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STRAT 5 700 Exam 1 With
Correct Answers
1:High quality objectives are those that are - ANSWER tightly connected to elements of a firm's mission and are relatively easy to measure and track over time.
When a firm is able to create more economic value that rival firms it is said to have a - ANSWER competitive advantage
Which type of ratios focus on the ability of a firm to meet its short-term financial obligations? - ANSWER liquidity ratios
Firms with strategies that are unlikely to be a source of competitive advantage will rarely provide the same career opportunities as firms with strategies that do generate such advantages. - ANSWER True
If TechnoGeek and VarsityBlue compete in the same market for the same customer and TechnoGeek generates $900 of economic value each time it sells a product or service while VarsityBlue generates $400 of economic value each time it sells a product or service, TechnoGeek has a(n) ________ of $500. - ANSWER competitive advantage
In many ways, the difference between traditional economics research and strategic management research is that the former attempts to explain why ________, while the latter attempts to explain ________. - ANSWER competitive advantages should not persist; when they can
The two types of measures of competitive advantage include: - ANSWER
Accounting measures and economic measures
Using ratio analysis, a firm earns ________ when its performance is greater than the industry average. - ANSWER above average accounting performance
QUIZ 3:________in the RBV are defined as the tangible and intangible assets that a firm controls that it can use to conceive and implement its strategies. - ANSWER Resources
________ are a subset of a firm's resources and are defined as tangible and intangible assets that enable a firm to take full advantage of other resources it controls - ANSWER capabilities
________ implies that for a given business activity, some firms may be more skilled in accomplishing this activity than other firms. - ANSWER resource heterogeneity
The set of business activities in which a firm engages to develop, produce, and market its products or services is known as its - ANSWER value chain
Most firms have a resource base that is composed primarily of resources and capabilities that are - ANSWER valuable but not rare
ESPN's development of an extensive offering of X-Games coverage that is unmatched by any other sports outlet is an example of which element of the VRIO framework? - ANSWER rarity
Resources and capabilities, such as interpersonal relations among managers and a firm's culture, that may be costly to imitate because they are beyond the ability of firms to systematically manage and influence are referred to as
Southwest Airlines' strong internal culture that helps ensure that employees
Why Economies of Scale Lower Costs - ANSWER - Ability to Spread Fixed Costs
Learning Curve Economies - ANSWER - learning that occurs through cumulative experience
- incremental production costs decline as production experience is gained
- aircraft production costs declined 20% as cumulative volume doubled
5 Forces - ANSWER Entry, Buyers, Suppliers, Substitutes, Rivals
CHAPTER 4: - ANSWER
CHAPTER 5: PRODUCT DIFFERENTIATION - ANSWER
Bases of product differentiation include: - ANSWER 1. attributes of the products or services a firm sells (including product features, product complexity, the timing of product introduction, and location)
- relations between a firm and its customers (including product
customization, consumer marketing, and reputation)
- links within and between firms (including links between functions, links with other firms, a firm's product mix, its distribution system, and its level of service and support)
and: CREATIVITY
Ways to use attributes of products or services to differentiate - ANSWER 1. product features 2. product complexity 3. timing of product introduction 4. Location
Differentiation through relationships - ANSWER 1. product customization 2. consumer marketing 3. product reputation
Differentiation through linkages within or between firms - ANSWER 1. linkages among functions within a firm 2. linkages with other firms 3. product mix 4. distribution channels 5. service and support
architectural competence - ANSWER the ability to use organizational structure to facilitate coordination among scientific disciplines to conduct research.
Organizational Structure for implementing product differentiation: - ANSWER 1. cross-divisional/cross-functional product development teams
product complexity: - ANSWER
QUIZ #5 - ANSWER
A firm's reputation is - ANSWER a socially complex relationship between a firm and its customers and can serve as a basis for product differentiation.
example of product customization - ANSWER In the bicycle industry, the feel of high-end bicycles when they are ridden is important. As a serious rider becomes accustomed to a particular bicycle, it is very difficult for that rider to switch to an alternative supplier. This is an example of product differentiation through which of the following?
________ can be can be a source of product differentiation when a single set of customers purchases several of a firm's products. - ANSWER product mix
product mix: - ANSWER 1. when the products or services are technologically linked or
- when a single set of customers purchases several of a firm's products or services
