1
BUS 475 FINAL EXAM LATEST ACTUAL
QUESTIONS AND CORRECT DETAILED
ANSWERS
________ 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. - (ANSWER)Unique value
Which of the following statements is true of a deliberate strategy? - (ANSWER)It
is implemented as a result of careful analysis of markets, customers, competitors,
and a firm's resources and capabilities.
Which of the following statements is true of strategic leaders? - (ANSWER)It
involves the ability to work with others to initiate changes that will create a
competitive advantage for the organization in the future.
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? -
(ANSWER)Red Cars' Mission
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.
, 2
Which of the following does this scenario exemplify? - (ANSWER)Resource-based
view of the firm
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) ________. - (ANSWER)Cost advantage
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 ________. - (ANSWER)Capabilities
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 ________. -
(ANSWER)Deliberate strategy
, 3
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) ________. - (ANSWER)Internal analysis
Which of the following statements is true about the role of technology in a firm's
profitability? - (ANSWER)Technological change can often lower barriers to entry.
The attractiveness of an industry is ________. - (ANSWER)The degree to which an
average firm in the industry can earn good profits
Which of the following statements best describes forward integration? -
(ANSWER)A firm goes into the business of its former buyers, rather than
continuing to sell products to them.
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) ________. -
(ANSWER)Attractive industry
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) ________. - (ANSWER)Regulatory force
BUS 475 FINAL EXAM LATEST ACTUAL
QUESTIONS AND CORRECT DETAILED
ANSWERS
________ 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. - (ANSWER)Unique value
Which of the following statements is true of a deliberate strategy? - (ANSWER)It
is implemented as a result of careful analysis of markets, customers, competitors,
and a firm's resources and capabilities.
Which of the following statements is true of strategic leaders? - (ANSWER)It
involves the ability to work with others to initiate changes that will create a
competitive advantage for the organization in the future.
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? -
(ANSWER)Red Cars' Mission
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.
, 2
Which of the following does this scenario exemplify? - (ANSWER)Resource-based
view of the firm
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) ________. - (ANSWER)Cost advantage
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 ________. - (ANSWER)Capabilities
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 ________. -
(ANSWER)Deliberate strategy
, 3
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) ________. - (ANSWER)Internal analysis
Which of the following statements is true about the role of technology in a firm's
profitability? - (ANSWER)Technological change can often lower barriers to entry.
The attractiveness of an industry is ________. - (ANSWER)The degree to which an
average firm in the industry can earn good profits
Which of the following statements best describes forward integration? -
(ANSWER)A firm goes into the business of its former buyers, rather than
continuing to sell products to them.
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) ________. -
(ANSWER)Attractive industry
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) ________. - (ANSWER)Regulatory force
