BUS 4385 Exam #1 2023 with 100% correct questions and answers

Creating customer value is the source of the firm's potential to earn above-average returns. T/F? True A business-level strategy is an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage in specific product markets. T/F? True Low-cost leaders usually concentrate on the value chain activities of inbound logistics and outbound logistics as a means to reduce costs. T/F? True The five forces model expands the arena of competitive analysis beyond direct competitors (i.e., rivals) to include buyers and suppliers who may also be a source of competition. T/F? True Demographic, economic, political/legal, sociocultural, technological, global, and physical are the seven elements comprising the industry environment. T/F? True The generalized forms of value that goods and services provide are either low cost with acceptable features or highly differentiated features with acceptable cost. T/F? True A risk of the differentiation strategy is that the firm's means of differentiation may eventually not provide value for which customers are willing to pay. T/F? True Relative power is the most critical criterion for prioritizing the demands of stakeholders. T/F? True The five forces model suggests that firms should target the industry with the highest potential for above-average returns and then implement either a cost-leadership strategy or a differentiation strategy. T/F? True The two primary drivers of hyper-competition are the emergence of the global economy and technology. T/F? True The objective of assessing the external environment is to determine the timing and importance of the effects of environmental changes and trends on the strategic management of the firm. T/F? True Suppliers are powerful when the industry is dominated by a few large companies, no satisfactory substitutes are available, the selling industry is relatively more concentrated than the purchasing industry, and switching costs are high. T/F? True Firms implementing cost leadership strategies often sell no-frills standardized goods or services (but with competitive levels of differentiation) to the industry's most typical customers. T/F? True When analysts develop feasible projections of future events and how quickly they will occur based on observed changes and trends, they are engaged in forecasting A general environmental analysis can be expected to produce all of the following EXCEPT one: -identification of organizational opportunities -recognition of environmental trends -identification of organizational threats -objective answers objective answers