WPC 470 Final Exam Questions With Correct
Answers
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 |- |CORRECT |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. |- |CORRECT |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. |- |
CORRECT |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 |- |CORRECT |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. |- |CORRECT |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. |- |
CORRECT |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 |- |CORRECT |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. |- |CORRECT |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. |- |CORRECT |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. |- |CORRECT |
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? |- |CORRECT |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 |- |CORRECT |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.
Answers
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 |- |CORRECT |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. |- |CORRECT |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. |- |
CORRECT |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 |- |CORRECT |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. |- |CORRECT |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. |- |
CORRECT |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 |- |CORRECT |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. |- |CORRECT |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. |- |CORRECT |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. |- |CORRECT |
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? |- |CORRECT |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 |- |CORRECT |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.
