WPC 480 MIDTERM STUDY GUIDE WITH 100% CORRECT ANSWERS ALREADY GRADED A+

Path Dependence Chips & Motherboards Inc., a leading hard drive manufacturer, recently filed for bankruptcy. While most of Chips & Motherboards Inc.'s competitors were shifting away from physical data storage devices toward online cloud storage services, Chips & Motherboards Inc. invested most of its retained earnings in the effort to improve its hard drives. Once the hard-drive market drastically declined, Chips & Motherboards Inc. was unable to capitalize on the new technology. Which of the following does this scenario best illustrate? support activities Online retailer eBuy had been drastically losing market share to its competitors. The management hired a reputed consulting firm to advise the company. The experts from the consulting firm pointed out that the company primarily lost out on its competitive advantage due to its poor customer service, including slow response times to customer inquiries and unclear return policies. These ineffective policies and procedures led to many disgruntled customers and a steady migration to more customer-friendly retailers. eBuy can best solve its problem by working on its Buzztronic will have a resource that is valuable but no longer rare Buzztronic is a market leader in consumer electronics. If Ficolee and Ficola, companies that manufacture televisions, develop the same customer knowledge base and create products with the same customer appeal as Buzztronic, then Easy to imitate According to an evaluation using the VRIO framework, Crocs Shoes was unable to sustain its competitive advantage primarily because its products were The competitor infringed on Gogo's patent of the diagonal assembly system The "diagonal assembly system" was a production system pioneered by the automobile company Gogo. Recently, Gogo was able to sue a competitor and won the suit, thereby receiving $100 million in damages. Which of the following would most likely enable Gogo to win such a lawsuit? There are several major limitations of employing the balanced scorecard framework; which of the following below is not one of those limitations: The type of marketing and HR functions used to employ the framework Razor-razor blade Nam-zim sells its e-book readers at the cost price of $15 each. However, the company makes its profits when users have to download or buy books online. Which of the following business models is Nam-zom implementing? Compare current valuations with past valuations to determine a trend You are the ceo of a tech company and have recently undertaken a review of you company's strategy. In comparing your stock market valuation to that of your closest competitor, you not that your firm is currently valued at $50 billion, while your ocmpetitor is value at $40 billion. How should you proceed? Economic value creation equals consumer surplus plus firm profit, or the sum of consumer and producer surplus. In this case, the economic value created is ($800 - $600) + ($600 - $350) = $450. TalkaLot Corp. incurs a cost of $350 to produce one unit of a cell phone. The company's management has priced the product at $600 in the market. Considering the technological advancement of the cell phone, customers perceive its value to be around $800. What is the economic value created in this scenario? It attempts to provide holistic perspective Which of the following statements is true of the balanced-scorecard? Blue ocean In the multiplex industry, Home Again Movies Inc. is an upscale multiplex that focuses on superior customer experience. The firm charges premium prices for its movie tickets and services. Movies-for-less Inc., in contrast, charges the lowest price in the industry with its no-frills approach. In between these two segments is Just Right Films Inc., which offers a customer experience comparable to that of Home Again Movies at a price almost as low as that of Movies-for-less. What strategy is Just Right Films pursuing in this scenario? Gains market share from other firms When a differentiator charges a similar price as its competitors in the same strategic group but offers more perceived value, it acceptable When pursuing a cost-leadership strategy, a business must remember that buyers will be reluctant to pay for a product unless the quality is they are able to take advantage of physical properties and maximize their scale efficiencies by stocking more merchandise and handling inventory more efficiently One of the reasons that big box retailers like Home Depot are able to achieve economies of scale is that product features Golden Soles has been successful at differentiating itself from competitors by claiming a premium price for its athletic footwear based on superior design and high-quality materials. In this scenario, which of the following is the key value driver? Which of the following businesses is most likely to disrupt an existing industry? earphone company On which of the following tenets is the crossing-the-chasm framework, suggested by Geoffrey Moore, based? Each stage of the industry life cycle is dominated by a different customer group. Susan is the founder of the restaurant chain Right and Fresh. She ensures that the products in her stores are ethically and responsibly sourced. Most products are therefore 100 percent organic and all packaging is manufactured from recycled material. Also, her company sources ingredients from farms within 100 miles from her locations. Susan's belief is that her restaurants should be able to support the community at large. Which of the following terms best describes Susan? Social entrepreneur