MAN 4720 MAIN EXAMINATION 2026 TEST QUESTIONS
AND ANSWERS RATED A+
Satisfy
✔✔A firm's core strategy is its ____ strategy.
-corporate-level
-business-level
-pricing
-international - ✔✔business-level
✔✔Viewing the world through the customer's eyes and constantly seeking ways to
create more value for the company enhances:
-the reach of the company toward the customer.
-the ability to identify the customer.
-the richness of the relationship with the customer.
-affiliation with the customer. - ✔✔affiliation with the customer.
✔✔When firms use core competencies to implement value-creating strategies, they are
answering the "__________" question.
-who
-what
-why
-how - ✔✔how
✔✔Starbucks determined that all of the following customer needs were important
EXCEPT:
-low price
-the experience associated with drinking coffee, not just the coffee.
-the actual product of service (e.g., a cup of coffee), not the experience.
-allowing customers to design their own drinks. - ✔✔low price
✔✔The use of a differentiation strategy would likely be LEAST effective in which of the
following markets?
-Commodity goods
-Motion pictures
-Popular music
-Writing instruments - ✔✔Commodity goods
✔✔The new generation of lunch trucks serving high-end fare in cities such as New
York, San Francisco, and Los Angeles share which of the following business strategies?
-Cost leadership
-Focused differentiation
-Integrated cost leadership/differentiation
,-Differentiation - ✔✔Focused differentiation
✔✔Mercedes mass produces luxury vehicles at a premium price. It uses a(n)
__________ strategy.
-differentiation
-focused differentiation
-integrated cost leadership/differentiation
-focused cost leadership - ✔✔differentiation
✔✔The __________ dimension of relationships with customers is particularly important
for social networking sites such as Facebook and MySpace.
-reach
-richness
-affiliation
-social - ✔✔reach
✔✔Which of the following industries can be LEAST described as a slow-cycle market?
-Freight railroads
-Pharmaceuticals
-Cell phone providers
-Private ownership of highways and bridges - ✔✔Cell phone providers
✔✔Which of the following companies committed significant resources to enter the
information service market and, given its success, was imitated by other competitors?
-Compaq
-IBM
-HP
-Dell - ✔✔IBM
✔✔The flat-panel television market where prices have come down and competition has
become more stable is best characterized as:
-standard-cycle
-fast-cycle
-slow-cycle
-competitive rivalry - ✔✔standard-cycle
✔✔A second mover:
-is typically ineffective in its response to a first mover.
-attempts to provide a product with greater customer value than the first mover's
product.
-usually incurs higher expenses than the first mover since it must engage in reverse
engineering.
, -typically has a higher survival rate than first movers which typically take greater risks. -
✔✔attempts to provide a product with greater customer value than the first mover's
product.
✔✔When an industry is experiencing intensified rivalry, what does it result in normally?
-increased hiring across the industry.
-increased total revenues across the industry.
-decreased average profitability across the industry.
-increased entries into the industry. - ✔✔decreased average profitability across the
industry.
✔✔The ongoing set of competitive actions competitive responses that occur among
firms as they maneuver for an advantageous market position is known as what?
-Market Place competition
-Competitive behavior
-Competitive dynamics
-Competitive rivalry - ✔✔Competitive rivalry
✔✔Which of the following is true of Southwest Airlines?
-Southwest has an unusually low amount of flexibility for a large firm.
-Southwest's success is largely due to the fact that it has little market commonality with
other airlines.
-Decision-making responsibility is centered at its Dallas headquarters, which allows the
firm to respond quickly to competitive attacks.
-Southwest's advantage lies in its ability to "think small." - ✔✔Southwest's advantage
lies in its ability to "think small."
✔✔One of the answers is a tactical action, which is correct?
-Walmart's launch of Sam's Club stores
-Continental Airlines' exit from a hub airport in Denver
-Netflix beginning to offer music in addition to movies
-Dell's launch of a new line of high performance, custom-made PCs - ✔✔Netflix
beginning to offer music in addition to movies
✔✔When a company attacks a rival company or responds to a competitive attack by
arrival company which of the following relates to the gains or losses the firm will
experience?
-Motivation
-Awareness
-Responsiveness
-Ability - ✔✔Motivation
✔✔First movers have many disadvantages in business. Which of the following is the
largest disadvantage a first mover would face?
-high degree of risk.
AND ANSWERS RATED A+
Satisfy
✔✔A firm's core strategy is its ____ strategy.
-corporate-level
-business-level
-pricing
-international - ✔✔business-level
✔✔Viewing the world through the customer's eyes and constantly seeking ways to
create more value for the company enhances:
-the reach of the company toward the customer.
-the ability to identify the customer.
-the richness of the relationship with the customer.
-affiliation with the customer. - ✔✔affiliation with the customer.
✔✔When firms use core competencies to implement value-creating strategies, they are
answering the "__________" question.
-who
-what
-why
-how - ✔✔how
✔✔Starbucks determined that all of the following customer needs were important
EXCEPT:
-low price
-the experience associated with drinking coffee, not just the coffee.
-the actual product of service (e.g., a cup of coffee), not the experience.
-allowing customers to design their own drinks. - ✔✔low price
✔✔The use of a differentiation strategy would likely be LEAST effective in which of the
following markets?
-Commodity goods
-Motion pictures
-Popular music
-Writing instruments - ✔✔Commodity goods
✔✔The new generation of lunch trucks serving high-end fare in cities such as New
York, San Francisco, and Los Angeles share which of the following business strategies?
-Cost leadership
-Focused differentiation
-Integrated cost leadership/differentiation
,-Differentiation - ✔✔Focused differentiation
✔✔Mercedes mass produces luxury vehicles at a premium price. It uses a(n)
__________ strategy.
-differentiation
-focused differentiation
-integrated cost leadership/differentiation
-focused cost leadership - ✔✔differentiation
✔✔The __________ dimension of relationships with customers is particularly important
for social networking sites such as Facebook and MySpace.
-reach
-richness
-affiliation
-social - ✔✔reach
✔✔Which of the following industries can be LEAST described as a slow-cycle market?
-Freight railroads
-Pharmaceuticals
-Cell phone providers
-Private ownership of highways and bridges - ✔✔Cell phone providers
✔✔Which of the following companies committed significant resources to enter the
information service market and, given its success, was imitated by other competitors?
-Compaq
-IBM
-HP
-Dell - ✔✔IBM
✔✔The flat-panel television market where prices have come down and competition has
become more stable is best characterized as:
-standard-cycle
-fast-cycle
-slow-cycle
-competitive rivalry - ✔✔standard-cycle
✔✔A second mover:
-is typically ineffective in its response to a first mover.
-attempts to provide a product with greater customer value than the first mover's
product.
-usually incurs higher expenses than the first mover since it must engage in reverse
engineering.
, -typically has a higher survival rate than first movers which typically take greater risks. -
✔✔attempts to provide a product with greater customer value than the first mover's
product.
✔✔When an industry is experiencing intensified rivalry, what does it result in normally?
-increased hiring across the industry.
-increased total revenues across the industry.
-decreased average profitability across the industry.
-increased entries into the industry. - ✔✔decreased average profitability across the
industry.
✔✔The ongoing set of competitive actions competitive responses that occur among
firms as they maneuver for an advantageous market position is known as what?
-Market Place competition
-Competitive behavior
-Competitive dynamics
-Competitive rivalry - ✔✔Competitive rivalry
✔✔Which of the following is true of Southwest Airlines?
-Southwest has an unusually low amount of flexibility for a large firm.
-Southwest's success is largely due to the fact that it has little market commonality with
other airlines.
-Decision-making responsibility is centered at its Dallas headquarters, which allows the
firm to respond quickly to competitive attacks.
-Southwest's advantage lies in its ability to "think small." - ✔✔Southwest's advantage
lies in its ability to "think small."
✔✔One of the answers is a tactical action, which is correct?
-Walmart's launch of Sam's Club stores
-Continental Airlines' exit from a hub airport in Denver
-Netflix beginning to offer music in addition to movies
-Dell's launch of a new line of high performance, custom-made PCs - ✔✔Netflix
beginning to offer music in addition to movies
✔✔When a company attacks a rival company or responds to a competitive attack by
arrival company which of the following relates to the gains or losses the firm will
experience?
-Motivation
-Awareness
-Responsiveness
-Ability - ✔✔Motivation
✔✔First movers have many disadvantages in business. Which of the following is the
largest disadvantage a first mover would face?
-high degree of risk.
