WPC 480 (FINAL) Complete Questions And Answers 100% Solved

WPC 480 (FINAL) Complete Questions And Answers 100% Solved Ackbar, Inc. has had high growth in profits for several years, and each year it has had the highest profits ever. What can you assess about Ackbar's strategic competitive advantage? - answerCan assess nothing about competitive advantage. Firms that outperform all their competitors must have a high quality strategy. - answerFalse It is not rare that a CEO of a large, public organizations will be given a raise and/or bonus even though the profitability of the firm has been negative for several years. What is the best explanation for this? - answerThe firm has been growing rapidly in number of locations and factories. Why are theories of how to achieve a competitive advantage not about sufficient causes, but only necessary causes? - answerThe causes of firm performance are not generalizable to all contexts. Firms are made more capable of achieving a competitive advantage by having strong competitors so they must adapt and become stronger in the market. - answerFalse Accounting Value - answerBased on historical data Shareholder Value - answerBased on predictions on the future Economic Value - answerBased on predictions of the future Balanced Scorecard - answerBased mostly on perceptions that can change quickly Research into the causes of high performance in firms ought to include studying firms that have very low performance. - answerTrue It is difficult to learn much about how to succeed at strategy when asking people to explain their successes after they have become successful. - answerTrue In the long run,the major ways of evaluating firm performance will tend to be correlated with each other. So this suggests that for a strategic analyst, it doesn't matter much what data on firm performance is chosen. - answerFalse The higher proportion of assets that are tangible, the more useful accounting profit is as a measure of firm performance for a strategic analyst. - answerTrue PESTEL - answerPolitical Economic Sociocultural Technological Ecological Legal Political - answerNon-market strategies Economic - answerMacro-economic conditions of a country or region Sociocultural - answerCultures, norms, and value Technological - answerApplication of new knowledge Ecological - answerNatural environment Legal - answerGoverning laws, mandates, regulations What is the primary value to a strategic analyst of doing a PESTEL analysis? - answerIdentifies external conditions that can have an effect on competitiveness. What is the most important information a strategic analyst can obtain by doing an industry structure analysis? - answerWho gets the profits produced by industry members. The patent on a new technology has just expired. If all members of an industry adopt the newly available technology, it will allow them to reduce production costs by 50% by using more common input materials and fewer workers to run the production line. Which of the following forces is LEAST likely to be affected if all the industry member's adopt the new production technology? - answerRivalry among competitors High exit barriers are likely to lower the profitability of an industry on average. - answerTrue Network effects (also known as network externalities) are when a product becomes more valuable when more people purchase and/or use that product. For example, the more people that use a particular social media platform, the more valuable the platform becomes as more people's friends, advertisers, and celebrities want to be on it because it connects them to more people. If an industry makes a product with network effects, is it most likely to DECREASE buyer power? - answerTrue If there is high rivalry/competition among the members of an industry it generally does not improve industry profitability, EXCEPT it can have a positive effect on profitability by reducing which of the following? - answerThreat of entrants Which of the following requirement makes it hardest to enter an industry? - answerA new international brand is required. Buyer power and supplier power are mostly set by the options available to the suppliers, buyers, and industry members when contracting with each other. - answerTrue A firm in an industry with poor industry structure should always be trying to move to an industry with a better industry structure. - answerTrue Resources - answerAnything a firm can use for strategically creating value. Core Competencies - answerProcesses that can allow a company to create more value than competitors Capabilities - answerSkills at deploying resources strategically to create value. V (in vrio) - answerFirm profits are directly impr... R (in VRIO) - answerAny item that is not generally available at other firms I (VRIO) - answerDifficulty a firm has tranfera... O (in VRIO) - answerAbility of the firm to exploit Resource Heterogeneity - answerFirms do not initially access to all then same resources as their competitors. IP protection - answerCan make it unlawful for anyone to copy a firm's processes or technology Capability stickiness - answerThe difficulty of moving intangible resources like group knowledge, trust, relationship, etc. from one organization to another. Causal ambiguity - answerNo one knows what are the multiple causes that create a firm's performance. Path dependence - answerCurrent actions are constrained by the commitments created by past actions Why should a strategic analyst perform both a five forces analysis and a VRIO analysis before performing a SWOT analysis? - answerSWOT analysis depends upon the specific firm and its context. The biggest barrier to analyzing whether a firm's culture is a source of competitive advantage is measuring culture's direct effect on the firm's outcomes. - answerTrue Internal sources of competitive advantage are generally more important in determining a firm's competitive advantage than external sources of competitive advantage. - answerTrue