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 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 formulation and implementation
of a full set of commitments, decisions, and actions required for the firm to achieve
above-average returns and strategic competitiveness.
According to Hitt, the primary drivers of hypercompetition are: - ANSWER-the
emergence of a global economy and rapid technological change.
All of the following are characteristics of the global economy EXCEPT: - ANSWER-the
increased use of tariffs to protect industries.
Essentially, _______ 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 economic interdependence among countries which is reflected in the flow of goods,
services, financial capital, and knowledge across country borders is defined as: -
ANSWER-Globalization
Globalization has led to: - ANSWER-higher performance standards including quality and
cost.
The "liability of foreignness" is the: - ANSWER-overall risk of participating outside a
firm's domestic country when entering global competition.
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 is increasing. Which of the following was fastest in
penetrating 25 percent of homes in the U.S. market? - ANSWER-Internet
,Firms use the five forces model of competition to identify the ______ of the industry. It is
measured by its _______. - ANSWER-attractiveness; profitability.
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.
An investor is considering in which of two start-up companies to invest. The investor has
faith in the industrial organization 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 model of industrial organization? - ANSWER-RexRich Foods
Research shows that approximately ______ percent of a firm's profitability is explained
by the industry in which it competes, whereas ______ percent is explained by the firm's
characteristics and actions. - ANSWER-20;36
New markets created by iPods, PDAs, 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 important source of
competitive advantage in virtually all industries.
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 correct? -
ANSWER-Knowledge is an intangible resource, The importance of knowledge is
increasing, The value of knowledge as a proportion of shareholder value is increasing.
(ALL)
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.
The industrial organization (I/O) model argues that: - ANSWER-the 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.
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-
capabilities are highly mobile across firms.
______ is a capacity for a set of resources to perform a task or an activity in an
integrative manner. - ANSWER-a capability
When resources and capabilities serve as a source of competitive advantage for a firm,
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
develop 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 in 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: - ANSWER-is a statement of a firm's business 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 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 formulation and implementation
of a full set of commitments, decisions, and actions required for the firm to achieve
above-average returns and strategic competitiveness.
According to Hitt, the primary drivers of hypercompetition are: - ANSWER-the
emergence of a global economy and rapid technological change.
All of the following are characteristics of the global economy EXCEPT: - ANSWER-the
increased use of tariffs to protect industries.
Essentially, _______ 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 economic interdependence among countries which is reflected in the flow of goods,
services, financial capital, and knowledge across country borders is defined as: -
ANSWER-Globalization
Globalization has led to: - ANSWER-higher performance standards including quality and
cost.
The "liability of foreignness" is the: - ANSWER-overall risk of participating outside a
firm's domestic country when entering global competition.
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 is increasing. Which of the following was fastest in
penetrating 25 percent of homes in the U.S. market? - ANSWER-Internet
,Firms use the five forces model of competition to identify the ______ of the industry. It is
measured by its _______. - ANSWER-attractiveness; profitability.
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.
An investor is considering in which of two start-up companies to invest. The investor has
faith in the industrial organization 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 model of industrial organization? - ANSWER-RexRich Foods
Research shows that approximately ______ percent of a firm's profitability is explained
by the industry in which it competes, whereas ______ percent is explained by the firm's
characteristics and actions. - ANSWER-20;36
New markets created by iPods, PDAs, 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 important source of
competitive advantage in virtually all industries.
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 correct? -
ANSWER-Knowledge is an intangible resource, The importance of knowledge is
increasing, The value of knowledge as a proportion of shareholder value is increasing.
(ALL)
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.
The industrial organization (I/O) model argues that: - ANSWER-the 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.
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-
capabilities are highly mobile across firms.
______ is a capacity for a set of resources to perform a task or an activity in an
integrative manner. - ANSWER-a capability
When resources and capabilities serve as a source of competitive advantage for a firm,
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
develop 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 in 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: - ANSWER-is a statement of a firm's business in which it intends to
compete and the customers it intends to serve.
