Mindtap quizzes Actual Test Study With Advanced Answers.

Which of the following is component of Porter's 5-Forces Model? - correct answer Threat of Substitutes Deelited Inc. is a company that manufactures soft toys for children. The company operates on a very large scale, and this has enabled it to price its toys at competitive rates while still retaining good product quality. Since it is extremely difficult for a new entrant to sell toys at such low prices, few competitors have emerged for Deelited in the past five years. In this case, the low threat that Deelited Inc. faces from new entrants can be attributed to - correct answer supply-side economies of scale Which of the following factors discourages the entry of new players into a market by reducing consumers' preference to purchase from them? - correct answer Demand-side benefits of scale A buyer will have high bargaining power relative to a supplier when - correct answer the supplier's products are largely undifferentiated. Which of the following is an example of an intangible resource of a firm? - correct answer Brand name Which of the following functions is a support activity of a firm? - correct answer Technological development Which of the following refers to activities involved with collecting, storing, and physically distributing a final product to customers? - correct answer Outbound logistics SWOT analysis is a tool that allows the managers of a firm to - correct answer get an overview of the firm's internal strengths and weaknesses and predict external threats and opportunities. A _____ strategy aims to provide a product or service at as low a price as possible to a broad audience. - correct answer cost leadership Which of the following is true of a differentiation strategy? - correct answer More than one firm can compete successfully based on differentiation in an industry. A corporate advantage occurs when a firm - correct answer maximizes its resources to build a competitive advantage across its various business lines. _____ is defined as a strategy in which a firm engages in several different businesses that may or may not be related in order to create more value than if the businesses existed as stand-alone entities. - correct answer Diversification The choice between related or unrelated diversification often results from an assessment of - correct answer The resources of a firm _____ exist when the costs of operating two or more businesses are less than the costs of operating the businesses independently. - correct answer Economies of scope One advantage of related diversification is - correct answer it allows for the sharing of resources among business units. _____ involve(s) the cost savings that a firm achieves through the distribution of capital among different business units. - correct answer Financial economies The test that a manager can use to determine whether a firm should undertake an acquisition involves two components—a better-off test and a(n) - correct answer ownership test. The _______ test asks the question: Is the industry profitable or capable of being profitable? - correct answer attractiveness Forward integration occurs when a firm - correct answer owns or controls the distribution channels for its main products. Which of the following is a disadvantage of vertical integration? - correct answer Lack of strategic flexibility Companies that seek to pursue a cost leadership strategy will most likely make organizational design decisions that emphasize - correct answer operational efficiency. An advantage of the bureaucratic approach to organizational control is that it - correct answer can withstand high turnover. Which of the following statements is true of a clan approach to control? - correct answer It is ideal for organizations that have constantly changing environments. Which of the following is a disadvantage of a functional organizational structure? - correct answer It is not suited to deal with the environmental changes in an organization. Which of the following is a valid differe