MQM 385 Actual Questions and Correct Answers
Q1
A competitive advantage based on inimitability can be sustained for at least some time, if it has
the following characteristics:
Answer: physical uniqueness, path dependency, casual ambiguity, and social
complexity.
Q2
Effective vision statements include
Answer: a brief statement of the company's direction
Q3
Strategy analysis is the starting point of the strategic management process and consists of the
Answer: matching of vision, mission, and objectives with the relevant internal and
external environmental factors.
Q4
In large organizations, conflicts can arise between functional areas. In order to resolve these
conflicts, strategic objectives
Answer: help resolve conflicts through their common purpose.
Q5
Which of the following firms would likely pose the least competitive threat?
Answer: a competitor to your product where a high switching cost exists
Q6
Airbnb, a room-sharing site, offers more rooms than Marriott. Goldman Sachs suggests that the
supply of new rooms over the next two years will outpace the previous five even though the
growth of American occupancy rates has begun to slow. Which competitive force is involved in
this situation?
Answer: the threat of new entrants
, Q7
Product differentiation by incumbents act as an entry barrier because
Answer: new entrants will have to spend heavily to overcome existing customer
loyalties.
Q8
Buyer power will be greater when
Answer: it is concentrated or when a buyer group purchases large volumes relative to
seller sales
Q9
For a firm such as Nordstrom that has no manufacturing operations, value is added by
developing expertise in the procurement of finished goods and by displaying them in its stores
in a way that enhances sales. In the value chain, procurement activities become the primary
activity. This begins with and ends with _.
Answer: partnering with vendors; marketing and selling
Q10
Intangible resources are typically embedded in routines and practices that have evolved and
accumulated over time.
Answer: unique
Q11
The root of the 3M innovation process is complex, hard to understand, and difficult to imitate.
This is a competitive advantage based on
Answer: casual ambiguity.
Q12
Firms must be aware of goals other than short-term profit maximization. One area of concern
should be social responsibility, which is the
Answer: expectation that business will strive to improve the overall welfare of society.
Q1
A competitive advantage based on inimitability can be sustained for at least some time, if it has
the following characteristics:
Answer: physical uniqueness, path dependency, casual ambiguity, and social
complexity.
Q2
Effective vision statements include
Answer: a brief statement of the company's direction
Q3
Strategy analysis is the starting point of the strategic management process and consists of the
Answer: matching of vision, mission, and objectives with the relevant internal and
external environmental factors.
Q4
In large organizations, conflicts can arise between functional areas. In order to resolve these
conflicts, strategic objectives
Answer: help resolve conflicts through their common purpose.
Q5
Which of the following firms would likely pose the least competitive threat?
Answer: a competitor to your product where a high switching cost exists
Q6
Airbnb, a room-sharing site, offers more rooms than Marriott. Goldman Sachs suggests that the
supply of new rooms over the next two years will outpace the previous five even though the
growth of American occupancy rates has begun to slow. Which competitive force is involved in
this situation?
Answer: the threat of new entrants
, Q7
Product differentiation by incumbents act as an entry barrier because
Answer: new entrants will have to spend heavily to overcome existing customer
loyalties.
Q8
Buyer power will be greater when
Answer: it is concentrated or when a buyer group purchases large volumes relative to
seller sales
Q9
For a firm such as Nordstrom that has no manufacturing operations, value is added by
developing expertise in the procurement of finished goods and by displaying them in its stores
in a way that enhances sales. In the value chain, procurement activities become the primary
activity. This begins with and ends with _.
Answer: partnering with vendors; marketing and selling
Q10
Intangible resources are typically embedded in routines and practices that have evolved and
accumulated over time.
Answer: unique
Q11
The root of the 3M innovation process is complex, hard to understand, and difficult to imitate.
This is a competitive advantage based on
Answer: casual ambiguity.
Q12
Firms must be aware of goals other than short-term profit maximization. One area of concern
should be social responsibility, which is the
Answer: expectation that business will strive to improve the overall welfare of society.
