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2025 WPC 470 FINAL EXAM|LATEST UPDATE WITH
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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 - ANS:->>>>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. - ANS:->>>>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. - ANS: - >>>>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 - ANS:->>>>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.should treat all stakeholders the same. - ANS:->>>>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. - ANS: - >>>>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. Which of the following statements about a firm's resources and capabilities is true? a.All of a firm's resources and capabilities have the potential to be the foundation for a competitive advantage. b. It is difficult to achieve and sustain a competitive advantage based on
resources alone. c. As a source of competitive advantage, a capability must be exceedingly complex to understand and manage. d. When a resource is rare and valuable, it becomes a core competency. - ANS:-
It is difficult to achieve and sustain a competitive advantage based on resources alone When examining the component of Future Objectives for a competitor analysis, which of the following is NOT a question that is addressed? a. How do our goals compare with our competitors' goals? b. Where will emphasis be placed in the future? c. What is the attitude toward risk? d. What is our future break-even point? - ANS:->>>>What is our future break-even point? A competitive advantage exists only when competitors are unable to duplicate the benefits of a firm's strategy or when they lack the resources to attempt imitation. a.profitable b.temporary c.rare d.sustainable - ANS:->>>>sustainable Powerful customers can force a cost leader to reduce its prices, but not below the
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. - ANS:->>>>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. ision. - ANS:->>>>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? - ANS:->>>>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. - ANS:-
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. - ANS:- 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.
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.a dvantage; scope b.scope; advantage c.geographic area; market d.cost; activity - ANS:->>>>advantage, scope Amazon has capitalized on which dimension with customers in order to build customer- centric relationships? a.Reach b.Richness c.Affiliation d.Pricing - ANS:->>>>richness The 2 major driving factors of Hypercompetition are - ANS:->>>>Global Economy and Technology. cost leadership strategy - ANS:->>>>producing standardized goods or services at costs below competitors costs differentiation strategy - ANS:->>>>producing differentiated goods or
services for which customers are willing to pay a price premium Vision - ANS:->>>>what we want to be mission - ANS:->>>>is why we exist Capital market stakeholders - ANS:->>>>shareholders, major suppliers of capital Product Market Stakeholders - ANS:->>>>primary customers, suppliers, host communities, unions organizational stakeholders - ANS:->>>>employees, managers, nonmanagers A describes what a firm does to create, deliver, and capture value for its stakeholders. a.b usiness model b.strategic plan c.business-level strategy d.corporate-level strategy - ANS:->>>>business model If a firm does not have core competencies in an area required to achieve a competitive advantage, it must: a.c hange its product line. b.a cquire the resources needed to build those
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. - ANS:->>>>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 - ANS:->>>>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 - ANS:-
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. - ANS:->>>>Stakeholders have enforceable claims on the firm's performance. Core competencies are often visible in the form of organizational: - ANS:-
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. - ANS:->>>>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
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 - ANS:->>>>Amazon What is a critical element for developing and managing technology-based capabilities while using strategic alliances? a. Establishing proper rollout procedures for the technology between partners b.Establishing profit performance measures between partners c. Establishing trust between partners d. Flowcharting the new technology between partners - ANS:-
Establishing trust between partners Which of the following statements about a global strategy is true? a. The global strategy offers fewer opportunities to take innovations developed at the corporate level and apply them in other markets. b. Compared to a multidomestic strategy, the global strategy seeks greater levels of standardization of products across country markets. c. The global strategy is difficult to use because of its conflicting goals. d. A global strategy is most appropriate for use when the differences between the markets a firm serves and the customers in them are significant. - ANS:-
Compared to a multidomestic strategy, the global strategy seeks greater levels of standardization of products across country markets. Acquisitions made between companies with headquarters in different countries are called acquisitions. a.cross-border b.transglobal c.vertical nation d.cross-cultural - ANS:->>>>cross-border A specifies actions a firm takes to gain a competitive advantage by selecting and managing a group of different businesses competing in different product markets. a.competitor analysis b.competitive response c.corporate-level strategy d.competitive rivalry - ANS:->>>>corporate-level strategy Poole Company recently acquired Carroll Inc. The two firms did not have identical assets, but they are complementary in unique ways. This makes it possible for them to generate: a.private synergy. b.overdiversification.
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. - ANS:->>>>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 - ANS:->>>>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. - ANS:->>>>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 - ANS:-
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 - ANS:->>>>the integration process Which of the following is NOT an expected outcome of a management buyout? a.Improved performance b. Downscoping c.Increased strategic focus
