MGMT 918 University of Pennsylvania Virginia Business Strategy Coursera Quiz

1. Question 1 An organization's strategy is embodied in its ... Mission statement Mission, plan, and actions Chief executive officer Declared sales and targets 1. Question 1 What might a strategist learn about a nonprofit's strategy based on its mission statement: To provide dignified care to our city's aging population? Values, purpose, and scope Market opportunities and needs Capabilities and strengths Question 2 1 point 2. Question 2 The strategist’s challenge is to… Schlumberger-Private MGMT 918 INTRODUCTION TO STRATEGIC ANALYSIS Build bridges between operations and outside investors Balance workload with other commitments Determine the most effective marketing plan for an organization Identify valuable competitive positions at the intersection of values, capabilities, and opportunities 2. Question 2 Which of the following best describes a strategist's main challenge? Understand answers to the three fundamental questions in order to recognize a firm's best competitive position Understand the capabilities of firms and industries in order to maximize their future profits Understand opportunities within an industry to improve a firm's competitive position Understand a firm's values and how they affect decision-making Question 3 1 point 3. Question 3 A new firm enters a perfectly competitive market. What impact will this have on average profits in the industry? Schlumberger-Private Economic profits increase industry-wide. No economic profits are earned. It earns high economic profits. Economic profits decrease industry-wide before rising again. 3. Question 3 How might entry impact a perfectly competitive market? As an industry, prices rise. Entry increases capacity constraints. Entry increases both accounting and economic profits. As an industry, the amount of output increases. Question 4 1 point 4. Question 4 In a perfectly competitive market, economic profits… Schlumberger-Private Are competed away as new entrants imitate incumbent firms Will increase as firms learn about customer preferences Are a byproduct of low cost, efficient production processes May persist for long periods 4. Question 4 Imagine several potato farmers operate in a competitive market. Farmer Jane decides to enter the market, shifting her 500 acre farm from corn to potatoes. What impact will her entry have on the profitability of the potato market? The profitability of the potato market will decrease. The profitability of the potato market will increase. The profitability of the potato market will remain the same. Question 5 1 point 5. Question 5 Which of the following cases BEST illustrates the generation of rents/economic profits? A firm has the greatest market share in its industry A firm has higher returns than an investment of similar risk A firm’s revenues exceed its costs Schlumberger-Private A firm has higher returns than an established, less risky competitor 5. Question 5 Economic profits--or rents--are present when... A firm has higher returns than an established, less risky competitor A firm has the greatest market share in its industry A firm has higher returns compared to an investment of similar risk A firm’s revenues exceed its costs Question 6 1 point 6. Question 6 What type of profits are earned by a firm whose return on equity is higher than its opportunity cost of capital? The firm earns neither positive economic profits nor positive accounting profits. The firm earns positive economic profits but not positive accounting profits. The firm earns positive accounting profits but not positive economic profits. The firm earns both positive accounting profits and positive economic profits