BUSI 4940 UNT MIDTERM STUDY SHEET
2026 QUESTIONS WITH ANSWERS GRADED
A+
●● Walmart and Amazon are examples of organizations that earn above-
average returns by using a _____ strategy.
a.cost leadership
b.focus
c.differentiation
d.consolidation
Answer: A
●● Toy Joy Company is a start-up toy company. Its owners have decided
to use the industrial organization (I/O) model to pursue strategic
competitiveness and earn above-average returns. Toy Joy's first step in
using the model would be to:
a.locate an industry with high potential for above-average returns.
b.study the external environment, especially the industry environment.
c.identify the firm's resources.
d.identify a strategy.
Answer: B
,●● Kristine Woods and her husband, Liam, own a café, Simply Healthy,
in their hometown. Simply Healthy offers only natural and healthy
options on its menu and uses only locally grown food. It charges slightly
higher prices than the other restaurants in town, but health-conscious
customers are willing to pay a premium. Simply Healthy operates using
a _____ strategy.
a.differentiation
b.focus
c.cost leadership
d.consolidation
Answer: A
●● The quality of a firm's performance is reflected in its ability to:
a.achieve strategic competitiveness.
b.engage in perpetual innovation.
c.earn average returns.
d.achieve strategic flexibility.
Answer: A
●● Which of the following would NOT be considered a resource?
a.A patent
b.Finances
c.An employee's skills
,d.A competitor's skills
Answer: D
●● _____ is a set of capabilities firms use to respond to various demands
and opportunities existing in today's dynamic and uncertain competitive
environment.
a.Strategic flexibility
b.Strategic competitiveness
c.Perpetual innovation
d.Organizational culture
Answer: A
●● Motorvate is a start-up rental car company. Its owners have decided
to use the resource-based model to pursue strategic competitiveness and
earn above-average returns. Motorvate's first step in using the model
would be to:
a.determine the firm's capabilities.
b.locate an attractive industry.
c.study the external environment, especially the industry environment.
d.identify the firm's resources.
Answer: D
●● Guinness Enterprises is a multinational corporation (MNC) that was
established 75 years ago. One of the goals of Harry Walker, the new
, Chief Executive Officer (CEO), is to make the firm strategically flexible.
Harry should know that:
a.it is impossible to develop strategic flexibility in all areas of an
organization's operations.
b.a firm's focus and past core competencies can help expedite strategic
flexibility.
c.the most effective way to implement strategic flexibility is through
intermittent training courses.
d.building strategic flexibility is not easy, largely because of inertia that
can build over time.
Answer: D
●● According to the industrial organization (I/O) model, an attractive
industry is one:
a.with fierce competition.
b.in which a company can use a focus strategy rather than a cost
leadership or differentiation strategy.
c.with opportunities that can be exploited by the firm's resources and
capabilities.
d.whose structural characteristics suggest above-average returns.
Answer: D
●● Ranger Landscaping's website states the following: "Ranger
Landscaping is a service-oriented business that provides lawn care and
landscape design, installation, and maintenance. We are committed to a
2026 QUESTIONS WITH ANSWERS GRADED
A+
●● Walmart and Amazon are examples of organizations that earn above-
average returns by using a _____ strategy.
a.cost leadership
b.focus
c.differentiation
d.consolidation
Answer: A
●● Toy Joy Company is a start-up toy company. Its owners have decided
to use the industrial organization (I/O) model to pursue strategic
competitiveness and earn above-average returns. Toy Joy's first step in
using the model would be to:
a.locate an industry with high potential for above-average returns.
b.study the external environment, especially the industry environment.
c.identify the firm's resources.
d.identify a strategy.
Answer: B
,●● Kristine Woods and her husband, Liam, own a café, Simply Healthy,
in their hometown. Simply Healthy offers only natural and healthy
options on its menu and uses only locally grown food. It charges slightly
higher prices than the other restaurants in town, but health-conscious
customers are willing to pay a premium. Simply Healthy operates using
a _____ strategy.
a.differentiation
b.focus
c.cost leadership
d.consolidation
Answer: A
●● The quality of a firm's performance is reflected in its ability to:
a.achieve strategic competitiveness.
b.engage in perpetual innovation.
c.earn average returns.
d.achieve strategic flexibility.
Answer: A
●● Which of the following would NOT be considered a resource?
a.A patent
b.Finances
c.An employee's skills
,d.A competitor's skills
Answer: D
●● _____ is a set of capabilities firms use to respond to various demands
and opportunities existing in today's dynamic and uncertain competitive
environment.
a.Strategic flexibility
b.Strategic competitiveness
c.Perpetual innovation
d.Organizational culture
Answer: A
●● Motorvate is a start-up rental car company. Its owners have decided
to use the resource-based model to pursue strategic competitiveness and
earn above-average returns. Motorvate's first step in using the model
would be to:
a.determine the firm's capabilities.
b.locate an attractive industry.
c.study the external environment, especially the industry environment.
d.identify the firm's resources.
Answer: D
●● Guinness Enterprises is a multinational corporation (MNC) that was
established 75 years ago. One of the goals of Harry Walker, the new
, Chief Executive Officer (CEO), is to make the firm strategically flexible.
Harry should know that:
a.it is impossible to develop strategic flexibility in all areas of an
organization's operations.
b.a firm's focus and past core competencies can help expedite strategic
flexibility.
c.the most effective way to implement strategic flexibility is through
intermittent training courses.
d.building strategic flexibility is not easy, largely because of inertia that
can build over time.
Answer: D
●● According to the industrial organization (I/O) model, an attractive
industry is one:
a.with fierce competition.
b.in which a company can use a focus strategy rather than a cost
leadership or differentiation strategy.
c.with opportunities that can be exploited by the firm's resources and
capabilities.
d.whose structural characteristics suggest above-average returns.
Answer: D
●● Ranger Landscaping's website states the following: "Ranger
Landscaping is a service-oriented business that provides lawn care and
landscape design, installation, and maintenance. We are committed to a
