MGMT 4513 Exam 1 || with Accurate Answers 100%.
The hierarchy of organizational goals is in this order (least specific to most specific):
A) Mission statements, vision statements, strategic objectives
B) Vision statements, strategic objectives
C) Vision statements, mission statements, strategic objectives
D) Mission statement, strategic objectives, vision statements correct answers A
T or F: Some excellent examples of mission statements are: "To be the happiest place on Earth"
(Disney), and "restoring patients to full life" (Medtronic). correct answers False
T or F: Organizational goals and objectives should be vague in order to allow changes in
strategy. correct answers False
Increasingly larger numbers of women entering the work force since the early 1970s is an
example of
A) demographic changes.
B) political and legal environmental changes.
C) sociocultural chamges.
D) technological developments. correct answers C
An industry is defined as:
A) Firms producing items that sell through the same distribution channels.
B) Firms that have the same seven digit standards industrial code.
C) A group of firms producing the same item.
D) A group of firms producing products that are close substitutes. correct answers D
T or F: The five forces model (buyers/suppliers/new entrants/substitutes/rivalry) is a firm-level
analytical model which explains difference in performance between the firms that compete in
one industry. correct answers False
Which is considered a force in the "Five-Forces" model?
A) The threat of government intervention
B) Recent technological innovation
C) Rivalry among competing firms
D) Increased deregulation in an industry correct answers C
Because the Internet lowers barriers to entry in most industries, it
A) Increases supplier power.
B) Decreases the threat of new entrants.
C) Increases the threat of new entrants.
, D) Makes it easier to build customer loyalty. correct answers C
Which of the following is NOT an entry barrier to an industry?
A) bargaining power of suppliers
B) customer product loyalty
C) expected competitor retaliation
D) economies of scale correct answers A
T or F: Industries characterized by high economies of scale typically attract fewer new entrants.
correct answers True
Which of the following firms would likely pose the least competitive threat?
A) A firm in the same industry and in the nearest strategic group looking to join your group
B) A firm in the same industry and in the same strategic group
C) A competitor to your product where a high switching cost exists.
D) A firm that produces substitute goods to your product line. correct answers C
A manufacturing business pursuing cost leadership will likely
A) rely on experience effects to raise efficiency.
B) put heavy emphasis on product engineering
C) use advertising to build brand image.
D) focus on a narrow market segment. correct answers A
Convincing rivals not to enter a price war, protection from customer pressure to lower prices,
and the ability to better withstand cost increases from suppliers characterize which type of
competitive strategy?
A) Overall cost leadership
B) Differentiation focus
C) Cost leadership focus
D) Differentiation correct answers A
High product differentiation is generally accompanied by
A) significant economies of scale
B) decreased emphasis on competition based on price
C) higher market share
D) high-profit margins and lower costs correct answers B
A firm can achieve differentiation through all the following means except
A) adding additional product features
B) offering lower prices to frequent customers
The hierarchy of organizational goals is in this order (least specific to most specific):
A) Mission statements, vision statements, strategic objectives
B) Vision statements, strategic objectives
C) Vision statements, mission statements, strategic objectives
D) Mission statement, strategic objectives, vision statements correct answers A
T or F: Some excellent examples of mission statements are: "To be the happiest place on Earth"
(Disney), and "restoring patients to full life" (Medtronic). correct answers False
T or F: Organizational goals and objectives should be vague in order to allow changes in
strategy. correct answers False
Increasingly larger numbers of women entering the work force since the early 1970s is an
example of
A) demographic changes.
B) political and legal environmental changes.
C) sociocultural chamges.
D) technological developments. correct answers C
An industry is defined as:
A) Firms producing items that sell through the same distribution channels.
B) Firms that have the same seven digit standards industrial code.
C) A group of firms producing the same item.
D) A group of firms producing products that are close substitutes. correct answers D
T or F: The five forces model (buyers/suppliers/new entrants/substitutes/rivalry) is a firm-level
analytical model which explains difference in performance between the firms that compete in
one industry. correct answers False
Which is considered a force in the "Five-Forces" model?
A) The threat of government intervention
B) Recent technological innovation
C) Rivalry among competing firms
D) Increased deregulation in an industry correct answers C
Because the Internet lowers barriers to entry in most industries, it
A) Increases supplier power.
B) Decreases the threat of new entrants.
C) Increases the threat of new entrants.
, D) Makes it easier to build customer loyalty. correct answers C
Which of the following is NOT an entry barrier to an industry?
A) bargaining power of suppliers
B) customer product loyalty
C) expected competitor retaliation
D) economies of scale correct answers A
T or F: Industries characterized by high economies of scale typically attract fewer new entrants.
correct answers True
Which of the following firms would likely pose the least competitive threat?
A) A firm in the same industry and in the nearest strategic group looking to join your group
B) A firm in the same industry and in the same strategic group
C) A competitor to your product where a high switching cost exists.
D) A firm that produces substitute goods to your product line. correct answers C
A manufacturing business pursuing cost leadership will likely
A) rely on experience effects to raise efficiency.
B) put heavy emphasis on product engineering
C) use advertising to build brand image.
D) focus on a narrow market segment. correct answers A
Convincing rivals not to enter a price war, protection from customer pressure to lower prices,
and the ability to better withstand cost increases from suppliers characterize which type of
competitive strategy?
A) Overall cost leadership
B) Differentiation focus
C) Cost leadership focus
D) Differentiation correct answers A
High product differentiation is generally accompanied by
A) significant economies of scale
B) decreased emphasis on competition based on price
C) higher market share
D) high-profit margins and lower costs correct answers B
A firm can achieve differentiation through all the following means except
A) adding additional product features
B) offering lower prices to frequent customers
