MAN 4720 FINAL EXAM UCF (CAPSTONE UCF) QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026

MAN 4720 FINAL EXAM UCF (CAPSTONE UCF) QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026 A - Answers What is a generic business strategy? A. a general way of positioning a firm's business-level strategy within an industry B. a general way of positioning a firm's business-level strategy to penetrate an international market C. a general strategy that positions your firm in a competitive position within an industry D. all of the above A - Answers What are the two dimensions on which generic business strategies are classified? A. breadth of competitive scope/source of competitive advantage B. breadth of product line/source of competitive advantage C. breadth of competitive scope/extent of vertical integration D. breadth of product line/extent of vertical integration D - Answers Which of the following is not a main generic strategies? A. cost leadership B. differentiation C. focused low cost D. focused penetration F - Answers Which of the following is an example of one of the main generic strategies? A. differentiation B. diversification C. focused low cost D. cost abandonment E. B & C F. A & C A - Answers Which generic business strategy is on the intersection of competing on cost and targeting a broad market? A. cost leadership B. differentiation C. focused low cost D. focused differentiation T - Answers T/F: The experience curve is known as the decline in unit cost of production as cumulative output increases - based on knowledge/expertise. F - Answers T/F: Economies of scale refers to an increase in unit cost of production as rate of output increases (based on spreading out fixed costs). C - Answers All of the following are disadvantages of cost leadership EXCEPT: A. perceptions of quality B. relies on volume C. harder to survive price wars D. can be too focused on cost B - Answers Which of the following is a disadvantage of cost leadership: A. perceptions of service B. can be focused too much on cost C. relies on demand D. none of the above B - Answers All of the following are advantages of cost leadership EXCEPT: A. high profits through volume B. perceptions of quality C. easier to survive price wars D. all of the above F - Answers Which of the following is an advantage of cost leadership? A. perceptions of cost B. easier to survive price wars C. low profits through volume D. high profits through volume E. A & C F. B & D B - Answers Which generic business strategy is on the intersection of competing on uniqueness and targeting a broad market? A. cost leadership B. differentiation C. focused low cost D. focused differentiation T - Answers T/F: Innovation becomes really important with a differentiation business strategy. F - Answers T/F: Differentiation strategies face threats from knock offs but are not sensitive to price wars. F - Answers T/F: Differentiation prevents a firm from creating brand loyalty and increasing profit margins. C - Answers Which generic business strategy is on the intersection of competing on cost and targeting a narrow market? A. cost leadership B. differentiation C. focused low cost D. focused differentiation A - Answers Which of the following IS NOT a disadvantage of focused generic business strategies? A. lower profit margins B. limited demand C. niche may change or disappear D. all of the above B - Answers Which of the following is a disadvantage of focused generic business strategies? A. lower profit margins B. limited demand C. decreased uniqueness of products D. hardest strategy to implement D - Answers Which generic business strategy is on the intersection of competing on uniqueness and targeting a narrow market? A. cost leadership B. differentiation C. focused low cost D. focused differentiation C - Answers You are a consultant for Toyota and have determined that in the car manufacturing market, their products are offered at a much lower price than competitors, but are also substantially differentiated from competitors. The most accurate description of Toyota's generic strategy is: A. Differentiation B. Overall Cost Leadership C. Best Cost Strategy D. Focused Differentiation T - Answers T/F: Companies will choose a generic business strategy to avoid becoming "stuck in the middle". These firms are the ones that don't try to compete on either differentiation or cost. D - Answers A company using a best cost strategy may do all of the following EXCEPT: A. use more than one generic strategy B. compete on price and uniqueness C. might consider different strategies for different brands D. uses the single best strategy possible to obtain the best cost available C - Answers You are a consultant for Embraer and have determined that in the airplane manufacturing market, their products are significantly cheaper than the competitors, but they're still a little differentiated from the competition. In addition, they seem to target the entire airplane-purchasing market. The most accurate description of Embraer's generic strategy (or lack thereof) is: A. Stuck in the Middle B. Differentiation C. Overall Cost Leadership D. Focused Low Cost E. Focused Differentiation A - Answers Ferns and Flowers sells unique products such as exotic plants, flowers, pots, and plant care services to a narrow market. Which of the following would be true about Ferns and Flowers? A. The shop can charge very high prices for its unique products. B. It need not worry about damaging attacks from larger firms. C. It is protected from the damaging attacks of smaller shops that adopt an even narrower focus. D. The shop will never have its growth stymied despite the fact that it serves a niche market. E. The niche, that is the area of operation of Ferns and Flowers, cannot be made to disappear or be taken over by larger competitors. C - Answers A firm is said to be _____ if it does not offer features that are unique enough to convince customers to buy its offerings and its prices are too high to effectively compete on based on price. A. outdated B. obsolete C. stuck in the middle D. stuck in the mud B - Answers Which of the following is a pro to the first mover advantage? A. firm assumes the risk of entering a new, untested market B. firm reaps the marketing benefits of being the first C. firm assumes the risk of competitors learning and capitalizing off of mistakes made from learning about a new market/product D - Answers According to the A-M-C framework, competitors are most likely to respond to a competitive action when they are: A. Aware of the action B. Motivated to respond C. Capable of doing something about it D. all of the above A - Answers In the A-M-C framework, strategic analysis and environmental scanning, the need to stay on top of what is going on in your industry, and reading the newspaper, trade journals, etc. are all characteristics of: A. awareness B. motivation C. capability D. attentive E. market B - Answers In the A-M-C framework, market commonality, resource similarity, and reputation are all characteristics of: A. awareness B. motivation C. capability D. attentive E. market C - Answers In the A-M-C framework, having the resources to respond effectively refers to: A. awareness B. motivation C. capability D. connection E. market B - Answers In ____________, firms compete in some areas, but cooperate in others. A. cooperation B. co-opetition C. joint allegiance D. strategic alliance T - Answers T/F: The Blue Ocean Strategy refers to targeting a different market and reducing market commonality as opposed to competing with rivals. A - Answers _____________ refers to combining the resources readily available to you in a unique way to create a new business/product that is very different from others. A. bricolage B. co-opetition C. strategic alliance D. merger E - Answers Which of the following IS NOT a component of the BCG Matrix? A. star B. question mark C. cash cow D. dog E. cat B - Answers In the BCG Matrix, a Star has _____ market growth and ______ market share in its industry. As a result, you should prioritize the Star. A. high, low B. high, high C. low, low D. low, high F - Answers T/F: In the BCG Matrix, you should invest in the star. D - Answers In the BCG Matrix, a Cash Cow has _____ market growth and ______ market share in its industry. As a result, you should invest in the Cash Cow. A. high, low B. high, high C. low, low D. low, high F - Answers T/F: In the BCG Matrix, you should kill the question mark. T - Answers T/F: In the BCG Matrix, you should invest in the cash cow. A - Answers In the BCG Matrix, a Question Mark has _____ market growth and ______ market share in its industry. As a result, you should divest in the Question Mark. A. high, low B. high, high C. low, low D. low, high C - Answers In the BCG Matrix, a Dog has _____ market growth and ______ market share in its industry. As a result, you should kill the Dog. E.g. entertainment & games software) A. high, low B. high, high C. low, low D. low, high T - Answers T/F: In the BCG Matrix, you should kill the dog. F - Answers T/F: In the BCG Matrix, you should kill the question mark. B - Answers A fellow student tells you that the more people you hire, the more human capital the firm has. Which of the following critiques best conveys the flaw with this logic? A. Human capital is less concerned with the number of employees than it is with the relationships among employees within the firm and the firm's relationships with external parties. B. Human capital is more than the number of employees; the knowledge, skills, and abilities contributed by the new employees need to be considered. C. Human capital is not concerned with the number of employees, it is concerned with their ability to sell products and services D. Human capital is not concerned with the number of employees, it is concerned with the protection of assets created by individuals in the organization (e.g., patents, trademarks, copyrights). C - Answers You suggest to a firm's CEO that, from a human capital perspective, the company is not very diverse. Your client becomes offended and says that this is clearly not the case as the firm has people from all different races, sexes, and religions. What is the most appropriate response to this? A. "Oh, I didn't realize that, I suppose the firm is more diverse than I had originally thought" B. "Yes, but there are several different protected groups (e.g., age) that you have not listed, depressing the firm's human capital" C. "From a human capital perspective, protected groups are only one aspect of diversity, it is also important to consider whether/how these individuals contribute diverse knowledge, skills, and abilities" C - Answers Your friend launched a company two years ago, manufacturing an innovative form of paperclip. When the company was first launched there was considerable waste in terms of scrap metal and plastic and the throughput time for each paperclip was 30 seconds. However, having manufactured over 1 million paperclips since then, the company now wastes considerably less scrap and has improved the throughput time to 5 seconds. As a result, the marginal (per-unit) cost of producing each paperclip has decreased by 75%. This savings is best described as a result of _________________________. A. economies of scale B. economies of scope C. experience curve D. business strategy A - Answers Proctor & Gamble and Johnson & Johnson are both in the consumer goods industry and compete with each other in the Americas, Europe, Asia, and the Middle East. As a consultant, you are analyzing this industry and observe an interesting phenomenon: when one of these two companies takes a competitive action (perhaps in Europe) the other may react not only in Europe, but on a global scale. This phenomenon is best attributed to what strategic management concept? A. multipoint competition B. joint allegiance C. strategic alliance D. none of the above B - Answers Chinese manufacturers are beginning to create cell phones at a much "cheaper" cost than Apple and Samsung. These manufacturers are not focused on being a leader in innovation in the cell phone industry. They target the broad set of users that are looking to spend less on their cell phone purchases. Which of the following generic business strategies best describes this firm's strategy? A. Differentiation B. Cost Leadership C. Focused Differentiation D. Focused Low Cost A - Answers Which of the following is NOT a disadvantage of the Cost Leadership strategy? A. It is harder for them to survive price wars B. Customers may perceive their product to be of inferior quality C. The firm can become less adaptable to environmental changes D. They are susceptible to changes in volume C - Answers A car manufacturer introduces a new car in the market. The car is aimed at the premium segment. It is priced more than any other car in its category, and it offers features that are standard for cars in its category. Thus, the newly launched car can compete neither on the basis of price nor on the basis of any unique feature that can convince customers to buy it. This is the example of a(n) _____ firm. A. outdated B. obsolete C. stuck in the middle D. stuck in the mud A - Answers What arises when there is an inverse relationship between the quantity of a single product produced and per-unit fixed costs? A. Economies of scale B. Experience curve C. Economies of scope D. Competitive parity D - Answers Which of the following describes why a company pursuing a Cost Leadership strategy might still want to do some differentiation? A. Economies of scale B. Experience curve C. Economies of scope D. Competitive parity B - Answers Direct labor for the manufacturing of surfboards in a plant started at $30/surfboard. Since opening, the plant has now produced over 50,000 surfboards. Having produced so many surfboards, now the cost of direct labor is $10/surfboard because more efficient manufacturing processes have been found. What concept is best demonstrated here? A. Economies of scale B. Experience curve D. Economies of scope D. Competitive parity C - Answers Which of the following captures the difference between an experience curve and economies of scale? A. The experience curve is concerned with the decline in per-unit cost of production whereas economies of scale is concerned with the decline in the total cost of production B. The experience curve is concerned with the decline in the total cost of production whereas economies of scale is concerned with the decline in per-unit cost of production C. The experience curve is influenced by the cumulative volume of a product produced whereas economies of scale are influenced by the volume of a product being produced over a period of time. D. The experience curve is influenced by the volume being produced over a period of time whereas economies of scale is influenced by the cumulative volume produced C - Answers Which of the following is least likely to be a benefit of social capital within a firm? A. It can facilitate the building of buy-in on a proposed strategy B. It can help retain good employees C. It can offset a bad generic business strategy D. It can enhance the flow of communication within the company C - Answers You are launching a surfboard company in San Diego. While you will sell your product to anyone who will pay, your emphasis is on providing the highest quality surfboards catered to the needs of surfing professionals. What generic business strategy best reflects this business? A. Differentiation B. Cost Leadership C. Focused Differentiation D. Focused Low Cost B - Answers Which of the following best captures the concept of competitive parity with respect to companies pursuing a differentiation strategy? A. They need to innovate in inimitable ways B. They shouldn't completely ignore price C. They need to assess market commonality D. They need to innovate in ways that customers value C - Answers Which of the following is NOT a disadvantage of the focused generic business strategies? A. Potentially limited demand B. The niche may change/disappear C. Inability to customize your product to the needs of the niche D. Other companies may enter your niche in even more focused ways A - Answers Which of the following is least likely to reduce the likelihood of managers acting in ways that are damaging to shareholders? A. Increase the salary of the managers B.Issue stock/stock options to managers C.Provide bonuses linked to outcomes that shareholders want to see D.Maintain an active, involved, and independent board of directors E - Answers Who of the following is not a formal part of the formal corporate governance process,