Mgmt 449 exam 1 || Graded A+.
Which of the following would not diminish the risk of entry of potential competitors for an
established company within an industry? correct answers established co doesn't benefit from cost
reductions due to mass production of standardized products
An industries buyers have high bargaining power when correct answers switching costs are low
What is the main function of mobility barriers in an industry? correct answers inhibit the
movement of companies between strategic groups
As an industry enters the shakeout stage: correct 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 correct 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: correct answers Distinctive
competence
The concept of efficiency as a building block of competitive advantage applies to: correct
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: correct answers Product
The term value chain refers to the idea that a company is correct 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 correct answers ROIC
Which company has a distinctive competence in design making its devices highly desirable to
customers? correct answers Apple
Which of the following is not a characteristic of resources that are inimitable?
. correct answers easy to copy
Which of the following factors is not one of the three factors affecting a company's profitability?
correct 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? correct
answers The company's profitability will increase
Which of the following statements about sustained competitive advantage is true? correct
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? correct answers Profit
Growth
Which of the following statements about strategic leadership is true? correct answers It is
involved with making decisions regarding how to create competitive advantage.
Which of the following would not diminish the risk of entry of potential competitors for an
established company within an industry? correct answers established co doesn't benefit from cost
reductions due to mass production of standardized products
An industries buyers have high bargaining power when correct answers switching costs are low
What is the main function of mobility barriers in an industry? correct answers inhibit the
movement of companies between strategic groups
As an industry enters the shakeout stage: correct 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 correct 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: correct answers Distinctive
competence
The concept of efficiency as a building block of competitive advantage applies to: correct
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: correct answers Product
The term value chain refers to the idea that a company is correct 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 correct answers ROIC
Which company has a distinctive competence in design making its devices highly desirable to
customers? correct answers Apple
Which of the following is not a characteristic of resources that are inimitable?
. correct answers easy to copy
Which of the following factors is not one of the three factors affecting a company's profitability?
correct 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? correct
answers The company's profitability will increase
Which of the following statements about sustained competitive advantage is true? correct
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? correct answers Profit
Growth
Which of the following statements about strategic leadership is true? correct answers It is
involved with making decisions regarding how to create competitive advantage.
