MGMT 449 EXAM 1 QUESTIONS WITH VERIFIED
ANSWERS
Which of the following would not diminish the risk of entry of potential competitors for an
established company within an industry? - Answers - established co doesn't benefit from
cost reductions due to mass production of standardized products
An industries buyers have high bargaining power when - Answers - switching costs are
low
What is the main function of mobility barriers in an industry? - Answers - inhibit the
movement of companies between strategic groups
As an industry enters the shakeout stage: - Answers - excess productive capacity
emerges
Anna bakes cookies for $10 per batch, she charges customers $15 for a batch, and
customers perceive that the cookies are worth $25 per batch. Annas profit margin is -
Answers - $5
In the past kodak processed the leading imagining tech. this tech allowed them to
differentiate their products from those offered by rivals. Imaging tech was kodaks: -
Answers - Distinctive competence
The concept of efficiency as a building block of competitive advantage applies to: -
Answers - All products produced by a firm
Intels invention of the microprocessor in the early 70s, ciscos development of the router
for routing data over the internet in the mid 80's, and apples development of the ipod,
iphone, etc in 2000s can be referred to as which type of innovation: - Answers - Product
The term value chain refers to the idea that a company is - Answers - A chain of
functional act that transform inputs
Although several diff measures of profitability exist many authorities in the measurement
of profitability argue that which of the following is the best measurement because it
focuses on the true operating performance of the company - Answers - ROIC
Which company has a distinctive competence in design making its devices highly
desirable to customers? - Answers - Apple
Which of the following is not a characteristic of resources that are inimitable?
. - Answers - easy to copy
, Which of the following factors is not one of the three factors affecting a company's
profitability? - Answers - The company's market share
Suppose a company can significantly reduce the costs of creating its products without
affecting the value customers place of them. Which of the following outcomes is most
likely? - Answers - The company's profitability will increase
Which of the following statements about sustained competitive advantage is true? -
Answers - It exists only when the company's profitability is greater than the average
profitability and profit growth of its rivals
In the last five years, Blue Drinks, a multinational beverage corporation, increased its
return on invested capital (ROIC) from $5 million to $25 million. The company was able
to do this by expanding its product line to include a wider variety of flavors. The $20
million increase in its ROIC over this period can be referred to as which of the following?
- Answers - Profit Growth
Which of the following statements about strategic leadership is true? - Answers - It is
involved with making decisions regarding how to create competitive advantage.
Philip oversees the processes of the research and development department of his
company. He is responsible for all the activities and tasks undertaken by the
department. In the context of strategic management, Philip is most likely to be a: -
Answers - Functional Manager
Beta Corp., a gaming software company, recently launched a new game. The target
audience identified by the company was the age group of 12-18 years. The advertising
and marketing strategies were designed exclusively to target this age group. However,
sales data revealed individuals who belong to the age bracket 18-25 years were the
ones who bought the game. The managers at Beta Corp. decided to redesign their
marketing strategies to position the game as a product that people of all ages would
enjoy. The company's decision to modify its product positioning demonstrates which of
the following strategies? - Answers - Emergent
A company, at its inception, states that its goal is "to provide the best customer service
possible." Which of the following best describes this objective? - Answers - It is the
company's mission statement
Systematic errors in the decision-making process are most often caused by: - Answers -
cognitive biases of decision makers
Which of the following are characteristics of good strategic leaders? - Answers - They
possess a willingness to delegate and empower subordinates
ANSWERS
Which of the following would not diminish the risk of entry of potential competitors for an
established company within an industry? - Answers - established co doesn't benefit from
cost reductions due to mass production of standardized products
An industries buyers have high bargaining power when - Answers - switching costs are
low
What is the main function of mobility barriers in an industry? - Answers - inhibit the
movement of companies between strategic groups
As an industry enters the shakeout stage: - Answers - excess productive capacity
emerges
Anna bakes cookies for $10 per batch, she charges customers $15 for a batch, and
customers perceive that the cookies are worth $25 per batch. Annas profit margin is -
Answers - $5
In the past kodak processed the leading imagining tech. this tech allowed them to
differentiate their products from those offered by rivals. Imaging tech was kodaks: -
Answers - Distinctive competence
The concept of efficiency as a building block of competitive advantage applies to: -
Answers - All products produced by a firm
Intels invention of the microprocessor in the early 70s, ciscos development of the router
for routing data over the internet in the mid 80's, and apples development of the ipod,
iphone, etc in 2000s can be referred to as which type of innovation: - Answers - Product
The term value chain refers to the idea that a company is - Answers - A chain of
functional act that transform inputs
Although several diff measures of profitability exist many authorities in the measurement
of profitability argue that which of the following is the best measurement because it
focuses on the true operating performance of the company - Answers - ROIC
Which company has a distinctive competence in design making its devices highly
desirable to customers? - Answers - Apple
Which of the following is not a characteristic of resources that are inimitable?
. - Answers - easy to copy
, Which of the following factors is not one of the three factors affecting a company's
profitability? - Answers - The company's market share
Suppose a company can significantly reduce the costs of creating its products without
affecting the value customers place of them. Which of the following outcomes is most
likely? - Answers - The company's profitability will increase
Which of the following statements about sustained competitive advantage is true? -
Answers - It exists only when the company's profitability is greater than the average
profitability and profit growth of its rivals
In the last five years, Blue Drinks, a multinational beverage corporation, increased its
return on invested capital (ROIC) from $5 million to $25 million. The company was able
to do this by expanding its product line to include a wider variety of flavors. The $20
million increase in its ROIC over this period can be referred to as which of the following?
- Answers - Profit Growth
Which of the following statements about strategic leadership is true? - Answers - It is
involved with making decisions regarding how to create competitive advantage.
Philip oversees the processes of the research and development department of his
company. He is responsible for all the activities and tasks undertaken by the
department. In the context of strategic management, Philip is most likely to be a: -
Answers - Functional Manager
Beta Corp., a gaming software company, recently launched a new game. The target
audience identified by the company was the age group of 12-18 years. The advertising
and marketing strategies were designed exclusively to target this age group. However,
sales data revealed individuals who belong to the age bracket 18-25 years were the
ones who bought the game. The managers at Beta Corp. decided to redesign their
marketing strategies to position the game as a product that people of all ages would
enjoy. The company's decision to modify its product positioning demonstrates which of
the following strategies? - Answers - Emergent
A company, at its inception, states that its goal is "to provide the best customer service
possible." Which of the following best describes this objective? - Answers - It is the
company's mission statement
Systematic errors in the decision-making process are most often caused by: - Answers -
cognitive biases of decision makers
Which of the following are characteristics of good strategic leaders? - Answers - They
possess a willingness to delegate and empower subordinates
