MAN 4720 EXAM 1 QUESTIONS AND
ANSWERS 100% CORRECT
A firm has achieved __________ when it successfully formulates and implements a
value-creating strategy. - ANSWER-strategic competitiveness
A competitive advantage: - ANSWER-can be identified when competitors are unable to
duplicate a strategy or find it too costly to try to imitate.
Above-average returns are: - ANSWER-returns in excess of what an investor expects to
earn from other investments with a similar level of risk.
The strategic management process is: - ANSWER-the full set of commitments,
decisions, and actions required for a firm to achieve strategic competitiveness and earn
above-average returns.
The primary drivers of hypercompetition are __________ and __________. - ANSWER-
the emergence of a global economy; rapid technological change
All of the following are characteristics of the global economy EXCEPT: - ANSWER-the
increased use of tariffs to protect industries.
__________ has become one of the world's largest markets, with 700 million potential
consumers. - ANSWER-The European Union
__________ has become the second-largest economy in the world. - ANSWER-China
The increasing economic interdependence among countries and their organizations as
reflected in the flow of goods and services, financial capital, and knowledge across
country borders is defined as: - ANSWER-globalization.
Globalization has led to: - ANSWER-higher performance standards in competitive
dimensions, including quality and cost.
The "liability of foreignness" is the: - ANSWER-risk of participating outside a firm's
domestic markets in the global economy.
Even for companies capable of succeeding in global markets, it is critical that they: -
ANSWER-remain committed to and strategically competitive in their domestic market.
The rate of technological diffusion has increased substantially over the past 15 to 20
years. Which of the following was fastest in penetrating 25 percent of homes in the
United States? - ANSWER-Internet
,The industrial organization (I/O) model argues that the: - ANSWER-key factor in
success is choosing the correct industry in which to compete.
Which of the following statements is MOST consistent with the I/O view? Performance
of a firm is most directly attributable to: - ANSWER-the profitability of the industry in
which the firm competes.
Firms use the five forces model of competition to identify the __________ of an
industry, as measured by its __________. - ANSWER-attractiveness; profitability
potential
Although Alibaba is competing in the Internet services industry, it has improved its
performance by focusing on innovation and service diversification. This improved
performance is best explained by: - ANSWER-the resource-based model.
New markets created by the technologies underlying the development of products such
as iPods, iPads, and Wi-Fi are a result of: - ANSWER-disruptive technologies.
Henry Ford once said, "If I had asked people what they wanted, they would have said
faster horses." The invention of the car is an early example of: - ANSWER-disruptive
technologies.
A company's ability to acquire knowledge is: - ANSWER-an increasingly valuable
source of competitive advantage.
The CEO of Ridgeway, Inc., realizes that the company's survival depends on
developing and acquiring knowledge. Which of the following actions by the CEO would
be MOST consistent with this need? - ANSWER-Planning extensive employee training
and hiring educated and experienced employees
Knowledge is composed of all the following EXCEPT: - ANSWER-insight.
Which of the following statements about organizational knowledge is true? - ANSWER-
All of these are correct.
In order to cope with hypercompetition, firms need to develop __________ through
continuous learning. - ANSWER-strategic flexibility
All of the following are assumptions of the industrial organization (I/O) model EXCEPT: -
ANSWER-resources to implement strategies are firm-specific and attached to firms over
the long-term.
An investor is considering in which of two start-up companies to invest. The investor has
faith in the industrial organization (I/O) model of above-average returns and is using that
, as a guideline to make a decision. Both start-up companies propose to manufacture
health-focused foods with low salt, low sugar, high fiber, and no artificial additives.
RexRich Foods has a business strategy of producing a differentiated product for which
consumers will pay more. Green Pastures Foods is in the health-foods industry because
of its internal culture and commitment to healthy lifestyles, but it does not have any
executives with experience in food production. Which firm will the investor feel is MOST
consistent with the I/O model? - ANSWER-RexRich Foods
Research shows that approximately _____ percent of a firm's profitability is explained
by the industry in which it chooses to compete, whereas _____ percent is explained by
the firm's characteristics and actions. - ANSWER-20; 36
All of the following are resources of an organization EXCEPT: - ANSWER-weak
competitors in the industry.
All of the following are assumptions of the resource-based model EXCEPT: - ANSWER-
resources and capabilities are highly mobile across firms.
__________ is the capacity for a set of resources to perform a task or an activity in an
integrative manner. - ANSWER-A capability
When capabilities serve as a source of competitive advantage for a firm over its rivals,
the firm has created a(n): - ANSWER-core competence.
In the resource-based model, which of the following factors would be considered a key
to organizational success? - ANSWER-Skilled employees
To have the potential to become sources of competitive advantage, resources and
capabilities must be non-substitutable, valuable, __________, and __________. -
ANSWER-rare; costly to imitate
The resource-based model argues that: - ANSWER-resources that are valuable, rare,
costly to imitate, and non-substitutable form the basis of a firm's core competencies.
The resource-based view of the firm: - ANSWER-emphasizes that it is difficult to
achieve and sustain a competitive advantage based on resources alone.
The goal of the organization's __________ is to point the firm in the direction of where it
would like to be in the years to come. - ANSWER-vision
The Princeton Alliance Church states on its website that "PAC exists to help you live life
to the fullest by knowing God, developing community and bringing hope." This
pronouncement is MOST precisely a statement of organizational: - ANSWER-vision.
A firm's mission is: - ANSWER-a statement of a firm's businesses in which it intends to
compete and the customers it intends to serve.
ANSWERS 100% CORRECT
A firm has achieved __________ when it successfully formulates and implements a
value-creating strategy. - ANSWER-strategic competitiveness
A competitive advantage: - ANSWER-can be identified when competitors are unable to
duplicate a strategy or find it too costly to try to imitate.
Above-average returns are: - ANSWER-returns in excess of what an investor expects to
earn from other investments with a similar level of risk.
The strategic management process is: - ANSWER-the full set of commitments,
decisions, and actions required for a firm to achieve strategic competitiveness and earn
above-average returns.
The primary drivers of hypercompetition are __________ and __________. - ANSWER-
the emergence of a global economy; rapid technological change
All of the following are characteristics of the global economy EXCEPT: - ANSWER-the
increased use of tariffs to protect industries.
__________ has become one of the world's largest markets, with 700 million potential
consumers. - ANSWER-The European Union
__________ has become the second-largest economy in the world. - ANSWER-China
The increasing economic interdependence among countries and their organizations as
reflected in the flow of goods and services, financial capital, and knowledge across
country borders is defined as: - ANSWER-globalization.
Globalization has led to: - ANSWER-higher performance standards in competitive
dimensions, including quality and cost.
The "liability of foreignness" is the: - ANSWER-risk of participating outside a firm's
domestic markets in the global economy.
Even for companies capable of succeeding in global markets, it is critical that they: -
ANSWER-remain committed to and strategically competitive in their domestic market.
The rate of technological diffusion has increased substantially over the past 15 to 20
years. Which of the following was fastest in penetrating 25 percent of homes in the
United States? - ANSWER-Internet
,The industrial organization (I/O) model argues that the: - ANSWER-key factor in
success is choosing the correct industry in which to compete.
Which of the following statements is MOST consistent with the I/O view? Performance
of a firm is most directly attributable to: - ANSWER-the profitability of the industry in
which the firm competes.
Firms use the five forces model of competition to identify the __________ of an
industry, as measured by its __________. - ANSWER-attractiveness; profitability
potential
Although Alibaba is competing in the Internet services industry, it has improved its
performance by focusing on innovation and service diversification. This improved
performance is best explained by: - ANSWER-the resource-based model.
New markets created by the technologies underlying the development of products such
as iPods, iPads, and Wi-Fi are a result of: - ANSWER-disruptive technologies.
Henry Ford once said, "If I had asked people what they wanted, they would have said
faster horses." The invention of the car is an early example of: - ANSWER-disruptive
technologies.
A company's ability to acquire knowledge is: - ANSWER-an increasingly valuable
source of competitive advantage.
The CEO of Ridgeway, Inc., realizes that the company's survival depends on
developing and acquiring knowledge. Which of the following actions by the CEO would
be MOST consistent with this need? - ANSWER-Planning extensive employee training
and hiring educated and experienced employees
Knowledge is composed of all the following EXCEPT: - ANSWER-insight.
Which of the following statements about organizational knowledge is true? - ANSWER-
All of these are correct.
In order to cope with hypercompetition, firms need to develop __________ through
continuous learning. - ANSWER-strategic flexibility
All of the following are assumptions of the industrial organization (I/O) model EXCEPT: -
ANSWER-resources to implement strategies are firm-specific and attached to firms over
the long-term.
An investor is considering in which of two start-up companies to invest. The investor has
faith in the industrial organization (I/O) model of above-average returns and is using that
, as a guideline to make a decision. Both start-up companies propose to manufacture
health-focused foods with low salt, low sugar, high fiber, and no artificial additives.
RexRich Foods has a business strategy of producing a differentiated product for which
consumers will pay more. Green Pastures Foods is in the health-foods industry because
of its internal culture and commitment to healthy lifestyles, but it does not have any
executives with experience in food production. Which firm will the investor feel is MOST
consistent with the I/O model? - ANSWER-RexRich Foods
Research shows that approximately _____ percent of a firm's profitability is explained
by the industry in which it chooses to compete, whereas _____ percent is explained by
the firm's characteristics and actions. - ANSWER-20; 36
All of the following are resources of an organization EXCEPT: - ANSWER-weak
competitors in the industry.
All of the following are assumptions of the resource-based model EXCEPT: - ANSWER-
resources and capabilities are highly mobile across firms.
__________ is the capacity for a set of resources to perform a task or an activity in an
integrative manner. - ANSWER-A capability
When capabilities serve as a source of competitive advantage for a firm over its rivals,
the firm has created a(n): - ANSWER-core competence.
In the resource-based model, which of the following factors would be considered a key
to organizational success? - ANSWER-Skilled employees
To have the potential to become sources of competitive advantage, resources and
capabilities must be non-substitutable, valuable, __________, and __________. -
ANSWER-rare; costly to imitate
The resource-based model argues that: - ANSWER-resources that are valuable, rare,
costly to imitate, and non-substitutable form the basis of a firm's core competencies.
The resource-based view of the firm: - ANSWER-emphasizes that it is difficult to
achieve and sustain a competitive advantage based on resources alone.
The goal of the organization's __________ is to point the firm in the direction of where it
would like to be in the years to come. - ANSWER-vision
The Princeton Alliance Church states on its website that "PAC exists to help you live life
to the fullest by knowing God, developing community and bringing hope." This
pronouncement is MOST precisely a statement of organizational: - ANSWER-vision.
A firm's mission is: - ANSWER-a statement of a firm's businesses in which it intends to
compete and the customers it intends to serve.
