MGMT 351 Test 3 questions and
answers already passed
formulating vs Implementing Strategy, Which is easier? - correct answer ✔✔Formulating a
Strategy becomes easier.
Elements of a SWOT - correct answer ✔✔strengths, weaknesses, opportunities, threats
Value Creation - correct answer ✔✔Performing activities that increase the value of goods or
services to consumers
Value Capture - correct answer ✔✔The appropriation of the value created by a product, service,
or process.
Porter's Five Forces Model - correct answer ✔✔analyzes the competitive forces within the
environment in which a company operates to assess the potential for profitability in an industry
threat of new entrants - correct answer ✔✔The potential for new companies to enter an
industry and disrupt its market dynamics.
The threat of substitutes - correct answer ✔✔Companies are concerned that substitute
products or services made displace their own.
The bargaining power of buyers - correct answer ✔✔When their bargaining power is high,
buyers gain negotiating power for lower prices, better quality, and better terms for their
purchases when dealing with suppliers
, The bargaining power of suppliers - correct answer ✔✔refers to the pressure that suppliers can
put on companies by raising their prices, lowering their quality, or reducing the availability of
their products
Rivalry among existing competitors - correct answer ✔✔a measure of the extent of competition
among existing firms
Product commoditization - correct answer ✔✔loss of product differentiation when multiple
firms have similar offerings
Low Cost Leadership - correct answer ✔✔a business strategy that aims to gain a competitive
advantage by offering the lowest prices in the market
Diversification - correct answer ✔✔Spreading out investments to reduce risk
What Factors are important qualities for firm resources and capabilities? - correct answer
✔✔valuable, rare, inimitable (there are no substitutes), and possessed by the organization
despite it being costly to imitate in terms of time or money or both
Sustained competitive advantage - correct answer ✔✔a company's ability to produce better or
cheaper goods and services than its competitors
What is an Oligopoly? - correct answer ✔✔A market structure in which a few large firms
dominate a market
unrelated diversification - correct answer ✔✔a growth strategy whereby a new business lacks
any common elements with the present business
related diversification - correct answer ✔✔a growth strategy whereby the current target market
and/or marketing mix shares something in common with the new opportunity
answers already passed
formulating vs Implementing Strategy, Which is easier? - correct answer ✔✔Formulating a
Strategy becomes easier.
Elements of a SWOT - correct answer ✔✔strengths, weaknesses, opportunities, threats
Value Creation - correct answer ✔✔Performing activities that increase the value of goods or
services to consumers
Value Capture - correct answer ✔✔The appropriation of the value created by a product, service,
or process.
Porter's Five Forces Model - correct answer ✔✔analyzes the competitive forces within the
environment in which a company operates to assess the potential for profitability in an industry
threat of new entrants - correct answer ✔✔The potential for new companies to enter an
industry and disrupt its market dynamics.
The threat of substitutes - correct answer ✔✔Companies are concerned that substitute
products or services made displace their own.
The bargaining power of buyers - correct answer ✔✔When their bargaining power is high,
buyers gain negotiating power for lower prices, better quality, and better terms for their
purchases when dealing with suppliers
, The bargaining power of suppliers - correct answer ✔✔refers to the pressure that suppliers can
put on companies by raising their prices, lowering their quality, or reducing the availability of
their products
Rivalry among existing competitors - correct answer ✔✔a measure of the extent of competition
among existing firms
Product commoditization - correct answer ✔✔loss of product differentiation when multiple
firms have similar offerings
Low Cost Leadership - correct answer ✔✔a business strategy that aims to gain a competitive
advantage by offering the lowest prices in the market
Diversification - correct answer ✔✔Spreading out investments to reduce risk
What Factors are important qualities for firm resources and capabilities? - correct answer
✔✔valuable, rare, inimitable (there are no substitutes), and possessed by the organization
despite it being costly to imitate in terms of time or money or both
Sustained competitive advantage - correct answer ✔✔a company's ability to produce better or
cheaper goods and services than its competitors
What is an Oligopoly? - correct answer ✔✔A market structure in which a few large firms
dominate a market
unrelated diversification - correct answer ✔✔a growth strategy whereby a new business lacks
any common elements with the present business
related diversification - correct answer ✔✔a growth strategy whereby the current target market
and/or marketing mix shares something in common with the new opportunity
