BUAD Exam 1 Questions with Verified
Solutions
A competitor analysis of the subscription-based meal-kit industry creates a picture of the
competitive landscape confronting Blue Apron. Which of Blue Apron's competitors most
likely has a dual-advantage strategic position (i.e., is in the middle of the business-level
strategy continuum - not purely cost leadership and not purely differentiation)? -
ANSWER-Hello Fresh
Although Charles Chocolates has a strong brand image, what is one concern about the
brand image, particularly as it is relates to growth? - ANSWER-The brand image is very
traditional and it is unclear whether younger buyers would appreciate it.
Balance Sheet - ANSWER-snapshot of a company's finances
• what it owns and owes
• as of the date of publication
Balanced scorecard - ANSWER-The purpose of the balanced scorecard is to provide a
holistic perspective to setting firm goals and monitoring performance. Traditionally firms
have focused on financial measures as an assessment of firm success, but financial
outcomes are driven by a variety of other fundamental factors within a firm. The
balanced scorecard prompts managers to set goals and measure performance for some
of those other factors, including customers' views of the firm, internal business
processes, and learning and growth among employees. The balanced scorecard
therefore provides a financial, marketing, operations, and human resources perspective
of a firm's performance.
Learning and growth
Internal business processes
Customers
Financial
Objectives
Measures
Targets
Initiatives
Based on a Porter's Five Forces analysis, what makes an industry attractive? -
ANSWER-The strength of all of the forces are low, which makes it relatively easy to be
profitable.
, Blue Apron _______ managed most of its primary activities, including raw materials
management, _______, and warehouse management. - ANSWER-poorly; supply chain
Blue Apron's biggest problem related to the product life cycle and the S-curve was ___.
- ANSWER-in the growth phase, Blue Apron decided to focus on supply chain and not
customer acquisition
Business-Level - ANSWER-How will the firm compete in the industry or market?
Charles Chocolates produces chocolates that are known to be high-quality. What is an
example of evidence that their high-quality chocolate is "valuable" (in the VRIO model)?
Select the best answer. - ANSWER-It received the prestigious Superior Taste Award
from Belgium's Institute for Taste.
Charles Chocolates' return on assets has increased year-over-year and is well above
the industry average. Which of the following is an appropriate assessment of this data?
- ANSWER-The company is doing well at using its assets to generate profit.
Common Size IncomeStatement (Vertical Analysis) - ANSWER-Highlights relationships
between expense items and sales
Competitor Analysis - ANSWER-Provides managers and practitioners with a complete
picture of the competitive landscape confronting a firm. This includes an assessment of
the strengths and weaknesses of current and future competitors.
Corporate-Level - ANSWER-In what industries and markets will we compete?
Criticism of a balanced score card - ANSWER--just a list of metrics
-drives financial returns at the expense of key stakeholders
-too many objectives, measures, targets, and initiatives
Diagnose - ANSWER-Internal - identify resources/capabilities and unique strengths
(core capabilities) - competitive advantage source
External - understand the macro-environment and the competitive/industry environment
During the last twenty years, sales of Charles Chocolates have ________. - ANSWER-
External Analysis - ANSWER-STEEP (Macro) and Five Forces (industry environment)
Fifty percent (50%) of Charles Chocolates' revenue comes from it's retail locations.
Which of its other business lines provides the LEAST percentage of total sales -
ANSWER-Online
Solutions
A competitor analysis of the subscription-based meal-kit industry creates a picture of the
competitive landscape confronting Blue Apron. Which of Blue Apron's competitors most
likely has a dual-advantage strategic position (i.e., is in the middle of the business-level
strategy continuum - not purely cost leadership and not purely differentiation)? -
ANSWER-Hello Fresh
Although Charles Chocolates has a strong brand image, what is one concern about the
brand image, particularly as it is relates to growth? - ANSWER-The brand image is very
traditional and it is unclear whether younger buyers would appreciate it.
Balance Sheet - ANSWER-snapshot of a company's finances
• what it owns and owes
• as of the date of publication
Balanced scorecard - ANSWER-The purpose of the balanced scorecard is to provide a
holistic perspective to setting firm goals and monitoring performance. Traditionally firms
have focused on financial measures as an assessment of firm success, but financial
outcomes are driven by a variety of other fundamental factors within a firm. The
balanced scorecard prompts managers to set goals and measure performance for some
of those other factors, including customers' views of the firm, internal business
processes, and learning and growth among employees. The balanced scorecard
therefore provides a financial, marketing, operations, and human resources perspective
of a firm's performance.
Learning and growth
Internal business processes
Customers
Financial
Objectives
Measures
Targets
Initiatives
Based on a Porter's Five Forces analysis, what makes an industry attractive? -
ANSWER-The strength of all of the forces are low, which makes it relatively easy to be
profitable.
, Blue Apron _______ managed most of its primary activities, including raw materials
management, _______, and warehouse management. - ANSWER-poorly; supply chain
Blue Apron's biggest problem related to the product life cycle and the S-curve was ___.
- ANSWER-in the growth phase, Blue Apron decided to focus on supply chain and not
customer acquisition
Business-Level - ANSWER-How will the firm compete in the industry or market?
Charles Chocolates produces chocolates that are known to be high-quality. What is an
example of evidence that their high-quality chocolate is "valuable" (in the VRIO model)?
Select the best answer. - ANSWER-It received the prestigious Superior Taste Award
from Belgium's Institute for Taste.
Charles Chocolates' return on assets has increased year-over-year and is well above
the industry average. Which of the following is an appropriate assessment of this data?
- ANSWER-The company is doing well at using its assets to generate profit.
Common Size IncomeStatement (Vertical Analysis) - ANSWER-Highlights relationships
between expense items and sales
Competitor Analysis - ANSWER-Provides managers and practitioners with a complete
picture of the competitive landscape confronting a firm. This includes an assessment of
the strengths and weaknesses of current and future competitors.
Corporate-Level - ANSWER-In what industries and markets will we compete?
Criticism of a balanced score card - ANSWER--just a list of metrics
-drives financial returns at the expense of key stakeholders
-too many objectives, measures, targets, and initiatives
Diagnose - ANSWER-Internal - identify resources/capabilities and unique strengths
(core capabilities) - competitive advantage source
External - understand the macro-environment and the competitive/industry environment
During the last twenty years, sales of Charles Chocolates have ________. - ANSWER-
External Analysis - ANSWER-STEEP (Macro) and Five Forces (industry environment)
Fifty percent (50%) of Charles Chocolates' revenue comes from it's retail locations.
Which of its other business lines provides the LEAST percentage of total sales -
ANSWER-Online
