Question 1

Scripts & Scrolls Corp.supplies printing paper to select publishing houses.When its customers asked for a discount in the cost of supplies,the company had to oblige fearing that the customers might withdraw pending contracts.This shows the increased:

Accepted Answer

The fact that the customers are able to demand a discount in the cost of supplies shows that they have a certain level of bargaining power over Scripts & Scrolls Corp. The fear of losing contracts also indicates that the customers have other options available which gives them even more leverage in negotiations. Therefore, the correct answer is A, which represents an increased bargaining power of buyers.

Question 2

Which of the following would be an example of a tacit resource?

Accepted Answer

A tacit resource is a type of knowledge or skill possessed by an individual that is difficult to transfer to others or to replicate through technology, such as the oddsmaker's ability to accurately predict outcomes in gambling. The other options involve physical products or equipment that can be shared or replicated.

Question 3

A resource can be extremely difficult to imitate if:

Accepted Answer

A resource that arises through the complex interaction of multiple people makes it difficult to imitate because it involves both tacit knowledge and social complexity, which are difficult to codify and replicate. Therefore, it creates a unique, non-replicable advantage for the organization.

Question 4

Factors that make it difficult or expensive to change suppliers or buyers are referred to as _____.

Accepted Answer

Switching costs are the expenses or difficulties incurred when changing suppliers or buyers. These may include the costs of finding or evaluating new suppliers or buyers, costs of modifying production or distribution systems, emotional costs such as loss of familiar relationships, or financial penalties for ending existing contracts or agreements. Therefore, D is the correct answer. Options A, B, and C are not relevant to this concept.

Question 5

The Corner Shop Corp.is a leading supermarket chain in Chicago.According to Michael Porter's model of a value chain,which of the following activities of the firm is a primary activity?

Accepted Answer

Michael Porter's model of a value chain categorizes business activities into primary and support activities. Primary activities are directly involved in the creation of a product or service, its sale, and after-sale service. Advertising campaigns, like the one mentioned in option B, are part of the marketing and sales primary activities, aiming to promote the product or service to the customers.

Question 6

Socially complex resources are:

Accepted Answer

Socially complex resources are resources or activities that emerge through the interaction of multiple individuals, such as language, culture, and institutions. These resources are shaped and sustained by social norms, values, and beliefs, and are difficult to imitate or replicate by outsiders because they require a deep understanding of the underlying social dynamics. Examples of socially complex resources include shared knowledge, collective skills, and social networks.

Question 7

What is the danger of not having a strategic intent? In your answer,assume your company operates a hospital in a city with a population of 30,000 people,located about 50 miles away from a large city.

Accepted Answer

The answer of What is the danger of not having...

Question 8

Allure Fabrics Corp.supplies cotton,linen,and silk fabrics to various designer wear boutiques in and around Florida.The firm has recently launched a boutique in Florida under its own brand name to sell women's fashion apparel.Allure Fabrics is practicing:

Accepted Answer

Forward vertical integration refers to a situation where a company expands its operations by acquiring or establishing its own retail or distribution channels. In this case, Allure Fabrics Corp. is supplying fabrics to various designer wear boutiques, but has now launched its own boutique to sell its own women's fashion apparel. This is an example of forward vertical integration as it involves the company owning and operating its own retail channels.

Question 9

When Faslow Medical Center in Exeter County changed its name to Faslow Hospital,it also unveiled a plan to build a medical tower that would double its physical facilities by 100 percent within the next 10 years.It also announced that its goal was to not only serve Exeter County but also the entire region including the five contiguous counties.This is most accurately an expression of:

Accepted Answer

The announcement of a plan to expand its physical facilities and serve a larger region indicates strategic intent, or a long-term vision and plan for growth and expansion. Vertical integration would involve acquiring or merging with other healthcare providers in the supply chain, monopoly rent refers to excessive profits earned from a dominant market position, and supplier bargaining power refers to the strength of suppliers in negotiating prices and terms with the organization. None of these concepts are directly applicable to the information provided in the scenario.

Question 10

What properties must resources have to be a potential source of sustainable competitive advantage?

Accepted Answer

The answer of What properties must resources have to be...

Question 11

The relationship between a _____ resource and the outcome it produces is poorly understood.

Accepted Answer

The term "causally ambiguous" refers to a situation where the relationship between a resource and the outcome it produces is unclear or poorly understood. This suggests that there is a lack of clear cause-and-effect relationships that can be identified, making it difficult to determine the exact impact of the resource on the outcome. The other answer choices, "socially complex", "logistically outbound", and "logistically inbound", do not convey this sense of ambiguity or uncertainty in the relationship between a resource and its outcome.

Question 12

Sam's Sugar Corp.,a leading cane sugar manufacturer,faces a threat of going out of business when a rival company introduces a zero-calorie sweetener to replace the high-calorie cane sugar.According to Porter's five-force model,the two products are:

Accepted Answer

The two products, cane sugar and zero-calorie sweetener, are substitutes as they serve the same purpose of sweetening and can be used interchangeably by consumers. The introduction of the zero-calorie sweetener poses a threat to Sam's Sugar Corp. as it may lead to a decrease in demand for their product and potentially result in the company going out of business.

Question 13

Explain the advantages and disadvantages of rewarding and promoting the development of core competencies.

Accepted Answer

The answer of Explain the advantages and disadvantages of rewarding...

Question 14

According to Michael Porter's model of a value chain,which of the following is a support activity?

Accepted Answer

Accounting activities are a support activity in Michael Porter's value chain model, which means they are not directly involved in the production process but play a crucial role in supporting it. Outbound logistics and inbound logistics are both primary activities involved in the production process, and marketing is also a primary activity focused on promoting and selling the product.

Question 15

Ample Espresso Corp.is a coffeehouse located across from Tian's Kitchen,a restaurant.According to Porter's five-force model,the services and products provided by both are most accurately classified as:

Accepted Answer

According to Porter's five-force model, the services and products provided by Ample Espresso Corp. (a coffeehouse) and Tian's Kitchen (a restaurant) can be classified as substitutes because they both fulfill similar needs for customers, such as providing a place to eat or drink. Even though they might offer different types of food or beverages, they still cater to the dining and leisure market, making them substitutes in the eyes of consumers looking for a place to spend their meal times.

Question 16

What are core competencies?

Accepted Answer

The answer of What are core competencies?...

Question 17

Which of the following statements is true of core competencies?

Accepted Answer

A firm's core competency is a combination of multiple abilities, including but not limited to its core technology. It is the unique combination of skills, knowledge, and resources that a company has developed, allowing it to differentiate itself from its competitors. Core competencies are not limited to a single business unit or function, but are often shared across multiple units. A company's core competencies are typically difficult for competitors to imitate and are a source of sustainable competitive advantage.

Question 18

Piezo Tech Solutions supplies hospitals with software to track insurance claims.As insurance regulations and policies are always changing,its software needs to have the ability to be agile and responsive to change.In other words,the software needs:

Accepted Answer

Dynamic capabilities refer to the ability of a business to quickly adapt and respond to changes in the market, regulations or policies. This is exactly what Piezo Tech Solutions needs for its software in order to keep up with the rapidly changing insurance landscape.

Question 19

Explain the influences on the threat of potential entrants into a market according to Porter's five-force model.

Accepted Answer

The answer of Explain the influences on the threat of...

Question 20

Perfecto Espresso Corp.is a chain of coffee shops in the United States.Earlier it used to source its coffee from several coffee suppliers.However,recently it started its own coffee plantation to supply its coffee shops.This is an example of:

Accepted Answer

Backward vertical integration involves a company starting its own production of inputs or raw materials. In this case, Perfecto Espresso starting its own coffee plantation to supply its coffee shops is an example of backward vertical integration.

Quiz 6: Defining the Organizations Strategic Direction