MGMT 4513 - Strategic MGMT Final - Aime-
Questions with Correct Answers
The hierarchy of organizational goals is in this order (least specific to most specific):
d) Mission statements, visions statements, strategic objectives
Some excellent examples of mission statements are: "To be the happiest place on Earth"
(Disney), and "restoring patients to full life" (Medtronic).
b) False
Organizational goals and objectives should be vague in order to allow changes in strategy.
b) False
Increasingly larger amounts of women entering the work force since the early 1970s is an
example of
c) Sociocultural changes
An industry is defined as
d) A group of firms producing products that are close substitutes.
. The five forces model (buyers/suppliers/new entrants/substitutes/rivalry) is a firm-level
analytical model which explains differences in performance between the firms that compete
in one industry
b) False
Which is considered a force in the "Five-Forces" model?
c) Rivalry among competing firms
, Because the internet lowers barriers to entry in most industries, it
b) Increases the threat of new entrants
Which of the following is NOT an entry barrier to an industry?
d) Bargaining power of suppliers
Industries characterized by high economies of scale typically attract fewer new entrants.
a) True
Which of the following firms would likely pose the least competitive threat?
c) A competitor to your product where a high switching cost exists
If you believed in a pure five forces model of above-average returns, which of the following
things is LEAST important?
b) Incumbents will take legal action if new entrants do not differentiate their products
The bargaining power of suppliers is enhanced under the following market condition
d) Dominance by a few suppliers
A certain marble quarry provides a unique type of marble that is richly colored and
strikingly veined. It has been used for churches and public buildings throughout the world.
The architect of a new headquarters for a prestigious Fortune 500 firm has specified the
use of this marble, and this marble only, for this project. Which of the following statements
is most likely to be true?
a) The cost of the marble will be expensive because of the bargaining power of the supplier
Questions with Correct Answers
The hierarchy of organizational goals is in this order (least specific to most specific):
d) Mission statements, visions statements, strategic objectives
Some excellent examples of mission statements are: "To be the happiest place on Earth"
(Disney), and "restoring patients to full life" (Medtronic).
b) False
Organizational goals and objectives should be vague in order to allow changes in strategy.
b) False
Increasingly larger amounts of women entering the work force since the early 1970s is an
example of
c) Sociocultural changes
An industry is defined as
d) A group of firms producing products that are close substitutes.
. The five forces model (buyers/suppliers/new entrants/substitutes/rivalry) is a firm-level
analytical model which explains differences in performance between the firms that compete
in one industry
b) False
Which is considered a force in the "Five-Forces" model?
c) Rivalry among competing firms
, Because the internet lowers barriers to entry in most industries, it
b) Increases the threat of new entrants
Which of the following is NOT an entry barrier to an industry?
d) Bargaining power of suppliers
Industries characterized by high economies of scale typically attract fewer new entrants.
a) True
Which of the following firms would likely pose the least competitive threat?
c) A competitor to your product where a high switching cost exists
If you believed in a pure five forces model of above-average returns, which of the following
things is LEAST important?
b) Incumbents will take legal action if new entrants do not differentiate their products
The bargaining power of suppliers is enhanced under the following market condition
d) Dominance by a few suppliers
A certain marble quarry provides a unique type of marble that is richly colored and
strikingly veined. It has been used for churches and public buildings throughout the world.
The architect of a new headquarters for a prestigious Fortune 500 firm has specified the
use of this marble, and this marble only, for this project. Which of the following statements
is most likely to be true?
a) The cost of the marble will be expensive because of the bargaining power of the supplier
