AnswerverifiedShow Answer

Cars, groceries, and clothing belong in which category?

Correct AnswerverifiedShow Answer

Firm infrastructure and human resource management are part of the primary value activities.

Correct AnswerverifiedShow Answer

If a business is following a focused strategy, then its competitive scope is ________.

Correct AnswerverifiedShow Answer

If a supplier has high power, what can it do to influence its industry?

Correct AnswerverifiedShow Answer

Inbound logistics and operations are part of the primary value activities.

Correct AnswerverifiedShow Answer

Primary value activities are standardized activities that accomplish a specific task, such as processing a customer's order.

Correct AnswerverifiedShow Answer

Which of the following is not considered a category within the support value activities in a value chain analysis?

Correct AnswerverifiedShow Answer

Amazon.com uses a customer profiling system whenever a customer visits its website. Using this system, Amazon can offer products tailored to that particular customer's profile and buying pattern. What is Amazon using to achieve this competitive advantage?

Correct AnswerverifiedShow Answer

What is production?

Correct AnswerverifiedShow Answer

Feedback is information that returns to its original transmitter and modifies the transmitter's actions. What would the original transmitter include?

Correct AnswerverifiedShow Answer

Which of the following statements is correct when considering a SWOT analysis?

Correct AnswerverifiedShow Answer

Increasing costs and decreasing sales are examples of business strategies.

Correct AnswerverifiedShow Answer

Your boss, Pam Anderson, has asked you to analyze the music industry using Porter's Five Forces Model. Which of the following represents supplier power in the music industry?

Correct AnswerverifiedShow Answer

Which four elements are included in systems thinking?

Correct AnswerverifiedShow Answer

How can a company reduce the threat of substitute products or services?

Correct AnswerverifiedShow Answer

When applying Porter's three generic strategies, Tiffany & Co. has a competitive scope and cost strategy that is ________.

Correct AnswerverifiedShow Answer

Which of the following represents a typical supply chain?

Correct AnswerverifiedShow Answer

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