BUS 475 FINAL EXAM LATEST 2023-2024 ACTUAL QUESTIONS AND CORRECT DETAILED ANSWERS
Unique value - (answer) ________ can be best defined as the reason a firm wins with customers or the
value proposition it offers to customers, such as a low cost advantage or differentiation advantage.
It is implemented as a result of careful analysis of markets, customers, competitors, and a firm's
resources and capabilities. - (answer) Which of the following statements is true of a deliberate
strategy?
It involves the ability to work with others to initiate changes that will create a competitive advantage for
the organization in the future. - (answer) Which of the following statements is true of strategic leaders?
Red Cars' Mission - (answer) Katherine is the CEO of a car dealership company called Red Cars. When
looking for new investors for the company, she usually says that Red Cars wants to "Be the best
automotive retailer in the eyes of its customers, employees, and shareholders." Which of the following
does this statement best reflect?
Resource-based view of the firm - (answer) The managers at Spring Hotels want to find out how their
competitor, Crimson Valley Hotels, consistently outdoes them. Spring Hotels have the same facilities and
equipment as Crimson Valley Hotels, but each month its efforts to reach the benchmark set by Crimson
Valley Hotels fails. This is because Crimson Valley has elements such as great location, beautiful
architectural design, and customer-friendly employees that create an edge over other companies in its
industry. Which of the following does this scenario exemplify?
Cost advantage - (answer) The owners of Carpo Inc., a watch company, also own a steel company and
a leather goods manufacturing company. This relieves them from expenses that they would have to bear,
if they had to rely on outside sources for the raw materials needed to make their watches. This enables
the company to produce watches at a much lesser cost than other companies in the industry. This
scenario best illustrates a(n) ________.
Capabilities - (answer) Appetit Corp. is a famous deli in the metropolitan city of Atika. The company
became popular because of its consistency in the quality of bread it provided and its creativity in adding
unique elements to create different flavors. One of Appetit's products is an infusion of peanut butter and
barbeque sauce filled in a bun. Appetit Corp. also engages its customers in contests that ask them to
make their own unique variety of bread, which later features among the company's products with the
winner's name. All these factors have helped to create unique value that keeps its customers coming
back for more. This scenario best illustrates Appetit Corp.'s ________.
, BUS 475 FINAL EXAM LATEST 2023-2024 ACTUAL QUESTIONS AND CORRECT DETAILED ANSWERS
Deliberate strategy - (answer) The managers at Marker Inc., a moving company, want to formulate a
plan of action to implement their mission, "We deliver what we promise. Always." To achieve this, the
company chooses the best markets to invest in, buys state-of-the-art transportation vehicles, employs
spill and damage proof style of packaging equipment, and develops a service-oriented mentality. This
method of conducting business earns them a reputation. This scenario is an example of ________.
Internal analysis - (answer) The board of directors of White Corp. meets to analyze the company's
competencies and scope for improvement. It also examines whether White Corp. has been able to meet
its potential customers' requirements. The board of directors of White Corp. is involved in a(n)
________.
Technological change can often lower barriers to entry. - (answer) Which of the following statements is
true about the role of technology in a firm's profitability?
The degree to which an average firm in the industry can earn good profits - (answer) The
attractiveness of an industry is ________.
A firm goes into the business of its former buyers, rather than continuing to sell products to them. -
(answer) Which of the following statements best describes forward integration?
Attractive industry - (answer) The airline industry is a profitable industry. The firms in this industry
create barriers to entry through patents and regulations in order to reduce the threat of new entrants. It
also minimizes the threat of substitutes while keeping rivalry to a minimum. The airline industry can be
best categorized as a(n) ________.
Regulatory force - (answer) A federal act was passed in the country of Arahonia which changed the
way many of the Arahonian industries worked. Most of the firms in Arahonia had to restructure their
strategic plans accordingly. This resulted in the larger firms acquiring the smaller ones which did not exit
the market altogether. This scenario best illustrates a(n) ________.
Natural environment - (answer) The management of GNH Corp., a chemical plant in the city of
Werkshore, has promised to take care of its surroundings. It assured to dispose its factory wastes in a
way that does not affect the habitat. In order to do so, the company had to go through renovations that
allow the plant to take up green initiatives. Which of the following is the source of change for GNH
Corp.?
Unique value - (answer) ________ can be best defined as the reason a firm wins with customers or the
value proposition it offers to customers, such as a low cost advantage or differentiation advantage.
It is implemented as a result of careful analysis of markets, customers, competitors, and a firm's
resources and capabilities. - (answer) Which of the following statements is true of a deliberate
strategy?
It involves the ability to work with others to initiate changes that will create a competitive advantage for
the organization in the future. - (answer) Which of the following statements is true of strategic leaders?
Red Cars' Mission - (answer) Katherine is the CEO of a car dealership company called Red Cars. When
looking for new investors for the company, she usually says that Red Cars wants to "Be the best
automotive retailer in the eyes of its customers, employees, and shareholders." Which of the following
does this statement best reflect?
Resource-based view of the firm - (answer) The managers at Spring Hotels want to find out how their
competitor, Crimson Valley Hotels, consistently outdoes them. Spring Hotels have the same facilities and
equipment as Crimson Valley Hotels, but each month its efforts to reach the benchmark set by Crimson
Valley Hotels fails. This is because Crimson Valley has elements such as great location, beautiful
architectural design, and customer-friendly employees that create an edge over other companies in its
industry. Which of the following does this scenario exemplify?
Cost advantage - (answer) The owners of Carpo Inc., a watch company, also own a steel company and
a leather goods manufacturing company. This relieves them from expenses that they would have to bear,
if they had to rely on outside sources for the raw materials needed to make their watches. This enables
the company to produce watches at a much lesser cost than other companies in the industry. This
scenario best illustrates a(n) ________.
Capabilities - (answer) Appetit Corp. is a famous deli in the metropolitan city of Atika. The company
became popular because of its consistency in the quality of bread it provided and its creativity in adding
unique elements to create different flavors. One of Appetit's products is an infusion of peanut butter and
barbeque sauce filled in a bun. Appetit Corp. also engages its customers in contests that ask them to
make their own unique variety of bread, which later features among the company's products with the
winner's name. All these factors have helped to create unique value that keeps its customers coming
back for more. This scenario best illustrates Appetit Corp.'s ________.
, BUS 475 FINAL EXAM LATEST 2023-2024 ACTUAL QUESTIONS AND CORRECT DETAILED ANSWERS
Deliberate strategy - (answer) The managers at Marker Inc., a moving company, want to formulate a
plan of action to implement their mission, "We deliver what we promise. Always." To achieve this, the
company chooses the best markets to invest in, buys state-of-the-art transportation vehicles, employs
spill and damage proof style of packaging equipment, and develops a service-oriented mentality. This
method of conducting business earns them a reputation. This scenario is an example of ________.
Internal analysis - (answer) The board of directors of White Corp. meets to analyze the company's
competencies and scope for improvement. It also examines whether White Corp. has been able to meet
its potential customers' requirements. The board of directors of White Corp. is involved in a(n)
________.
Technological change can often lower barriers to entry. - (answer) Which of the following statements is
true about the role of technology in a firm's profitability?
The degree to which an average firm in the industry can earn good profits - (answer) The
attractiveness of an industry is ________.
A firm goes into the business of its former buyers, rather than continuing to sell products to them. -
(answer) Which of the following statements best describes forward integration?
Attractive industry - (answer) The airline industry is a profitable industry. The firms in this industry
create barriers to entry through patents and regulations in order to reduce the threat of new entrants. It
also minimizes the threat of substitutes while keeping rivalry to a minimum. The airline industry can be
best categorized as a(n) ________.
Regulatory force - (answer) A federal act was passed in the country of Arahonia which changed the
way many of the Arahonian industries worked. Most of the firms in Arahonia had to restructure their
strategic plans accordingly. This resulted in the larger firms acquiring the smaller ones which did not exit
the market altogether. This scenario best illustrates a(n) ________.
Natural environment - (answer) The management of GNH Corp., a chemical plant in the city of
Werkshore, has promised to take care of its surroundings. It assured to dispose its factory wastes in a
way that does not affect the habitat. In order to do so, the company had to go through renovations that
allow the plant to take up green initiatives. Which of the following is the source of change for GNH
Corp.?
