Exam 1

 Due Jun 22 at 11:59pm

 Points 100
 Questions 50
 Available until Jun 22 at 11:59pm
 Time Limit 70 Minutes

Instructions
This exam contains 50 questions. There is a 70 minute time limit.

This quiz was locked Jun 22 at 11:59pm.

Attempt History

Attempt Time Score

LATEST Attempt 1 26 minutes 96 out of 100
Score for this quiz: 96 out of 100
Submitted Jun 15 at 9:27am
This attempt took 26 minutes.

Question 1
0 / 2 pts

A firm has achieved ______ when it successfully formulates and implements a value-creating strategy.

a permanently sustainable competitive advantage

substantial returns
Correct Answer

strategic competitiveness
You Answered

legal and ethical core values

Question 2
2 / 2 pts

A competitive advantage:
entails reducing investors' risk to near zero.

can be permanent if the firm has successfully implemented the strategic management process.
Correct!

can be identified when competitors are unable to duplicate or find it too costly to try to imitate.

exists when competing firms are unable to find investors.

Question 3
2 / 2 pts

Above-average returns are;

profits in excess of what an investor expects to earn from a historical pattern of performance of the firm.
Correct!

returns in excess of what an investor expects to earn from other investments with a similar level of risk.

higher profits than the industry averaged over the last 10 years.

higher profits than the firm earned the previous year.

Question 4
2 / 2 pts

The strategic management process is;

a set of activities that will assure a sustainable competitive advantage and above-average returns for the
firm.

a process directed by top-management with input from other stakeholders that seeks to achieve above-
average returns for investors through effective use of the organization's resources.

a decision-making activity concerned with a firm's internal resources, capabilities, and competencies,
independent of the conditions in its external environment.
Correct!

the formulation and implementation of a full set of commitments, decisions, and actions required for the
firm to achieve above-average returns and strategic competitiveness.
Question 5
2 / 2 pts

According to Hitt, the primary drivers of hypercompetition are:

Correct!

the emergence of a global economy and rapid technological change.

increased availability of capital and increased competition.

increased global competition and decreased tariffs.

rising global socio-economic instability and increased inflation.

Question 6
2 / 2 pts

All of the following are characteristics of the global economy EXCEPT:

the increasing importance of developing countries as sources of revenue growth.

Correct!

the increased use of tariffs to protect industries.

the free movement of goods, services, people, skills, and ideas across geographic borders.

higher levels of opportunities and challenges in new geographic markets.

Question 7
2 / 2 pts

Essentially, _______ has become one of the world's largest markets with 700 million potential consumers.

the United States

China

Japan
Correct!
the European Union

Question 8
0 / 2 pts

______ has become the second-largest economy in the world.

You Answered

The United States

Japan
Correct Answer

China

The European Union

Question 9
2 / 2 pts

The economic interdependence among countries which is reflected in the flow of goods, services,
financial capital, and knowledge across country borders is defined as:

boundaryless retailing.

strategic intensity.

hypercompetition.
Correct!

globalization.

Question 10
2 / 2 pts

Globalization has led to:

increasing loyalty of customers for products made domestically.

Correct!
higher performance standards including quality and cost.

lower operational efficiency as firms must transport raw materials and finished goods farther.

declining returns from investment in research and development.

Question 11
2 / 2 pts

BP, in response to the Deepwater Horizon oil spill, expected increased scrutiny from which of the
following segments of the general environment?

global

sociocultural

technological
Correct!

political/legal

Question 12
2 / 2 pts

Coca-Cola and PepsiCo have been accused of contributing to the obesity problem in the United
States. This accusation comes from the ______segment of the general environment.

economic
Correct!

sociocultural

technological

political/legal

Question 13
2 / 2 pts
The recent joint ventures formed by BP with Russian and Indian partners show the importance of the
______ segment of the general environment in those countries that BP and other oil firms have to manage
when contending with scarce resources.

Correct!

global

physical

technological

demographic

Question 14
2 / 2 pts

Acme Valves, Inc., has been a successful player in the oil field supply industry in the last 15 years. Acme
maintained its strategy and product characteristics over this time period. However, the company has
experienced declines in sales and profits over the last four quarters. The CEO of Acme should

Correct!

conduct an analysis of the external environment.

focus on improving efficiency of production and cost control.

immediately begin making incremental adjustments to the traditional business strategy in an effort to
improve sales.

continue with the proven strategy because its returns over the long run are important.

Question 15
2 / 2 pts

The three parts of the external environment that affect a firm's strategic actions are:

economic, political, and legal.

industry, business, and product.

Correct!
general, industry, and competitor.

local, national, and global.

Question 16
2 / 2 pts

The ______ environment is composed of dimensions in the broader society that can influence an industry
and the firms within it.

competitor

sociocultural
Correct!

general

industry

Question 17
2 / 2 pts

The environmental segments that make up the general environment typically will NOT include:

demographic factors.

sociocultural factors.

technological factors.
Correct!

substitute products or services.

Question 18
2 / 2 pts

Aardvark Corp. has three products. Two products together make up two-thirds of revenues and constitute
50 percent of company profits. Aardvark's third product makes up one-third of sales. With profitability far
above the industry average, this product is responsible for one-half of Aardvark's profits. Which of the
following statements regarding assessment of the general environment is accurate for Aardvark?
The company should monitor the general environment for changes that might affect the profitability of
the most profitable products.

The company should monitor the general environment for changes that might affect the revenue of all
products.

The company should monitor the general environment for changes that might affect the profitability of all
products.
Correct!

The company should monitor the general environment for changes that might affect the revenue and
profitability of all products.

Question 19
2 / 2 pts

Which of the following is NOT an activity used in the external environmental analysis process?

Monitoring

Scanning

Assessing
Correct!

Decrypting

Question 20
2 / 2 pts

Environmental scanning would be most important for which of the following organizations?

A provider of hospice services for the terminally ill

A manufacturer of household linens

Correct!

A web design company catering to small businesses

A neighborhood sewer and water utility

Question 21
2 / 2 pts

All competitive advantages have:

the ability to lead to more competitive advantages.

an expiration date.
Correct!

a limited life.

the ability to earn above-average returns indefinitely.

Question 22
2 / 2 pts

It is increasingly difficult for a firm to develop and sustain a competitive advantage because of the effects
of globalization and:

Correct!

the rapid development of the Internet's capabilities.

the simultaneous erosion of the U.S. work ethic and the U.S. education system.

extensive use of outsourcing within the borders of the United States.

the declining number of inventions and patents developed by U.S. citizens.

Question 23
2 / 2 pts

Which of the following is NOT required for a firm to achieve strategic competitiveness and earn above-
average returns from its core competencies?

Core competencies must be acquired.

Core competencies must be bundled.

Correct!
Core competencies must be internationalized.

Core competencies must be leveraged.

Question 24
2 / 2 pts

Which of the following is NOT a factor affecting sustainability of a competitive advantage?

the rate at which obsolescence of the core competence occurs because of environmental changes
Correct!

the length of time the core competence has existed

the imitability of a core competence

the availability of substitutes for a firm's core competence

Question 25
2 / 2 pts

Internal analysis enables a firm to determine what the firm:

will do.

should do.

might do.
Correct!

can do.

Question 26
2 / 2 pts

The proper matching of what a firm can do with what it might do:

Correct!

yields insights the firm requires to select its strategy.

balances the internal characteristics of the firm with the characteristics of the external environment.

develops core competencies based on human knowledge.

overcomes the rigidity and inertia resulting from a history of success.

Question 27
2 / 2 pts

The key to achieving competitiveness, earning above-average returns, and remaining ahead of
competitors in the long run is to manage current core competencies:

Correct!

while simultaneously developing new ones.

and imitate the core competencies of successful competitors.

in order to preserve and enhance them against the firm's competitors.

in a way that uniquely bundles and leverages the firm's existing resources.

Question 28
2 / 2 pts

Which of the following is NOT a component of internal analysis leading to competitive advantage?

Core competencies

Tangible and intangible resources

Correct!

Analysis of supplier power

Capabilities

Question 29
2 / 2 pts

Value consists of:

a product's performance characteristics and attributes for which customers consider paying.
Correct!

a product's performance characteristics and attributes for which customers are willing to pay.

a product's proprietary characteristics and attributes for which customers consider paying.

a product's proprietary characteristics and attributes for which customers are willing to pay.

Question 30
2 / 2 pts

______ are the source of a firm's ______, which are the source of the firm's ______.

Core competencies; resources; competitive advantage

Capabilities; resources; core competencies

Correct!

Resources; capabilities; core competencies

Capabilities; resources; above-average returns

Question 31
2 / 2 pts

Business-level strategies detail commitments and actions taken to provide value to customers and gain
competitive advantage by exploiting core competencies in:

Correct!

specific product markets.

particular geographic locations.

primary value chain activities.

the selection of industries in which the firm will compete.

Question 32
2 / 2 pts

A firm's core strategy is its ____ strategy.

pricing
Correct!

business

corporate

international

Question 33
2 / 2 pts

When selecting a business level strategy, the firm must determine all of the following EXCEPT:

how will the customer's needs be satisfied?

who is the customer?

Correct!

why should these customers' needs be satisfied?

what are the customers' needs?

Question 34
2 / 2 pts

The three dimensions of a firm's relationships with customers include all the following EXCEPT:

Correct!

exclusiveness.

affiliation.

richness.
reach.

Question 35
2 / 2 pts

Which of the following is TRUE?

Customer loyalty is fragile and cannot reliably be considered a factor in firm success.

As customer loyalty increases, customers are more sensitive to price increases.

Correct!

Customer loyalty has a positive relationship with firm profitability.

Customer loyalty is of importance only to firms using the differentiation strategy.

Question 36
2 / 2 pts

The ________dimension of relationships with customers is particularly important for social networking
sites such as Facebook and Twitter.

richness
Correct!

reach

affiliation

social

Question 37
2 / 2 pts

Amazon has built capabilities around Internet technology and e-commerce to facilitate information
exchanges with its customers in a cost effective manner. This represents which of the three service
dimension?

None of the these options are correct.

Reach
Correct!

Richness

Affiliation

Question 38
2 / 2 pts

Viewing the world through the customer's eyes and constantly seeking ways to create more value for the
company enhances:

Correct!

affiliation with the customer.

the ability to identify the customer.

the richness of the relationship with the customer.

the reach of the company toward the customer.

Question 39
2 / 2 pts

Before the firm decides what products to offer and what benefits and features they will have, the firm
must decide all the following questions EXCEPT:

Correct!

when the customer's needs should be satisfied.

who the firm should serve.

what core competencies are needed to satisfy customer needs.

what needs the firm should satisfy.

Question 40
2 / 2 pts
In the animal food products business, food-product needs of owners of companion animals pets (e.g.,
dogs and cats) differ from the needs for food and health-related products of those owning production
animals (e.g., livestock). Which of the following aspects of managing customer relationships does this
choice refer to?

What: Determining Which Customer Needs to Satisfy

How: Determining Core Competencies Necessary to satisfy Customer Needs

Correct!

Who: Determining the Customers to Serve

When: Determining When to Satisfy Customer Needs

Question 41
2 / 2 pts

Competitive rivalry has the most effect on a firm's ____ strategies than the firm's other strategies.

acquisition
Correct!

business-level

corporate-level

international

Question 42
2 / 2 pts

Multimarket competition occurs when firms:

have a high level of awareness of their competitors' strategic intent.

sell different products to the same customer.

Correct!

compete against each other in several geographic or product markets.

simultaneously enter into an attack strategy.

Question 43
2 / 2 pts

Competitive dynamics refers to the:

Correct!

total set of actions and responses taken by all firms competing within a market.

set of competitive actions and competitive responses the firm takes to build or defend its competitive
advantages and to improve its market position.

ongoing set of competitive actions and competitive responses between competitors as they maneuver for
advantageous market position.

circumstances in which competitors are aware of the degree of their mutual interdependence resulting
from market commonality and resource similarity.

Question 44
2 / 2 pts

Intensified rivalry within an industry results in:

increased hiring across the industry.

increased entries into the industry.

increased total revenues across the industry.

Correct!

decreased average profitability across the industry.

Question 45
2 / 2 pts

Hilliard Pharmaceuticals and Ahrens Vitamins, Inc., have high market commonality, both geographically
and in the market segments in which they compete. Hilliard, the number two firm in the industry, has
undertaken a major strategic attack upon Ahrens, the market leader. Which of the following statements is
most likely to be TRUE?
Ahrens will not respond aggressively since this is a strategic move and not a tactical action.

As the market leader, Ahrens has little to fear from an attack by Hilliard and will not expend
organizational slack on a major response.
Correct!

Ahrens will respond aggressively because of the high multimarket contact between Hilliard and Ahrens.

Ahrens will respond after a long delay as the nutrition supplement industry is a slow-cycle industry.

Question 46
2 / 2 pts

In general, compared with firms which compete in only one market, among firms which face one another
in multiple markets there is:

more competitive rivalry.

similar competitive rivalry.

Correct!

less competitive rivalry.

no competitive rivalry.

Question 47
2 / 2 pts

Research suggests that a firm with greater multimarket contact is _______ likely to initiate and attack,
and _____ likely to respond aggressively when attacked.

more; less

more; more
Correct!

less; more

less; less

Question 48
2 / 2 pts

Which pair of firms has the LEAST resource similarity?

Correct!

Small, family-owned Italian restaurant; Olive Garden

Target; Walmart

HP; Dell

FedEx; UPS

Question 49
2 / 2 pts

Rapid-Built Homes specializes in low-cost prefabricated, modular homes that can be erected in a matter
of days anywhere in the country. Rapid-Built focuses on entire subdivisions of homes developed by real
estate speculators. ModernModular Homes (ModMod) specializes in modular homes designed by
architects, which can be built anywhere in the country. The buyers usually build the home themselves
from kits on their own lots. ModMod sells fewer than 100 house kits per year. ModMod is run by two
professors of architecture as a sideline business. According to the "Framework of Competitive Analysis,"
we can say that Rapid-Built and ModMod

are direct mutually acknowledged competitors.

have high resource similarity.

Correct!

are probably not engaged in intense competitive rivalry.

have high market commonality.

Question 50
2 / 2 pts

Firms with ______ market commonality and _____ resource similarity are direct and mutually
acknowledged competitors.

high; low
low; high
Correct!

high; high

low; low
Quiz Score: 96 out of 100