Question 1

The music and newspaper industries were hurt primarily by _________.
A) buyer power
B) supplier power
C) threat of new entrants
D) threat of substitutes

Accepted Answer

The music and newspaper industries were primarily hurt by the threat of substitutes, such as digital music services and online news sources, which provided alternatives to traditional consumption methods.

Question 2

Primary activities _________ add value directly to the firm's products or services; support activities _________ add value directly to the firm's products or services.
A) do; do
B) do; do not
C) do not; do
D) do not; do not

Accepted Answer

Primary activities directly add value to a firm's products or services, while support activities do not directly add value but are essential to the effectiveness and efficiency of the firm.

Question 3

Which of the following has the strategy "I'm doing something new and you can't catch up"?
A) Cost leader
B) Customer oriented
C) Differentiation
D) Innovation
E) Operational effectiveness

Accepted Answer

Innovation strategy focuses on creating new products or services, making it difficult for competitors to catch up due to the unique and novel aspects of the innovation.

Question 4

Your business manufactures motors. Based on prices and shipping, you only have one business as an option to buy bearings. This means there is high _________.
A) buyer power
B) supplier power
C) threat of new entrants
D) threat of substitutes

Accepted Answer

Having only one option for purchasing bearings indicates a situation where the supplier has significant control over terms and prices, which is a clear example of high supplier power.

Question 5

You live in a small town with only one large retailer. This means there is low ______.
A) buyer power
B) supplier power
C) threat of new entrants
D) threat of substitutes

Accepted Answer

Buyer power is low because consumers have limited choices and must rely on the single large retailer for their purchases, reducing their ability to influence prices or demand better services.

Question 6

Which of the following has the strategy "I can do the same thing more efficiently than you can"?
A) Cost leader
B) Customer oriented
C) Differentiation
D) Innovation
E) Operational effectiveness

Accepted Answer

Operational effectiveness involves performing similar activities better than rivals, which directly aligns with the strategy of doing the same thing more efficiently.

Question 7

Which of the following has the strategy "I treat my customers better than you do"?
A) Cost leader
B) Customer oriented
C) Differentiation
D) Innovation
E) Operational effectiveness

Accepted Answer

Customer oriented strategies focus on providing superior customer service and experience, emphasizing treating customers better than competitors.

Question 8

_________ are the costs, in money and time, imposed by a decision to buy elsewhere.
A) Entry barriers
B) Loyalty programs
C) Substitute products
D) Switching costs

Accepted Answer

Switching costs refer to the costs that a consumer or company incurs as a result of changing brands, suppliers, or products. These costs can include financial costs, time, effort, and the risk of losing loyalty rewards.

Question 9

Walmart's strategy is _________.
A) cost leader
B) customer oriented
C) differentiation
D) innovation

Accepted Answer

Walmart's strategy is primarily focused on being a cost leader, aiming to provide customers with low prices on a wide variety of goods.

Question 10

You decide to integrate your supply chain to cut down production time. This is an example of a(n) _________ strategy.
A) cost leader
B) customer oriented
C) differentiation
D) innovation
E) operational effectiveness

Accepted Answer

Integrating your supply chain to cut down production time is an example of an operational effectiveness strategy. This approach focuses on improving internal processes and efficiencies to reduce costs and enhance productivity, rather than on differentiating products or services, innovating, or specifically targeting customer needs.

Question 11

Car and technology companies are currently competing over who can offer the first self-driving car. This is an example of a(n) _________ strategy.
A) cost leader
B) customer oriented
C) differentiation
D) innovation
E) operational effectiveness

Accepted Answer

This is an example of an innovation strategy, as companies are focusing on developing new and advanced technology to create self-driving cars, which is a novel and cutting-edge product in the automotive industry.

Question 12

_________ is an example of a primary activity for most firms.
A) Human resource management
B) Operations
C) Procurement
D) Product and technology development

Accepted Answer

Operations are considered a primary activity in most firms because they are directly involved in creating and delivering the product or service to the customer.

Question 13

_________ industries experience the greatest threat from substitutes.
A) Information-based
B) Manufacturing
C) Product-based
D) Retail

Accepted Answer

Information-based industries face the greatest threat from substitutes because information can often be easily replicated or replaced by alternative sources, technologies, or platforms.

Question 14

Robotic pizza delivery currently exists in __________.
A) Africa
B) China
C) Europe
D)The United States

Accepted Answer

The answer of Robotic pizza delivery currently exists in __________.
A)...

Question 15

Threat of substitute products or services refers to companies _________ the industry; rivalry refers to companies _________ the industry.
A) inside; inside
B) inside; outside
C) outside; inside
D) outside; outside

Accepted Answer

The threat of substitute products or services comes from outside the industry, while rivalry refers to competition among companies within the industry.

Question 16

Which of the following has the strategy "I can sell at a lower price than you can"?
A) Cost leader
B) Customer oriented
C) Differentiation
D) Innovation
E) Operational effectiveness

Accepted Answer

A cost leader strategy focuses on gaining competitive advantage by having the lowest cost of operation in the industry, which allows a company to sell its products at a lower price than its competitors while still maintaining profitability.

Question 17

_________ is an example of a support activity for most firms.
A) Inbound logistics
B) Marketing and sales
C) Operations
D) Product and technology development

Accepted Answer

Product and technology development is a support activity that helps improve the efficiency and effectiveness of primary activities in a firm.

Question 18

Organization's use Porter's competitive forces model to design _________ strategies; they use the value chain model to identify _________ activities to make the greatest impact.
A) general; general
B) general; specific
C) specific; general
D) specific; specific

Accepted Answer

Organizations use Porter's competitive forces model to design general strategies for competing in the market. They use the value chain model to identify specific activities within their operations that can be optimized for the greatest impact on efficiency and effectiveness.

Question 19

Which of the following has the strategy "I am better because I am different"?
A) Cost leader
B) Customer oriented
C) Differentiation
D) Innovation
E) Operational effectiveness

Accepted Answer

Differentiation strategy focuses on distinguishing a company's products or services from others in the market, emphasizing unique features, benefits, or brand identity to stand out from competitors.

Question 20

Rolex's strategy is ________.
A) cost leader
B) differentiation
C) innovation
D) operational effectiveness

Accepted Answer

Rolex's strategy is focused on differentiation, emphasizing the unique quality, prestige, and craftsmanship of its watches to stand out in the luxury market.

Quiz 2: Organizational Strategy, Competitive Advantage, and Information Systems

The music and newspaper industries were hurt primarily by _________.

Primary activities _ add value directly to the firm's products or services; support activities _ add value directly to the firm's products or services.

Which of the following has the strategy "I'm doing something new and you can't catch up"?

Your business manufactures motors. Based on prices and shipping, you only have one business as an option to buy bearings. This means there is high _________.

You live in a small town with only one large retailer. This means there is low ______.

Which of the following has the strategy "I can do the same thing more efficiently than you can"?

Which of the following has the strategy "I treat my customers better than you do"?

_________ are the costs, in money and time, imposed by a decision to buy elsewhere.

Walmart's strategy is _________.

You decide to integrate your supply chain to cut down production time. This is an example of a(n) _________ strategy.

Car and technology companies are currently competing over who can offer the first self-driving car. This is an example of a(n) _________ strategy.

_________ is an example of a primary activity for most firms.

_________ industries experience the greatest threat from substitutes.

Robotic pizza delivery currently exists in __________.

Threat of substitute products or services refers to companies _ the industry; rivalry refers to companies _ the industry.

Which of the following has the strategy "I can sell at a lower price than you can"?

_________ is an example of a support activity for most firms.

Organization's use Porter's competitive forces model to design _ strategies; they use the value chain model to identify _ activities to make the greatest impact.

Which of the following has the strategy "I am better because I am different"?

Rolex's strategy is ________.