B Ad Capstone Test 1

Front 1

Above-average returns are

Back 1

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

Front 2

New markets created by iPods, PDAs, and WiFi are a result of

Back 2

Disruptive Technologies

Front 3

The ability to effectively and efficiently access and use information is

Back 3

An important source of competitive advantage in virtually all industries

Front 4

Which of the following statements about organizational knowledge is correct?

Back 4

All of these choices are correct.

Front 5

The industrial organization (I/O) model argues that

Back 5

the key factor in success is choosing the correct industry in which to compete.

Front 6

The three parts of the external environment which affect a firm’s strategic actions are

Back 6

general, industry, and competitor

Front 7

The environmental segments that comprise the general environment typically will NOT include

Back 7

substitute products or services.

Front 8

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

Back 8

Decrypting

Front 9

When analysts develop feasible projections of future events and how quickly they will occur based on observed changes and trends, they are engaged in

Back 9

forecasting.

Front 10

The likelihood of entry of new competitors is affected by ____ and ____.

Back 10

barriers to entry, expected retaliation of current industry organizations

Front 11

The effectiveness of any of the generic business-level strategies is contingent upon

Back 11

the match between the opportunities and threats in its external market and the strengths of its internal environment.

Front 12

A cost leadership strategy provides goods or services with features that are

Back 12

acceptable.

Front 13

Research suggests that having a competitive advantage in ____ creates more value in the cost leadership strategy than it does in the differentiation strategy.

Back 13

logistics

Front 14

A company pursuing the differentiation or focused differentiation strategy would tend to

Back 14

develop flexible systems that allow rapid response to customers changing needs.

Front 15

Ever improving levels of efficiency enhance profit margins for a cost leader. This affects which of the five forces of industry structure most directly?

Back 15

Potential entrants

Front 16

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

Back 16

business-level

Front 17

Multimarket competition occurs when firms

Back 17

compete against each other in several geographic or product markets.

Front 18

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

Back 18

high; high

Front 19

The competitive actions and responses in __________ markets are designed to seek large market shares, to gain customer loyalty through brand names, and to carefully control the firm’s operations in order to consistently provide the same positive experience for customers.

Back 19

standard-cycle

Front 20

Lawsuits over patent and copyright infringements are more common and intense in

Back 20

slow-cycle markets, because of the ability to shelter the company from imitation of its competitive advantage.

Front 21

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

Back 21

The length of time the core competence has existed.

Front 22

Internal analysis enables a firm to determine what the firm

Back 22

can do.

Front 23

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

Back 23

Analysis of supplier power.

Front 24

Valuable capabilities

Back 24

allow the firm to exploit opportunities or neutralize threats in its external environment.

Front 25

Capabilities that other firms cannot develop easily are classified as

Back 25

costly to imitate.

Front 26

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

Back 26

specific product markets.

Front 27

In order to meet and exceed customer’s expectations, firms must

Back 27

continuously improve, innovate, and upgrade their core competencies.

Front 28

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

Back 28

exclusiveness.

Front 29

All of the following are considered generic business-level strategies EXCEPT

Back 29

product diversification.

Front 30

A company using a narrow target market in its business strategy is

Back 30

limiting the group of customer segments served.