MGT 8803
MGT 8803 SUPPLY CHAIN EXAM
Questions with 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 - 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 - 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. - True
Consider both statements.
MGT 8803
,MGT 8803
- 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. - 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 - 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 - To obtain a
competitive advantage a firm must either create more value for customers while keeping
MGT 8803
, MGT 8803
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 - Orange developers commit
substantial resources to identifying target market customer needs and designs its products
to meet those needs at a relatively low cost. Orange leverages on-line sales rather than
physical retail stores and is less concerned with establishing long-term relationships than
it is with economic customer acquisition.
Which of the following Porter "generic" strategies creates competitive advantage by
creating a larger "wedge" between firm const (C) and the value (v) created for the
customer than it does its direct competitors?
- differentiation
MGT 8803
MGT 8803 SUPPLY CHAIN EXAM
Questions with 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 - 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 - 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. - True
Consider both statements.
MGT 8803
,MGT 8803
- 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. - 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 - 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 - To obtain a
competitive advantage a firm must either create more value for customers while keeping
MGT 8803
, MGT 8803
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 - Orange developers commit
substantial resources to identifying target market customer needs and designs its products
to meet those needs at a relatively low cost. Orange leverages on-line sales rather than
physical retail stores and is less concerned with establishing long-term relationships than
it is with economic customer acquisition.
Which of the following Porter "generic" strategies creates competitive advantage by
creating a larger "wedge" between firm const (C) and the value (v) created for the
customer than it does its direct competitors?
- differentiation
MGT 8803
