MGT 8803 STRATEGY FINAL EXAM
FREQUENTLY TESTED ACTUAL QUESTIONS WITH
CORRECT ANSWERS
Question 1.
Intangible assets are ____ likely to drive sustainable competitive advantage than physical assets.
- more
- less
- equally
ANSWER
more
Question 2.
Match the Industry Characteristics to the best Porter 5 Forces Model Conclusion:
High capital requirements strong brand loyalty; high exonemes of scale; differentiated products;
strong brand loyalty; "civilized" (non-price related) competitive tactics.
ANSWER
Competitive rivalry
Question 3.
Match the Industry Characteristics to the best Porter 5 Forces Model Conclusion:
Concentrated, powerful supplier bargaining power; significant investment required to enter the
industry; high minimum efficient scale; monopolistic (rivals) competition; no (or very low) buyer
switching costs, low brand loyalty, minor product differentiation between rivals; sophisticated buyers;
and lots of substitutes.
ANSWER
threat of new entrants
, Question 4.
True/False: A firm in an industry with high infrastructure costs and a high minimum efficient scale
(high economies of scale) will often resort to pricing and reduced margins to keep production volumes
up as industry growth begins to slow.
ANSWER
True
Question 5.
Consider both statements:
- Statement 1: Tesla's growth strategy is far more focused on horizontal integration instead of vertical
integration.
- Statement 2: Tesla's efforts to have in-house capabilities to make the batteries used in their EVs
would be best characterized as organic growth (rather than inorganic growth)
ANSWER
Only statement 2 is True
Question 6.
In our class discussion on internal analysis, we discussed a principal theory of competitive advantage
where the source of a firm's competitive advantage in the marketplace is derived from the firm's ___.
- products
- strategy
- resources
- dominant logic
- organizational structure
ANSWER
resources
FREQUENTLY TESTED ACTUAL QUESTIONS WITH
CORRECT ANSWERS
Question 1.
Intangible assets are ____ likely to drive sustainable competitive advantage than physical assets.
- more
- less
- equally
ANSWER
more
Question 2.
Match the Industry Characteristics to the best Porter 5 Forces Model Conclusion:
High capital requirements strong brand loyalty; high exonemes of scale; differentiated products;
strong brand loyalty; "civilized" (non-price related) competitive tactics.
ANSWER
Competitive rivalry
Question 3.
Match the Industry Characteristics to the best Porter 5 Forces Model Conclusion:
Concentrated, powerful supplier bargaining power; significant investment required to enter the
industry; high minimum efficient scale; monopolistic (rivals) competition; no (or very low) buyer
switching costs, low brand loyalty, minor product differentiation between rivals; sophisticated buyers;
and lots of substitutes.
ANSWER
threat of new entrants
, Question 4.
True/False: A firm in an industry with high infrastructure costs and a high minimum efficient scale
(high economies of scale) will often resort to pricing and reduced margins to keep production volumes
up as industry growth begins to slow.
ANSWER
True
Question 5.
Consider both statements:
- Statement 1: Tesla's growth strategy is far more focused on horizontal integration instead of vertical
integration.
- Statement 2: Tesla's efforts to have in-house capabilities to make the batteries used in their EVs
would be best characterized as organic growth (rather than inorganic growth)
ANSWER
Only statement 2 is True
Question 6.
In our class discussion on internal analysis, we discussed a principal theory of competitive advantage
where the source of a firm's competitive advantage in the marketplace is derived from the firm's ___.
- products
- strategy
- resources
- dominant logic
- organizational structure
ANSWER
resources
