BUSA 4980 EXAM 1 PRACTICE QUESTIONS WITH
VERIFIED ANSWERS
Which of the following is a frequently used strategic approach to setting a company
apart from rivals and achieving a sustainable competitive advantage? - Answers - All of
the above
All of the following are assumptions of the industrial organization (I/O) model except: -
Answers - Resources to implement strategies are firm-specific and attached to firms
over the long-term
Which of the following element of strategy specifies the means for attaining the needed
presence in a particular product category, market segment, or geographic area? -
Answers - Vehicles
Which of the following is not one of the five sources of competitive pressures? -
Answers - The power and influence of industry driving forces
The three dimensions of the external environment that affect a firm's strategic actions
are: - Answers - General, industry, and competitor
Which of the following is not one of the segments of the general environment? -
Answers - The size of the pool of likely entry candidates and the resources at their
command
Which of the following analytical tools is utilized to craft a strategy that matches the
firm's internal resources to the external environment? - Answers - SWOT analysis
Which of the following is not one of the strategic options for remedying a cost
disadvantage? - Answers - Implementing offensive strategies to permit across-the-
board revenue growth
Which of the following best defines a core competence? - Answers - A capability that
serves as a source of competitive advantage for a firm over its rivals
Which of the following business-level strategies involves an integrated set of actions
designed to deliver goods or services that are perceived as unique and valuable to a
wide range of consumers? - Answers - Broad differentiation
The typical risks of a cost leadership strategy include all of the following except? -
Answers - Customers determine that the perception of value has narrowed
, Which of the following is one of the main competitive risks of a focused strategy? -
Answers - The potential for the preferences and needs of niche members to shift over
time toward the product attributes desired by the majority of buyers
Which of the following best defines competitive rivalry? - Answers - The ongoing
competitive actions and responses between a firm and a rival that affects the
performance of both companies
In general, competitive responses increase under which condition? - Answers - When
actions are taken by a market leader
Which of the following markets requires firms to develop capabilities for rapid product
upgrades and quick product innovations? - Answers - Fast-cycle market
The I/O (industrial organization) model assumes that the uniqueness of a firm's
resources and capabilities is its main source of above-average returns. - Answers -
false
A firm has achieved ______ when it successfully formulates and implements a value-
creating strategy. - Answers - Strategic competitiveness
Which of the following elements of strategy entail specifying the speed and sequence of
strategic moves? - Answers - staging
In order to cope with hypercompetition, firms need to develop through continuous
learning. - Answers - Strategic flexibility
All of the following are assumptions of the resource-based model EXCEPT: - Answers -
Capabilities are highly mobile across firms.
Which of the following refers to a bundle of resources that allow a company to perform a
task or an activity in an integrative manner? - Answers - A capability
Which of the following is an integrated and coordinated set of commitments and actions
designed to exploit core competencies and gain a competitive advantage? - Answers -
Strategy
Which if the following criteria for assessing the effectiveness of a strategy entails
addressing whether the management team is capable and willing to lead the required
changes? - Answers - Risk
Business-level strategies detail commitments and actions taken to provide value to
customers and gain competitive advantage by exploiting core competencies in ... -
Answers - specific product markets
VERIFIED ANSWERS
Which of the following is a frequently used strategic approach to setting a company
apart from rivals and achieving a sustainable competitive advantage? - Answers - All of
the above
All of the following are assumptions of the industrial organization (I/O) model except: -
Answers - Resources to implement strategies are firm-specific and attached to firms
over the long-term
Which of the following element of strategy specifies the means for attaining the needed
presence in a particular product category, market segment, or geographic area? -
Answers - Vehicles
Which of the following is not one of the five sources of competitive pressures? -
Answers - The power and influence of industry driving forces
The three dimensions of the external environment that affect a firm's strategic actions
are: - Answers - General, industry, and competitor
Which of the following is not one of the segments of the general environment? -
Answers - The size of the pool of likely entry candidates and the resources at their
command
Which of the following analytical tools is utilized to craft a strategy that matches the
firm's internal resources to the external environment? - Answers - SWOT analysis
Which of the following is not one of the strategic options for remedying a cost
disadvantage? - Answers - Implementing offensive strategies to permit across-the-
board revenue growth
Which of the following best defines a core competence? - Answers - A capability that
serves as a source of competitive advantage for a firm over its rivals
Which of the following business-level strategies involves an integrated set of actions
designed to deliver goods or services that are perceived as unique and valuable to a
wide range of consumers? - Answers - Broad differentiation
The typical risks of a cost leadership strategy include all of the following except? -
Answers - Customers determine that the perception of value has narrowed
, Which of the following is one of the main competitive risks of a focused strategy? -
Answers - The potential for the preferences and needs of niche members to shift over
time toward the product attributes desired by the majority of buyers
Which of the following best defines competitive rivalry? - Answers - The ongoing
competitive actions and responses between a firm and a rival that affects the
performance of both companies
In general, competitive responses increase under which condition? - Answers - When
actions are taken by a market leader
Which of the following markets requires firms to develop capabilities for rapid product
upgrades and quick product innovations? - Answers - Fast-cycle market
The I/O (industrial organization) model assumes that the uniqueness of a firm's
resources and capabilities is its main source of above-average returns. - Answers -
false
A firm has achieved ______ when it successfully formulates and implements a value-
creating strategy. - Answers - Strategic competitiveness
Which of the following elements of strategy entail specifying the speed and sequence of
strategic moves? - Answers - staging
In order to cope with hypercompetition, firms need to develop through continuous
learning. - Answers - Strategic flexibility
All of the following are assumptions of the resource-based model EXCEPT: - Answers -
Capabilities are highly mobile across firms.
Which of the following refers to a bundle of resources that allow a company to perform a
task or an activity in an integrative manner? - Answers - A capability
Which of the following is an integrated and coordinated set of commitments and actions
designed to exploit core competencies and gain a competitive advantage? - Answers -
Strategy
Which if the following criteria for assessing the effectiveness of a strategy entails
addressing whether the management team is capable and willing to lead the required
changes? - Answers - Risk
Business-level strategies detail commitments and actions taken to provide value to
customers and gain competitive advantage by exploiting core competencies in ... -
Answers - specific product markets
