Bus 475 (Test questions with correct answers)

SWOT analysis correct answers a planning tool used to identify a firm's competencies, limitations that the company needs to improve on, areas of growth, as well as the areas that the company should completely avoid. internal analysis correct answers the examination of a company's resources and capabilities to configure a firm's ability to deliver unique value capital market, product market, organizational, community correct answers four primary stakeholder groups substitute correct answers a product that is fundamentally different yet serves the same function or purpose as another product economic growth correct answers steady growth in the productive capacity of the economy (and so a growth of national income) causal ambiguity correct answers the difficulty of identifying the actual cause of a firm's successful performance tacit knowledge correct answers strategies for success that are not explicitly taught but that instead must be inferred positive network externalities correct answers when the value of a product increases with the number of users virtuous circle correct answers when more sellers attract more buyers, who, in turn, attract more sellers first-mover advantage correct answers economic and strategic advantage gained by being the first company to enter an industry complexity correct answers resources, capabilities, and priorities become difficult for competitors to imitate when they span the organization or contain many interrelated elements time compression diseconomies correct answers the cost of internal development increases exponentially as the time taken to develop the resource shrinks network effect correct answers each person who uses a product or service benefits as more people participate currency exchange rate correct answers the price of one country's currency expressed in terms of another country's currency inflation correct answers an increase in the overall level of prices in the economy