MGMT 4513 Final Exam Study
Guide with Correct Answers |
Guarantee Pass
1. Mission - ANSWER statement explaining why a company exists
2. Vision - ANSWER Crystallization of what leaders want firm to be
3. Strategic Plan - ANSWER How to beat present and potential competitors
4. Which of the following firms would likely pose the least competitive threat?
- ANSWER A competitor to your product where a high switching cost
exists
5. If you believed in a pure five forces model of above-average returns, which
of the following things is LEAST important? - ANSWER Incumbents will
take legal action if new entrants do not differentiate their products
6. The bargaining power of suppliers is enhanced under the following market
condition - ANSWER Dominance by a few suppliers
7. A certain marble quarry provides a unique type of marble that is richly
colored and strikingly veined. It has been used for churches and public
buildings throughout the world. The architect of a new headquarters for a
prestigious Fortune 500 firm has specified the use of this marble, and this
marble only, for this project. Which of the following statements is most
, likely to be true? - ANSWER The cost of the marble will be expensive
because of the bargaining power of the supplier
8. Supplier power tends to e highest in industries where products are vital to
buyers, where switching from one supplier to another is very costly, and
where there are many suppliers. - ANSWER False
9. The most intense rivalry results from - ANSWER Numerous equally
balanced competitors, slow industry growth, high fixed or storage costs
10.Upper limits on the prices a firm can charge are impacted by: - ANSWER
The cost of substitute products
11.Which of the following is not one of the reasons the internet increases the
intensity of competitive rivalry? - ANSWER The internet has made it more
difficult to imitate the product quality advantages achieved by competitors
12.Firms would be most likely to face intense rivalry with competitors when
they - ANSWER Have high fixed costs, in a slow growth industry with high
exit barriers
13.If you believed in a pure five force model of above-average returns, which
of the following things is LEAST important? - ANSWER Analysis of
resources, capabilities, and core competencies
14.Industry A is characterized by high advertising and R&D expenses (as a
proportion of revenues) or, said differentiation. Industry B has low
advertising and R&D expenses. Which industry would tend to have a higher
threat of new entrants? High degree of rivalry? - ANSWER Industry B;
Industry B
,15.. A manufacturing business pursuing cost leadership will likely - ANSWER
Rely on experience effects to raise efficiency
16.Which of the following would be most difficult to assess? - ANSWER The
legitimacy and reputation of a firm
17.A newly acquired business must always have products that are similar to the
existing businesses' products to benefit from the corporation's core
competence. - ANSWER False
18.A crash R&D program by one firm cannot replicate a successful technology
developed by another firm when research findings cumulate. This is an
example of - ANSWER Path Dependency
19.The hierarchy of organizational goals is in this order (least specific to most
specific): - ANSWER Mission statements, visions statements, strategic
objectives
20.Some excellent examples of mission statements are: "To be the happiest
place on Earth" (Disney), and "restoring patients to full life" (Medtronic). -
ANSWER False
21.Organizational goals and objectives should be vague in order to allow
changes in strategy. - ANSWER False
22.Increasingly larger amounts of women entering the work force since the
early 1970s is an example of - ANSWER Sociocultural changes
, 23.An industry is defined as - ANSWER A group of firms producing products
that are close substitutes.
24.. The five forces model (buyers/suppliers/new entrants/substitutes/rivalry) is
a firm-level analytical model which explains differences in performance
between the firms that compete in one industry - ANSWER False
25.Which is considered a force in the "Five-Forces" model? - ANSWER
Rivalry among competing firms
26.Because the internet lowers barriers to entry in most industries, it -
ANSWER Increases the threat of new entrants
27.Which of the following is NOT an entry barrier to an industry? - ANSWER
Bargaining power of suppliers
28.Industries characterized by high economies of scale typically attract fewer
new entrants. - ANSWER True
29.Convincing rivals not to enter a price war, protection from customer
pressure to lower prices, and the ability to better withstand cost increases
from suppliers characterize which type of competitive strategy? - ANSWER
Overall cost leadership
30.High product differentiation is generally accompanied by - ANSWER
Decreased emphasis on competition based on price
31.A firm can achieve differentiation through all of the following means except
- ANSWER Offering lower prices to frequent customers
Guide with Correct Answers |
Guarantee Pass
1. Mission - ANSWER statement explaining why a company exists
2. Vision - ANSWER Crystallization of what leaders want firm to be
3. Strategic Plan - ANSWER How to beat present and potential competitors
4. Which of the following firms would likely pose the least competitive threat?
- ANSWER A competitor to your product where a high switching cost
exists
5. If you believed in a pure five forces model of above-average returns, which
of the following things is LEAST important? - ANSWER Incumbents will
take legal action if new entrants do not differentiate their products
6. The bargaining power of suppliers is enhanced under the following market
condition - ANSWER Dominance by a few suppliers
7. A certain marble quarry provides a unique type of marble that is richly
colored and strikingly veined. It has been used for churches and public
buildings throughout the world. The architect of a new headquarters for a
prestigious Fortune 500 firm has specified the use of this marble, and this
marble only, for this project. Which of the following statements is most
, likely to be true? - ANSWER The cost of the marble will be expensive
because of the bargaining power of the supplier
8. Supplier power tends to e highest in industries where products are vital to
buyers, where switching from one supplier to another is very costly, and
where there are many suppliers. - ANSWER False
9. The most intense rivalry results from - ANSWER Numerous equally
balanced competitors, slow industry growth, high fixed or storage costs
10.Upper limits on the prices a firm can charge are impacted by: - ANSWER
The cost of substitute products
11.Which of the following is not one of the reasons the internet increases the
intensity of competitive rivalry? - ANSWER The internet has made it more
difficult to imitate the product quality advantages achieved by competitors
12.Firms would be most likely to face intense rivalry with competitors when
they - ANSWER Have high fixed costs, in a slow growth industry with high
exit barriers
13.If you believed in a pure five force model of above-average returns, which
of the following things is LEAST important? - ANSWER Analysis of
resources, capabilities, and core competencies
14.Industry A is characterized by high advertising and R&D expenses (as a
proportion of revenues) or, said differentiation. Industry B has low
advertising and R&D expenses. Which industry would tend to have a higher
threat of new entrants? High degree of rivalry? - ANSWER Industry B;
Industry B
,15.. A manufacturing business pursuing cost leadership will likely - ANSWER
Rely on experience effects to raise efficiency
16.Which of the following would be most difficult to assess? - ANSWER The
legitimacy and reputation of a firm
17.A newly acquired business must always have products that are similar to the
existing businesses' products to benefit from the corporation's core
competence. - ANSWER False
18.A crash R&D program by one firm cannot replicate a successful technology
developed by another firm when research findings cumulate. This is an
example of - ANSWER Path Dependency
19.The hierarchy of organizational goals is in this order (least specific to most
specific): - ANSWER Mission statements, visions statements, strategic
objectives
20.Some excellent examples of mission statements are: "To be the happiest
place on Earth" (Disney), and "restoring patients to full life" (Medtronic). -
ANSWER False
21.Organizational goals and objectives should be vague in order to allow
changes in strategy. - ANSWER False
22.Increasingly larger amounts of women entering the work force since the
early 1970s is an example of - ANSWER Sociocultural changes
, 23.An industry is defined as - ANSWER A group of firms producing products
that are close substitutes.
24.. The five forces model (buyers/suppliers/new entrants/substitutes/rivalry) is
a firm-level analytical model which explains differences in performance
between the firms that compete in one industry - ANSWER False
25.Which is considered a force in the "Five-Forces" model? - ANSWER
Rivalry among competing firms
26.Because the internet lowers barriers to entry in most industries, it -
ANSWER Increases the threat of new entrants
27.Which of the following is NOT an entry barrier to an industry? - ANSWER
Bargaining power of suppliers
28.Industries characterized by high economies of scale typically attract fewer
new entrants. - ANSWER True
29.Convincing rivals not to enter a price war, protection from customer
pressure to lower prices, and the ability to better withstand cost increases
from suppliers characterize which type of competitive strategy? - ANSWER
Overall cost leadership
30.High product differentiation is generally accompanied by - ANSWER
Decreased emphasis on competition based on price
31.A firm can achieve differentiation through all of the following means except
- ANSWER Offering lower prices to frequent customers
