WPC 470 FINAL EXAM QUESTIONS & ANSWERS 2025-2026
WITH CORRECT VERIFIED ANSWERS RATIONALE
Wallingford |Company |is |trying |to |determine |optimal |ways |to |collect |and |distribute |knowledge
|throughout |the |firm. |This |is |an |activity |for |which |support |function |in |the |value |chain?
a.Human |resources
b.Finance
|
c.Management |information |systems
d.Distribution |- |ANSWER |: |Management |Information |Systems
Vendors |across |the |country |offer |sunglasses |that |look |virtually |identical |to |those |made |by |Chanel,
|Prada, |Gucci, |and |other |luxury |brands—including |the |trademark |logos—but |cost |far |less. |These
|products |are |the |result |of:
a.competition.
b.imitation.
|
c.counterfeiting.
|
d.evolving |consumer |preferences. |- |ANSWER |: |counterfeiting
JoAnn |Tucker |recently |took |over |as |Chief |Executive |Officer |(CEO) |of |Burger-Rama, |Inc. |Burger-Rama
|has |seen |declining |profits |over |the |past |five |years |and |has |struggled |to |remain |competitive |in |the
|fast-food |industry. |In |order |to |achieve |strategic |competitiveness, |JoAnn |must:
a. .conduct |training |programs |and |hire |educated |and |experienced |employees.
b. invest |in |sophisticated |technology |in |relevant |knowledge
areas. |c.fire |the |current |board |of |directors |and |start |afresh.
|
d.shift |the |company's |focus |to |marketing |and |develop |an |extensive |advertising |campaign. |- |ANSWER |:
conduct |training |programs |and |hire |educated |and |experienced |employees
Firms |failing |to |perform |the |value-chain |activities |and |support |functions |in |an |optimum |manner
|when |implementing |the | strategy |become |"stuck |in |the |middle."
a.cost |leadership
,b.focus
c.differentiation
|
d.integrated |cost |leadership/differentiation |- |ANSWER |: |integrated |cost |leadership/differentiation
The |chief |executive |officer |(CEO) |and |other |top-level |managers |often |involve |other |people |to
|develop |the |mission |statement |because:
a.the |mission |deals |more |directly |with |product |markets |and |customers.
b.it |is |viewed |as |a |task |that |can |easily |be |delegated.
|
c.the |mission |deals |more |directly |with |capital |markets |and |shareholders.
d.forming |the |mission |is |typically |not |the |final |responsibility |of |the |CEO |or |other |top-level |managers. |-
|ANSWER |: |The |mission |deals |more |directly |with |product |markets |and |customers
A |firm |should |outsource |only |activities |where |it:
a.has |the |probability |of |developing |core |competencies.
b.has |developed |the |ability |to |innovate.
|
c.cannot |match |up |a |value |chain |activity |with |a |support |function.
d.cannot |create |value |or |where |it |is |at |a |substantial |disadvantage |compared |to |competitors. |- |ANSWER
: |cannot |create |value |or |where |it |is |at |a |substantial |disadvantage |compared |to |competitiors
Which |of |the |following |strategies |helps |a |firm |concentrate |on |understanding |its |customers |and |their
|needs |with |greater |clarity |as |a |foundation |for |innovation?
a. Market |segmentation |strategy
b. Business |model |strategy
c. Digital |strategy
d. Cost |leadership |strategy |- |ANSWER |: |Digital |strategy
When |a |firm |earns |below-average |returns, |it:
a. is |able |to |maximize |the |interests |of |all |stakeholders.
b. should |reward |those |stakeholders |who |have |the |least |power.
c.should |try |to |minimize |the |amount |of |support |lost |from
|
stakeholders.
|
,d.should |treat |all |stakeholders |the |same. |- |ANSWER |: |should |minimize |the |amount |of |support |lost
|from |stakeholders
Which |of |the |following |statements |about |a |flexible |manufacturing |system |(FMS) |is |NOT |true?
a. .Used |properly, |an |FMS |allows |the |firm |to |increase |its |effectiveness |in |responding |to |changes |in
its |customers' |needs, |while |retaining |low-cost |advantages |and |consistent |product |quality.
|
b. An |FMS |is |a |computer-controlled |process |that |allows |firms |to |produce |a |variety |of |products
in |moderate, |flexible |quantities |with |a |minimum |of |manual |intervention.
|
c. The |goal |of |an |FMS |is |to |eliminate |the |"low |cost |versus |product |variety" |trade-off |that |is
inherent |in |traditional |manufacturing |technologies.
|
d. An |FMS |allows |a |manufacturer |to |connect |with |its |suppliers, |distributors, |and |customers, |which
|enables |it |to |satisfy |customer |expectations |in |terms |of |product |quality |and |delivery |speed. |-
|ANSWER |: |An |FMS |allows |a |manufacturer |to |connect |with |its |suppliers, |distributors, |and |customers,
|which |enables |it |to |satisfy |customer |expectations |in |terms |of |product |quality |and |delivery |speed.
Which |of |the |following |statements |about |a |firm's |resources |and |capabilities |is |true?
a. All |of |a |firm's |resources |and |capabilities |have |the |potential |to |be |the |foundation |for |a
competitive |advantage.
|
b. It |is |difficult |to |achieve |and |sustain |a |competitive |advantage |based |on |resources |alone.
c. As |a |source |of |competitive |advantage, |a |capability |must |be |exceedingly |complex |to |understand
and |manage.
|
d. When |a |resource |is |rare |and |valuable, |it |becomes |a |core |competency. |- |ANSWER |: |It |is |difficult
to |achieve |and |sustain |a |competitive |advantage |based |on |resources |alone
|
When |examining |the |component |of |Future |Objectives |for |a |competitor |analysis, |which |of |the |following
|is |NOT |a |question |that |is |addressed?
a. How |do |our |goals |compare |with |our |competitors' |goals?
b. Where |will |emphasis |be |placed |in |the |future?
c. What |is |the |attitude |toward |risk?
d. What |is |our |future |break-even |point? |- |ANSWER |: |What |is |our |future |break-even |point?
A| competitive |advantage |exists |only |when |competitors |are |unable |to |duplicate |the |benefits |of
|a |firm's |strategy |or |when |they |lack |the |resources |to |attempt |imitation.
, a.profitable
b.temporary
|
c.rare
|
d.sustainable |- |ANSWER |: |sustainable
Powerful |customers |can |force |a |cost |leader |to |reduce |its |prices, |but |not |below |the |level |at |which
|the |cost |leader's:
a.next-most-efficient |industry |competitor |can |earn |average |returns.
b.least |efficient |industry |competitor |can |earn |average |returns.
|
c.next-most-efficient |industry |competitor |can |earn |above-average |returns.
d.next-most-efficient |industry |competitor |can |earn |below-average |returns. |- |ANSWER |: |next-most-
|efficient |industry |competitor |can |earn |average |returns.
A |firm |combines |individual |tangible |and |intangible |resources |to |create:
a.assets.
b.capabilities.
|
c.competencies.
|
d.advantages. |- |ANSWER |: |capabilities
The |main |competitive |advantage |of |a |particular |major |U.S. |technology |firm |is |sourcing |and
|procurement |of |raw |materials. |This |company |is |facing |increasing |competition |on |price |and |is
|strongly |considering |outsourcing |as |a |means |of |reducing |costs. |The |LAST |function |this |firm |should
|consider |outsourcing |is:
a.operations.
b.supply-chain |management.
c.research |and |development.
|
d.distribution. |- |ANSWER |: |Supply |chain |management
Which |of |the |following |statements |about |a |firm's |customers |is |true?
a.Customers |are |the |most |obvious |stakeholders, |at |least |in |U.S. |organizations.
|
b.Customers |are |part |of |its |capital |market |stakeholders.
|
WITH CORRECT VERIFIED ANSWERS RATIONALE
Wallingford |Company |is |trying |to |determine |optimal |ways |to |collect |and |distribute |knowledge
|throughout |the |firm. |This |is |an |activity |for |which |support |function |in |the |value |chain?
a.Human |resources
b.Finance
|
c.Management |information |systems
d.Distribution |- |ANSWER |: |Management |Information |Systems
Vendors |across |the |country |offer |sunglasses |that |look |virtually |identical |to |those |made |by |Chanel,
|Prada, |Gucci, |and |other |luxury |brands—including |the |trademark |logos—but |cost |far |less. |These
|products |are |the |result |of:
a.competition.
b.imitation.
|
c.counterfeiting.
|
d.evolving |consumer |preferences. |- |ANSWER |: |counterfeiting
JoAnn |Tucker |recently |took |over |as |Chief |Executive |Officer |(CEO) |of |Burger-Rama, |Inc. |Burger-Rama
|has |seen |declining |profits |over |the |past |five |years |and |has |struggled |to |remain |competitive |in |the
|fast-food |industry. |In |order |to |achieve |strategic |competitiveness, |JoAnn |must:
a. .conduct |training |programs |and |hire |educated |and |experienced |employees.
b. invest |in |sophisticated |technology |in |relevant |knowledge
areas. |c.fire |the |current |board |of |directors |and |start |afresh.
|
d.shift |the |company's |focus |to |marketing |and |develop |an |extensive |advertising |campaign. |- |ANSWER |:
conduct |training |programs |and |hire |educated |and |experienced |employees
Firms |failing |to |perform |the |value-chain |activities |and |support |functions |in |an |optimum |manner
|when |implementing |the | strategy |become |"stuck |in |the |middle."
a.cost |leadership
,b.focus
c.differentiation
|
d.integrated |cost |leadership/differentiation |- |ANSWER |: |integrated |cost |leadership/differentiation
The |chief |executive |officer |(CEO) |and |other |top-level |managers |often |involve |other |people |to
|develop |the |mission |statement |because:
a.the |mission |deals |more |directly |with |product |markets |and |customers.
b.it |is |viewed |as |a |task |that |can |easily |be |delegated.
|
c.the |mission |deals |more |directly |with |capital |markets |and |shareholders.
d.forming |the |mission |is |typically |not |the |final |responsibility |of |the |CEO |or |other |top-level |managers. |-
|ANSWER |: |The |mission |deals |more |directly |with |product |markets |and |customers
A |firm |should |outsource |only |activities |where |it:
a.has |the |probability |of |developing |core |competencies.
b.has |developed |the |ability |to |innovate.
|
c.cannot |match |up |a |value |chain |activity |with |a |support |function.
d.cannot |create |value |or |where |it |is |at |a |substantial |disadvantage |compared |to |competitors. |- |ANSWER
: |cannot |create |value |or |where |it |is |at |a |substantial |disadvantage |compared |to |competitiors
Which |of |the |following |strategies |helps |a |firm |concentrate |on |understanding |its |customers |and |their
|needs |with |greater |clarity |as |a |foundation |for |innovation?
a. Market |segmentation |strategy
b. Business |model |strategy
c. Digital |strategy
d. Cost |leadership |strategy |- |ANSWER |: |Digital |strategy
When |a |firm |earns |below-average |returns, |it:
a. is |able |to |maximize |the |interests |of |all |stakeholders.
b. should |reward |those |stakeholders |who |have |the |least |power.
c.should |try |to |minimize |the |amount |of |support |lost |from
|
stakeholders.
|
,d.should |treat |all |stakeholders |the |same. |- |ANSWER |: |should |minimize |the |amount |of |support |lost
|from |stakeholders
Which |of |the |following |statements |about |a |flexible |manufacturing |system |(FMS) |is |NOT |true?
a. .Used |properly, |an |FMS |allows |the |firm |to |increase |its |effectiveness |in |responding |to |changes |in
its |customers' |needs, |while |retaining |low-cost |advantages |and |consistent |product |quality.
|
b. An |FMS |is |a |computer-controlled |process |that |allows |firms |to |produce |a |variety |of |products
in |moderate, |flexible |quantities |with |a |minimum |of |manual |intervention.
|
c. The |goal |of |an |FMS |is |to |eliminate |the |"low |cost |versus |product |variety" |trade-off |that |is
inherent |in |traditional |manufacturing |technologies.
|
d. An |FMS |allows |a |manufacturer |to |connect |with |its |suppliers, |distributors, |and |customers, |which
|enables |it |to |satisfy |customer |expectations |in |terms |of |product |quality |and |delivery |speed. |-
|ANSWER |: |An |FMS |allows |a |manufacturer |to |connect |with |its |suppliers, |distributors, |and |customers,
|which |enables |it |to |satisfy |customer |expectations |in |terms |of |product |quality |and |delivery |speed.
Which |of |the |following |statements |about |a |firm's |resources |and |capabilities |is |true?
a. All |of |a |firm's |resources |and |capabilities |have |the |potential |to |be |the |foundation |for |a
competitive |advantage.
|
b. It |is |difficult |to |achieve |and |sustain |a |competitive |advantage |based |on |resources |alone.
c. As |a |source |of |competitive |advantage, |a |capability |must |be |exceedingly |complex |to |understand
and |manage.
|
d. When |a |resource |is |rare |and |valuable, |it |becomes |a |core |competency. |- |ANSWER |: |It |is |difficult
to |achieve |and |sustain |a |competitive |advantage |based |on |resources |alone
|
When |examining |the |component |of |Future |Objectives |for |a |competitor |analysis, |which |of |the |following
|is |NOT |a |question |that |is |addressed?
a. How |do |our |goals |compare |with |our |competitors' |goals?
b. Where |will |emphasis |be |placed |in |the |future?
c. What |is |the |attitude |toward |risk?
d. What |is |our |future |break-even |point? |- |ANSWER |: |What |is |our |future |break-even |point?
A| competitive |advantage |exists |only |when |competitors |are |unable |to |duplicate |the |benefits |of
|a |firm's |strategy |or |when |they |lack |the |resources |to |attempt |imitation.
, a.profitable
b.temporary
|
c.rare
|
d.sustainable |- |ANSWER |: |sustainable
Powerful |customers |can |force |a |cost |leader |to |reduce |its |prices, |but |not |below |the |level |at |which
|the |cost |leader's:
a.next-most-efficient |industry |competitor |can |earn |average |returns.
b.least |efficient |industry |competitor |can |earn |average |returns.
|
c.next-most-efficient |industry |competitor |can |earn |above-average |returns.
d.next-most-efficient |industry |competitor |can |earn |below-average |returns. |- |ANSWER |: |next-most-
|efficient |industry |competitor |can |earn |average |returns.
A |firm |combines |individual |tangible |and |intangible |resources |to |create:
a.assets.
b.capabilities.
|
c.competencies.
|
d.advantages. |- |ANSWER |: |capabilities
The |main |competitive |advantage |of |a |particular |major |U.S. |technology |firm |is |sourcing |and
|procurement |of |raw |materials. |This |company |is |facing |increasing |competition |on |price |and |is
|strongly |considering |outsourcing |as |a |means |of |reducing |costs. |The |LAST |function |this |firm |should
|consider |outsourcing |is:
a.operations.
b.supply-chain |management.
c.research |and |development.
|
d.distribution. |- |ANSWER |: |Supply |chain |management
Which |of |the |following |statements |about |a |firm's |customers |is |true?
a.Customers |are |the |most |obvious |stakeholders, |at |least |in |U.S. |organizations.
|
b.Customers |are |part |of |its |capital |market |stakeholders.
|
