WPC470 FINAL EXAM QUESTIONS & ANSWERS
RelTech has developed a proprietary approach to supply chain management and uses
that expertise as a source of competitive advantage. RelTech is relying on what
intangible asset as a basis of competition?
a) Insight
b) Intensity
c) Knowledge
d) Strategic flexibility - Answer -c) Knowledge
The resource-based model argues that:
a) resources alone can be a source of sustainable competitive advantage.
b) all resources have the potential to be the basis of sustainable competitive advantage.
c) resources that are valuable, rare, costly to imitate, and non-substitutable form the
basis of a firm's core competencies.
d) the key to competitive success is the structure of the industry in which the firm
competes. - Answer -c) resources that are valuable, rare, costly to imitate, and non-
substitutable form the basis of a firm's core competencies.
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 of the following statements best describes the situation?
a) RNH has earned above-average returns and so has satisfied the needs of all relevant
stakeholders.
b) RNH has prioritized the demands of capital market stakeholders and organizational
stakeholders over the demands of product market stakeholders.
c) RNH has been attempting to minimally satisfy the demands of all of its stakeholders. -
Answer -b) RNH has prioritized the demands of capital market stakeholders and
organizational stakeholders over the demands of product market stakeholders.
The CEO of Ridgeway, Inc., realizes that the company's survival depends on
developing and acquiring knowledge. Which of the following actions by the CEO would
be MOST consistent with this need?
a) Establishing a system of organizational intelligence gathering
b) Planning extensive employee training and hiring educated and experienced
employees
c) Investing in sophisticated databases in relevant knowledge areas
d) Ensuring that all current, unique knowledge of the firm is protected by patents -
Answer -b) Planning extensive employee training and hiring educated and experienced
employees
, Before liquidating during a bankruptcy, a company will take several actions to try to
satisfy its __________ stakeholders.
a) product market
b) organizational
c) governmental
d) capital market - Answer -d) capital market
An investor is considering in which of two start-up companies to invest. The investor has
faith in the industrial organization (I/O) model of above-average returns and is using that
as a guideline to make a decision. Both start-up companies propose to manufacture
health-focused foods with low salt, low sugar, high fiber, and no artificial additives.
RexRich Foods has a business strategy of producing a differentiated product for which
consumers will pay more. Green Pastures Foods is in the health-foods industry because
of its internal culture and commitment to healthy lifestyles, but it does not have any
executives with experience in food production. Which investment decision should be
made?
a) At the entrepreneurial stage, the model that companies follow is not important, and
the investor will wait before making any investments.
b) The investor will select RexRich Foods since it is most consistent with the I/O model.
- Answer -b) The investor will select RexRich Foods since it is most consistent with the
I/O model.
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?
a) 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.
b) A mission statement is an enduring reflection of the values and aspirations of a firm,
and Jan should not have rewritten it.
c) Because the CEO has the final responsibility for forming a firm's mission, it was
proper for Jan to rewrite the mission statement.
d) Because a mission can change along with environmental circumstances, Jan did the
right thing in rewriting the mission. - Answer -a) 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.
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:
a) values.
b) culture.
c) structure.
d) vision. - Answer -d) vision.
RelTech has developed a proprietary approach to supply chain management and uses
that expertise as a source of competitive advantage. RelTech is relying on what
intangible asset as a basis of competition?
a) Insight
b) Intensity
c) Knowledge
d) Strategic flexibility - Answer -c) Knowledge
The resource-based model argues that:
a) resources alone can be a source of sustainable competitive advantage.
b) all resources have the potential to be the basis of sustainable competitive advantage.
c) resources that are valuable, rare, costly to imitate, and non-substitutable form the
basis of a firm's core competencies.
d) the key to competitive success is the structure of the industry in which the firm
competes. - Answer -c) resources that are valuable, rare, costly to imitate, and non-
substitutable form the basis of a firm's core competencies.
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 of the following statements best describes the situation?
a) RNH has earned above-average returns and so has satisfied the needs of all relevant
stakeholders.
b) RNH has prioritized the demands of capital market stakeholders and organizational
stakeholders over the demands of product market stakeholders.
c) RNH has been attempting to minimally satisfy the demands of all of its stakeholders. -
Answer -b) RNH has prioritized the demands of capital market stakeholders and
organizational stakeholders over the demands of product market stakeholders.
The CEO of Ridgeway, Inc., realizes that the company's survival depends on
developing and acquiring knowledge. Which of the following actions by the CEO would
be MOST consistent with this need?
a) Establishing a system of organizational intelligence gathering
b) Planning extensive employee training and hiring educated and experienced
employees
c) Investing in sophisticated databases in relevant knowledge areas
d) Ensuring that all current, unique knowledge of the firm is protected by patents -
Answer -b) Planning extensive employee training and hiring educated and experienced
employees
, Before liquidating during a bankruptcy, a company will take several actions to try to
satisfy its __________ stakeholders.
a) product market
b) organizational
c) governmental
d) capital market - Answer -d) capital market
An investor is considering in which of two start-up companies to invest. The investor has
faith in the industrial organization (I/O) model of above-average returns and is using that
as a guideline to make a decision. Both start-up companies propose to manufacture
health-focused foods with low salt, low sugar, high fiber, and no artificial additives.
RexRich Foods has a business strategy of producing a differentiated product for which
consumers will pay more. Green Pastures Foods is in the health-foods industry because
of its internal culture and commitment to healthy lifestyles, but it does not have any
executives with experience in food production. Which investment decision should be
made?
a) At the entrepreneurial stage, the model that companies follow is not important, and
the investor will wait before making any investments.
b) The investor will select RexRich Foods since it is most consistent with the I/O model.
- Answer -b) The investor will select RexRich Foods since it is most consistent with the
I/O model.
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?
a) 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.
b) A mission statement is an enduring reflection of the values and aspirations of a firm,
and Jan should not have rewritten it.
c) Because the CEO has the final responsibility for forming a firm's mission, it was
proper for Jan to rewrite the mission statement.
d) Because a mission can change along with environmental circumstances, Jan did the
right thing in rewriting the mission. - Answer -a) 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.
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:
a) values.
b) culture.
c) structure.
d) vision. - Answer -d) vision.
