MGMT 449 Exam 1 Study Guide || All Solutions are Accurate.
Bargaining Power of Buyers correct answers the threat that buyers may force down prices,
bargain for higher quality or more services, and play competitors against each other
Backward Integration correct answers A form of vertical integration that involves the purchase of
suppliers.
Forward Integration correct answers a form of vertical integration whereby a firm expands
activities to include control of the direct distribution of its products
Threat of substitute products or services correct answers the threat of limiting the potential
returns of an industry by placing a ceiling on the prices that firms in that industry can profitably
charge without losing too many customers to substitute products
Zero Sum game correct answers a situation in which multiple players interact, and winners win
only by taking from other players
Strategic Groups correct answers clusters of firms that share similar strategies
Value Chain Analysis correct answers a strategic analysis of an organization that uses value-
creating activities
Primary Activities correct answers sequential activities of the value chain that refer to the
physical creation of the product or service, its sale and transfer to the buyer, and its service after
sale, including inbound logistics, operations, outbound logistics, marketing and sales, and
service.
Support Activities correct answers activities of the value chain that either add value by
themselves or add value through important relationships with both primary activities and other
, support activities; including procurement, technology development, human resource
management, and general administration
Inbound Logistics correct answers receiving, storing, and distributing inputs of a product
Operations correct answers all activities associated with transforming inputs into the final
product form
Outbound Logistics correct answers collecting, storing, and distributing the product or service to
buyers
Marketing and Sales correct answers activities associated with purchases of products and
services by end users and the inducements used to get them to make purchases
Service correct answers actions associated with providing service to enhance or maintain the
value of the product
Procurement correct answers the function of purchasing inputs used in the firm's value chain,
including raw materials, supplies, and other consumable items as well as assets such as
machinery, laboratory equipment, office equipment, and buildings
Technology Development correct answers activities associated with the development of new
knowledge that is applied to the firm's operations
Human Resource Management correct answers activities involved in the recruiting, hiring,
training, development and compensation of all types of personnel
General Administration correct answers general management, planning, finance, accounting,
legal and government affairs, quality management, and information systems; activities that
support the entire value chain and not individual activities
Bargaining Power of Buyers correct answers the threat that buyers may force down prices,
bargain for higher quality or more services, and play competitors against each other
Backward Integration correct answers A form of vertical integration that involves the purchase of
suppliers.
Forward Integration correct answers a form of vertical integration whereby a firm expands
activities to include control of the direct distribution of its products
Threat of substitute products or services correct answers the threat of limiting the potential
returns of an industry by placing a ceiling on the prices that firms in that industry can profitably
charge without losing too many customers to substitute products
Zero Sum game correct answers a situation in which multiple players interact, and winners win
only by taking from other players
Strategic Groups correct answers clusters of firms that share similar strategies
Value Chain Analysis correct answers a strategic analysis of an organization that uses value-
creating activities
Primary Activities correct answers sequential activities of the value chain that refer to the
physical creation of the product or service, its sale and transfer to the buyer, and its service after
sale, including inbound logistics, operations, outbound logistics, marketing and sales, and
service.
Support Activities correct answers activities of the value chain that either add value by
themselves or add value through important relationships with both primary activities and other
, support activities; including procurement, technology development, human resource
management, and general administration
Inbound Logistics correct answers receiving, storing, and distributing inputs of a product
Operations correct answers all activities associated with transforming inputs into the final
product form
Outbound Logistics correct answers collecting, storing, and distributing the product or service to
buyers
Marketing and Sales correct answers activities associated with purchases of products and
services by end users and the inducements used to get them to make purchases
Service correct answers actions associated with providing service to enhance or maintain the
value of the product
Procurement correct answers the function of purchasing inputs used in the firm's value chain,
including raw materials, supplies, and other consumable items as well as assets such as
machinery, laboratory equipment, office equipment, and buildings
Technology Development correct answers activities associated with the development of new
knowledge that is applied to the firm's operations
Human Resource Management correct answers activities involved in the recruiting, hiring,
training, development and compensation of all types of personnel
General Administration correct answers general management, planning, finance, accounting,
legal and government affairs, quality management, and information systems; activities that
support the entire value chain and not individual activities
