MGT302 - EXAM #3 LaRosa Test
Questions and All Correct Answers
2025-2026 Updated.
Heather's goal for the company this year is to sell its product line internationally. She feels this
will increase profits within the next three years by as much as 30%. Heather is developing a
____ for the company. - Answer strategy
What are the two ways a firm can create more value for its products? - Answer Make
product more attractive to consumer
Lower production costs
Identify three components of a business that make up its operations. - Answer marketing
human resources
research and development
Which two of the following are types of primary activities found in many businesses? - Answer
customer service
production
True or false: A company would typically experience a decrease in profit growth if it should
decide to disperse value creation activities to different locations as a way to perform those
activities more efficiently. - Answer False, Reason:
One way to increase profits is to source location economies to those where functions are
performed most efficiently.
A company's _____ is defined as the actions that managers take to attain the goals of the
company. - Answer strategy
Core competencies are typically expressed in ________ that other firms are unable to duplicate.
- Answer skills within a firm
Bryan's company wanted to gain a greater market share on its bicycle products so it built in
, Trina's company has moved all sewing and piece-work capabilities to a plant in Thailand in order
to reduce costs. Her company is taking advantage of a(n) _____ economy. - Answer location
The different value creation activities found in a firm are called _____. - Answer operations
What are the two types of activities found within a company's operations? - Answer primary
support
How can a firm increase its profitability and rate of profit growth by expanding internationally?
Choose all that apply. - Answer Sell products to the international market
Source activities where they are performed most efficiently
Realize greater cost economies
The two components of the experience curve are _____. Choose those that apply. - Answer
learning effects
economies of scale
Many chain restaurants look to McDonald's as the leader in management of fast-food
operations. This status demonstrates McDonald's - Answer core competence
McDonald's local franchises in France have begun to offer more elegant seating areas and an
upscale menu. This was done in response to slow growth rates in the area. Impressed with the
increased sales at these stores, McDonald's executives are considering making these changes
elsewhere. In this instance, what aspect of creating value is demonstrated? - Answer
Leveraging subsidiary skills
True or false: Location economies refer to the distribution point of a company's products. -
Answer False, Reason:
Location economies are those that arise from performing a value creation activity in the optimal
location for that activity.
Companies typically face two types of competitive pressures when entering global markets.
What are these two pressures? - Answer Be locally responsive
Reduce costs
Questions and All Correct Answers
2025-2026 Updated.
Heather's goal for the company this year is to sell its product line internationally. She feels this
will increase profits within the next three years by as much as 30%. Heather is developing a
____ for the company. - Answer strategy
What are the two ways a firm can create more value for its products? - Answer Make
product more attractive to consumer
Lower production costs
Identify three components of a business that make up its operations. - Answer marketing
human resources
research and development
Which two of the following are types of primary activities found in many businesses? - Answer
customer service
production
True or false: A company would typically experience a decrease in profit growth if it should
decide to disperse value creation activities to different locations as a way to perform those
activities more efficiently. - Answer False, Reason:
One way to increase profits is to source location economies to those where functions are
performed most efficiently.
A company's _____ is defined as the actions that managers take to attain the goals of the
company. - Answer strategy
Core competencies are typically expressed in ________ that other firms are unable to duplicate.
- Answer skills within a firm
Bryan's company wanted to gain a greater market share on its bicycle products so it built in
, Trina's company has moved all sewing and piece-work capabilities to a plant in Thailand in order
to reduce costs. Her company is taking advantage of a(n) _____ economy. - Answer location
The different value creation activities found in a firm are called _____. - Answer operations
What are the two types of activities found within a company's operations? - Answer primary
support
How can a firm increase its profitability and rate of profit growth by expanding internationally?
Choose all that apply. - Answer Sell products to the international market
Source activities where they are performed most efficiently
Realize greater cost economies
The two components of the experience curve are _____. Choose those that apply. - Answer
learning effects
economies of scale
Many chain restaurants look to McDonald's as the leader in management of fast-food
operations. This status demonstrates McDonald's - Answer core competence
McDonald's local franchises in France have begun to offer more elegant seating areas and an
upscale menu. This was done in response to slow growth rates in the area. Impressed with the
increased sales at these stores, McDonald's executives are considering making these changes
elsewhere. In this instance, what aspect of creating value is demonstrated? - Answer
Leveraging subsidiary skills
True or false: Location economies refer to the distribution point of a company's products. -
Answer False, Reason:
Location economies are those that arise from performing a value creation activity in the optimal
location for that activity.
Companies typically face two types of competitive pressures when entering global markets.
What are these two pressures? - Answer Be locally responsive
Reduce costs
