WPC 480 Exam Questions with Correct Answers

WPC 480 Exam Questions with Correct Answers A diagnosis of the competitive challenge, an element of a good strategy, is primarily accomplished through strategy - ANSWER analysis. Which of the following does a firm possess when it can outperform other firms in the same industry or the industry average over a prolonged period of time? - ANSWER sustainable competitive advantage Revved Rider Inc., a motorcycle company, is the market leader due to its superior engine technology and service orientation. These unique qualities have helped the company generate revenues that are consistently higher than other firms in the same industry. Which of the following can be concluded about Revved Rider Inc. from this scenario? - ANSWER It has a competitive advantage over the other firms. Which of the following statements about competitive advantage is not true? - ANSWER A firm's competitive advantage is always absolute, not relative. A firm is likely to have a competitive advantage when it - ANSWER provides services that consumers will value more than those of its rivals. The greater the difference between value creation and cost, the - ANSWER greater a firm's economic contribution. When a firm integrates the competitive strategies of cost-leadership and differentiation, it will most likely result in - ANSWER trade-offs that work against each other. How has Threadless staked out a unique strategic position? - ANSWER by providing customers a voice in product design Which of the following has contributed to Twitter's loss of a competitive advantage? - ANSWER Twitter does not allow advertisers to target their online ads precisely enough. Quick Eats is a fast-food restaurant that has recently entered the hospitality industry. Since most of its competitors are pursuing a low-cost position and doing well, Quick Eats also wants to adopt the same strategy. Which of the following will be a likely implication of this decision? - ANSWER Quick Eats will face low profit potential. Which of the following statements is true of strategy? - ANSWER Actions that allow a firm to address a competitive challenge are strategy. Which of the following statements with regard to determining firm performance is true? - ANSWER External analysis will help understand the industry effects that determine a firm's performance. Which of the following forces are most closely related to firm effects within a pharmaceutical industry? - ANSWER the strategic actions taken by managers of a firm in the industry The metaphor of a black swan best applies to - ANSWER events that are considered highly unexpected and highly impactful when they do occur. The black swan events in the past have demonstrated that - ANSWER stakeholders can affect or be affected by a firm's actions. Widgets Inc. is a vendor who supplies machine parts to an appliance manufacturing company. In return, Widgets Inc. relies on the company for its revenue and is affected by any decisions taken by the company. In this scenario, Widgets Inc. is a(n) _____ for the appliance manufacturing company. - ANSWER external stakeholder Which of the following groups is most likely to be considered a firm's internal stakeholder? - ANSWER board members Which of the following groups will not be considered a company's internal stakeholder? - ANSWER suppliers Which of the following statements related to a firm's stakeholders is not true? - ANSWER While external stakeholders are those who make contributions toward the firm, internal stakeholders are those who reap all the benefits. Which of the following is a stakeholder attribute that managers should consider at every step in a stakeholder impact analysis? - ANSWER legitimacy