Business Strategy Multiple Choice Questions and Answers, Exams of Marketing Business-to-business (B2B)

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WPC 470 FINAL EXAM NEWEST 2024 EXAM ACTUAL

EXAM COMPLETE 400 QUESTIONS AND CORRECT

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Wallingford Company is trying to determine optimal ways to collect and distribute knowledge throughout the firm. This is an activity for which support function in the value chain? a.Human resources b.Finance c.Management information systems d.Distribution - ANSWER>>Management Information Systems Vendors across the country offer sunglasses that look virtually identical to those made by Chanel, Prada, Gucci, and other luxury brands—including the trademark logos—but cost far less. These products are the result of: a.competition. b.imitation. c.counterfeiting. d.evolving consumer preferences. - ANSWER>>counterfeiting JoAnn Tucker recently took over as Chief Executive Officer (CEO) of Burger-Rama, Inc. Burger-Rama has seen declining profits over the past five years and has struggled to remain competitive in the fast-food industry. In order to achieve strategic competitiveness, JoAnn must: a..conduct training programs and hire educated and experienced employees. b.invest in sophisticated technology in relevant knowledge areas. c.fire the current board of directors and start afresh. d.shift the company's focus to marketing and develop an extensive advertising campaign. - ANSWER>>conduct training programs and hire educated and experienced employees Firms failing to perform the value-chain activities and support functions in an optimum manner when implementing the _____ strategy become "stuck in the middle." a.cost leadership b.focus c.differentiation d.integrated cost leadership/differentiation - ANSWER>>integrated cost leadership/differentiation

The chief executive officer (CEO) and other top-level managers often involve other people to develop the mission statement because: a.the mission deals more directly with product markets and customers. b.it is viewed as a task that can easily be delegated. c.the mission deals more directly with capital markets and shareholders. d.forming the mission is typically not the final responsibility of the CEO or other top-level managers. - ANSWER>>The mission deals more directly with product markets and customers A firm should outsource only activities where it: a.has the probability of developing core competencies. b.has developed the ability to innovate. c.cannot match up a value chain activity with a support function. d.cannot create value or where it is at a substantial disadvantage compared to competitors. - ANSWER>>cannot create value or where it is at a substantial disadvantage compared to competitiors Which of the following strategies helps a firm concentrate on understanding its customers and their needs with greater clarity as a foundation for innovation? a.Market segmentation strategy b.Business model strategy c.Digital strategy d.Cost leadership strategy - ANSWER>>Digital strategy When a firm earns below-average returns, it: a.is able to maximize the interests of all stakeholders. b.should reward those stakeholders who have the least power. c.should try to minimize the amount of support lost from stakeholders. d.should treat all stakeholders the same. - ANSWER>>should minimize the amount of support lost from stakeholders Which of the following statements about a flexible manufacturing system (FMS) is NOT true? a..Used properly, an FMS allows the firm to increase its effectiveness in responding to changes in its customers' needs, while retaining low-cost advantages and consistent product quality. b.An FMS is a computer-controlled process that allows firms to produce a variety of products in moderate, flexible quantities with a minimum of manual intervention. c.The goal of an FMS is to eliminate the "low cost versus product variety" trade-off that is inherent in traditional manufacturing technologies. d.An FMS allows a manufacturer to connect with its suppliers, distributors, and customers, which enables it to satisfy customer expectations in terms of product quality and delivery speed. - ANSWER>>An FMS allows a manufacturer to connect with its

The main competitive advantage of a particular major U.S. technology firm is sourcing and procurement of raw materials. This company is facing increasing competition on price and is strongly considering outsourcing as a means of reducing costs. The LAST function this firm should consider outsourcing is: a.operations. b.supply-chain management. c.research and development. d.distribution. - ANSWER>>Supply chain management Which of the following statements about a firm's customers is true? a.Customers are the most obvious stakeholders, at least in U.S. organizations. b.Customers are part of its capital market stakeholders. c.Customers are more important than its other product market stakeholders. d.Customers prefer that investors receive a maximum return on their investments. - ANSWER>>Customers are more important than its other product market stakeholders. Joplin Tires' corporate website states "Joplin Tires strives to be the top-selling tire manufacturer in the United States." This statement is Joplin Tires': a.mission. b.statement of organizational culture. c.code of ethics. d.vision. - ANSWER>>Vision When examining the Assumptions component for a competitor analysis, which of the following is a question that is addressed? a.Do we assume the future will be volatile? b.How are we currently competing? c.How do we rate compared to our competitors? d.What are our strengths and weaknesses? - ANSWER>>Do we assume the future will be volatile? Which of the following is NOT an implication of strategic groups? a.Because firms within a group offer similar products to the same customers, the competitive rivalry among them can be intense. b.The strengths of the five forces differ across strategic groups. c.The closer the strategic groups are in terms of their strategies, the greater is the likelihood of rivalry between the groups.

d.Strategic groups have less threats to each firm's profitability. - ANSWER>>Strategic groups have less threats to each firm's profitability. Which of the following statements about determining which customer needs to satisfy is NOT true? a.In a general sense, needs are related to a product's benefits and features. b.Customers prefer to buy customized products. c.The most effective firms strive continuously to anticipate changes in customers' needs. d.The generalized forms of value that products provide are either high cost with acceptable features or similar features with acceptable cost. - ANSWER>>The generalized forms of value that products provide are either high cost with acceptable features or similar features with acceptable cost Which of the following is an assumption of the industrial organization (I/O) model? a.Organizational decision makers are rational individuals who are committed to acting in the firm's best interests. b.Resources and capabilities are not highly mobile across firms. c.Differences in firms' performances across time are due primarily to their unique resources and capabilities. d.The internal environment imposes pressures and constraints that determine the firm's strategies. - ANSWER>>Organizational decision makers are rational individuals who are committed to acting in the firm's best interests. How firms integrate the activities they complete within each business-level strategy demonstrates: a.how they differ from one another. b.how profitable they will be. c.what their cost structure is. d.whether they will have the lowest costs. - ANSWER>>how they differ from one another Which of the following would be considered to be part of Seaside Bar & Grill's capital market stakeholders? a.Shareholders b.Customers c.Suppliers d.Employees - ANSWER>>Shareholders Each business-level strategy can help the firm establish and exploit a particular competitive _____ as the basis for how it will create value for customers within a particular competitive _____. a.advantage; scope b.scope; advantage c.geographic area; market

c.analyze the internal organization to identify strengths. d.analyze the internal organization to identify weaknesses. - ANSWER>>acquire the resources needed to build those competencies. All of the following are ways that firms develop and use total quality management (TQM) systems EXCEPT a.to increase customer satisfaction. b.to cut costs. c.to reduce the amount of time required to introduce innovative products to the marketplace. d.to achieve competitive advantage. - ANSWER>>to achieve competitive advantage. Which of the following is an assumption of the resource-based model? a.Resources and capabilities are not highly mobile across firms. b.A firm's performance across time is due primarily to the industry's structural characteristics rather than to the firm's unique resources and capabilities. c.Most firms competing within an industry or within a segment of that industry are assumed to control similar strategically relevant resources and to pursue similar strategies in light of those resources. d.Organizational decision makers are assumed to be rational individuals who are committed to acting in the firm's best interests, as shown by their profit-maximizing behaviors. - ANSWER>>Resources and capabilities are not highly mobile across firms. Which of the following countries is most ethnically diverse? a.Japan b.Germany c.Uganda d.South Korea - ANSWER>>Uganda Which of the following is a typical risk for a firm that uses the cost leadership strategy? a.Excessive differentiation causing the customer base to become too small b.Loss of customer loyalty c.Production and distribution processes becoming obsolete d.Inability to balance high differentiation with low price - ANSWER>>Production and distribution processes becoming obsolete Which of the following statements about an organization's stakeholders is true?

a.Not all organizations have stakeholders. b.Stakeholders have enforceable claims on the firm's performance. c.All stakeholders have the same level of influence in an organization. d.Stakeholder relationships are important but cannot be a source of competitive advantage. - ANSWER>>Stakeholders have enforceable claims on the firm's performance . Core competencies are often visible in the form of organizational: - ANSWER>>functions Quality Construction Supply is a building materials provider headquartered in eastern Canada. The firm's leadership team has recognized that intense rivalry in the region is having a negative impact on the firm's growth and profitability. What is the primary reason behind the firm's decision to acquire a similar building materials supplier serving the northeastern United States? a.Acquiring another firm serving a different market will allow Quality Construction Supply to overcome barriers to entry in another country. b.Reducing the firm's dependence on the eastern Canadian market will reshape the firm's competitive scope. c.Acquiring another firm serving a different market will give Quality Construction Supply access to capabilities it lacks. d.Reducing the firm's dependence on the eastern Canadian market will help avoid a hostile takeover. - ANSWER>>Reducing the firm's dependence on the eastern Canadian market will reshape the firm's competitive scope TamBoats makes small, personal submarines. Another firm created an innovative tool that can be stored in a small space. Which of the following can TamBoats use to quickly develop its own tool with similar characteristics? a.Review its own products. b.Establish a competitive advantage. c.Research. d.Reverse engineer the product - ANSWER>>reverse engineer the product Which of the following companies simultaneously creates economies of scope through both operational and corporate relatedness? a.Procter & Gamble b.Amazon c.Virgin Group d.Honda - ANSWER>>Amazon

a.private synergy. b.overdiversification. c.resource slack. d.due diligence. - ANSWER>>Private synergy _____ integration exists when a company owns its own source of output distribution. a.Backward b.Forward c.Sideways d.Horizontal - ANSWER>>forward Of the five entry modes, which is often the quickest means for firms to enter international markets? a.Licensing b.Strategic alliance c.Exporting d.Acquisition - ANSWER>>acquisition _____ refers to the absence of direct links between businesses. a.Linkless b.Unrelated c.Unconstrained d.Low-level - ANSWER>>unrelated Which of the following statements regarding the allocation of capital is true? a.External investors receive full information regarding current performance and future prospects of a business. b.Businesses seeking capital are not required to provide information to potential suppliers. c.External sources of capital have a limited ability to understand the operational dynamics within large organizations d.External shareholders have access to information and therefore receive full and complete disclosure. - ANSWER>>External sources of capital have a limited ability to understand the operational dynamics within large organizations Creating operational relatedness is achieved by: a.transferring core competencies. b.sharing activities. c.gaining market power. d.multipoint competition - ANSWER>>sharing activities

Research has found that being a first mover is often critical to a firm's success in industries that have: a.many competitors. b.slow-cycle markets. c.short product life cycles. d.limited resources. - ANSWER>>short product life cycles As a driver of competitive behavior, ability refers to: a.a firm's understanding of the consequences of its competitive actions and responses. b.each firm's resources and the flexibility they provide. c.competing firms' level of market commonality and resource similarity. d.a firm's incentive to take action or to respond to a competitor's attack - ANSWER>>each firm's resources and the flexibility they provide. Which of the following is believed to be the strongest determinant of whether a merger or an acquisition will be successful? a.The integration process b.The level of relatedness of the two businesses c.The ability of the firms to achieve synergy d.The type of diversification strategy chosen - ANSWER>>the integration process Which of the following is NOT an expected outcome of a management buyout? a.Improved performance b.Downscopin g c.Increased strategic focus d.Downsizing - ANSWER>>downsizing Which of the following approaches to differentiation would present a high-end, luxury handbag and footwear designer with the best opportunity to differentiate itself from competitors? a.Responsive customer service b.Technological leadership c.Perceived prestige and status d.Rapid product innovations - ANSWER>>Perceived prestige and status Which of the following is an assumption of the industrial organization (I/O) model? a.Organizational decision makers are rational individuals who are committed to acting in the firm's best interests.

c.A SWOT analysis d.Complementor analysis - ANSWER>>competitor intelligence A company can earn above-average returns only when the value it creates is: a.equal to the costs incurred to create that value. b.less than the costs incurred to create that value. c.greater than the costs incurred to create that value. d.both rare and substitutable. - ANSWER>>greater than the costs incurred to create that value. People buy products from Soco Outfitters because it is a brand name they know and trust. Soco's costly-to-imitate capabilities arise from: a.an ambiguous cause. b.social complexity. c.a historical source. d.interpersonal relationships. - ANSWER>>a historical source Core competencies are often visible in the form of organizational: a.functions . b.value. c.culture. d.symbols. - ANSWER>>functions Outsourcing allows a firm to nurture a smaller number of capabilities, which: a.increases the potential loss in its ability to innovate. b.decreases opportunities for competitive advantage. c.decreases the loss of jobs within the firm. d.prevents the firm from becoming overextended. - ANSWER>>prevents the firm from becoming overextended. RXL and NuVal are two major telecommunications companies. They are in advanced talks for RXL to acquire NuVal, and RXL has hired an investment bank to exclusively complete the due-diligence process. RXL's acquisition performance will likely _____ because of this decision. a.not be affected b.increase c.decrease d.fail - ANSWER>>decrease Managing the business units of a geographically diverse multinational firm requires skill, not only in managing a _____ set of businesses, but also coordinating _____ points of view emerging from businesses located in countries and regions. a.decentralized; diverse

b.centralized; diverse c.centralized; analogous d.decentralized; analogous - ANSWER>>decentralized, diverse Your small company makes a product that your European cousins believe will be popular in their country. You have no foreign manufacturing expertise, but you can manufacture the product here in your firm's domestic facility and ship it to your cousins in Europe, whose firm will market and distribute the product for you. This is an example of: a.a greenfield venture. b.a strategic alliance. c.licensing. d.exporting. - ANSWER>>exporting What are the two things that firms can share to create operational relatedness? a.Primary or support activities b.Tangible or intangible resources c.Related or unrelated diversification d.Plans or implementations - ANSWER>>primary or support activities While U.S. firms use downscoping as a restructuring strategy, a.the current trend in Europe, Latin America, and Asia is to build conglomerates. b.they still use this strategy less frequently than do European companies. c.many Asian and Latin American conglomerates have also chosen to downscope. d.it is a trend that is expected to diminish with increasing globalization. - ANSWER>>many Asian and Latin American conglomerates have also chosen to downscope. Coyle Enterprises is a small company that recently entered the lawn equipment industry. In response, its main competitor, a large and well-established company in the industry, has increased its sales presence in the market. Coyle learns of this move, but does not respond. A lack of which of the following would likely be the primary reason that Coyle does not respond? a.Awareness b.Market commonality c.Ability d.Motivation - ANSWER>>ability Zed Company is considering spinning off one of its divisions into a new company. What long-term outcomes can it expect? a.Reduced debt costs

Which product quality dimension is related to meeting operating specifications over some period of time? a.Performanc e b.Flexibility c.Durability d.Serviceability - ANSWER>>flexibility All of the following are competitive risks of using the cost leadership strategy EXCEPT: a.experience can narrow customers' perceptions of the value of a product's unique features. b.the processes used by the cost leader to produce and distribute its product could become obsolete because of competitors' innovations. c.too much focus by the cost leader on cost reductions may occur at the expense of trying to understand customers' perceptions of competitive levels of differentiation. d.competitors sometimes learn how to imitate the cost leader's strategy. - ANSWER>>experience can narrow customers' perceptions of the value of a product's unique features. Which of the following statements regarding resource dissimilarity is NOT true? a.Resource dissimilarity influences the competitive actions and responses firms choose to take. b.The firm with a resource disadvantage may take longer to respond to the acting firm's competitive action. c.Resource dissimilarity can make it difficult for smaller firms to respond effectively to a larger firm's competitive actions or responses. d.Resource dissimilarity provides an advantage to smaller, local firms when competing against larger, national firms. - ANSWER>>Resource dissimilarity provides an advantage to smaller, local firms when competing against larger, national firms Chic Fashion is an online women's clothing store. To join Chic Fashion's e-mail list, customers must fill out a short form that includes their address, birthday, and preferred fashion style. This is an example of: a.scanning. b.monitoring. c.forecasting. d.assessing. - ANSWER>>scanning What is the trend for the number of firms using a transnational international corporatelevel strategy? a.Increasing b.Decreasing c.About the same (no increases or decreases)

d.No clear trend - ANSWER>>increasing Un the model of competitive reality, which group of activities follows the competitor analysis activities? a.Market commonality b.Resource similarity c.Drivers of competitive behavior d.Competitive rivalry - ANSWER>>drivers of competitive behavior Companies in emerging markets frequently use the unrelated diversification strategy because of: a.the absence of a "soft infrastructure" in those markets. b.how profitable they will be. c.their market power. d.the shared control among business-unit managers. - ANSWER>>the absence of a "soft infrastructure" in those markets. When firms are purchased in the same industry, this is known as: a.horizontal acquisition. b.vertical integration. c.networking the organization. d.unrelated diversification. - ANSWER>>horizontal integration Kevin has been charged with recommending a target company for his firm's acquisition. He found a number of potential candidates and has narrowed that list down to three. Kevin knows that the acquisition will have a higher likelihood of success if the acquired firm has resources that are complementary to his firm's core business. How can he identify the firm with the strongest complementarities? a.Conduct a due diligence of the firms. b.Examine each firm's financial health. c.Conduct negotiations with each firm. d.Create an integration plan. - ANSWER>>Conduct a due diligence of the firms. In general, large international markets offer _____ potential returns and pose _____ risk for the firm choosing to invest in those markets. a.lower; less b.lower; more c.higher; less d.higher; more - ANSWER>>higher, less

c.Contracting with a company in India to provide data-entry services d.Opening a plant in South America - ANSWER>>Contracting with a company in India to provide data-entry services Which of the following do firms in a fast-cycle market try to avoid? a.Product loyalty b.Core competencies c.Capabilities d.Imitation - ANSWER>>product loyalty Which of the following statements regarding intangible resources is true? a.They can be observed. b.They are relatively difficult for competitors to analyze and imitate. c.They can be quantified. d.They can be acquired quickly. - ANSWER>>They are relatively difficult for competitors to analyze and imitate. Which of the following is NOT an incentive to diversify that comes from a firm's internal environment? a.Low performance b.Antitrust regulations c.Uncertain future cash flows d.Reduction of risk for the firm - ANSWER>>antitrust regulations Which of the following is a limit to the positive effects of the diversification associated with international strategies? a.Monopolies b.Increased costs of coordination between units c.Government oversight d.Poor product quality - ANSWER>>increased costs of coordination between units Which type of restructuring strategy generally leads to more positive outcomes in both the short and long term? a.Management buyout b.Whole-firm buyout c.Downscoping d.Downsizing - ANSWER>>downscoping Which of the following is NOT a reason why firms initiate competitive actions and responses in standard-cycle markets? a.To seek large market shares

b.To gain customer loyalty through brand names c.To control the firm's operations carefully d.To sustain a competitive advantage over longer periods - ANSWER>>to sustain a competitive advantage over longer periods Which of the following is NOT a reason for using a leveraged buyout as a restructuring strategy? a.To correct for managerial mistakes b.To reduce debt for the new owners c.Because the firm's managers were making decisions that primarily served their own interests rather than those of shareholders d.To build firm resources and expand operations - ANSWER>>to reduce debt for new owners Mariah makes successful decisions regarding her firm's resources and their management. Mariah is a(n): a.chief executive officer (CEO). b.chief financial officer (CFO). c.informal leader. d.strategic leader. - ANSWER>>strategic leader Ranger Landscaping's website states the following: "Ranger Landscaping is a serviceoriented business that provides lawn care and landscape design, installation, and maintenance. We are committed to a professional approach to our business and to providing our customers with individualized attention and 100 percent satisfaction." This statement represents Ranger Landscaping's: a.tagline. b.mission. c.vision. d.code of ethics. - ANSWER>>mission All of the following issues affect firms' efforts to merge on a coequal basis EXCEPT: a.who will lead the merged firm. b.how to fuse disparate corporate cultures. c.how to reach an agreement about the value of each company prior to the merger. d.how to determine the stock price per share for the merged company. - ANSWER>>how to determine the stock price per share for the merged company. The outcomes a firm achieves by using a global strategy become more desirable when the strategy is used in areas in which _____ integration among countries is occurring. a.geopolitical b.multinational