WPC 480 midterm Questions with
correct answers A+ rated
All of the following were traditional sources of competitive advantage EXCEPT:
a. labor costs.
b. access to financial resources.
c. protected markets.
d. a highly educated labor market. - correct answer ✔✔d
Customer loyalty programs such as airline frequent flyer miles are an attempt to:
a. decrease competitors' access to distribution channels.
b. develop a cost advantage independent of scale.
c. increase customers' switching costs.
d. overcome the perishability of the hotel "product." - correct answer ✔✔c. increase customers'
switching costs
A cost leadership strategy provides goods or services with features that are:
a-acceptable.
b-unique.
c-substandard.
d-mediocre. - correct answer ✔✔a-acceptable
Valuable capabilities allow the firm to:
a. exploit opportunities in its external environment.
b. neutralize threats in its internal environment.
c. exploit opportunities or neutralize threats in its external environment.
d. neutralize opportunities in its internal environment. - correct answer ✔✔c- exploit opportunities or
neutralize threats in its external environment
,6. Organizational stakeholders include:
a. unions.
b. host communities.
c. employees.
d. suppliers of capital. - correct answer ✔✔c- employees
Competitive rivalry has more effect on a firm's __________ strategies than the firm's other strategies.
a. business-level
b. corporate-level
c. acquisition
d. international - correct answer ✔✔a- business level
Capabilities that other firms cannot develop easily are classified as:
a. costly to imitate.
b. rare.
c. valuable.
d. nonsubstitutable. - correct answer ✔✔a- costly to imitate
9. Capital market stakeholders include:
a. industry competitors.
b. shareholders.
c. employees.
d. government regulators. - correct answer ✔✔b- shareholders
10. The firm's capability will NOT be costly to imitate when it__________
a. was developed under a unique historical condition
b. was developed under ambiguous causes
c. is very rare
,d. reflects social complexity - correct answer ✔✔c- is very rare
The final responsibility for forming the firm's mission rests with the:
a. CEO.
b. mid-level managers.
c. employees.
d. stakeholders. - correct answer ✔✔a- ceo
12. When capabilities serve as a source of competitive advantage for a firm over its rivals, the firm has
created a(n):
a. strategic mission.
b. inspiring vision.
c. core competence.
d. sustainable market niche. - correct answer ✔✔c- core competence
14. The increasing economic interdependence among countries and their organizations as reflected in
the flow of goods and services, financial capital, and knowledge across country borders is defined as:
a. hypercompetition.
b. boundaryless retailing.
c. strategic intensity.
d. globalization. - correct answer ✔✔d- globalization
15. A key purpose of a vision and mission statement is to inform _________ what a firm is, what it seeks
to accomplish, and who it seeks to serve.
a. CEOs
b. stakeholders
c. regulators
d. former employees - correct answer ✔✔b- stakeholders
, Tools such as __________ help the firm focus on its core competencies as the source of its competitive
advantages.
a. marketing
b. manufacturing
c. outsourcing
d. imitation - correct answer ✔✔c- outsourcing
18. Firms with __________ market commonality and __________ resource similarity are direct and
mutually acknowledged competitors.
a. low; high
b. low; low
c. high; high
d. high; low - correct answer ✔✔c- high; high
Understanding how new knowledge can develop new products, processes, or materials is a result of
analyzing the __________ segment of the general environment.
a. economic
b. political/legal
c. technological
d. global - correct answer ✔✔c- technological
A major assumption about the strategic management process is that it is:
a. inspired.
b. team-based.
c. rational.
d. inclusive. - correct answer ✔✔c- rational
__________ markets are often described as volatile and innovative.
a. Slow-cycle
b. Fast-cycle
correct answers A+ rated
All of the following were traditional sources of competitive advantage EXCEPT:
a. labor costs.
b. access to financial resources.
c. protected markets.
d. a highly educated labor market. - correct answer ✔✔d
Customer loyalty programs such as airline frequent flyer miles are an attempt to:
a. decrease competitors' access to distribution channels.
b. develop a cost advantage independent of scale.
c. increase customers' switching costs.
d. overcome the perishability of the hotel "product." - correct answer ✔✔c. increase customers'
switching costs
A cost leadership strategy provides goods or services with features that are:
a-acceptable.
b-unique.
c-substandard.
d-mediocre. - correct answer ✔✔a-acceptable
Valuable capabilities allow the firm to:
a. exploit opportunities in its external environment.
b. neutralize threats in its internal environment.
c. exploit opportunities or neutralize threats in its external environment.
d. neutralize opportunities in its internal environment. - correct answer ✔✔c- exploit opportunities or
neutralize threats in its external environment
,6. Organizational stakeholders include:
a. unions.
b. host communities.
c. employees.
d. suppliers of capital. - correct answer ✔✔c- employees
Competitive rivalry has more effect on a firm's __________ strategies than the firm's other strategies.
a. business-level
b. corporate-level
c. acquisition
d. international - correct answer ✔✔a- business level
Capabilities that other firms cannot develop easily are classified as:
a. costly to imitate.
b. rare.
c. valuable.
d. nonsubstitutable. - correct answer ✔✔a- costly to imitate
9. Capital market stakeholders include:
a. industry competitors.
b. shareholders.
c. employees.
d. government regulators. - correct answer ✔✔b- shareholders
10. The firm's capability will NOT be costly to imitate when it__________
a. was developed under a unique historical condition
b. was developed under ambiguous causes
c. is very rare
,d. reflects social complexity - correct answer ✔✔c- is very rare
The final responsibility for forming the firm's mission rests with the:
a. CEO.
b. mid-level managers.
c. employees.
d. stakeholders. - correct answer ✔✔a- ceo
12. When capabilities serve as a source of competitive advantage for a firm over its rivals, the firm has
created a(n):
a. strategic mission.
b. inspiring vision.
c. core competence.
d. sustainable market niche. - correct answer ✔✔c- core competence
14. The increasing economic interdependence among countries and their organizations as reflected in
the flow of goods and services, financial capital, and knowledge across country borders is defined as:
a. hypercompetition.
b. boundaryless retailing.
c. strategic intensity.
d. globalization. - correct answer ✔✔d- globalization
15. A key purpose of a vision and mission statement is to inform _________ what a firm is, what it seeks
to accomplish, and who it seeks to serve.
a. CEOs
b. stakeholders
c. regulators
d. former employees - correct answer ✔✔b- stakeholders
, Tools such as __________ help the firm focus on its core competencies as the source of its competitive
advantages.
a. marketing
b. manufacturing
c. outsourcing
d. imitation - correct answer ✔✔c- outsourcing
18. Firms with __________ market commonality and __________ resource similarity are direct and
mutually acknowledged competitors.
a. low; high
b. low; low
c. high; high
d. high; low - correct answer ✔✔c- high; high
Understanding how new knowledge can develop new products, processes, or materials is a result of
analyzing the __________ segment of the general environment.
a. economic
b. political/legal
c. technological
d. global - correct answer ✔✔c- technological
A major assumption about the strategic management process is that it is:
a. inspired.
b. team-based.
c. rational.
d. inclusive. - correct answer ✔✔c- rational
__________ markets are often described as volatile and innovative.
a. Slow-cycle
b. Fast-cycle
