MGMT 485 Strategy Exam Questions And Correct Answers
The likelihood of entry of new competitors is affected by __________ and __________. -
ANSWER barriers to entry; the expected retaliation of current industry participants
Media content has moved from paper, tape, and film to a digital world based on Internet
technology. From the perspective of the five forces model, which of the following forces
is MOST relevant here? - ANSWER substitute
Economies of scale refers to the fact that as the quantity of product produced in a given
time period __________, the cost of manufacturing each unit __________. - ANSWER
increases; decreases
Which of the following would be an example of the application of the next major
technological opportunity for organizations? - ANSWER SpaceX's reusable space
vehicle
For a restaurant business dependent on drive-thru customers, the major cost
disadvantage independent of scale would be if: - ANSWER favorable locations are not
available.
All of the following are forces that create high rivalry within an industry EXCEPT: -
ANSWER fast industry growth.
An owner of a stable of racehorses has been earning below-average returns for more
than 15 years. To a colleague, he expressed his determination to stay in horse racing
until he died because "racing is in my blood." This individual is probably still racing
horses because of: - ANSWER high barriers to exit.
Which of the following is NOT an activity used in the external environmental analysis
process? - ANSWER Decrypting
,All of the following are ethical sources of data for external analysis EXCEPT: - ANSWER
a competitor's confidential memos.
When analysts develop feasible projections of future events and how quickly they will
occur based on observed changes and trends, they are engaged in: - ANSWER
Forecasting
One popular approach to taking care of the physical environment is: - ANSWER
producing and selling additional green products.
Which of the following explains, in part, why rivalry among McDonald's, Wendy's, and
Burger King is intense? - ANSWER These companies are trying to find ways to
differentiate their products.
A competitor analysis includes all of the following about competitors EXCEPT: -
ANSWER traditions.
The observation that China reached automotive production overcapacity in 2015, and
has a glut of extra cars, is an aspect of the __________ segment of the general
environment. - ANSWER Global
An analysis of society's attitudes and values would be conducted when studying the
__________ segment of the general environment. - ANSWER Sociocultural
Suppliers are powerful when: - ANSWER they offer a credible threat of forward
integration.
Mighty Green, a residential lawn chemical manufacturer, is committed to gaining market
share in its industry. Mighty Green: - ANSWER is likely to raise the level of competitive
rivalry in the industry.
, The use of the Internet by Netflix to collect data on customer preferences is an example
of: - ANSWER scanning.
The economic environment refers to: - ANSWER the nature and direction of the
economy in which a firm competes or may compete.
One capability that can be learned from failure is when to: - ANSWER quit.
It is increasingly difficult for a firm to develop and sustain a competitive advantage
because of the effects of globalization and: - ANSWER the rapid development of the
Internet's capabilities.
__________are the source of a firm's __________, which are the source of the firm's
__________. - ANSWER Resources; capabilities; core competencies
Compared to intangible resources, tangible resources are __________ constrained
because they are __________ to leverage. - ANSWER more; harder
All of the following were traditional sources of competitive advantage EXCEPT: -
ANSWER a highly educated labor market
A person who has made a successful decision when no obviously correct model or rule
is available or when relevant data are unreliable or incomplete has exercised: -
ANSWER judgment.
To provide a sustainable competitive advantage, a capability must satisfy all of the
following criteria EXCEPT be: - ANSWER technologically innovative.
Tools such as __________ help the firm focus on its core competencies as the source of
its competitive advantages. - ANSWER Outsourcing
The likelihood of entry of new competitors is affected by __________ and __________. -
ANSWER barriers to entry; the expected retaliation of current industry participants
Media content has moved from paper, tape, and film to a digital world based on Internet
technology. From the perspective of the five forces model, which of the following forces
is MOST relevant here? - ANSWER substitute
Economies of scale refers to the fact that as the quantity of product produced in a given
time period __________, the cost of manufacturing each unit __________. - ANSWER
increases; decreases
Which of the following would be an example of the application of the next major
technological opportunity for organizations? - ANSWER SpaceX's reusable space
vehicle
For a restaurant business dependent on drive-thru customers, the major cost
disadvantage independent of scale would be if: - ANSWER favorable locations are not
available.
All of the following are forces that create high rivalry within an industry EXCEPT: -
ANSWER fast industry growth.
An owner of a stable of racehorses has been earning below-average returns for more
than 15 years. To a colleague, he expressed his determination to stay in horse racing
until he died because "racing is in my blood." This individual is probably still racing
horses because of: - ANSWER high barriers to exit.
Which of the following is NOT an activity used in the external environmental analysis
process? - ANSWER Decrypting
,All of the following are ethical sources of data for external analysis EXCEPT: - ANSWER
a competitor's confidential memos.
When analysts develop feasible projections of future events and how quickly they will
occur based on observed changes and trends, they are engaged in: - ANSWER
Forecasting
One popular approach to taking care of the physical environment is: - ANSWER
producing and selling additional green products.
Which of the following explains, in part, why rivalry among McDonald's, Wendy's, and
Burger King is intense? - ANSWER These companies are trying to find ways to
differentiate their products.
A competitor analysis includes all of the following about competitors EXCEPT: -
ANSWER traditions.
The observation that China reached automotive production overcapacity in 2015, and
has a glut of extra cars, is an aspect of the __________ segment of the general
environment. - ANSWER Global
An analysis of society's attitudes and values would be conducted when studying the
__________ segment of the general environment. - ANSWER Sociocultural
Suppliers are powerful when: - ANSWER they offer a credible threat of forward
integration.
Mighty Green, a residential lawn chemical manufacturer, is committed to gaining market
share in its industry. Mighty Green: - ANSWER is likely to raise the level of competitive
rivalry in the industry.
, The use of the Internet by Netflix to collect data on customer preferences is an example
of: - ANSWER scanning.
The economic environment refers to: - ANSWER the nature and direction of the
economy in which a firm competes or may compete.
One capability that can be learned from failure is when to: - ANSWER quit.
It is increasingly difficult for a firm to develop and sustain a competitive advantage
because of the effects of globalization and: - ANSWER the rapid development of the
Internet's capabilities.
__________are the source of a firm's __________, which are the source of the firm's
__________. - ANSWER Resources; capabilities; core competencies
Compared to intangible resources, tangible resources are __________ constrained
because they are __________ to leverage. - ANSWER more; harder
All of the following were traditional sources of competitive advantage EXCEPT: -
ANSWER a highly educated labor market
A person who has made a successful decision when no obviously correct model or rule
is available or when relevant data are unreliable or incomplete has exercised: -
ANSWER judgment.
To provide a sustainable competitive advantage, a capability must satisfy all of the
following criteria EXCEPT be: - ANSWER technologically innovative.
Tools such as __________ help the firm focus on its core competencies as the source of
its competitive advantages. - ANSWER Outsourcing
