MAN 4720 STUDY GUIDE EXAM 2026/2027 QUESTIONS
AND ANSWERS RATED A+
✔✔The industrial organization (I/O) model argues that the: - ✔✔key factor in success is
choosing the correct industry in which to compete.
✔✔Which of the following statements is MOST consistent with the I/O view?
Performance of a firm is most directly attributable to: - ✔✔the profitability of the industry
in which the firm competes.
✔✔Firms use the five forces model of competition to identify the __________ of an
industry, as measured by its __________. - ✔✔attractiveness; profitability potential
✔✔Although Alibaba is competing in the Internet services industry, it has improved its
performance by focusing on innovation and service diversification. This improved
performance is best explained by: - ✔✔the resource-based model.
✔✔An investor is considering in which of two start-up companies to invest. The investor
has faith in the industrial organization (I/O) model of above-average returns and is using
that as a guideline to make a decision. Both start-up companies propose to manufacture
health-focused foods with low salt, low sugar, high fiber, and no artificial additives.
RexRich Foods has a business strategy of producing a differentiated product for which
consumers will pay more. Green Pastures Foods is in the health-foods industry because
of its internal culture and commitment to healthy lifestyles, but it does not have any
executives with experience in food production. Which firm will the investor feel is MOST
consistent with the I/O model? - ✔✔RexRich Foods
✔✔Research shows that approximately _____ percent of a firm's profitability is
explained by the industry in which it chooses to compete, whereas _____ percent is
explained by the firm's characteristics and actions. - ✔✔20; 36
✔✔All of the following are resources of an organization EXCEPT: - ✔✔weak
competitors in the industry.
✔✔All of the following are assumptions of the resource-based model EXCEPT: -
✔✔resources and capabilities are highly mobile across firms.
✔✔__________ is the capacity for a set of resources to perform a task or an activity in
an integrative manner. - ✔✔A capability
✔✔When capabilities serve as a source of competitive advantage for a firm over its
rivals, the firm has created a(n): - ✔✔core competence.
,✔✔In the resource-based model, which of the following factors would be considered a
key to organizational success? - ✔✔Skilled employees
✔✔To have the potential to become sources of competitive advantage, resources and
capabilities must be non-substitutable, valuable, __________, and __________. -
✔✔rare; costly to imitate
✔✔The resource-based model argues that: - ✔✔resources that are valuable, rare,
costly to imitate, and non-substitutable form the basis of a firm's core competencies.
✔✔The resource-based view of the firm: - ✔✔emphasizes that it is difficult to achieve
and sustain a competitive advantage based on resources alone.
✔✔The goal of the organization's __________ is to point the firm in the direction of
where it would like to be in the years to come. - ✔✔vision
✔✔The Princeton Alliance Church states on its website that "PAC exists to help you live
life to the fullest by knowing God, developing community and bringing hope." This
pronouncement is MOST precisely a statement of organizational: - ✔✔vision.
✔✔A firm's mission is: - ✔✔a statement of a firm's businesses in which it intends to
compete and the customers it intends to serve.
✔✔The final responsibility for forming the firm's mission rests with the: - ✔✔CEO.
✔✔A key purpose of a vision and mission statement is to inform _________ what a firm
is, what it seeks to accomplish, and who it seeks to serve. - ✔✔stakeholders
✔✔Organizational stakeholders include: - ✔✔employees.
✔✔The interests of an organization's stakeholders often conflict, and the organization
must prioritize its stakeholders if it cannot satisfy all of them. The __________ is the
MOST critical criterion in prioritizing stakeholders. - ✔✔power of each stakeholder
✔✔Capital market stakeholders include: - ✔✔shareholders.
✔✔Dissatisfied capital market stakeholders may: - ✔✔sell their stock.
✔✔Greenleaf Property Management has been earning below-average returns for the
last three years. Which of the following statements is true? - ✔✔Greenleaf will not be
able to minimally satisfy all stakeholders.
, ✔✔Product market stakeholders include the firm's customers, and the principal concern
of this stakeholder group is: - ✔✔obtaining reliable products at the lowest possible
prices.
✔✔Product market stakeholders generally are satisfied when: - ✔✔a firm's profit margin
reflects at least a balance between the returns to capital market stakeholders and the
returns in which they share.
✔✔Before liquidating during a bankruptcy, a company will take several actions to try to
satisfy its __________ stakeholders. - ✔✔capital market
✔✔The Chambers of Commerce of cities and towns often implore citizens to buy from
local businesses. This is because the organization's role as a taxpayer is MOST
important to __________ as stakeholders. - ✔✔host communities
✔✔A retail outlet can attempt several remedies to improve profitability to meet the
expectations of its __________ stakeholders, including closing stores, changing the top
management team, and seeking potential buyers. - ✔✔capital market
✔✔Organizational stakeholders are usually satisfied when: - ✔✔companies provide a
dynamic, stimulating, and rewarding work environment.
✔✔Product market stakeholders include: - ✔✔suppliers.
✔✔Refuge Nursing Homes, Inc., (RNH) has been highly profitable in the past 10 years,
providing its investors higher returns than those earned by its direct competitors'
investors. RNH has a reputation for providing high-paying managerial and hourly-
employee jobs. However, recent investigations have revealed that the nursing home
residents have been provided substandard care, including non-nutritious and
unappetizing meals, non-functional medical equipment, and inadequate patient-care
staffing. Which of the following statements best describes the situation? - ✔✔RNH has
prioritized the demands of capital market stakeholders and organizational stakeholders
over the demands of product market stakeholders.
✔✔A highly important means of building employee skills for the global competitive
landscape is through: - ✔✔international assignments.
✔✔The global economy, globalization, rapid technological change, and the increasing
importance of knowledge and people as sources of competitive advantage are creating
the need to: - ✔✔delegate strategic responsibilities to employees "closer to the action."
✔✔The strategic leader's work is characterized by: - ✔✔ambiguous decision situations.
AND ANSWERS RATED A+
✔✔The industrial organization (I/O) model argues that the: - ✔✔key factor in success is
choosing the correct industry in which to compete.
✔✔Which of the following statements is MOST consistent with the I/O view?
Performance of a firm is most directly attributable to: - ✔✔the profitability of the industry
in which the firm competes.
✔✔Firms use the five forces model of competition to identify the __________ of an
industry, as measured by its __________. - ✔✔attractiveness; profitability potential
✔✔Although Alibaba is competing in the Internet services industry, it has improved its
performance by focusing on innovation and service diversification. This improved
performance is best explained by: - ✔✔the resource-based model.
✔✔An investor is considering in which of two start-up companies to invest. The investor
has faith in the industrial organization (I/O) model of above-average returns and is using
that as a guideline to make a decision. Both start-up companies propose to manufacture
health-focused foods with low salt, low sugar, high fiber, and no artificial additives.
RexRich Foods has a business strategy of producing a differentiated product for which
consumers will pay more. Green Pastures Foods is in the health-foods industry because
of its internal culture and commitment to healthy lifestyles, but it does not have any
executives with experience in food production. Which firm will the investor feel is MOST
consistent with the I/O model? - ✔✔RexRich Foods
✔✔Research shows that approximately _____ percent of a firm's profitability is
explained by the industry in which it chooses to compete, whereas _____ percent is
explained by the firm's characteristics and actions. - ✔✔20; 36
✔✔All of the following are resources of an organization EXCEPT: - ✔✔weak
competitors in the industry.
✔✔All of the following are assumptions of the resource-based model EXCEPT: -
✔✔resources and capabilities are highly mobile across firms.
✔✔__________ is the capacity for a set of resources to perform a task or an activity in
an integrative manner. - ✔✔A capability
✔✔When capabilities serve as a source of competitive advantage for a firm over its
rivals, the firm has created a(n): - ✔✔core competence.
,✔✔In the resource-based model, which of the following factors would be considered a
key to organizational success? - ✔✔Skilled employees
✔✔To have the potential to become sources of competitive advantage, resources and
capabilities must be non-substitutable, valuable, __________, and __________. -
✔✔rare; costly to imitate
✔✔The resource-based model argues that: - ✔✔resources that are valuable, rare,
costly to imitate, and non-substitutable form the basis of a firm's core competencies.
✔✔The resource-based view of the firm: - ✔✔emphasizes that it is difficult to achieve
and sustain a competitive advantage based on resources alone.
✔✔The goal of the organization's __________ is to point the firm in the direction of
where it would like to be in the years to come. - ✔✔vision
✔✔The Princeton Alliance Church states on its website that "PAC exists to help you live
life to the fullest by knowing God, developing community and bringing hope." This
pronouncement is MOST precisely a statement of organizational: - ✔✔vision.
✔✔A firm's mission is: - ✔✔a statement of a firm's businesses in which it intends to
compete and the customers it intends to serve.
✔✔The final responsibility for forming the firm's mission rests with the: - ✔✔CEO.
✔✔A key purpose of a vision and mission statement is to inform _________ what a firm
is, what it seeks to accomplish, and who it seeks to serve. - ✔✔stakeholders
✔✔Organizational stakeholders include: - ✔✔employees.
✔✔The interests of an organization's stakeholders often conflict, and the organization
must prioritize its stakeholders if it cannot satisfy all of them. The __________ is the
MOST critical criterion in prioritizing stakeholders. - ✔✔power of each stakeholder
✔✔Capital market stakeholders include: - ✔✔shareholders.
✔✔Dissatisfied capital market stakeholders may: - ✔✔sell their stock.
✔✔Greenleaf Property Management has been earning below-average returns for the
last three years. Which of the following statements is true? - ✔✔Greenleaf will not be
able to minimally satisfy all stakeholders.
, ✔✔Product market stakeholders include the firm's customers, and the principal concern
of this stakeholder group is: - ✔✔obtaining reliable products at the lowest possible
prices.
✔✔Product market stakeholders generally are satisfied when: - ✔✔a firm's profit margin
reflects at least a balance between the returns to capital market stakeholders and the
returns in which they share.
✔✔Before liquidating during a bankruptcy, a company will take several actions to try to
satisfy its __________ stakeholders. - ✔✔capital market
✔✔The Chambers of Commerce of cities and towns often implore citizens to buy from
local businesses. This is because the organization's role as a taxpayer is MOST
important to __________ as stakeholders. - ✔✔host communities
✔✔A retail outlet can attempt several remedies to improve profitability to meet the
expectations of its __________ stakeholders, including closing stores, changing the top
management team, and seeking potential buyers. - ✔✔capital market
✔✔Organizational stakeholders are usually satisfied when: - ✔✔companies provide a
dynamic, stimulating, and rewarding work environment.
✔✔Product market stakeholders include: - ✔✔suppliers.
✔✔Refuge Nursing Homes, Inc., (RNH) has been highly profitable in the past 10 years,
providing its investors higher returns than those earned by its direct competitors'
investors. RNH has a reputation for providing high-paying managerial and hourly-
employee jobs. However, recent investigations have revealed that the nursing home
residents have been provided substandard care, including non-nutritious and
unappetizing meals, non-functional medical equipment, and inadequate patient-care
staffing. Which of the following statements best describes the situation? - ✔✔RNH has
prioritized the demands of capital market stakeholders and organizational stakeholders
over the demands of product market stakeholders.
✔✔A highly important means of building employee skills for the global competitive
landscape is through: - ✔✔international assignments.
✔✔The global economy, globalization, rapid technological change, and the increasing
importance of knowledge and people as sources of competitive advantage are creating
the need to: - ✔✔delegate strategic responsibilities to employees "closer to the action."
✔✔The strategic leader's work is characterized by: - ✔✔ambiguous decision situations.
