Question 1

Jaguar has chosen what competitive strategy?
A) best- of- breed
B) business process redesign
C) differentiation
D) low- cost

Accepted Answer

Jaguar has chosen a differentiation strategy, focusing on creating unique and high-quality vehicles that stand out in the luxury car market.

Question 2

The amount of money that a customer is willing to pay for a service is its _____________.
A) value
B) margin
C) cost
D) differentiation

Accepted Answer

The value is the amount of money a customer is willing to pay for a service, reflecting its perceived worth.

Question 3

During a job search, how could you demonstrate the competitive advantage, "Reduce costs?" (Besides taking a lower salary!)
A) build a case that an employer would save money by hiring you because of your expertise
B) take the bus to all your job interviews
C) look for jobs in your field
D) network with fellow students as well as potential employers
E) get more training

Accepted Answer

Demonstrating expertise that can lead to cost savings for the employer is a direct way to show how you can reduce costs.

Question 4

The ____________of a business process is the value of outputs minus costs.
A) cost
B) margin
C) flow
D) value

Accepted Answer

The margin of a business process is calculated as the value of outputs minus the costs associated with producing those outputs.

Question 5

An example of a barrier to entry would be the cost of setting up a(n):
A) babysitting business.
B) automobile manufacturing plant.
C) home computer repair business.
D) web design business.

Accepted Answer

An automobile manufacturing plant requires a large investment in capital and equipment, which can be a significant barrier to entry.

Question 6

____________is not a principle describing how a product or service can be used to gain competitive advantage.
A) Differentiation of a product or service
B) Innovation of a new product or service
C) Enhancement of a product or service
D) Speed of a product or service

Accepted Answer

Speed of a product or service is not typically considered a standalone principle for gaining competitive advantage, unlike differentiation, innovation, and enhancement, which directly relate to unique value propositions.

Question 7

A company gains a competitive advantage due to differentiation in their industry when they convince customers that their product is ____________than their competitors.
A) better
B) nicer
C) bigger
D) older

Accepted Answer

Differentiation in a competitive advantage context means convincing customers that their product is better in terms of quality, features, or value compared to competitors.

Question 8

A company that develops and uses an information system that is expensive to duplicate can gain a competitive advantage by:
A) product enhancement.
B) creating barriers to entry.
C) creating new products or services.
D) establishing alliances.
E) reducing costs.

Accepted Answer

Creating barriers to entry can provide a competitive advantage by making it difficult for competitors to replicate the expensive information system, thus protecting the company's market position.

Question 9

Coke and Pepsi are constantly doing taste tests to prove which is a more popular drink. They spend a great deal on advertisements every year, as well. This is an example of which of the five forces?
A) bargaining power of customers
B) threat of new entrants
C) bargaining power of suppliers
D) rivalry among existing firms
E) threat of substitution

Accepted Answer

This scenario illustrates "rivalry among existing firms" as Coke and Pepsi are engaging in competitive actions like taste tests and advertising to outperform each other in the market.

Question 10

Kelly goes into a restaurant and orders a cup of coffee, only to find that they are out of coffee, but have decaf, which she buys instead. This would be an example of which of the five forces?
A) bargaining power of suppliers
B) rivalry among existing firms
C) bargaining power of customers
D) threat of substitution
E) threat of new entrants

Accepted Answer

The situation describes a substitution, where Kelly chooses decaf coffee as an alternative to regular coffee, illustrating the threat of substitution force.

Question 11

In the future, what will probably happen to those who do not have Internet access?
A) They will have greater access to information.
B) They will advance in a competitive information market.
C) They will have equal access to information.
D) They will fall further and further behind those with access.

Accepted Answer

Those without Internet access will likely fall behind as the digital divide widens, limiting their access to information and opportunities compared to those with Internet access.

Question 12

_____________ is an initiative a company uses to gain advantage if it can sell more units at a lower price while providing quality and maintaining or increasing its profit margin.
A) Locking in suppliers or buyers
B) Establishing high switching costs
C) Establishing alliances
D) Reducing costs

Accepted Answer

Reducing costs allows a company to sell more units at a lower price while maintaining or increasing its profit margin by improving efficiency and minimizing expenses.

Question 13

The business processes that are selected by an organization determine the scope of the organization's____________ .
A) strategy
B) margin
C) value
D) information system

Accepted Answer

The business processes selected by an organization determine the scope of its information system, as these processes dictate the requirements and functionalities needed from the system to support and enhance operations.

Question 14

Bob's firm makes it easy for its suppliers to connect and work with his company, thus____________ the supplier.
A) creating entry barriers
B) locking in
C) locking out
D) switching costs

Accepted Answer

By making it easy for suppliers to connect and work with his company, Bob's firm is likely "locking in" the supplier, encouraging them to continue doing business with his firm due to the ease and established relationship.

Question 15

Organizations must design _____________ that span value- generating activities.
A) margins
B) computer systems
C) business processes
D) strategies

Accepted Answer

Business processes are designed to span value-generating activities, ensuring that all parts of the organization work together efficiently to create value.

Question 16

Linda is in the computer repair businesses. Mark and Jill, two recent university graduates are unemployed, but are thinking of doing computer repairs at their homes. This is an example of which of the five forces?
A) rivalry among existing firms
B) threat of substitution
C) bargaining power of suppliers
D) bargaining power of customers
E) threat of new entrants

Accepted Answer

Mark and Jill considering entering the computer repair business represents a potential increase in competition, which is a threat of new entrants.

Question 17

Locking in customers and suppliers to your company's product or service is an example of:
A) competitive advantage.
B) switching costs.
C) product differentiation.
D) establishing alliance.

Accepted Answer

Switching costs refer to the costs that a customer incurs as a result of changing brands, suppliers, or products, which can lock them into using a particular company's product or service.

Question 18

Ordering goods is considered part of which activity in the value chain?
A) inbound logistics
B) procurement
C) operations
D) infrastructure

Accepted Answer

Inbound logistics involves receiving, storing, and distributing incoming goods. Ordering goods is a key part of this process, as it ensures that the business has the necessary inventory to meet customer demand.

Question 19

A barrier to entry can be constructed by:
A) obtaining a patent.
B) getting cell phones.
C) setting up a web site.
D) reducing employee pay.

Accepted Answer

Obtaining a patent creates a legal barrier to entry by granting exclusive rights to produce or sell an invention, preventing others from entering the market with the same product.

Question 20

General management is considered part of which activity in the value chain?
A) procurement
B) service
C) human Resources
D) infrastructure

Accepted Answer

General management is part of the infrastructure activity in the value chain, which includes functions like general management, planning, finance, accounting, legal, government affairs, and quality management.

Quiz 3: Is for Competitive Advantage

Jaguar has chosen what competitive strategy?

The amount of money that a customer is willing to pay for a service is its _____________.

During a job search, how could you demonstrate the competitive advantage, "Reduce costs?" (Besides taking a lower salary!)

The ____________of a business process is the value of outputs minus costs.

An example of a barrier to entry would be the cost of setting up a(n) :

____________is not a principle describing how a product or service can be used to gain competitive advantage.

A company gains a competitive advantage due to differentiation in their industry when they convince customers that their product is ____________than their competitors.

A company that develops and uses an information system that is expensive to duplicate can gain a competitive advantage by:

Coke and Pepsi are constantly doing taste tests to prove which is a more popular drink. They spend a great deal on advertisements every year, as well. This is an example of which of the five forces?

Kelly goes into a restaurant and orders a cup of coffee, only to find that they are out of coffee, but have decaf, which she buys instead. This would be an example of which of the five forces?

In the future, what will probably happen to those who do not have Internet access?

_____________ is an initiative a company uses to gain advantage if it can sell more units at a lower price while providing quality and maintaining or increasing its profit margin.

The business processes that are selected by an organization determine the scope of the organization's____________ .

Bob's firm makes it easy for its suppliers to connect and work with his company, thus____________ the supplier.

Organizations must design _____________ that span value- generating activities.

Linda is in the computer repair businesses. Mark and Jill, two recent university graduates are unemployed, but are thinking of doing computer repairs at their homes. This is an example of which of the five forces?

Locking in customers and suppliers to your company's product or service is an example of:

Ordering goods is considered part of which activity in the value chain?

A barrier to entry can be constructed by:

General management is considered part of which activity in the value chain?