Mgmt 4900 Exam Latest Updated 2025 With Complete Solutions
AccuroDiskInc.manufacturesexternalharddisksfor$32perunit,andthemaxi
mumpricecustomersarewilling to pay is $47 per unit. TD Storage Inc. is a
competitor of AccuroDisk Inc. that produces external hard disks for $37
per unit, and customers are willing to pay a maximum price of $50 per
unit. What does this imply?
A. AccuroDisk and TD Storage share differentiation parity
B. TD Storage has a competitive advantage over AccuroDisk in terms of
perceived value
C. AccuroDisk creates a greater economic value than TD Storage
D. TD Storage is a cost-leader when compared to AccuroDisk - ANSWER-C.
AccuroDisk creates a greater economic value than TD Storage
Which of the following forces tends to be more important in determining a
firm's performance?
A. the underlying economic structure
B. the entry barriers in the industry
C. the actions of managers within the firm
D. the number and size of other firms in the industry - ANSWER-C. the
actions of managers within the firm
,In which of the following situations is the power of suppliers high in an
industry?
A. Suppliers offer products that are undifferentiated.
B. Suppliers can credibly threaten to backward integrate into the
industry.
C. Suppliers depend heavily on the industry for their revenues.
D. Suppliers' industry is more concentrated than the industry it sells to. -
ANSWER-D. Suppliers' industry is more concentrated than the industry it
sells to.
Organic Eats is a restaurant that caters to the needs of a small
percentage of highly health-conscious consumers. It has an all-organic,
vegan menu. Since there are very few restaurants that offer the same
unique services, customers are willing to pay a premium price for its
products and services. In this scenario, Organic Eats is following a
A. product diversification strategy.
B. liquidation strategy.
C. mass market strategy.
D. focused differentiation strategy. - ANSWER-D. focused differentiation
strategy.
,Rhino Pictures Inc. is a large production company that controls a major
portion of the movie industry's market share along with two other firms.
Despite its competitiveness with the two other firms, it is influenced by
their actions and often has to consider their strategic actions before
acting on its own. In this scenario, Rhino Pictures Inc. is most likely
functioning in a(n) _____ industry.
A. oligopolistic
B. monopolistic
C. perfectly competitive
D. monopolistically competitive - ANSWER-A. oligopolistic
Thomas is the owner of a landscaping company that caters to a very
wealthy clientele. His company has struggled to differentiate itself from
the other high-end landscapers in the area, but because he has hired
several expensive but highly-qualified team members, Thomas is unable to
shift to a cost leadership strategy. Which strategy is most likely to
achieve a competitive advantage?
A. Offer similar services as competitors but raise prices to increase
profits B. Lower prices but continue employing high-paid expert
gardeners
, C. Narrow the scope of competition and focus on unique features such as
the use of organic materials
D. Maintain prices but replace all the expert employees with less-skilled
workers to control costs - ANSWER-C. Narrow the scope of competition
and focus on unique features such as the use of organic materials
Keen Beans, a leading coffee roaster, anticipated that the prices of coffee
beans from Costa Rica, where its main suppliers were located, would
double in less than three years. This would significantly affect Keen Beans'
profit margins. Thus, Keen Beans decided to develop a new partnership
with a supplier in Indonesia. As predicted, the price of Costa Rican coffee
beans increased twofold. Because the price of Indonesian coffee beans
was much lower, Keen Beans was able to maintain its profit margins in
turbulent times. Which of the following isolating mechanisms does this
scenario best illustrate?
A. intellectual property protection
B. causal ambiguity
C. time compression diseconomies
D. better expectations of future resource value - ANSWER-D. better
expectations of future resource value
AccuroDiskInc.manufacturesexternalharddisksfor$32perunit,andthemaxi
mumpricecustomersarewilling to pay is $47 per unit. TD Storage Inc. is a
competitor of AccuroDisk Inc. that produces external hard disks for $37
per unit, and customers are willing to pay a maximum price of $50 per
unit. What does this imply?
A. AccuroDisk and TD Storage share differentiation parity
B. TD Storage has a competitive advantage over AccuroDisk in terms of
perceived value
C. AccuroDisk creates a greater economic value than TD Storage
D. TD Storage is a cost-leader when compared to AccuroDisk - ANSWER-C.
AccuroDisk creates a greater economic value than TD Storage
Which of the following forces tends to be more important in determining a
firm's performance?
A. the underlying economic structure
B. the entry barriers in the industry
C. the actions of managers within the firm
D. the number and size of other firms in the industry - ANSWER-C. the
actions of managers within the firm
,In which of the following situations is the power of suppliers high in an
industry?
A. Suppliers offer products that are undifferentiated.
B. Suppliers can credibly threaten to backward integrate into the
industry.
C. Suppliers depend heavily on the industry for their revenues.
D. Suppliers' industry is more concentrated than the industry it sells to. -
ANSWER-D. Suppliers' industry is more concentrated than the industry it
sells to.
Organic Eats is a restaurant that caters to the needs of a small
percentage of highly health-conscious consumers. It has an all-organic,
vegan menu. Since there are very few restaurants that offer the same
unique services, customers are willing to pay a premium price for its
products and services. In this scenario, Organic Eats is following a
A. product diversification strategy.
B. liquidation strategy.
C. mass market strategy.
D. focused differentiation strategy. - ANSWER-D. focused differentiation
strategy.
,Rhino Pictures Inc. is a large production company that controls a major
portion of the movie industry's market share along with two other firms.
Despite its competitiveness with the two other firms, it is influenced by
their actions and often has to consider their strategic actions before
acting on its own. In this scenario, Rhino Pictures Inc. is most likely
functioning in a(n) _____ industry.
A. oligopolistic
B. monopolistic
C. perfectly competitive
D. monopolistically competitive - ANSWER-A. oligopolistic
Thomas is the owner of a landscaping company that caters to a very
wealthy clientele. His company has struggled to differentiate itself from
the other high-end landscapers in the area, but because he has hired
several expensive but highly-qualified team members, Thomas is unable to
shift to a cost leadership strategy. Which strategy is most likely to
achieve a competitive advantage?
A. Offer similar services as competitors but raise prices to increase
profits B. Lower prices but continue employing high-paid expert
gardeners
, C. Narrow the scope of competition and focus on unique features such as
the use of organic materials
D. Maintain prices but replace all the expert employees with less-skilled
workers to control costs - ANSWER-C. Narrow the scope of competition
and focus on unique features such as the use of organic materials
Keen Beans, a leading coffee roaster, anticipated that the prices of coffee
beans from Costa Rica, where its main suppliers were located, would
double in less than three years. This would significantly affect Keen Beans'
profit margins. Thus, Keen Beans decided to develop a new partnership
with a supplier in Indonesia. As predicted, the price of Costa Rican coffee
beans increased twofold. Because the price of Indonesian coffee beans
was much lower, Keen Beans was able to maintain its profit margins in
turbulent times. Which of the following isolating mechanisms does this
scenario best illustrate?
A. intellectual property protection
B. causal ambiguity
C. time compression diseconomies
D. better expectations of future resource value - ANSWER-D. better
expectations of future resource value
