WPC 480 - MIDTERM EXAM WITH 100% CORRECT ANSWERS ALREADY GRADED A+.

Which of the following is an example of competitive parity? a.) A firm manufactures higher-quality wall clocks than its competitors. b.) A firm produces a similar number of wall clocks at a similar cost as its competitors. c.) A firm provides wall clocks that its consumers value more than other wall clocks. d.) A firm sells wall clocks at a lower price than its competitors. b Strategic commitments are actions that are a.) costly, short-term oriented, and easy to reverse. b.) inexpensive, long-term oriented, and difficult to reverse. c.) inexpensive, short-term oriented, and easy to reverse. d.) costly, long-term oriented, and difficult to reverse. d Powell Lighting was the first company to start selling LED light bulbs in its country—a product that gained popularity among diverse groups. Soon, other companies started to sell their own brands of LED bulbs, thereby giving Powell Lighting ample competition. In response, Powell Lighting decided to limit its LED light bulbs to outdoor models. However, it ensured that these models were the longest-lasting and lowest-priced on the market. With this innovation, Powell Lighting consistently outperformed its competitors for ten years. In this scenario, Powell Lighting maintained a ________ through its innovative strategy. a.) consistent power position b.) sustainable competitive advantage c.) fiduciary responsibility d.) balanced scorecard b ________ is best described as an integrative management field that combines analysis, formulation, and implementation in the quest for competitive advantage. a.) Inventory management b.) Supply chain management c.) Strategic management d.) Integrated technology management c What part of the AFI strategy framework does the question "How does the firm make money?" relate to? a.) competitive advantage, firm performance, and business models b.) strategic leadership and the strategy process c.) internal analysis d.) external analysis a Which of the following is typically an economic responsibility of a firm? a.) sourcing raw materials from highly developed countries b.) paying adequate returns to the firm's stockholders on the capital invested by them c.) helping a nation increase its import of goods and services d.) donating resources, in terms of money and time, toward community development b Molly Hue Apparels Inc. (MHA) had been outsourcing its production to less-developed countries in order to reduce its cost of production. With the emergence of its competitor, Hova Inc., MHA lost its competitive advantage. Hova had its production units in its home country that allowed the company to bring out the latest trends to the market earlier than MHA. Also, MHA frequently suffered due to political instability and lack of intellectual property laws in the outsourced countries. Thus, parts of MHA's strategies became obsolete and it had to relocate its production. What are such obsolete strategies referred to as in the planned emergence model? a.) tactical strategy b.) unrealized strategy c.) intended strategy d.) emergent strategy b The distribution department at Golden Grains Wheat Company has decided to adopt the FIFO (first in, first out) method of inventory to dispatch its bags of wheat. Which of the following strategies does this scenario best illustrate? a.) corporate strategy b.) business strategy c.) master strategy d.) functional strategy d In Strategy Highlight 2.1, what type of strategy did Diana, the Starbucks store manager in southern California, use to develop the new iced beverage for her store? a.) She created a dominant strategy plan. b.) She used an emergent strategy. c.) She used a rational planning approach to strategy planning. d.) She used scenario planning. b Due to several black swan events in the past, the a.) implicit trust relationship between the corporate world and society at large has deteriorated. b.) need for corporate governance and transparency has decreased within various industries. c.) nations around the globe have explicitly appreciated and accepted capitalism as an economic system. d.) shareholders of public companies have become more confident in investing their resources in businesses. a Which of the following features about a buyer indicates that the buyer has high bargaining power? a.) when the buyer operates in an industry where products are undifferentiated b.) when the buyer faces high switching costs c.) when the buyer cannot purchase specific products from other sellers d.) when the buyer cannot credibly threaten to backwardly integrate into the industry a Economies of scale are cost advantages that accrue for firms with a.) high fixed costs. b.) low employee turnover. c.) larger output. d.) high capital risks. c While Tender Chicken Inc. operates in a monopolistically competitive industry, Future Wireless Inc. operates in a monopoly. Keeping this information in mind, which of the following statements is most likely true? a.) The number of buyers will be limited for both Tender Chicken and Future Wireless. b.) Tender Chicken will have more profit potential than Future Wireless. c.) The threat of new entrants will be higher for Tender Chicken than for Future Wireless. d.) Tender Chicken will have more pricing power than Future Wireless does. c A firm's ________ relates to its ability to create value for customers (V) while containing the cost to do so (C). a.) industry effects b.) strategic position c.) industry analysis d.) advantage of the marketplace b