Mgt 8803 Supply Chain Exam
Questions And Answers
Strategy can be best described as the goal directed actions to gain and sustain ___?
- high performance in advancing industry capabilities
- superior performance in the markets in which the firm operates
- long term financial profits and economic viability
- operational improvements and product advancements
- the earth's environment and the well-being of the communities in which the firm operates - ANSWER-
superior performance in the markets in which the firm operates
According to Michael Porter the essence of strategy is ______.
- leveraging operational and marketing effectiveness to create competitive advantage
- choosing what not to do
- maximizing ROI while driving cost of capital down
- copying what works from competitors and avoiding what doesn't work
- aligning the external market environment with the firm's business model - ANSWER-choosing what not
to do
True/False: A criticism of the Traditional Top-Down approach to strategic planning is that management
assesses the external environment in terms of fit to the firm's current capabilities rather than thinking
more "outside the box" when formulating future strategies. - ANSWER-True
Consider both statements.
- Statement 1: Competitive advantage is always judged relative to other competitors in the same industry
or judged relative to industry average.
- Statement 2: Regardless of cost, a differentiation strategy will always result in a competitive advantage
if the firm can charge a premium price for its products. - ANSWER-Only statement 1 is True
All of the following below are drivers that can create a differentiation advantage and a greater
willingness to pay except one. Select the one that does not belong on the list:
- brand
- existence of complements
, - economies of scale
- customer experience
- product features
- product performance - ANSWER-economies of scale
Which Statement below is true?
- Cost leadership is the most common generic strategy for firms focused on niche markets
- A firm is said to have a sustainable competitive advantage if it can consistently earn a profit every
kayear for a prolonged period of time
- To obtain a competitive advantage a firm must either create more value for customers while keeping its
costs comparable to competitors, or it must provide value equivalent to competitors but at a lower cost.
- A firm that is charging the lowest price relative to its competitors will always be pursuing a cost
leadership strategy
- Bogus question: All of the above statements are true statements - ANSWER-To obtain a competitive
advantage a firm must either create more value for customers while keeping its costs comparable to
competitors, or it must provide value equivalent to competitors but at a lower cost.
Which statement best describes how Orange, a PC maker, delivers value? Note: consider our discussion
on Business Models when answering this question.
- Orange's core competencies are its software development team and its connections to microchip
manufacturers in China and India. It is able to use its rich capabilities of software and data, and partner
with low-cost manufacturers to compete against its competitors.
- Orange has great finances and strong backing by its parent company. It has low expenses due to its
outsourcing and hiring part time contractors. Most costs are variable, not fixed. Orange generates
revenue using the "retail" model.
- Orange partners with firms like Amazon and Egghead to sell its products rather than using their own in-
house capabilities.
- Orange developers commit substantial resources to identifying target market customer needs and
designs its products to meet those needs at a rela - ANSWER-Orange developers commit substantial
resources to identifying target market customer needs and designs its products to meet those needs at a
Questions And Answers
Strategy can be best described as the goal directed actions to gain and sustain ___?
- high performance in advancing industry capabilities
- superior performance in the markets in which the firm operates
- long term financial profits and economic viability
- operational improvements and product advancements
- the earth's environment and the well-being of the communities in which the firm operates - ANSWER-
superior performance in the markets in which the firm operates
According to Michael Porter the essence of strategy is ______.
- leveraging operational and marketing effectiveness to create competitive advantage
- choosing what not to do
- maximizing ROI while driving cost of capital down
- copying what works from competitors and avoiding what doesn't work
- aligning the external market environment with the firm's business model - ANSWER-choosing what not
to do
True/False: A criticism of the Traditional Top-Down approach to strategic planning is that management
assesses the external environment in terms of fit to the firm's current capabilities rather than thinking
more "outside the box" when formulating future strategies. - ANSWER-True
Consider both statements.
- Statement 1: Competitive advantage is always judged relative to other competitors in the same industry
or judged relative to industry average.
- Statement 2: Regardless of cost, a differentiation strategy will always result in a competitive advantage
if the firm can charge a premium price for its products. - ANSWER-Only statement 1 is True
All of the following below are drivers that can create a differentiation advantage and a greater
willingness to pay except one. Select the one that does not belong on the list:
- brand
- existence of complements
, - economies of scale
- customer experience
- product features
- product performance - ANSWER-economies of scale
Which Statement below is true?
- Cost leadership is the most common generic strategy for firms focused on niche markets
- A firm is said to have a sustainable competitive advantage if it can consistently earn a profit every
kayear for a prolonged period of time
- To obtain a competitive advantage a firm must either create more value for customers while keeping its
costs comparable to competitors, or it must provide value equivalent to competitors but at a lower cost.
- A firm that is charging the lowest price relative to its competitors will always be pursuing a cost
leadership strategy
- Bogus question: All of the above statements are true statements - ANSWER-To obtain a competitive
advantage a firm must either create more value for customers while keeping its costs comparable to
competitors, or it must provide value equivalent to competitors but at a lower cost.
Which statement best describes how Orange, a PC maker, delivers value? Note: consider our discussion
on Business Models when answering this question.
- Orange's core competencies are its software development team and its connections to microchip
manufacturers in China and India. It is able to use its rich capabilities of software and data, and partner
with low-cost manufacturers to compete against its competitors.
- Orange has great finances and strong backing by its parent company. It has low expenses due to its
outsourcing and hiring part time contractors. Most costs are variable, not fixed. Orange generates
revenue using the "retail" model.
- Orange partners with firms like Amazon and Egghead to sell its products rather than using their own in-
house capabilities.
- Orange developers commit substantial resources to identifying target market customer needs and
designs its products to meet those needs at a rela - ANSWER-Orange developers commit substantial
resources to identifying target market customer needs and designs its products to meet those needs at a
