WPC 480 Midterm Exam Questions And Answers 100% Solved 2024/2025

WPC 480 Midterm Exam Questions And Answers 100% Solved 2024/2025 The relative bargaining power of suppliers is high when incumbent firms face low switching costs when changing suppliers. A. True B. False - answerFalse According to the internal value chain analysis, which of the following is a primary activity? A. Research and Development B. Supply Chain Mgt C. Accounting D. Human Resources - answerSupply Chain Mgt _______________________ is best described as the difference between the value a consumer attaches to a good and the cost to provide the good. A. Profit B. Economic Value Created C. Consumer's Surplus D. Producer's Surplus - answerEconomic Value Created Onivo Auto Inc. has been the leader in low-cost and fuel-efficient engine technology for many years. It has been able to sustain its competitive advantage primarily because of its highly efficient automobile engines, which competitors have been unable to develop or buy at a reasonable price. In the context of the VRIO framework, which of the following resource attributes most likely underpins Onivo's competitive advantage? A. The resource is easy to replicate. B. The resource is costly to imitate. C. The resource neutralizes external opportunities - answerThe resource is costly to imitate. Which is a source of increasing customers' willingness to pay? A. Common Product Feature B. Learning Curve Effect C. Poor Customer Service D. Existence of Great Compliments - answerExistence of Great Compliments Which of the following is not true about the business-level strategy of Walmart? A. Walmart has been pursuing cost leadership strategy. B. Walmart charges lower price for national brand goods, increasing consumers' surplus. C. Heavy investment in smart IT systems is not consistent with Walmart's overall strategic position. D. Real-time EDI with suppliers helped Walmart lower inventory management cost. - answerHeavy investment in smart IT systems is not consistent with Walmart's overall strategic position What is strategy? - answerAn integrated set of goal-directed actions a firm takes to gain and sustain competitive advantages Competitive Advantage - answerOccurs when an organization is able to create more economic value than the marginal (breakeven) competitor in its product market (through superior differentiation and/or lower costs). [Temporary or Sustainable] Sustainable Competitive Advantage - answerOutperforming competitors or the industry average over a prolonged period of time Competitive Disadvantage - answerUnderperformance relative to other competitors in the same industry or the industry average Competitive Parity - answerPerformance of two or more firms at the same level Vision - answerWhat do we want to accomplish? Mission - answerHow do we accomplish our goals? What do we do to accomplish our goals? Values - answerWhat commitments do we make? What guardrails do we put in place? How can we act legally and ethically in pursuit of the vision and mission? Product-Oriented Vision Statement - answerDefines a business in terms of a good or service provided ex. "We aim to be the best player in the typewriter business" Cons: Less flexible, not needs-based Customer-Oriented Vision Statement - answerDefines a business in terms of providing solutions to customer needs Ex. Nike: "To bring inspiration and innovation to every athlete in the world" What's the difference between a mission and vision statement? - answerVision: What an org wants to accomplish Mission: How the vision will be accomplished Stakeholder Strategy - answerManaging stakeholders in order to gain and sustain competitive advantage Benefits of effective stakeholder strategy to firm performance - answerLowered costs, greater org adaptability and flexibility ex. Costco Stakeholders - answerAny person or groups who have a vested claim or interest in the performance and continued survival of the firm. What is Strategic Leadership? - answer-Successful use of power and influence -Directing the activities of others -Pursuing an organization's goals -Enabling organizational competitive advantage Intended Strategy - answerThe outcome of a rational and structured top-down strategic plan