BUAD 453 Exam 1 Questions And Verified Detailed Answers
What is an appropriate problem statement/strategic challenge for the Charles
Chocolates case? - ANSWER The Charles Chocolates Board of Directors has charged
Steve Parkland to double or triple the size of the company within 10 years. The strategy
must fit the company's culture and gain support of the board, management and
employees.
There are three levels of strategy that affect different levels in an organization -
corporate, business and managerial/functional level strategy. Which level of strategy is
most relevant when making decisions about how a business-unit within the firm will be
competitive? - ANSWER Business-level Strategy
Which of the following business-level strategies is most appropriate for Charles
Chocolates? - ANSWER Differentiation
Charles Chocolates has four key competitors within the premium chocolate market;
Godiva, Delice, Lindt, and Cardon's. According to the information contained within the
"Competitors" section on Page 2 of the case, which one of the these companies would
most likely tend towards a cost leadership business-level strategy? ANSWER Cardon's
Which strategic management analytical framework would be most appropriate to use
when analyzing major factors that affect profit potential of the premium chocolate
industry? - ANSWER Porter's Five Forces
There are many substitutes for premium chocolate, particularly as a gift. Which of the
following is NOT a substitute? - ANSWER Premium chocolate from other companies
Which of the following facts of the case would weaken the threat of new entrant
pressure-that is, the threat of new competitors-in a Porter's Five Forces analysis?
ANSWER There is strong brand loyalty to existing competitors.
, Which of the following facts from the Charles Chocolates case is an example of a
sociocultural factor in a STEEP analysis? - ANSWER Demand for chocolate has
increased because it has antioxidants and consumers are more health conscious.
Which of the following is NOT a key resource or capability of Charles Chocolates? -
ANSWER Strong human resources management
Which of the following is NOT one of the options Charles Chocolates is considering to
double or triple the size in ten years? - ANSWER Status quo
Fifty percent of Charles Chocolates revenue is derived from its retail stores. What is the
LEAST percentage of total sales for one of its other business lines - ANSWER Online
Charles Chocolates ROA is increasing year over year and well above the industry
average. Which of the following is an appropriate interpretation of this data? - ANSWER
The company is doing a good job with utilizing its assets to generate profit.
Is the brand image of Charles Chocolates a basis of competitive advantage? ANSWER
Yes, it is valuable, rare, costly to imitate, and organized to capture value-at least in the
Portland, ME area.
Why are Charles Chocolates' production facilities NOT a source of competitive
advantage? Select the best answer. - ANSWER There are not effective management
systems in place to maximize efficiency. Therefore, the facilities are not organized to
capture value.
Charles Chocolates manufactures a quality chocolate. Which of the following is a piece
of evidence that its high-quality chocolate is "valuable" (in the VRIO model)? Choose the
best answer. ANSWER It received the prestigious Superior Taste Award from the
Institute for Taste in Belgium.
Although Charles Chocolates is a strong brand image, one might question the brand
image particularly as it relates to growth. - ANSWER The brand image is very traditional
and it is not clear whether or not younger buyers would appreciate it.
What is an appropriate problem statement/strategic challenge for the Charles
Chocolates case? - ANSWER The Charles Chocolates Board of Directors has charged
Steve Parkland to double or triple the size of the company within 10 years. The strategy
must fit the company's culture and gain support of the board, management and
employees.
There are three levels of strategy that affect different levels in an organization -
corporate, business and managerial/functional level strategy. Which level of strategy is
most relevant when making decisions about how a business-unit within the firm will be
competitive? - ANSWER Business-level Strategy
Which of the following business-level strategies is most appropriate for Charles
Chocolates? - ANSWER Differentiation
Charles Chocolates has four key competitors within the premium chocolate market;
Godiva, Delice, Lindt, and Cardon's. According to the information contained within the
"Competitors" section on Page 2 of the case, which one of the these companies would
most likely tend towards a cost leadership business-level strategy? ANSWER Cardon's
Which strategic management analytical framework would be most appropriate to use
when analyzing major factors that affect profit potential of the premium chocolate
industry? - ANSWER Porter's Five Forces
There are many substitutes for premium chocolate, particularly as a gift. Which of the
following is NOT a substitute? - ANSWER Premium chocolate from other companies
Which of the following facts of the case would weaken the threat of new entrant
pressure-that is, the threat of new competitors-in a Porter's Five Forces analysis?
ANSWER There is strong brand loyalty to existing competitors.
, Which of the following facts from the Charles Chocolates case is an example of a
sociocultural factor in a STEEP analysis? - ANSWER Demand for chocolate has
increased because it has antioxidants and consumers are more health conscious.
Which of the following is NOT a key resource or capability of Charles Chocolates? -
ANSWER Strong human resources management
Which of the following is NOT one of the options Charles Chocolates is considering to
double or triple the size in ten years? - ANSWER Status quo
Fifty percent of Charles Chocolates revenue is derived from its retail stores. What is the
LEAST percentage of total sales for one of its other business lines - ANSWER Online
Charles Chocolates ROA is increasing year over year and well above the industry
average. Which of the following is an appropriate interpretation of this data? - ANSWER
The company is doing a good job with utilizing its assets to generate profit.
Is the brand image of Charles Chocolates a basis of competitive advantage? ANSWER
Yes, it is valuable, rare, costly to imitate, and organized to capture value-at least in the
Portland, ME area.
Why are Charles Chocolates' production facilities NOT a source of competitive
advantage? Select the best answer. - ANSWER There are not effective management
systems in place to maximize efficiency. Therefore, the facilities are not organized to
capture value.
Charles Chocolates manufactures a quality chocolate. Which of the following is a piece
of evidence that its high-quality chocolate is "valuable" (in the VRIO model)? Choose the
best answer. ANSWER It received the prestigious Superior Taste Award from the
Institute for Taste in Belgium.
Although Charles Chocolates is a strong brand image, one might question the brand
image particularly as it relates to growth. - ANSWER The brand image is very traditional
and it is not clear whether or not younger buyers would appreciate it.
