Question 1

Customer bargaining power is likely to be relatively great under all of the following circumstances except when __________.
A) the customer purchases a large volume relative to the supplier's total sales
B) the product or service represents only a small expenditure by the customer
C) large customers pose a threat of backward integration
D) customers have readily available alternatives for the same service

Accepted Answer

When the product or service represents only a small expenditure by the customer, the customer's bargaining power is typically lower because the cost is not significant enough to leverage negotiations.

Question 2

Let's assume Domino's Pizza threatened to bake its own bread, grow its own tomatoes, and raise its own hogs (as a source for sausage and pepperoni) to get lower prices and better quality for its inputs. This would represent __________ integration.
A) forward
B) backward
C) vertical
D) horizontal

Accepted Answer

Backward integration occurs when a company takes control of its supply chain by producing its own inputs, such as raw materials, to reduce costs and improve quality.

Question 3

Juan Salazar is one of many small Colombian farmers who sell their coffee beans to Folgers. In trying to get a higher price for his crop, Salazar is most impacted by which competitive force?
A) threat of new competitors
B) supplier bargaining power
C) customer bargaining power
D) threat of substitute goods or services

Accepted Answer

Customer bargaining power is the competitive force most impacting Salazar, as Folgers, being a large buyer, has significant leverage in negotiating prices with small farmers like him.

Question 4

Nintendo teamed up with electronics giant ___________ to launch a machine that played variations of Pong.
A) Mitsubishi
B) Panasonic
C) Sanyo
D) Westinghouse

Accepted Answer

The answer of Nintendo teamed up with electronics giant ___________...

Question 5

The ________________ competency illustrates how Nintendo has crafted strategies over time to compete in the video game industry.
A) multicultural
B) strategic action
C) self-management
D) communication

Accepted Answer

The answer of The ________________ competency illustrates how Nintendo has...

Question 6

Societies try to resolve conflicts over values and beliefs through their ______________.
A) interest groups
B) individual freedom
C) property rights
D) political and legal systems

Accepted Answer

Societies use their political and legal systems to resolve conflicts over values and beliefs, as these systems provide structured processes for addressing and reconciling differing viewpoints within a legal framework.

Question 7

Courtney Massey has applied for a MBNA America credit card. By law, the credit grantor must reveal the "true" cost of using the credit, including the annual interest rate that will be assessed. This law is known as the Act.
A) Equal Credit Opportunity
B) Landrum-Griffith
C) Truth in Lending
D) Credit Discrimination

Accepted Answer

The Truth in Lending Act requires credit grantors to disclose the true cost of credit to consumers, including the annual interest rate and other charges, ensuring consumers can compare credit terms more easily and make informed decisions.

Question 8

__________ is not one of the basic political strategies to cope with the political-legal forces.
A) Negotiation
B) Socialization
C) Alliance
D) Judicial activism

Accepted Answer

Judicial activism is a legal concept, not a political strategy, whereas negotiation, socialization, and alliance are strategies used to manage political-legal forces.

Question 9

The process by which two or more individuals or groups having both common and conflicting goals present and discuss proposals in an attempt to reach an agreement is known as __________.
A) negotiation
B) goal optimization
C) alliance
D) collaboration

Accepted Answer

Negotiation is the process where two or more parties with differing needs or goals discuss an issue in an attempt to reach a compromise or agreement. This definition aligns with the process described in the question, where individuals or groups with both common and conflicting goals present and discuss proposals to reach an agreement.

Question 10

An attempt to influence government decisions by providing officials with information on the anticipated effects of legislation or regulatory rulings is known as __________.
A) lobbying
B) compromise
C) affective conflicts
D) representation

Accepted Answer

Lobbying is the process of influencing government decisions by providing officials with information on the anticipated effects of legislation or regulatory rulings. Lobbyists aim to persuade politicians and public servants to enact or modify laws and regulations in a way that benefits their clients or causes.

Question 11

All of the following are identified as being represented by large Congressional lobbying efforts except __________.
A) college students
B) retired persons
C) pharmaceutical manufacturers
D) insurance industry

Accepted Answer

College students, unlike retired persons, pharmaceutical manufacturers, and the insurance industry, are not typically represented by large Congressional lobbying efforts. This is because they generally lack the financial resources and organizational structure necessary to sustain such efforts.

Question 12

The most common form of lobbying is by associations, representing the interests of groups of individuals or organizations. Approximately __________ national lobbying organizations maintain staffs in Washington, D.C.
A) 1,000
B) 2,000
C) 4,000
D) 8,000

Accepted Answer

There are approximately 4,000 national lobbying organizations that maintain staffs in Washington, D.C., representing a wide range of interests from various sectors.

Question 13

In 2005, ____________ was the biggest issue with lobbyists with more than $173.2 million spent applicable plans and supplies.
A) airline deregulation
B) health care
C) criminal action
D) electricity deregulation

Accepted Answer

In 2005, health care was the biggest issue concerning lobbyists, with more than $173.2 million spent on lobbying efforts related to health care plans and supplies. This reflects the significant interest and investment by various stakeholders in influencing health care policy and regulation.

Question 14

What is the largest U.S. lobbying association representing the interests of individuals?
A) The Christian Coalition
B) National Chamber of Commerce
C) National Association of Manufacturers
D) American Association of Retired Persons

Accepted Answer

The American Association of Retired Persons (AARP) is the largest U.S. lobbying association representing the interests of individuals, particularly those over the age of 50, focusing on issues such as healthcare, employment security, and retirement planning.

Question 15

A combined effort involving two or more organizations, groups, or individuals to achieve common goals with respect to a particular issue is known as a(n) .
A) matrix
B) alliance
C) industry
D) network

Accepted Answer

An alliance refers to a collaboration between two or more organizations, groups, or individuals aimed at achieving common goals, particularly in relation to a specific issue.

Question 16

Alliances are used for all the following purposes except to __________.
A) oppose or support legislation, nomination of heads of regulatory agencies, and regulations issued by such agencies
B) improve competitiveness of two or more organizations through collaboration
C) construct facilities limited to the resources of any one organization
D) promote particular products or services

Accepted Answer

Alliances are typically formed to leverage the combined resources, strengths, or market positions of multiple organizations, rather than to construct facilities that are limited to the resources of any one organization. Choices A, B, and D are common purposes for forming alliances.

Question 17

Nestlé and Coca-Cola collaborated whereby both firms have benefited from using each other's distribution channels and marketing programs. Nestlé and Coca-Cola are utilizing the __________ strategy.
A) backward integration
B) alliance
C) representation
D) vertical integration

Accepted Answer

The correct answer is B) alliance because when two or more firms collaborate for mutual benefit, especially in areas like distribution channels and marketing programs, it is referred to as an alliance strategy. This collaboration does not involve acquiring each other or merging their operations but rather working together to enhance their market reach and efficiency.

Question 18

IBM has teamed up with Motorola and Toshiba to improve its semiconductor manufacturing ability to make superdense chips. These companies are utilizing the __________ strategy.
A) negotiation
B) lobbying
C) representation
D) alliance

Accepted Answer

The companies are using the alliance strategy, where they collaborate to enhance their capabilities in semiconductor manufacturing, pooling resources and expertise to achieve a common goal.

Question 19

First National Bank encourages its branch managers to participate in voluntary community associations, such as the Chamber of Commerce or United Way, that might solidify its reputation as well as bring in new customers. The bank is using the __________ strategy.
A) negotiation
B) representation
C) lobbying
D) socialization

Accepted Answer

The bank is using the representation strategy by having its branch managers participate in community associations to enhance its reputation and attract new customers. This involves representing the bank in various community activities and organizations.

Question 20

General Mills and Nestlé became partners and formed a separate entity called Cereal Partners Worldwide. This new organization is an example of the __________ strategy.
A) negotiation
B) joint venture
C) oligopoly
D) acquisition

Accepted Answer

Cereal Partners Worldwide, formed by General Mills and Nestlé, is an example of a joint venture strategy, where two or more parties establish a new business entity to achieve specific objectives while remaining independent organizations.

Quiz 4: Assessing the Environment

Customer bargaining power is likely to be relatively great under all of the following circumstances except when __________.

Let's assume Domino's Pizza threatened to bake its own bread, grow its own tomatoes, and raise its own hogs (as a source for sausage and pepperoni) to get lower prices and better quality for its inputs. This would represent __________ integration.

Juan Salazar is one of many small Colombian farmers who sell their coffee beans to Folgers. In trying to get a higher price for his crop, Salazar is most impacted by which competitive force?

Nintendo teamed up with electronics giant ___________ to launch a machine that played variations of Pong.

The ________________ competency illustrates how Nintendo has crafted strategies over time to compete in the video game industry.

Societies try to resolve conflicts over values and beliefs through their ______________.

Courtney Massey has applied for a MBNA America credit card. By law, the credit grantor must reveal the "true" cost of using the credit, including the annual interest rate that will be assessed. This law is known as the Act.

__________ is not one of the basic political strategies to cope with the political-legal forces.

The process by which two or more individuals or groups having both common and conflicting goals present and discuss proposals in an attempt to reach an agreement is known as __________.

An attempt to influence government decisions by providing officials with information on the anticipated effects of legislation or regulatory rulings is known as __________.

All of the following are identified as being represented by large Congressional lobbying efforts except __________.

The most common form of lobbying is by associations, representing the interests of groups of individuals or organizations. Approximately __________ national lobbying organizations maintain staffs in Washington, D.C.

In 2005, ____________ was the biggest issue with lobbyists with more than $173.2 million spent applicable plans and supplies.

What is the largest U.S. lobbying association representing the interests of individuals?

A combined effort involving two or more organizations, groups, or individuals to achieve common goals with respect to a particular issue is known as a(n) .

Alliances are used for all the following purposes except to __________.

Nestlé and Coca-Cola collaborated whereby both firms have benefited from using each other's distribution channels and marketing programs. Nestlé and Coca-Cola are utilizing the __________ strategy.

IBM has teamed up with Motorola and Toshiba to improve its semiconductor manufacturing ability to make superdense chips. These companies are utilizing the __________ strategy.

First National Bank encourages its branch managers to participate in voluntary community associations, such as the Chamber of Commerce or United Way, that might solidify its reputation as well as bring in new customers. The bank is using the __________ strategy.

General Mills and Nestlé became partners and formed a separate entity called Cereal Partners Worldwide. This new organization is an example of the __________ strategy.