MNGT 4800 Exam 1 Questions with Correct
Answers
______________ is best describe as a set of goal-directed actions a firm takes to gain and
sustain superior performance relative to competitors.
Strategy
Juan wants to open his own hot dog restaurant but doesn't know anything about
business. He needs help determining who his competition is, how he should craft his
strategy to compete and how he'll implement his strategy to achieve a competitive
advantage. He's hired you to help him get started. As a result, you will probably use
which of the following?
AFI strategy framework
A firm that achieves superior performance relative to other firms in the same industry
or the industry average has a(n)
Competitive advantage
Which of the following is an example of competitive parity?
A firm produces a similar number of wall clocks at a similar cost as it's competitors.
DuraLine Ltd. is a landline telephone manufacturer whose average return on invested
capital is approximately 2 percent. Because demand for landline telephones has
declined significantly, the industry average return on invested capital has been negative
(-5 percent) for the last few years. In this scenario, DuraLine Ltd. has a
___________________.
Competitive advantage
, As the strategic manager of AlwaysSharp art knives, you are tasked with producing a
strategy for introducing a new line of premium knives. Your competitor produces a line
of similar art knives at a cost of $1 and sells them for $5. Because your company has
inferior production capabilities, your knives will cost $2 each to produce. However,
your handle is proven to be more comfortable than your competitors. Assuming you are
guaranteed to sell the same number of units as your competitor, which of the following
strategies is most likely to achieve a competitive advantage?
Market AlwaysSharp art knives as a higher-quality alternative and sell them for $7
Golden Age Cinemas Inc. and HiDef Inc. are two companies that own and run movie
theaters in malls and other commercial areas. Both are trying to coax consumers back
into movie theaters after the COVID-19 pandemic shutdowns. While Golden Age
Cinemas Inc. pursues a cost-leadership strategy, HiDef Inc. adopts a differentiation
strategy. Which of the following statements is most likely true of this scenario?
Josef and Golden Age Cinemas will not be direct competitors to each other, and their
customer segments will overlap very little
Writer Button Inc and Horner Inc are two companies that have been manufacturing
typewriters for almost 30 years. Due to the reduced demand for typewriters today, both
companies average return on invested capital is approximately -5 percent. The current
industry average is 2 percent. In this scenario, Writer Button Inc and Horner Inc most
likely have
Competitive parity with each other
The best example of a firm's external stakeholder is a(n)
Government agency that regulates the prices of products manufactured by the firm
Answers
______________ is best describe as a set of goal-directed actions a firm takes to gain and
sustain superior performance relative to competitors.
Strategy
Juan wants to open his own hot dog restaurant but doesn't know anything about
business. He needs help determining who his competition is, how he should craft his
strategy to compete and how he'll implement his strategy to achieve a competitive
advantage. He's hired you to help him get started. As a result, you will probably use
which of the following?
AFI strategy framework
A firm that achieves superior performance relative to other firms in the same industry
or the industry average has a(n)
Competitive advantage
Which of the following is an example of competitive parity?
A firm produces a similar number of wall clocks at a similar cost as it's competitors.
DuraLine Ltd. is a landline telephone manufacturer whose average return on invested
capital is approximately 2 percent. Because demand for landline telephones has
declined significantly, the industry average return on invested capital has been negative
(-5 percent) for the last few years. In this scenario, DuraLine Ltd. has a
___________________.
Competitive advantage
, As the strategic manager of AlwaysSharp art knives, you are tasked with producing a
strategy for introducing a new line of premium knives. Your competitor produces a line
of similar art knives at a cost of $1 and sells them for $5. Because your company has
inferior production capabilities, your knives will cost $2 each to produce. However,
your handle is proven to be more comfortable than your competitors. Assuming you are
guaranteed to sell the same number of units as your competitor, which of the following
strategies is most likely to achieve a competitive advantage?
Market AlwaysSharp art knives as a higher-quality alternative and sell them for $7
Golden Age Cinemas Inc. and HiDef Inc. are two companies that own and run movie
theaters in malls and other commercial areas. Both are trying to coax consumers back
into movie theaters after the COVID-19 pandemic shutdowns. While Golden Age
Cinemas Inc. pursues a cost-leadership strategy, HiDef Inc. adopts a differentiation
strategy. Which of the following statements is most likely true of this scenario?
Josef and Golden Age Cinemas will not be direct competitors to each other, and their
customer segments will overlap very little
Writer Button Inc and Horner Inc are two companies that have been manufacturing
typewriters for almost 30 years. Due to the reduced demand for typewriters today, both
companies average return on invested capital is approximately -5 percent. The current
industry average is 2 percent. In this scenario, Writer Button Inc and Horner Inc most
likely have
Competitive parity with each other
The best example of a firm's external stakeholder is a(n)
Government agency that regulates the prices of products manufactured by the firm
