WPC 470 FIRST EXAM MANUAL 2026
WHOLE RULE SET CORRECT SOLUTION
KEY
◍ Vendors across the country offer sunglasses that look virtually
identical to those made by Chanel, Prada, Gucci, and other luxury
brands—including the trademark logos—but cost far less. These
products are the result of:
a.competition.
b.imitation.
c.counterfeiting.
d.evolving consumer preferences. Answer: counterfeiting
◍ JoAnn Tucker recently took over as Chief Executive Officer
(CEO) of Burger-Rama, Inc. Burger-Rama has seen declining profits
over the past five years and has struggled to remain competitive in the
fast-food industry. In order to achieve strategic competitiveness,
JoAnn must:
a..conduct training programs and hire educated and experienced
employees.
b.invest in sophisticated technology in relevant knowledge areas.
c.fire the current board of directors and start afresh.
d.shift the company's focus to marketing and develop an extensive
advertising campaign. Answer: conduct training programs and hire
educated and experienced employees
, ◍ Firms failing to perform the value-chain activities and support
functions in an optimum manner when implementing the _____
strategy become "stuck in the middle."
a.cost leadership
b.focus
c.differentiation
d.integrated cost leadership/differentiation Answer: integrated cost
leadership/differentiation
◍ The chief executive officer (CEO) and other top-level managers
often involve other people to develop the mission statement because:
a.the mission deals more directly with product markets and customers.
b.it is viewed as a task that can easily be delegated.
c.the mission deals more directly with capital markets and
shareholders.
d.forming the mission is typically not the final responsibility of the
CEO or other top-level managers. Answer: The mission deals more
directly with product markets and customers
◍ A firm should outsource only activities where it:
a.has the probability of developing core competencies.
b.has developed the ability to innovate.
c.cannot match up a value chain activity with a support function.
,d.cannot create value or where it is at a substantial disadvantage
compared to competitors. Answer: cannot create value or where it is
at a substantial disadvantage compared to competitiors
◍ Which of the following strategies helps a firm concentrate on
understanding its customers and their needs with greater clarity as a
foundation for innovation?
a.Market segmentation strategy
b.Business model strategy
c.Digital strategy
d.Cost leadership strategy Answer: Digital strategy
◍ When a firm earns below-average returns, it:
a.is able to maximize the interests of all stakeholders.
b.should reward those stakeholders who have the least power.
c.should try to minimize the amount of support lost from
stakeholders.
d.should treat all stakeholders the same. Answer: should minimize
the amount of support lost from stakeholders
◍ Which of the following statements about a flexible manufacturing
system (FMS) is NOT true?
a..Used properly, an FMS allows the firm to increase its effectiveness
in responding to changes in its customers' needs, while retaining low-
cost advantages and consistent product quality.
, b.An FMS is a computer-controlled process that allows firms to
produce a variety of products in moderate, flexible quantities with a
minimum of manual intervention.
c.The goal of an FMS is to eliminate the "low cost versus product
variety" trade-off that is inherent in traditional manufacturing
technologies.
d.An FMS allows a manufacturer to connect with its suppliers,
distributors, and customers, which enables it to satisfy customer
expectations in terms of product quality and delivery speed. Answer:
An FMS allows a manufacturer to connect with its suppliers,
distributors, and customers, which enables it to satisfy customer
expectations in terms of product quality and delivery speed.
◍ Which of the following statements about a firm's resources and
capabilities is true?
a.All of a firm's resources and capabilities have the potential to be the
foundation for a competitive advantage.
b.It is difficult to achieve and sustain a competitive advantage based
on resources alone.
c.As a source of competitive advantage, a capability must be
exceedingly complex to understand and manage.
d.When a resource is rare and valuable, it becomes a core
competency. Answer: It is difficult to achieve and sustain a
competitive advantage based on resources alone
◍ When examining the component of Future Objectives for a
competitor analysis, which of the following is NOT a question that is
addressed?
WHOLE RULE SET CORRECT SOLUTION
KEY
◍ Vendors across the country offer sunglasses that look virtually
identical to those made by Chanel, Prada, Gucci, and other luxury
brands—including the trademark logos—but cost far less. These
products are the result of:
a.competition.
b.imitation.
c.counterfeiting.
d.evolving consumer preferences. Answer: counterfeiting
◍ JoAnn Tucker recently took over as Chief Executive Officer
(CEO) of Burger-Rama, Inc. Burger-Rama has seen declining profits
over the past five years and has struggled to remain competitive in the
fast-food industry. In order to achieve strategic competitiveness,
JoAnn must:
a..conduct training programs and hire educated and experienced
employees.
b.invest in sophisticated technology in relevant knowledge areas.
c.fire the current board of directors and start afresh.
d.shift the company's focus to marketing and develop an extensive
advertising campaign. Answer: conduct training programs and hire
educated and experienced employees
, ◍ Firms failing to perform the value-chain activities and support
functions in an optimum manner when implementing the _____
strategy become "stuck in the middle."
a.cost leadership
b.focus
c.differentiation
d.integrated cost leadership/differentiation Answer: integrated cost
leadership/differentiation
◍ The chief executive officer (CEO) and other top-level managers
often involve other people to develop the mission statement because:
a.the mission deals more directly with product markets and customers.
b.it is viewed as a task that can easily be delegated.
c.the mission deals more directly with capital markets and
shareholders.
d.forming the mission is typically not the final responsibility of the
CEO or other top-level managers. Answer: The mission deals more
directly with product markets and customers
◍ A firm should outsource only activities where it:
a.has the probability of developing core competencies.
b.has developed the ability to innovate.
c.cannot match up a value chain activity with a support function.
,d.cannot create value or where it is at a substantial disadvantage
compared to competitors. Answer: cannot create value or where it is
at a substantial disadvantage compared to competitiors
◍ Which of the following strategies helps a firm concentrate on
understanding its customers and their needs with greater clarity as a
foundation for innovation?
a.Market segmentation strategy
b.Business model strategy
c.Digital strategy
d.Cost leadership strategy Answer: Digital strategy
◍ When a firm earns below-average returns, it:
a.is able to maximize the interests of all stakeholders.
b.should reward those stakeholders who have the least power.
c.should try to minimize the amount of support lost from
stakeholders.
d.should treat all stakeholders the same. Answer: should minimize
the amount of support lost from stakeholders
◍ Which of the following statements about a flexible manufacturing
system (FMS) is NOT true?
a..Used properly, an FMS allows the firm to increase its effectiveness
in responding to changes in its customers' needs, while retaining low-
cost advantages and consistent product quality.
, b.An FMS is a computer-controlled process that allows firms to
produce a variety of products in moderate, flexible quantities with a
minimum of manual intervention.
c.The goal of an FMS is to eliminate the "low cost versus product
variety" trade-off that is inherent in traditional manufacturing
technologies.
d.An FMS allows a manufacturer to connect with its suppliers,
distributors, and customers, which enables it to satisfy customer
expectations in terms of product quality and delivery speed. Answer:
An FMS allows a manufacturer to connect with its suppliers,
distributors, and customers, which enables it to satisfy customer
expectations in terms of product quality and delivery speed.
◍ Which of the following statements about a firm's resources and
capabilities is true?
a.All of a firm's resources and capabilities have the potential to be the
foundation for a competitive advantage.
b.It is difficult to achieve and sustain a competitive advantage based
on resources alone.
c.As a source of competitive advantage, a capability must be
exceedingly complex to understand and manage.
d.When a resource is rare and valuable, it becomes a core
competency. Answer: It is difficult to achieve and sustain a
competitive advantage based on resources alone
◍ When examining the component of Future Objectives for a
competitor analysis, which of the following is NOT a question that is
addressed?
