WPC 480: ALL CHAPTER QUIZZES (1-7, 9-10)
QUESTIONS AND ANSWERS
b - Answers - An assumption of the industrial organization (I/O) model of above-average
returns that supports the need for a firm to find the most attractive industry in which to
compete is that:
a. the external environment imposes pressures and constraints that determine the
strategies that would result in above-average returns.
b. firms possess the same types of resources with value and those resources are
mobile across companies.
c. differences in resources and capabilities are the basis of competitive advantage.
d. organizational decision makers are rational individuals who are committed to acting in
the firm's best interests, as shown by their profit-maximizing behaviors.
d - Answers - All of the following are analyzed during a SWOT analysis EXCEPT:
a. weaknesses.
b. threats.
c. strengths.
d. objectives.
b - Answers - Hypercompetition describes a competitive landscape in which:
a. there are thousands of companies competing within the same industry for the same
group of customers.
b. rivalry tends to occur among global competitors who innovate regularly and
successfully.
c. the business is dominated by a single company, pushing all competitors to imitate its
strategies and develop similar resources.
d. the industry has a high cost of entry in capital investment, research and development
(R&D), or hiring of talented employees.
b - Answers - Cell phones and digital music files are examples of:
a. hypercompetition.
b. disruptive technologies.
c. knowledge.
d. core competencies.
c - Answers - A multidivisional corporation that manufactures large steel tanks is
considering starting a new business unit to serve the transportation industry. The
,company is utilizing the industrial organization (I/O) model of above-average returns to
develop its strategy. Which of the following decisions is consistent with this model?
a. The company determines that it has an internal asset in a piece of software it
developed for scheduling manufacturing processes and decides to make the software
the centerpiece of its new business unit, selling it to transportation companies to
manage their schedules.
b. The company identifies a large steel tank it is currently selling to customers in the
brewing industry and decides to begin selling it to customers in the transportation
industry for transporting liquids.
c. The company's research into a new railcar guideline that requires all tanker cars to be
replaced or retrofitted over the next five years leads its leaders to start a business that
manufactures tanker cars to capitalize on the new demand.
d. The company decides to increase its investment in research and development to
catch a competitor that has surpassed it in the technology it is using to produce steel
tanks.
b - Answers - A local community arts nonprofit organization is seeking to expand its
programming and is considering putting just one new program in place this year. It may
choose painting workshops for people with disabilities, summer camps for young
children, a musical performing arts series for skilled musicians, or classes for seniors.
The organization's most committed volunteer is a kindergarten teacher who has offered
to be the leader of whichever new program the organization implements. If the nonprofit
is utilizing the resource-based model of above-average returns, in which of the following
ways should it expand its programming?
a. Painting workshops for people with disabilities because they are not currently being
offered by any other organizations in the community
b. Summer camps for young children because the organization should use the
knowledge of its passionate volunteer to its greatest advantage
c. A musical performing arts series for skilled musicians because it has the widest
appeal in the community
d. Classes for seniors because they can be hosted during the day and have good
attendance among those who are retired
c - Answers - In the resource-based model of above-average returns, a capability is:
a. an input into a firm's production process.
b. the foundation for a firm's mission.
c. the capacity for a set of resources to perform a task or an activity in an integrative
manner.
d. a product of a large number of firms competing against one another in an increasing
number of global economies.
b - Answers - Which of the following would be considered a product market
stakeholder?
, a. A private equity firm investing in a biomedical firm
b. A local pipefitters union dealing with a plumbing contractor
c. A member of an ownership family in a privately owned company
d. A store manager of a retail chain
a - Answers - Logan is an entrepreneur and president of his own company that makes a
new software product that manages benefits administration for large multinational
corporations. His startup company grew quickly to a team of about 25. A new federal
law recently passed by Congress will cause small-business owners to invest in software
like his to manage employee health care. Logan announces that the company will be
investing in training for employees to better understand small-business owners and
research and development (R&D) to create a small-business version of the software.
This is an example of:
a. having a strong strategic orientation and promoting innovation as a strategic leader.
b. utilizing the industrial organization (I/O) model of above-average returns to determine
the strategic direction of the firm.
c. answering to demands made by capital market stakeholders for greater profitability.
d. revising a company's vision statement to reflect changes in the competitive
environment.
a - Answers - Organizational culture is the:
a. complex set of ideologies, symbols, and core values that individuals throughout the
firm share and that influence how the firm conducts business.
b. structure of a company's organizational chart of strategic leaders, including their roles
and responsibilities.
c. attitude of a company's owners or shareholders.
d. policies and procedures detailed in the company's employee handbook.
b - Answers - The _____ environment is the set of factors that directly influences a firm
and its competitive actions and responses.
a. internal
b. industry
c. economic
d. competitor
a - Answers - Which of the following describes the relationship between Intel, which
makes computer processors, and Microsoft, a leading desktop software company?
a. Intel and Microsoft are complementors.
b. Intel and Microsoft are competitors.
c. Intel is a supplier to Microsoft.
d. Intel is a customer of Microsoft.
QUESTIONS AND ANSWERS
b - Answers - An assumption of the industrial organization (I/O) model of above-average
returns that supports the need for a firm to find the most attractive industry in which to
compete is that:
a. the external environment imposes pressures and constraints that determine the
strategies that would result in above-average returns.
b. firms possess the same types of resources with value and those resources are
mobile across companies.
c. differences in resources and capabilities are the basis of competitive advantage.
d. organizational decision makers are rational individuals who are committed to acting in
the firm's best interests, as shown by their profit-maximizing behaviors.
d - Answers - All of the following are analyzed during a SWOT analysis EXCEPT:
a. weaknesses.
b. threats.
c. strengths.
d. objectives.
b - Answers - Hypercompetition describes a competitive landscape in which:
a. there are thousands of companies competing within the same industry for the same
group of customers.
b. rivalry tends to occur among global competitors who innovate regularly and
successfully.
c. the business is dominated by a single company, pushing all competitors to imitate its
strategies and develop similar resources.
d. the industry has a high cost of entry in capital investment, research and development
(R&D), or hiring of talented employees.
b - Answers - Cell phones and digital music files are examples of:
a. hypercompetition.
b. disruptive technologies.
c. knowledge.
d. core competencies.
c - Answers - A multidivisional corporation that manufactures large steel tanks is
considering starting a new business unit to serve the transportation industry. The
,company is utilizing the industrial organization (I/O) model of above-average returns to
develop its strategy. Which of the following decisions is consistent with this model?
a. The company determines that it has an internal asset in a piece of software it
developed for scheduling manufacturing processes and decides to make the software
the centerpiece of its new business unit, selling it to transportation companies to
manage their schedules.
b. The company identifies a large steel tank it is currently selling to customers in the
brewing industry and decides to begin selling it to customers in the transportation
industry for transporting liquids.
c. The company's research into a new railcar guideline that requires all tanker cars to be
replaced or retrofitted over the next five years leads its leaders to start a business that
manufactures tanker cars to capitalize on the new demand.
d. The company decides to increase its investment in research and development to
catch a competitor that has surpassed it in the technology it is using to produce steel
tanks.
b - Answers - A local community arts nonprofit organization is seeking to expand its
programming and is considering putting just one new program in place this year. It may
choose painting workshops for people with disabilities, summer camps for young
children, a musical performing arts series for skilled musicians, or classes for seniors.
The organization's most committed volunteer is a kindergarten teacher who has offered
to be the leader of whichever new program the organization implements. If the nonprofit
is utilizing the resource-based model of above-average returns, in which of the following
ways should it expand its programming?
a. Painting workshops for people with disabilities because they are not currently being
offered by any other organizations in the community
b. Summer camps for young children because the organization should use the
knowledge of its passionate volunteer to its greatest advantage
c. A musical performing arts series for skilled musicians because it has the widest
appeal in the community
d. Classes for seniors because they can be hosted during the day and have good
attendance among those who are retired
c - Answers - In the resource-based model of above-average returns, a capability is:
a. an input into a firm's production process.
b. the foundation for a firm's mission.
c. the capacity for a set of resources to perform a task or an activity in an integrative
manner.
d. a product of a large number of firms competing against one another in an increasing
number of global economies.
b - Answers - Which of the following would be considered a product market
stakeholder?
, a. A private equity firm investing in a biomedical firm
b. A local pipefitters union dealing with a plumbing contractor
c. A member of an ownership family in a privately owned company
d. A store manager of a retail chain
a - Answers - Logan is an entrepreneur and president of his own company that makes a
new software product that manages benefits administration for large multinational
corporations. His startup company grew quickly to a team of about 25. A new federal
law recently passed by Congress will cause small-business owners to invest in software
like his to manage employee health care. Logan announces that the company will be
investing in training for employees to better understand small-business owners and
research and development (R&D) to create a small-business version of the software.
This is an example of:
a. having a strong strategic orientation and promoting innovation as a strategic leader.
b. utilizing the industrial organization (I/O) model of above-average returns to determine
the strategic direction of the firm.
c. answering to demands made by capital market stakeholders for greater profitability.
d. revising a company's vision statement to reflect changes in the competitive
environment.
a - Answers - Organizational culture is the:
a. complex set of ideologies, symbols, and core values that individuals throughout the
firm share and that influence how the firm conducts business.
b. structure of a company's organizational chart of strategic leaders, including their roles
and responsibilities.
c. attitude of a company's owners or shareholders.
d. policies and procedures detailed in the company's employee handbook.
b - Answers - The _____ environment is the set of factors that directly influences a firm
and its competitive actions and responses.
a. internal
b. industry
c. economic
d. competitor
a - Answers - Which of the following describes the relationship between Intel, which
makes computer processors, and Microsoft, a leading desktop software company?
a. Intel and Microsoft are complementors.
b. Intel and Microsoft are competitors.
c. Intel is a supplier to Microsoft.
d. Intel is a customer of Microsoft.
