Quiz 3

Front 1

An organization's goals and objectives are determined by its ________.

1. information systems
2. business processes
3. competitive strategy
4. brand image

Back 1

competitive strategy

Front 2

1. Which sequence of events undertaken by a business is correct?

. create business process develop competitive strategy determine value chains examine industry structure design information system

. design information system develop value chains create business process examine industry structure develop competitive strategy

. create business process design information system examine industry structure develop competitive strategy determine value chains

. examine industry structure develop competitive strategy determine value chains create business process design information system

Back 2

examine industry structure

develop competitive strategy

determine value chains

create business process

design information system

Front 3

The threat of new entrants is lowest for ________.

. beauty salons

. gas stations

. zoos

. chiropractors

Back 3

zoos

Front 4

Which of the following represents the strongest force of threat of substitution?

. receiving the current flu vaccine

. choosing a rental car at the airport

. purchasing a wheelchair-accessible door for your business

. arranging a family reunion at a nearby water park

Back 4

choosing a rental car at the airport

Front 5

Which of the following situations represents a strong bargaining power of suppliers?

. a winter coat outlet at the beginning of spring

. strawberry growers following an unexpected frost

. jewelry store liquidation following the decision to close the business

. apartment prices in a saturated rental market

Back 5

strawberry growers following an unexpected frost

Front 6

Paul wants to start a landscaping business. An example of a differentiation strategy he might try is ________.

. advertising nationwide in a variety of gardening magazines

. using only trees and grasses that are naturally pest resistant

. offering discounts to repeat customers

. selling at prices comparable to large home-improvement garden centers

Back 6

using only trees and grasses that are naturally pest resistant

Front 7

By choosing a(n) ________, an organization responds to the structure of its industry.

. brand image

. competitive strategy

. advertising policy

. business process

Back 7

competitive strategy

Front 8

Maria opened a shop that sells high-end handmade children's clothing produced from local wool and cotton. Her competitive strategy can be BEST described as providing a ________.
low-cost product across the industry
unique product across the industry
low-cost product within an industry segment
unique product within an industry segment

Back 8

unique product within an industry segment

Front 9

The value of the outputs minus the cost is known as the ________.

output resources
inputs
margin
resource flow

Back 9

margin

Front 10

According to Porter, ________ is the amount of money that a customer is willing to pay for a resource, product, or service.
markup
price
pemium
value

Back 10

value

Front 11

The difference between the value that an activity generates and the cost of the activity is the ________.

. margin

. break-even point

. revenue

. value-addition

Back 11

margin

Front 12

A ________ is a network of value-creating activities.

. value pyramid

. value chain

. value network

. value system

Back 12

value chain

Front 13

Interactions across value activities are called ________.

. relationships

. cross processes

. linkages

. transformational approaches

Back 13

linkages

Front 14

By making it difficult or expensive for customers to move to another product, organizations can lock customers in. This is called establishing high ________.

. transition barriers

. product loyalty

. value differentiation

. switching costs

Back 14

switching costs

Front 15

One way that organizations can lock in suppliers is by ________.

making it easy to work with the organization

. preventing other organizations from working with their suppliers

. increasing investments in their supply chain

. making it too expensive for them to work with other organizations

Back 15

making it easy to work with the organization

Front 16

Families who enroll their children at the KinderCare daycare center are required to pay a fee amounting to the first year's tuition at the time they reserve a place for their child. If they decide not to use the placement, the fee will not be refunded. By doing this, which competitive strategy is KinderCare implementing?

. differentiating the product

. enhancing the product

. locking in customer

. creating entry barriers

Back 16

locking in customer

Front 17

Which of the following is a way to create a competitive advantage through changing products or services?

. locking in customers

. establishing alliances

. creating entry barriers

. differentiating products

Back 17

differentiating products

Front 18

Organizational strategy begins with an assessment of the _________.

. organizational goals and objectives

. business processes of the organization

. organizational hierarchy

. fundamental characteristics of competitors in the industry

Back 18

organizational goals and objectives

Front 19

Porter's five forces model states that the intensity of the competitive forces determines the ________ of the industry.

. customers, suppliers, and competition

. segmentation, competition, and profitability

. threat of substitutions, threat of new entrants, and rivalry

. characteristics, sustainability, and profitability

Back 19

characteristics, sustainability, and profitability

Front 20

The owner of Harriet's Hair Studio is hoping to increase customer loyalty by offering free hair trims in between customer hair coloring appointments. Which of the five forces in Porter's model is Harriet addressing?

. the threat of rivalry

. the bargaining power of suppliers

. the bargaining power of customers

. the threat of substitution

Back 20

the threat of rivalry