BMGT 301 Final Exam UPDATED
ACTUAL Exam Questions and CORRECT
Answers
Operational Effectiveness - CORRECT ANSWER - performing the same tasks better than
rivals perform them
Strategic positioning - CORRECT ANSWER - performing different tasks than your rivals,
or performing the same tasks in a different way
Competitive advantage - CORRECT ANSWER - The ability for a firm to outperform its
competitors in financial measures
Sustainable competitive advantage - CORRECT ANSWER - A factor or set of factors can
lead to sustainable advantage if VRIS (valuable, rare, cannot imitate, and hard to substitute)
Resource Based View of Competitive Advantage - CORRECT ANSWER - the strategic
thinking, approach suggesting that if a firm is to maintain sustainable competitive advantage, it
must control an exploitable resource, or set of resources, that have four critical characteristics
(VRIS)
Tangible Resources - CORRECT ANSWER - Factories, products, raw materials
Intangible Resources - CORRECT ANSWER - Reputation, technology (patents,
copyrights)
Capabilities - CORRECT ANSWER - a subset of resources that enable a firm to take full
advantage of other resources
, Imitation-resistant value chain - CORRECT ANSWER - a strategic way of doing business
that is difficult for competitors to replicate
VRIS - CORRECT ANSWER - Valuable, rare, hard to imitate, hard to substitute
Switching Costs - CORRECT ANSWER - the cost a consumer incurs when moving from
one product to another
Differentiation - CORRECT ANSWER - Be the first one there (first mover advantage
versus fast follower), product differentiation
Vertical differentiation - CORRECT ANSWER - build a better product; products differ in
quality (Civic vs. Acura)
Horizontal differentiation - CORRECT ANSWER - Position yourself in "product space"
away from your competitors; used to appeal to distinct group of customers (red vs. blue cars)
Value chain - CORRECT ANSWER - the set of activities through which a product or
service is created and delivered to customers
Primary activities of the value chain - CORRECT ANSWER - Inbound logistics,
operations, outbound logistics, marketing & sales, service
Supporting activities of the value chain - CORRECT ANSWER - Firm infrastructure,
human resource management, technology development, procurement
Porter's Competitive Forces Model - CORRECT ANSWER - The intensity or rivalry
among existing competitors, threat of new entrants, bargaining power of customers, threat of
substitutes, bargaining power of suppliers
ACTUAL Exam Questions and CORRECT
Answers
Operational Effectiveness - CORRECT ANSWER - performing the same tasks better than
rivals perform them
Strategic positioning - CORRECT ANSWER - performing different tasks than your rivals,
or performing the same tasks in a different way
Competitive advantage - CORRECT ANSWER - The ability for a firm to outperform its
competitors in financial measures
Sustainable competitive advantage - CORRECT ANSWER - A factor or set of factors can
lead to sustainable advantage if VRIS (valuable, rare, cannot imitate, and hard to substitute)
Resource Based View of Competitive Advantage - CORRECT ANSWER - the strategic
thinking, approach suggesting that if a firm is to maintain sustainable competitive advantage, it
must control an exploitable resource, or set of resources, that have four critical characteristics
(VRIS)
Tangible Resources - CORRECT ANSWER - Factories, products, raw materials
Intangible Resources - CORRECT ANSWER - Reputation, technology (patents,
copyrights)
Capabilities - CORRECT ANSWER - a subset of resources that enable a firm to take full
advantage of other resources
, Imitation-resistant value chain - CORRECT ANSWER - a strategic way of doing business
that is difficult for competitors to replicate
VRIS - CORRECT ANSWER - Valuable, rare, hard to imitate, hard to substitute
Switching Costs - CORRECT ANSWER - the cost a consumer incurs when moving from
one product to another
Differentiation - CORRECT ANSWER - Be the first one there (first mover advantage
versus fast follower), product differentiation
Vertical differentiation - CORRECT ANSWER - build a better product; products differ in
quality (Civic vs. Acura)
Horizontal differentiation - CORRECT ANSWER - Position yourself in "product space"
away from your competitors; used to appeal to distinct group of customers (red vs. blue cars)
Value chain - CORRECT ANSWER - the set of activities through which a product or
service is created and delivered to customers
Primary activities of the value chain - CORRECT ANSWER - Inbound logistics,
operations, outbound logistics, marketing & sales, service
Supporting activities of the value chain - CORRECT ANSWER - Firm infrastructure,
human resource management, technology development, procurement
Porter's Competitive Forces Model - CORRECT ANSWER - The intensity or rivalry
among existing competitors, threat of new entrants, bargaining power of customers, threat of
substitutes, bargaining power of suppliers
