Business Capstone Final Exam
Questions With Solutions Scored A+
2025.
Four D's - Answer Desireable: P>C
Distinctive:
Defendable: better/cheaper than competitor
Deliverable: management, r/c, distribution
internal analysis - Answer Resources
- tangible
- intangible
Capabilities
- processes, distribution
external environment - Answer Macroenvironment:
political, social, technological, legal, demographic, economic
economies of scale - Answer decrease in cost of production as output increases
strategy formulation vs. implementation - Answer
distinctive competencies - Answer quality, innovation, customer responsiveness, efficiency
strengths that allow a company to:
1. differentiate its products from those offered by rivals
and/or
2. achieve substantially lower cost than rivals
, resources - Answer assets of a company
1. tangible: physical entities - PPE, money
2. intangible: nonphysical - brand names, reputation, knowledge of employees through
experience, patents/copyrights
resources are valuable when enable company to create strong demand for products or lower its
cost, they are rare
capabilities - Answer company's resource coordinating skills and productive use
- process, control, hiring systems
Porter's 5 Forces - Answer 1. Competition
2. Supplier Bargaining Power
3. Buyer Bargaining Power
4. Threat of substitutes
5. Threat of potential entrants
Competition is high when... - Answer - Competitors numerous or equal in size and power
- Growth in demand is slow (companies have to compete to get the customers)
- Differentiation is low
- Switching costs are low
- Fixed costs high (bc need to make profit)
- Excess capacity
Supplier bargaining power high when... - Answer - Few suppliers
- Suppliers highly differentiated
- No substitute supplies
- Suppliers can threaten to forward integrate
- Supplier can pass on price increase
-Land and labor can affect this
Questions With Solutions Scored A+
2025.
Four D's - Answer Desireable: P>C
Distinctive:
Defendable: better/cheaper than competitor
Deliverable: management, r/c, distribution
internal analysis - Answer Resources
- tangible
- intangible
Capabilities
- processes, distribution
external environment - Answer Macroenvironment:
political, social, technological, legal, demographic, economic
economies of scale - Answer decrease in cost of production as output increases
strategy formulation vs. implementation - Answer
distinctive competencies - Answer quality, innovation, customer responsiveness, efficiency
strengths that allow a company to:
1. differentiate its products from those offered by rivals
and/or
2. achieve substantially lower cost than rivals
, resources - Answer assets of a company
1. tangible: physical entities - PPE, money
2. intangible: nonphysical - brand names, reputation, knowledge of employees through
experience, patents/copyrights
resources are valuable when enable company to create strong demand for products or lower its
cost, they are rare
capabilities - Answer company's resource coordinating skills and productive use
- process, control, hiring systems
Porter's 5 Forces - Answer 1. Competition
2. Supplier Bargaining Power
3. Buyer Bargaining Power
4. Threat of substitutes
5. Threat of potential entrants
Competition is high when... - Answer - Competitors numerous or equal in size and power
- Growth in demand is slow (companies have to compete to get the customers)
- Differentiation is low
- Switching costs are low
- Fixed costs high (bc need to make profit)
- Excess capacity
Supplier bargaining power high when... - Answer - Few suppliers
- Suppliers highly differentiated
- No substitute supplies
- Suppliers can threaten to forward integrate
- Supplier can pass on price increase
-Land and labor can affect this
