MGMT 441 Exam 1 – Study Guide, Practice Questions & Exam Review
A sequential set of analyses and choices that can increase the likelihood that a firm will choose
a strategy that generates competitive advantages is the - ANS ✔✔Strategic Management
process
The realized strategy of most firms tends to be - ANS ✔✔a combo of intended and emergent
strategies
used to develop strategies to create competitive advantages, but can also hurt a firm's
performance - ANS ✔✔firm mission
A firm that earns its cost of capital is said to be earning - ANS ✔✔normal economic
performance
Which ratio signals a greater risk of bankruptcy as it increases? - ANS ✔✔Debt to assets
Firms whose mission is central to all they do are known as ________ firms. - ANS ✔✔Visionary
The difference between the perceived benefits gained by a customer who purchases a firm's
products or services and the full economic cost of these products or services is the (Note: Porter
was deleted from this edition) - ANS ✔✔Economic value
Firms that generate less economic value than their rivals experience a competitive - ANS
✔✔Disadvantage
Using ratio analysis, a firm earns ________ when its performance is greater than the industry
average. - ANS ✔✔above average accounting performance
, ________ are ratios with some measure of profit in the numerator and some measure of firms'
size or assets in the denominator. - ANS ✔✔Profitability Ratios
If your customers value your products more when they have your product and another firm's
product rather than when they have your product alone, the other firm is considered to be a -
ANS ✔✔complementor
In the S-C-P model, ________ refers to the strategies that firms in an industry implement. - ANS
✔✔Conduct
Firms that have either recently begun operations in an industry or that threaten to begin
operations in an industry soon are considered to be ________ in the five forces framework. -
ANS ✔✔new competitors
The products or services provided by a firm's substitutes meet ________ customer needs in
________ ways as the product provided by the firm itself. - ANS ✔✔approximately the same;
different
Overall, the average level of performance in an industry is likely to be highest when - ANS
✔✔the threat level of all five forces is low
All of the following are elements of the general environment except
technological trends.
demographic trends.
industrial trends.
cultural trends. - ANS ✔✔industrial trends
A sequential set of analyses and choices that can increase the likelihood that a firm will choose
a strategy that generates competitive advantages is the - ANS ✔✔Strategic Management
process
The realized strategy of most firms tends to be - ANS ✔✔a combo of intended and emergent
strategies
used to develop strategies to create competitive advantages, but can also hurt a firm's
performance - ANS ✔✔firm mission
A firm that earns its cost of capital is said to be earning - ANS ✔✔normal economic
performance
Which ratio signals a greater risk of bankruptcy as it increases? - ANS ✔✔Debt to assets
Firms whose mission is central to all they do are known as ________ firms. - ANS ✔✔Visionary
The difference between the perceived benefits gained by a customer who purchases a firm's
products or services and the full economic cost of these products or services is the (Note: Porter
was deleted from this edition) - ANS ✔✔Economic value
Firms that generate less economic value than their rivals experience a competitive - ANS
✔✔Disadvantage
Using ratio analysis, a firm earns ________ when its performance is greater than the industry
average. - ANS ✔✔above average accounting performance
, ________ are ratios with some measure of profit in the numerator and some measure of firms'
size or assets in the denominator. - ANS ✔✔Profitability Ratios
If your customers value your products more when they have your product and another firm's
product rather than when they have your product alone, the other firm is considered to be a -
ANS ✔✔complementor
In the S-C-P model, ________ refers to the strategies that firms in an industry implement. - ANS
✔✔Conduct
Firms that have either recently begun operations in an industry or that threaten to begin
operations in an industry soon are considered to be ________ in the five forces framework. -
ANS ✔✔new competitors
The products or services provided by a firm's substitutes meet ________ customer needs in
________ ways as the product provided by the firm itself. - ANS ✔✔approximately the same;
different
Overall, the average level of performance in an industry is likely to be highest when - ANS
✔✔the threat level of all five forces is low
All of the following are elements of the general environment except
technological trends.
demographic trends.
industrial trends.
cultural trends. - ANS ✔✔industrial trends
