Question 1

What is rivalry among existing competitors?

Accepted Answer

A)  The ability of buyers to affect the price they must pay for an item 
B)  The suppliers' ability to influence the prices they charge for supplies (including materials, labor, and services) 
C)  High when it is easy for new competitors to enter a market and low when there are significant entry barriers to joining a market 
D)  High when competition is fierce in a market and low when competitors are more complacent 
A)  The ability of buyers to affect the price they must pay for an item 
B)  The suppliers' ability to influence the prices they charge for supplies (including materials, labor, and services) 
C)  High when it is easy for new competitors to enter a market and low when there are significant entry barriers to joining a market 
D)  High when competition is fierce in a market and low when competitors are more complacent

Question 2

What is a feature of a product or service that customers have come to expect and entering competitors must offer the same if they want to survive?

Accepted Answer

A)  Significant barrier 
B)  Entry barrier 
C)  Product differentiation 
D)  Entry chain 
A)  Significant barrier 
B)  Entry barrier 
C)  Product differentiation 
D)  Entry chain

Question 3

Which of the following is a tool a manager can use to analyze competitive intelligence and identify competitive advantages?

Accepted Answer

A)  The three generic strategies. 
B)  The threat of substitute buyer power. 
C)  Differentiated costs. 
D)  Supplier loyalty. 
A)  The three generic strategies. 
B)  The threat of substitute buyer power. 
C)  Differentiated costs. 
D)  Supplier loyalty.

Question 4

Michael Helms is the CEO of Dunder Mountain, which is a retail store that sells camping, hunting , and sporting gear. Michael and his executive team are meeting to brainstorm new ideas on how to grow the business. One idea is to mimic a competitor's product that is attempting to sell a new product in a different industry. After performing a Porter's Five Forces analysis, Michael determines that all of the forces are high in this new industry. What should Michael do?

Accepted Answer

A)  Explode into the market with an overflow of the product. 
B)  Contemplate other products to introduce at the same time in this new market. 
C)  Compare the competitor's prices and offer his product lower in this new market. 
D)  Not introduce the product because all five forces are strong and this would be a highly risky business strategy. 
A)  Explode into the market with an overflow of the product. 
B)  Contemplate other products to introduce at the same time in this new market. 
C)  Compare the competitor's prices and offer his product lower in this new market. 
D)  Not introduce the product because all five forces are strong and this would be a highly risky business strategy.

Question 5

In the center of Porter's Five Forces Model is competition. Which of the following represents the four outer boxes?

Accepted Answer

A)  Buyer power, systems power, threat of false entrants, and threat of substitute products or services 
B)  Buyer power, systems power, threat of new entrants, and threat of substitute products or services 
C)  Buyer power, supplier power, threat of new entrants, and threat of substitute products or services 
D)  Business power, supplier power, threat of new entrants, and threat of powerful services 
A)  Buyer power, systems power, threat of false entrants, and threat of substitute products or services 
B)  Buyer power, systems power, threat of new entrants, and threat of substitute products or services 
C)  Buyer power, supplier power, threat of new entrants, and threat of substitute products or services 
D)  Business power, supplier power, threat of new entrants, and threat of powerful services

Question 6

Which one of Porter's five forces is high when it is easy for new competitors to enter a market and low when there are significant entry barriers to joining a market?

Accepted Answer

A)  Threat of new entrants. 
B)  Threat of substitute products or services. 
C)  Threat of buyer power. 
D)  Supply chain competition. 
A)  Threat of new entrants. 
B)  Threat of substitute products or services. 
C)  Threat of buyer power. 
D)  Supply chain competition.

Question 7

What are material items or products that customers will buy to satisfy a want or need?

Accepted Answer

A)  Goods 
B)  Services 
C)  Production 
D)  Productivity 
A)  Goods 
B)  Services 
C)  Production 
D)  Productivity

Question 8

Jim Novak is on the executive board for BioMed pharmaceuticals. The company produces the number one selling cancer fighting drug on the market. Due to its incredible success, BioMed pharmaceuticals has decided to increase the cost of the drug from $9 a pill to $16 a pill. Which force is BioMed pharmaceutical using to increase its drug price?

Accepted Answer

A)  Supplier power 
B)  Buyer power 
C)  Threat of false entrants 
D)  Business power 
A)  Supplier power 
B)  Buyer power 
C)  Threat of false entrants 
D)  Business power

Question 9

Your boss, Pam Anderson, has asked you to analyze the music industry using Porter's Five Forces Model. Which of the following represents the threat of substitute products or services in the music industry?

Accepted Answer

A)  Established record labels like EMI, Sony, Universal 
B)  Independent record labels 
C)  Game systems like Wii, social networks like Facebook 
D)  Taylor Swift, Beyoncé, The Beatles, The Stones 
A)  Established record labels like EMI, Sony, Universal 
B)  Independent record labels 
C)  Game systems like Wii, social networks like Facebook 
D)  Taylor Swift, Beyoncé, The Beatles, The Stones

Question 10

Assume you are in the business of producing and selling t-shirts. If you could produce more t-shirts with the same input what would happen to your productivity and profits assuming the price of your t-shirts remains the same?

Accepted Answer

A)  Increase in productivity, decrease in profits 
B)  Increase in productivity, increase in profits 
C)  Decrease in productivity, decrease in profits 
D)  Decrease in productivity, increase in profits 
A)  Increase in productivity, decrease in profits 
B)  Increase in productivity, increase in profits 
C)  Decrease in productivity, decrease in profits 
D)  Decrease in productivity, increase in profits

Question 11

A business strategy achieves a specific set of goals which include ________.

Accepted Answer

A)  Developing new products or services; attracting new competition 
B)  Increasing costs; attracting new competition 
C)  Entering new markets; developing new products or services 
D)  All of these 
A)  Developing new products or services; attracting new competition 
B)  Increasing costs; attracting new competition 
C)  Entering new markets; developing new products or services 
D)  All of these

Question 12

Which group of stakeholders' primary interests include maximizing profits, growing market share, and high return on investment?

Accepted Answer

A)  Partners/Suppliers 
B)  Shareholders/Investors 
C)  Community 
D)  Government 
A)  Partners/Suppliers 
B)  Shareholders/Investors 
C)  Community 
D)  Government

Question 13

The threat of substitute products or services refers to the power of competitors to enter a new market.

Accepted Answer

A) True 
 B)False

Question 14

According to Porter, companies that wish to dominate broad markets should operate using a ________ strategy.

Accepted Answer

A)  Cost leadership with a low cost 
B)  Differentiation with a low cost 
C)  Cost leadership with a high cost 
D)  All of these 
A)  Cost leadership with a low cost 
B)  Differentiation with a low cost 
C)  Cost leadership with a high cost 
D)  All of these

Question 15

Which of the following represents procurement as part of the support value activities in a value chain analysis?

Accepted Answer

A)  Purchases inputs such as raw materials, resources, equipment, and supplies 
B)  Applies MIS to processes to add value 
C)  Distributes goods and services to customers 
D)  Promotes, prices, and sells products to customers 
A)  Purchases inputs such as raw materials, resources, equipment, and supplies 
B)  Applies MIS to processes to add value 
C)  Distributes goods and services to customers 
D)  Promotes, prices, and sells products to customers

Question 16

In a SWOT analysis, opportunities and threats originate ________ an organization.

Accepted Answer

A)  Inside (internally) 
B)  Outside (externally) 
C)  Both "Inside (internally) and Outside (externally)" 
D)  None of these 
A)  Inside (internally) 
B)  Outside (externally) 
C)  Both "Inside (internally) and Outside (externally)" 
D)  None of these

Question 17

In a SWOT analysis, strengths and weaknesses originate inside an organization, or internally. Opportunities and threats originate outside an organization, or externally, and cannot always be anticipated or controlled.

Accepted Answer

A) True 
 B)False

Question 18

Which strategy below helps an organization choose its business focus?

Accepted Answer

A)  SWOT Analysis 
B)  The Five Forces Model 
C)  Value Chain Analysis 
D)  Three Generic Strategies 
A)  SWOT Analysis 
B)  The Five Forces Model 
C)  Value Chain Analysis 
D)  Three Generic Strategies

Question 19

What is included in a SWOT analysis?

Accepted Answer

A)  Strengths, weaknesses, organizations, and technology. 
B)  Strengths, weaknesses, opportunities, and threats. 
C)  Success, willingness, opportunities, and technology. 
D)  Success, weaknesses, organizations, and threats. 
A)  Strengths, weaknesses, organizations, and technology. 
B)  Strengths, weaknesses, opportunities, and threats. 
C)  Success, willingness, opportunities, and technology. 
D)  Success, weaknesses, organizations, and threats.

Question 20

In terms of system thinking, what is data entered in a computer?

Accepted Answer

A)  Input 
B)  Output 
C)  Process 
D)  Feedback 
A)  Input 
B)  Output 
C)  Process 
D)  Feedback

Exam 2: Identifying Competitive Advantages

What is rivalry among existing competitors?

What is a feature of a product or service that customers have come to expect and entering competitors must offer the same if they want to survive?

Which of the following is a tool a manager can use to analyze competitive intelligence and identify competitive advantages?

In the center of Porter's Five Forces Model is competition. Which of the following represents the four outer boxes?

Which one of Porter's five forces is high when it is easy for new competitors to enter a market and low when there are significant entry barriers to joining a market?

What are material items or products that customers will buy to satisfy a want or need?

Your boss, Pam Anderson, has asked you to analyze the music industry using Porter's Five Forces Model. Which of the following represents the threat of substitute products or services in the music industry?

Assume you are in the business of producing and selling t-shirts. If you could produce more t-shirts with the same input what would happen to your productivity and profits assuming the price of your t-shirts remains the same?

A business strategy achieves a specific set of goals which include ________.

Which group of stakeholders' primary interests include maximizing profits, growing market share, and high return on investment?

The threat of substitute products or services refers to the power of competitors to enter a new market.

According to Porter, companies that wish to dominate broad markets should operate using a ________ strategy.

Which of the following represents procurement as part of the support value activities in a value chain analysis?

In a SWOT analysis, opportunities and threats originate ________ an organization.

In a SWOT analysis, strengths and weaknesses originate inside an organization, or internally. Opportunities and threats originate outside an organization, or externally, and cannot always be anticipated or controlled.

Which strategy below helps an organization choose its business focus?

What is included in a SWOT analysis?

In terms of system thinking, what is data entered in a computer?

Business Driven Technology

Strategic Initiatives for Implementing Competitive Advantages

Measuring the Success of Strategic Initiatives

Organizational Structures That Support Strategic Initiatives

Valuing and Storing Organizational Informationdatabases

Accessing Organizational Informationdata Warehouses

Understanding Big Data and Its Impact on Business

Enabling the Organizationdecision Making

Extending the Organizationsupply Chain Management

Building a Customer-Centric Organizationcustomer Relationship Management

Integrating the Organization From End to Endenterprise Resource Planning

Creating Innovative Organizations

Ebusiness

Creating Collaborative Partnerships

Integrating Wireless Technology in Business

Developing Software to Streamline Operations

Methodologies for Supporting Agile Organizations

Managing Organizational Projects