BUSI 690 Final Study Questions Answered Correctly New Version

BUSI 690 Final Study Questions Answered Correctly New Version Google's initial competitive advantage over AltaVista and Yahoo was what? - Answers PageRank Algorithm If a firm has 25% return on invested capital (ROIC) what do you need to know to determine if it has a competitive advantage? - Answers It must be compared to the ROIC of the competitors and/or industry. In considering retailers JC Penney and Neiman Marcus, these firms have different business strategies. They both accomplish this by providing value to their customers while controlling costs. This is known as: - Answers Differential strategic positioning. The never-ending cycle of analysis, formulation, implementation and feedback is called what? - Answers The strategic management process. The term "strategy" has grown in usage in a variety of fields today. Which of the following is the best use of the term for this course? - Answers The firm's efforts to gain and sustain competitive advantage. Gillette invented a "razor-blade" model of business whereby the razor is provided at a low cost and the replacement razor blades are sold relatively expensively. Which of the following is another example of this business model? - Answers HP laser printers The idea of firm's creating significant business opportunities for some 4 billion people on the planet who live in poverty is called: - Answers Bottom of the pyramid Given current trends, several industries promise significant potential for value creation and thus career opportunities, which of the following is not one of them described by the text? - Answers Petroleum Threadless is an online apparel store. Its business model is quite different from most other apparel stores. Threadless leverages Web 2.0 capabilities by using crowdsourcing. How this does benefit Threadless in their T-shirt design process? - Answers It both lowers the cost and ensures popularity of the selected designs. Individuals or groups that can affect or are affected by the actions of a firm are called: - Answers Stakeholders Visionary companies differ from their competition in that: - Answers Employees in visionary organizations find meaning in their work and are motivated. Strategic intent is considered to be forward-looking and future-oriented. It is most useful in situations where _______________. - Answers Small firms are wanting to compete against bigger, more established firms When an organization briefly describes what its business is about and why it does it, they have articulated a: - Answers Mission Statement Many of the early U.S. railroad companies defined themselves as being in the railroad business instead of being in the transportation needs business. These companies used: - Answers Product oriented missions Intel is provided as an example of a firm that has continuously changed its mission statement, including most recently moving to a customer-focused mission. This is an indication of what? - Answers The mission was changed after Intel had already changed its business focus. The 2001 collapse of Enron, resulting in one of the biggest bankruptcies in U.S. history, demonstrates that: - Answers All of the above What is wrong with the following statement? "Intended strategies tend to be generated from a bottom up approach." - Answers Intended strategies are generated from a top down approach. In Strategy Highlight 2.3, what type strategy is the store manager of Starbucks using to develop new drinks for the stores? - Answers She is using an emergent strategy process. Understanding the Resource Allocation Process (RAP) will have large effects on shaping a firm's realized strategy. Which of the following is an example of such an allocation of resources? - Answers Intel's rule to "maximize margin-per-wafer-start" Applying a real options perspective to strategic decision making allows for: - Answers Breaking investment decisions into smaller, staged phases while obtaining new information about the project viability as it continues. Macro-environmental PESTEL analysis considers effects of forces directly on: - Answers An entire industry Globalization has led to increased entry barriers. - Answers False All of the following are aspects of sociocultural factors influencing industry attractiveness EXCEPT: - Answers Environmental protection laws Agriculture is generally considered a perfect competition industry with largely commodity products. However there is an aspect of the industry that can be classified as monopolistic competition with differentiated products and price premiums. Which part of the industry is it? - Answers Organic milk A ____________ is created when the government believes the product or service would not be supplied by the market under free market conditions. - Answers Natural Monopoly The objective of Porter's five forces model is to: - Answers Assess the potential for profits within an industry