Question 1

To combat business challenges, leaders communicate and execute business strategies (from the Greek word stratus for army and ago for leading).

Accepted Answer

A) True 
 B)False

Question 2

What are tasks performed by people that customers will buy to satisfy a want or need?

Accepted Answer

A)   Goods
B)   Services
C)   Production
D)   ProductivityE) A) and B)
F) C) and D)

Question 3

Polaroid had a unique competitive advantage for many years until it forgot to observe competitive intelligence. The firm went bankrupt when people began taking digital pictures. Polaroid provides a great example of Porter's supplier power.

Accepted Answer

A) True 
 B)False

Question 4

What is the support value activity that provides employees with training, hiring, and compensation?

Accepted Answer

A)   Procurement
B)   Operations resource management
C)   Human resource management
D)   Firm infrastructureE) A) and D)
F) B) and D)

Question 5

What are the two main categories in a value chain analysis?

Accepted Answer

A)   Primary value activities and secondary value activities
B)   Primary value activities and support value activities
C)   Primary value activities and strengthening value activities
D)   None of theseE) A) and B)
F) A) and C)

Question 6

There are many challenges to changing doctors, including transferring medical records and losing the doctor-patient relationship along with the doctor's knowledge of the patient's history. Changing doctors provides a great example of switching costs.

Accepted Answer

A) True 
 B)False

Question 7

Which group of stakeholders' primary interests include fair compensation, job security, and ethical conduct/treatment?

Accepted Answer

A)   Employees
B)   Shareholders/Investors
C)   Community
D)   CustomersE) B) and C)
F) C) and D)

Question 8

Broad differentiation, broad cost leadership, and ________ create the three generic strategies identified by Porter.

Accepted Answer

A)   Narrow market leadership
B)   High cost versus low cost
C)   Focused strategy
D)   None of theseE) B) and C)
F) C) and D)

Question 9

Which of the following represents a company in a supply chain?

Accepted Answer

A)   Customer and competitor.
B)   Supplier and competitor.
C)   Knowledge worker and supplier.
D)   Supplier and customer.E) All of the above
F) A) and B)

Question 10

All of the following are common tools used in industry to analyze and develop competitive advantages, except ________.

Accepted Answer

A)   Five Forces Model
B)   Three Generic Strategies
C)   Competitive analysis model
D)   Value chain analysisE) A) and D)
F) None of the above

Question 11

What is threat of new entrants?

Accepted Answer

A)   The ability of buyers to affect the price they must pay for an item
B)   The suppliers' ability to influence the prices they charge for supplies (including materials, labor, and services) 
C)   High when it is easy for new competitors to enter a market and low when there are significant entry barriers to joining a market
D)   High when there are many alternatives to a product or service and low when there are few alternatives from which to chooseE) All of the above
F) A) and C)

Question 12

Michael Porter defined the Five Forces Model and the potential pressures that can hurt sales. Which of the following is not one of the potential pressures that can hurt sales?

Accepted Answer

A)   Suppliers can drive down profits by charging more for supplies
B)   New market entrants can steal potential investment capital
C)   Substitute products can steal customers
D)   Competition can steal customersE) B) and D)
F) All of the above

Question 13

What is a standardized set of activities that accomplishes a specific task?

Accepted Answer

A)   Business strategy
B)   Business outcome
C)   Business process
D)   Knowledge processE) B) and C)
F) None of the above

Question 14

Which of the following decisions does a firm need to make as soon as it has identified the activities from the value chain that are bringing the highest added value to their customers?

Accepted Answer

A)   Target high value-adding activities to further enhance their value
B)   Target low value-adding activities to increase their value
C)   Perform some combination of the two
D)   All of theseE) A) and B)
F) A) and C)

Question 15

What is buyer power?

Accepted Answer

A)   The ability of buyers to affect the price they must pay for an item.
B)   The suppliers' ability to influence the prices they charge for supplies (including materials, labor, and services) .
C)   High when it is easy for new competitors to enter a market and low when there are significant entry barriers to joining a market.
D)   High when there are many alternatives to a product or service and low when there are few alternatives from which to choose.E) B) and D)
F) None of the above

Question 16

Which of the following is considered a good?

Accepted Answer

A)   Cars
B)   Teaching
C)   Waiting tables
D)   All of the choices are correctE) B) and C)
F) C) and D)

Question 17

In terms of system thinking, what is input?

Accepted Answer

A)   Data entered in a computer
B)   Controls to ensure correct processes
C)   The resulting information from the computer program
D)   The computer program that processes the dataE) B) and D)
F) B) and C)

Question 18

What is a person or group that has an interest or concern in an organization?

Accepted Answer

A)   Stakeholder
B)   Business strategy
C)   Supplier
D)   PartnerE) B) and D)
F) B) and C)

Question 19

Managers use four common tools to analyze competitive intelligence and develop competitive advantages. Which of the following is not one of these tools?

Accepted Answer

A)   The three generic strategies
B)   The Five Forces Model
C)   First-mover advantage
D)   SWOT analysisE) None of the above
F) C) and D)

Question 20

Assume you are in the business of producing and selling hamburgers. If you could produce more hamburgers with the same input what would happen to your productivity and profits assuming the price of your hamburgers remains the same?

Accepted Answer

A)   Increase in productivity, decrease in profits
B)   Increase in productivity, increase in profits
C)   Decrease in productivity, decrease in profits
D)   Decrease in productivity, increase in profitsE) A) and C)
F) A) and B)

Exam 2: Identifying Competitive Advantages

In terms of system thinking, what is input?

Correct AnswerverifiedShow Answer

All of the following are common tools used in industry to analyze and develop competitive advantages, except ________.

Correct AnswerverifiedShow Answer

What is a standardized set of activities that accomplishes a specific task?

Correct AnswerverifiedShow Answer

To combat business challenges, leaders communicate and execute business strategies (from the Greek word stratus for army and ago for leading).

Correct AnswerverifiedShow Answer

What is the support value activity that provides employees with training, hiring, and compensation?

Correct AnswerverifiedShow Answer

Which of the following represents a company in a supply chain?

Correct AnswerverifiedShow Answer

Broad differentiation, broad cost leadership, and ________ create the three generic strategies identified by Porter.

Correct AnswerverifiedShow Answer

What are the two main categories in a value chain analysis?

Correct AnswerverifiedShow Answer

Michael Porter defined the Five Forces Model and the potential pressures that can hurt sales. Which of the following is not one of the potential pressures that can hurt sales?

Correct AnswerverifiedShow Answer

What is a person or group that has an interest or concern in an organization?

Correct AnswerverifiedShow Answer

There are many challenges to changing doctors, including transferring medical records and losing the doctor-patient relationship along with the doctor's knowledge of the patient's history. Changing doctors provides a great example of switching costs.

Correct AnswerverifiedShow Answer

Which of the following is considered a good?

Correct AnswerverifiedShow Answer

Assume you are in the business of producing and selling hamburgers. If you could produce more hamburgers with the same input what would happen to your productivity and profits assuming the price of your hamburgers remains the same?

Correct AnswerverifiedShow Answer

What are tasks performed by people that customers will buy to satisfy a want or need?

Correct AnswerverifiedShow Answer

What is buyer power?

Correct AnswerverifiedShow Answer

Polaroid had a unique competitive advantage for many years until it forgot to observe competitive intelligence. The firm went bankrupt when people began taking digital pictures. Polaroid provides a great example of Porter's supplier power.

Correct AnswerverifiedShow Answer

Which group of stakeholders' primary interests include fair compensation, job security, and ethical conduct/treatment?

Correct AnswerverifiedShow Answer

What is threat of new entrants?

Correct AnswerverifiedShow Answer

Which of the following decisions does a firm need to make as soon as it has identified the activities from the value chain that are bringing the highest added value to their customers?

Correct AnswerverifiedShow Answer

Managers use four common tools to analyze competitive intelligence and develop competitive advantages. Which of the following is not one of these tools?

Correct AnswerverifiedShow Answer

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