Which of the following scenarios illustrates a firm that has a sustainable competitive advantage?
- Jamison Inc. generated revenue of $300,000 this financial year, which is close to the industrial revenue average of $320,000
- CR Inc. almost doubled its sales to 9,000 units this year compared ...
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Which of the following scenarios illustrates a firm that has a sustainable competitive advantage?
- Jamison Inc. generated revenue of $300,000 this financial year, which is close to the industrial
revenue average of $320,000
- CR Inc. almost doubled its sales to 9,000 units this year compared to its previous year's sales
of 5,000 units, though the industry average is 10,000 units
- Zhang Corp. was able to hold its market share of 68% in the social networking industry for
more than three years
- Peak Inc. was able to outperform its competitors with its new production system, in terms of
revenue, for a brief period of four months correct answers - Zhang Corp. was able to hold its
market share of 68% in the social networking industry for more than three years
Which of the following statements about product-oriented visions is true?
- they tend to force managers to take a myopic view of the landscape
- they allow companies to effectively adapt to changing environments
- they define a business in terms of providing solutions to customers
- they allow firms to take a need-based approach to their goals correct answers - they tend to
force managers to take a myopic view of the landscape
Which of the following is NOT a role of the CEO described by Matt Blumberg?
- to create and communicate strategy and vision
- to build a team
- to make sure the company executed its plan and has cash in the bank
- to maximize the compensation of top executives correct answers - to maximize the
compensation of top executives
Which of the following is NOT a primary function of the firm's vision statement?
- helps to resolve disputes in resource allocation
- informs all stakeholders why the company exists
- helps to avoid costly government-imposed fine
- motivates employees to give their best work
- correct answers - Helps to avoid costly government-imposed fine
True or False? To be a good vision statement, it should be short and clear, inspirational, and
product oriented.
- True
- False correct answers False
- customer oriented
Which of the following summarizes the difference between a firm's vision and mission?
- a vision states what a firm wants to accomplish; a mission states how a firm plans to
accomplish this vision
- a vision states the ethical values of a firm; a mission states the monetary goals of a firm
- a vision states how much money a firm wants to earn; a mission states how these earnings will
be accomplished
, - a vision states he management values of a firm; a mission states the values of the other workers
correct answers - a vision states what a firm wants to accomplish; a mission states how a firm
plans to accomplish this vision.
When applying the five forces model, the first step should ideally be:
- drawing a strategic group map
- assessing the overall strength of five forces
- calculating the average margins in the industry
- defining the relevant industry correct answers - defining the relevant industry
_____are best described as decreases in cost per unit as output increases
- economies of scale
- economies of scope
- time compression economies
- economies of replication correct answers - economies of scale
Which of the following statements about industry analysis is NOT true?
- Industry refers to a set of firms providing a similar product or service
- industry is a nested concept
- industry analysis is theoretically grounded upon resource-based view
- Porter's five forces framework is widely used for industry analysis correct answers - industry
analysis is theoretically grounded upon resource-based view
Value chain analysis consists of systematically analyzing a firm's key activities that for analyze
purposes are categorized into two groups:
- primary activities and support activities
- products and service activities
- customers and suppliers
- profits and losses correct answers - primary activities and support activities
Which of the following factors best describes the US automotive industry being characterized by
high entry barriers?
- a new auto companies create electric cars powered by simpler motors and gearboxes
- new entrants in the automotive industry except that incumbents will not or cannot retaliate.
- car manufacturers require large-scale production in order to be cost competitive
- many industrial products are as easy to build as cars powered by internal correct answers - car
manufacturers require large-scale production in order to be cost competitive
The primary objective of Porter's five forces framework is to:
- replace a firm's competitive advantage with competitive parity
- explain and predict the potential profitability of an industry
- reduce the gap between the value of a firm's product and its cost of production
- break down a firm's value chain activities into primary and support correct answers - explain
and predict the potential profitability of an industry
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