SEVI 3013 EXAMS SET BUNDLED QUESTIONS
AND CORRECT ANSWERS SUCCESS
PACKAGE
●● Competitor intelligence is:
Answer: d. the set of data and information the firm gathers to better
understand competitors' objectives, strategies, assumptions, and
capabilities.
●● Firms that achieve competitive parity can expect to:
a. earn above-average returns.
b. initially earn above-average returns, declining to average returns.
c. earn average returns.
d. earn below-average returns.
Answer: c. earn average returns.
●● Analyzing the internal environment enables a firm to determine what
it MIGHT DO by identifying what opportunities and threats exist. True/
*False
Answer: False
,●● Age structure, geographic distribution, income distribution, interest
rates, and process innovations are all elements of concern when studying
the demographic segment of the general environment.
True/ *False
Answer: False
●● Jan is the CEO of GlenOak Corp. After analyzing GlenOak's vision
statement and aligning it with new environmental conditions, Jan
rewrote GlenOak's mission. Which of the following best characterizes
Jan's action?
a. Because a mission can change along with environmental
circumstances, Jan did the right thing in rewriting the mission.
b. A mission statement is an enduring reflection of the values and
aspirations of a firm, and Jan should not have rewritten it.
c. Because the CEO has the final responsibility for forming a firm's
mission, it was proper for Jan to rewrite the mission statement.
d. Jan should have involved managers at all levels in the firm as well as
employees who interact with customers and the markets for input when
rewriting the mission statement.
Answer: d. Jan should have involved managers at all levels in the firm as
well as employees who interact with customers and the markets for input
when rewriting the mission statement.
●● Which of the following is NOT an entry barrier to an industry?
a. Expected competitor retaliation
,b. Bargaining power of suppliers
c. Customer product loyalty
d. Economies of scale
Answer: b. Bargaining power of suppliers
●● AT&T's bundling of high-speed Internet services, satellite television,
and wireless phone services influences which of the five forces of
industry structure the LEAST?
a. Rivalry between existing firms.
b. Threat of new entrants.
c. Bargaining power of buyers.
d. Bargaining power of suppliers
Answer: d. Bargaining power of suppliers
●● Value chain activities are the:
a. activities or tasks the firm completes in order to produce products and
then sell, distribute, and service those products in ways that create value
for customers.
b. activities or tasks the firm completes to support the work being done
to produce, sell, distribute, and service the products the firm is
producing.
c. activities or tasks most crucial to implementing the firm's business
strategy.
d. tasks most likely to be imitated by competitors
, Answer: a. activities or tasks the firm completes in order to produce
products and then sell, distribute, and service those products in ways that
create value for customers.
●● A major assumption about the strategic management process is that it
is:
a. team-based.
b. rational.
c. inspired.
d. inclusive.
Answer: b. rational.
●● The generalized forms of value that goods and services provide are
either low cost with acceptable features or highly differentiated features
with acceptable cost.
*True
False
Answer: True
●● Value chain activities in the value chain create value, whereas
support functions generate costs.
True
*False
Answer: False
AND CORRECT ANSWERS SUCCESS
PACKAGE
●● Competitor intelligence is:
Answer: d. the set of data and information the firm gathers to better
understand competitors' objectives, strategies, assumptions, and
capabilities.
●● Firms that achieve competitive parity can expect to:
a. earn above-average returns.
b. initially earn above-average returns, declining to average returns.
c. earn average returns.
d. earn below-average returns.
Answer: c. earn average returns.
●● Analyzing the internal environment enables a firm to determine what
it MIGHT DO by identifying what opportunities and threats exist. True/
*False
Answer: False
,●● Age structure, geographic distribution, income distribution, interest
rates, and process innovations are all elements of concern when studying
the demographic segment of the general environment.
True/ *False
Answer: False
●● Jan is the CEO of GlenOak Corp. After analyzing GlenOak's vision
statement and aligning it with new environmental conditions, Jan
rewrote GlenOak's mission. Which of the following best characterizes
Jan's action?
a. Because a mission can change along with environmental
circumstances, Jan did the right thing in rewriting the mission.
b. A mission statement is an enduring reflection of the values and
aspirations of a firm, and Jan should not have rewritten it.
c. Because the CEO has the final responsibility for forming a firm's
mission, it was proper for Jan to rewrite the mission statement.
d. Jan should have involved managers at all levels in the firm as well as
employees who interact with customers and the markets for input when
rewriting the mission statement.
Answer: d. Jan should have involved managers at all levels in the firm as
well as employees who interact with customers and the markets for input
when rewriting the mission statement.
●● Which of the following is NOT an entry barrier to an industry?
a. Expected competitor retaliation
,b. Bargaining power of suppliers
c. Customer product loyalty
d. Economies of scale
Answer: b. Bargaining power of suppliers
●● AT&T's bundling of high-speed Internet services, satellite television,
and wireless phone services influences which of the five forces of
industry structure the LEAST?
a. Rivalry between existing firms.
b. Threat of new entrants.
c. Bargaining power of buyers.
d. Bargaining power of suppliers
Answer: d. Bargaining power of suppliers
●● Value chain activities are the:
a. activities or tasks the firm completes in order to produce products and
then sell, distribute, and service those products in ways that create value
for customers.
b. activities or tasks the firm completes to support the work being done
to produce, sell, distribute, and service the products the firm is
producing.
c. activities or tasks most crucial to implementing the firm's business
strategy.
d. tasks most likely to be imitated by competitors
, Answer: a. activities or tasks the firm completes in order to produce
products and then sell, distribute, and service those products in ways that
create value for customers.
●● A major assumption about the strategic management process is that it
is:
a. team-based.
b. rational.
c. inspired.
d. inclusive.
Answer: b. rational.
●● The generalized forms of value that goods and services provide are
either low cost with acceptable features or highly differentiated features
with acceptable cost.
*True
False
Answer: True
●● Value chain activities in the value chain create value, whereas
support functions generate costs.
True
*False
Answer: False
