Question 1

Which one of Porter's five forces is high when it is easy for new competitors to enter a market and low when there are significant entry barriers to joining a market?

Accepted Answer

A)   Threat of new entrants.
B)   Threat of substitute products or services.
C)   Threat of buyer power.
D)   Supply chain competition.E) C) and D)
F) A) and C)

Question 2

What is rivalry among existing competitors?

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 competition is fierce in a market and low when competitors are more complacentE) A) and B)
F) C) and D)

Question 3

A business strategy achieves a specific set of goals which include ________.

Accepted Answer

A)   Developing new products or services; attracting new competition
B)   Increasing costs; attracting new competition
C)   Entering new markets; developing new products or services
D)   All of theseE) A) and C)
F) A) and D)

Question 4

What is a feature of a product or service that customers have come to expect and entering competitors must offer the same if they want to survive?

Accepted Answer

A)   Significant barrier
B)   Entry barrier
C)   Product differentiation
D)   Entry chainE) A) and B)
F) A) and C)

Question 5

In terms of system thinking, what is data entered in a computer?

Accepted Answer

A)   Input
B)   Output
C)   Process
D)   FeedbackE) None of the above
F) B) and C)

Question 6

Which of the following represents procurement as part of the support value activities in a value chain analysis?

Accepted Answer

A)   Purchases inputs such as raw materials, resources, equipment, and supplies
B)   Applies MIS to processes to add value
C)   Distributes goods and services to customers
D)   Promotes, prices, and sells products to customersE) All of the above
F) B) and D)

Question 7

In the center of Porter's Five Forces Model is competition. Which of the following represents the four outer boxes?

Accepted Answer

A)   Buyer power, systems power, threat of false entrants, and threat of substitute products or services
B)   Buyer power, systems power, threat of new entrants, and threat of substitute products or services
C)   Buyer power, supplier power, threat of new entrants, and threat of substitute products or services
D)   Business power, supplier power, threat of new entrants, and threat of powerful servicesE) B) and C)
F) B) and D)

Question 8

What are material items or products that customers will buy to satisfy a want or need?

Accepted Answer

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

Question 9

Jim Novak is on the executive board for BioMed pharmaceuticals. The company produces the number one selling cancer fighting drug on the market. Due to its incredible success, BioMed pharmaceuticals has decided to increase the cost of the drug from $9 a pill to $16 a pill. Which force is BioMed pharmaceutical using to increase its drug price?

Accepted Answer

A)   Supplier power
B)   Buyer power
C)   Threat of false entrants
D)   Business powerE) All of the above
F) B) and D)

Question 10

Which of the following is a tool a manager can use to analyze competitive intelligence and identify competitive advantages?

Accepted Answer

A)   The three generic strategies.
B)   The threat of substitute buyer power.
C)   Differentiated costs.
D)   Supplier loyalty.E) A) and D)
F) None of the above

Question 11

The threat of substitute products or services refers to the power of competitors to enter a new market.

Accepted Answer

A) True 
 B)False

Question 12

Michael Helms is the CEO of Dunder Mountain, which is a retail store that sells camping, hunting , and sporting gear. Michael and his executive team are meeting to brainstorm new ideas on how to grow the business. One idea is to mimic a competitor's product that is attempting to sell a new product in a different industry. After performing a Porter's Five Forces analysis, Michael determines that all of the forces are high in this new industry. What should Michael do?

Accepted Answer

A)   Explode into the market with an overflow of the product.
B)   Contemplate other products to introduce at the same time in this new market.
C)   Compare the competitor's prices and offer his product lower in this new market.
D)   Not introduce the product because all five forces are strong and this would be a highly risky business strategy.E) A) and B)
F) All of the above

Question 13

Which group of stakeholders' primary interests include maximizing profits, growing market share, and high return on investment?

Accepted Answer

A)   Partners/Suppliers
B)   Shareholders/Investors
C)   Community
D)   GovernmentE) C) and D)
F) B) and C)

Question 14

In a SWOT analysis, strengths and weaknesses originate inside an organization, or internally. Opportunities and threats originate outside an organization, or externally, and cannot always be anticipated or controlled.

Accepted Answer

A) True 
 B)False

Question 15

Your boss, Pam Anderson, has asked you to analyze the music industry using Porter's Five Forces Model. Which of the following represents the threat of substitute products or services in the music industry?

Accepted Answer

A)   Established record labels like EMI, Sony, Universal
B)   Independent record labels
C)   Game systems like Wii, social networks like Facebook
D)   Taylor Swift, Beyoncé, The Beatles, The StonesE) None of the above
F) C) and D)

Question 16

According to Porter, companies that wish to dominate broad markets should operate using a ________ strategy.

Accepted Answer

A)   Cost leadership with a low cost
B)   Differentiation with a low cost
C)   Cost leadership with a high cost
D)   All of theseE) A) and C)
F) A) and D)

Question 17

Assume you are in the business of producing and selling t-shirts. If you could produce more t-shirts with the same input what would happen to your productivity and profits assuming the price of your t-shirts 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) B) and C)
F) A) and B)

Question 18

In a SWOT analysis, opportunities and threats originate ________ an organization.

Accepted Answer

A)   Inside (internally) 
B)   Outside (externally) 
C)   Both "Inside (internally)  and Outside (externally) "
D)   None of theseE) B) and D)
F) A) and B)

Question 19

What is included in a SWOT analysis?

Accepted Answer

A)   Strengths, weaknesses, organizations, and technology.
B)   Strengths, weaknesses, opportunities, and threats.
C)   Success, willingness, opportunities, and technology.
D)   Success, weaknesses, organizations, and threats.E) A) and B)
F) C) and D)

Question 20

Which strategy below helps an organization choose its business focus?

Accepted Answer

A)   SWOT Analysis
B)   The Five Forces Model
C)   Value Chain Analysis
D)   Three Generic StrategiesE) A) and B)
F) C) and D)

Exam 2: Identifying Competitive Advantages

Which strategy below helps an organization choose its business focus?

Correct Answer
verified

What is rivalry among existing competitors?

Correct Answer
verified

Your boss, Pam Anderson, has asked you to analyze the music industry using Porter's Five Forces Model. Which of the following represents the threat of substitute products or services in the music industry?

Correct Answer
verified

In a SWOT analysis, strengths and weaknesses originate inside an organization, or internally. Opportunities and threats originate outside an organization, or externally, and cannot always be anticipated or controlled.

Correct Answer
verified

What is a feature of a product or service that customers have come to expect and entering competitors must offer the same if they want to survive?

Correct Answer
verified

Which of the following represents procurement as part of the support value activities in a value chain analysis?

Correct Answer
verified

Correct Answer
verified

What are material items or products that customers will buy to satisfy a want or need?

Correct Answer
verified

What is included in a SWOT analysis?

Correct Answer
verified

Which one of Porter's five forces is high when it is easy for new competitors to enter a market and low when there are significant entry barriers to joining a market?

Correct Answer
verified

In the center of Porter's Five Forces Model is competition. Which of the following represents the four outer boxes?

Correct Answer
verified

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

Correct Answer
verified

According to Porter, companies that wish to dominate broad markets should operate using a ________ strategy.

Correct Answer
verified

In terms of system thinking, what is data entered in a computer?

Correct Answer
verified

A business strategy achieves a specific set of goals which include ________.

Correct Answer
verified

Which of the following is a tool a manager can use to analyze competitive intelligence and identify competitive advantages?

Correct Answer
verified

In a SWOT analysis, opportunities and threats originate ________ an organization.

Correct Answer
verified

The threat of substitute products or services refers to the power of competitors to enter a new market.

Correct Answer
verified

Correct Answer
verified

Which group of stakeholders' primary interests include maximizing profits, growing market share, and high return on investment?

Correct Answer
verified

Exam 2: Identifying Competitive Advantages

Which strategy below helps an organization choose its business focus?

Correct AnswerverifiedShow Answer

What is rivalry among existing competitors?

Correct AnswerverifiedShow Answer

Your boss, Pam Anderson, has asked you to analyze the music industry using Porter's Five Forces Model. Which of the following represents the threat of substitute products or services in the music industry?

Correct AnswerverifiedShow Answer

In a SWOT analysis, strengths and weaknesses originate inside an organization, or internally. Opportunities and threats originate outside an organization, or externally, and cannot always be anticipated or controlled.

Correct AnswerverifiedShow Answer

What is a feature of a product or service that customers have come to expect and entering competitors must offer the same if they want to survive?

Correct AnswerverifiedShow Answer

Which of the following represents procurement as part of the support value activities in a value chain analysis?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

What are material items or products that customers will buy to satisfy a want or need?

Correct AnswerverifiedShow Answer

What is included in a SWOT analysis?

Correct AnswerverifiedShow Answer

Which one of Porter's five forces is high when it is easy for new competitors to enter a market and low when there are significant entry barriers to joining a market?

Correct AnswerverifiedShow Answer

In the center of Porter's Five Forces Model is competition. Which of the following represents the four outer boxes?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

According to Porter, companies that wish to dominate broad markets should operate using a ________ strategy.

Correct AnswerverifiedShow Answer

In terms of system thinking, what is data entered in a computer?

Correct AnswerverifiedShow Answer

A business strategy achieves a specific set of goals which include ________.

Correct AnswerverifiedShow Answer

Which of the following is a tool a manager can use to analyze competitive intelligence and identify competitive advantages?

Correct AnswerverifiedShow Answer

In a SWOT analysis, opportunities and threats originate ________ an organization.

Correct AnswerverifiedShow Answer

The threat of substitute products or services refers to the power of competitors to enter a new market.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which group of stakeholders' primary interests include maximizing profits, growing market share, and high return on investment?

Correct AnswerverifiedShow Answer

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