WPC 470 FINAL EXAM QUESTIONS & ANSWERS
A competitive advantage: - Answer -can be identified when competitors are unable to
duplicate a strategy or find it too costly to try to imitate.
Research shows that approximately _______ percent of a firm's profitability is explained
by the industry in which it chooses to compete, whereas ________ percent is explained
by the firm's characteristics and actions. - Answer -20; 36
Greenleaf Property Management has been earning below-average returns for the last
three years. Which of the following statements is true? - Answer -Greenleaf will not be
able to minimally satisfy all stakeholders.
The strategic management process is: - Answer -the full set of commitments, decisions,
and actions required for a firm to achieve strategic competitiveness and earn above-
average returns.
Delegation helps: - Answer -avoid too much managerial arrogance at the top.
Refuge Nursing Homes, Inc., (RNH) has been highly profitable in the past 10 years,
providing its investors higher returns than those earned by its direct competitors'
investors. RNH has a reputation for providing high-paying managerial and hourly-
employee jobs. However, recent investigations have revealed that the nursing home
residents have been provided substandard care, including non-nutritious and
unappetizing meals, non-functional medical equipment, and inadequate patient-care
staffing. Which statement best describes the situation? - Answer -RNH has prioritized
the demands of capital market stakeholders and organizational stakeholders over the
demands of product market stakeholders.
Alibaba is a company in the Internet services industry that has improved its
performance by focusing on its unique abilities in the area of innovation and service
diversification. This improved performance is best explained by: - Answer -the
resource-based model.
The Princeton Alliance Church states on its website that "PAC exists to help you live life
to the fullest by knowing God, developing community and bringing hope." This
pronouncement is MOST precisely a statement of organizational: - Answer -vision.
In smaller, new venture firms, returns are sometimes measured in terms of: - Answer -
the amount and speed of growth.
Jan is the CEO of GlenOak Corp. After analyzing GlenOak's vision statement and
aligning it with new environmental conditions, Jan rewrote GlenOak's mission. Which of
, the following best characterizes Jan's action? - Answer -Jan should have involved
managers at all levels in the firm as well as employees who interact with customers and
the markets for input when rewriting the mission statement.
Which of the following statements about organizational knowledge is true? - Answer -
All of these are correct.
They are:
-The value of knowledge as a proportion of total shareholder value is increasing.
-Knowledge is an intangible resource.
-Firms with appropriate internal knowledge resources are likely to invest an appropriate
amount of money in research and development.
All of the following are assumptions of the resource-based model EXCEPT: - Answer -
resources and capabilities are high mobile across firms.
A forward-looking analysis suggests that markets in __________ will yield significant
opportunities, as their economies, while currently not the largest, are expected to
exceed the size of the U. S. economy by the year 2050. - Answer -India and China
The aircraft industry has long been dominated by two large aircraft manufacturers,
Boeing and Airbus. The demand for major aircraft is low, and Boeing and Airbus
aggressively compete for orders from airlines. Which of the following effects will these
conditions have on the domestic airline industry? - Answer -It will make the airline
industry more attractive because of decreased supplier power.
Environmental scanning would be MOST important for which of the following
organizations? - Answer -A web design company catering to small businesses
Acme Valves, Inc., has been a successful player in the oil field supply industry in the
last 15 years. Acme maintained its strategy and product characteristics over this time
period. However, the company has experienced declines in sales and profits over the
last four quarters. The CEO of Acme should: - Answer -conduct an analysis of the
external environment.
How does the aging of the population pose a threat to firms? - Answer -It becomes
more difficult for firms to hire and retain a workforce that meets their needs.
The likelihood of entry of new competitors is affected by __________ and __________.
- Answer -barriers to entry; the expected retaliation of current industry participants
An analysis of income distribution would include all of the following EXCEPT: - Answer
-wage differentials between male and female employees working for a large
manufacturer.
In a particular industry, products need a certain level of maintenance. Customers can
take the product to service companies to provide that maintenance. However, a number
A competitive advantage: - Answer -can be identified when competitors are unable to
duplicate a strategy or find it too costly to try to imitate.
Research shows that approximately _______ percent of a firm's profitability is explained
by the industry in which it chooses to compete, whereas ________ percent is explained
by the firm's characteristics and actions. - Answer -20; 36
Greenleaf Property Management has been earning below-average returns for the last
three years. Which of the following statements is true? - Answer -Greenleaf will not be
able to minimally satisfy all stakeholders.
The strategic management process is: - Answer -the full set of commitments, decisions,
and actions required for a firm to achieve strategic competitiveness and earn above-
average returns.
Delegation helps: - Answer -avoid too much managerial arrogance at the top.
Refuge Nursing Homes, Inc., (RNH) has been highly profitable in the past 10 years,
providing its investors higher returns than those earned by its direct competitors'
investors. RNH has a reputation for providing high-paying managerial and hourly-
employee jobs. However, recent investigations have revealed that the nursing home
residents have been provided substandard care, including non-nutritious and
unappetizing meals, non-functional medical equipment, and inadequate patient-care
staffing. Which statement best describes the situation? - Answer -RNH has prioritized
the demands of capital market stakeholders and organizational stakeholders over the
demands of product market stakeholders.
Alibaba is a company in the Internet services industry that has improved its
performance by focusing on its unique abilities in the area of innovation and service
diversification. This improved performance is best explained by: - Answer -the
resource-based model.
The Princeton Alliance Church states on its website that "PAC exists to help you live life
to the fullest by knowing God, developing community and bringing hope." This
pronouncement is MOST precisely a statement of organizational: - Answer -vision.
In smaller, new venture firms, returns are sometimes measured in terms of: - Answer -
the amount and speed of growth.
Jan is the CEO of GlenOak Corp. After analyzing GlenOak's vision statement and
aligning it with new environmental conditions, Jan rewrote GlenOak's mission. Which of
, the following best characterizes Jan's action? - Answer -Jan should have involved
managers at all levels in the firm as well as employees who interact with customers and
the markets for input when rewriting the mission statement.
Which of the following statements about organizational knowledge is true? - Answer -
All of these are correct.
They are:
-The value of knowledge as a proportion of total shareholder value is increasing.
-Knowledge is an intangible resource.
-Firms with appropriate internal knowledge resources are likely to invest an appropriate
amount of money in research and development.
All of the following are assumptions of the resource-based model EXCEPT: - Answer -
resources and capabilities are high mobile across firms.
A forward-looking analysis suggests that markets in __________ will yield significant
opportunities, as their economies, while currently not the largest, are expected to
exceed the size of the U. S. economy by the year 2050. - Answer -India and China
The aircraft industry has long been dominated by two large aircraft manufacturers,
Boeing and Airbus. The demand for major aircraft is low, and Boeing and Airbus
aggressively compete for orders from airlines. Which of the following effects will these
conditions have on the domestic airline industry? - Answer -It will make the airline
industry more attractive because of decreased supplier power.
Environmental scanning would be MOST important for which of the following
organizations? - Answer -A web design company catering to small businesses
Acme Valves, Inc., has been a successful player in the oil field supply industry in the
last 15 years. Acme maintained its strategy and product characteristics over this time
period. However, the company has experienced declines in sales and profits over the
last four quarters. The CEO of Acme should: - Answer -conduct an analysis of the
external environment.
How does the aging of the population pose a threat to firms? - Answer -It becomes
more difficult for firms to hire and retain a workforce that meets their needs.
The likelihood of entry of new competitors is affected by __________ and __________.
- Answer -barriers to entry; the expected retaliation of current industry participants
An analysis of income distribution would include all of the following EXCEPT: - Answer
-wage differentials between male and female employees working for a large
manufacturer.
In a particular industry, products need a certain level of maintenance. Customers can
take the product to service companies to provide that maintenance. However, a number
