WPC 480 EXAM QUESTIONS AND ANSWERS
LATEST UPDATE (ALREADY GRADED A+)
CH. 3: Which of the following statements with regard to industry structures is true?
A. Having a large number of competitors generally equates to higher industry profitability.
B. Having few but large competitors increases the threat of strong competitive forces such as supplier
or buyer power.
C. They are stable over time, not dynamic.
D. A consolidated industry tends to be more profitable than a fragmented one.
D. A consolidated industry tends to be more profitable than a fragmented one.
Since a consolidated industry tends to be more profitable than a fragmented one, firms have a tendency
to change the industry structure in their favor, making it more consolidated through (horizontal)
mergers and acquisitions.
CH. 4: In the context of SWOT analysis, which of the following best exemplifies a firm's internal
weakness?
A. increased competition in the industry where the firm operates
B. irregularity in the raw materials supply throughout the industry
C. decline in the firm's market share
D. fall in the purchasing power of the firm's customers
C. decline in the firm's market share
In the context of SWOT analysis, decline in a firm's market share best exemplifies a firm's internal
weakness. Strengths and weaknesses are internal to an organization, whereas opportunities and threats
are external to the organization.
CH. 4: Given the accelerated pace of technological change, in combination with deregulation,
globalization, and demographic shifts, a firm will be successful today only if its
A. internal strengths change with its external environment in a dynamic fashion.
B. resource advantage is not causally ambiguous or socially complex.
, C. resource advantage is maintained for a short period of time.
D. competitive advantage is derived from static resource or market advantages.
A. internal strengths change with its external environment in a dynamic fashion.
CH. 4: Superlative Productions spent 10 million dollars to buy the rights to a best-selling novel. The
company then prepared for production by hiring a screenwriter to adapt the novel, casting the main
roles, renting cameras and other equipment, and scouting locations in southern Arizona. Which of the
following pairs of resources are both intangible?
A. money spent to buy rights to the novel; screenwriter's experience adapting novels
B. best-selling novel; locations in southern Arizona
C. money spent to buy rights to the novel; locations in southern Arizona
D. best-selling novel; screenwriter's experience adapting novels
D. best-selling novel; screenwriter's experience adapting novels
CH. 4: Amazon.com's network of distribution centers allow it to drastically reduce its delivery times
compared to other online retailers. These distribution centers are examples of Amazon's
A. capabilities.
B. intangible resources.
C. tangible resources.
D. core competency.
C. tangible resources.
CH. 4: Iceberg Storage, a leading hard drive manufacturer, recently filed for bankruptcy. While most of
Iceberg's competitors were shifting away from physical data storage devices toward online cloud
storage services, Iceberg invested most of its retained earnings in the effort to improve its hard drives.
Once the hard-drive market drastically declined, Iceberg Storage was unable to capitalize on the new
technology. Which of the following does this scenario best illustrate?
A. social complexity
B. causal ambiguity
C. knowledge diffusion
LATEST UPDATE (ALREADY GRADED A+)
CH. 3: Which of the following statements with regard to industry structures is true?
A. Having a large number of competitors generally equates to higher industry profitability.
B. Having few but large competitors increases the threat of strong competitive forces such as supplier
or buyer power.
C. They are stable over time, not dynamic.
D. A consolidated industry tends to be more profitable than a fragmented one.
D. A consolidated industry tends to be more profitable than a fragmented one.
Since a consolidated industry tends to be more profitable than a fragmented one, firms have a tendency
to change the industry structure in their favor, making it more consolidated through (horizontal)
mergers and acquisitions.
CH. 4: In the context of SWOT analysis, which of the following best exemplifies a firm's internal
weakness?
A. increased competition in the industry where the firm operates
B. irregularity in the raw materials supply throughout the industry
C. decline in the firm's market share
D. fall in the purchasing power of the firm's customers
C. decline in the firm's market share
In the context of SWOT analysis, decline in a firm's market share best exemplifies a firm's internal
weakness. Strengths and weaknesses are internal to an organization, whereas opportunities and threats
are external to the organization.
CH. 4: Given the accelerated pace of technological change, in combination with deregulation,
globalization, and demographic shifts, a firm will be successful today only if its
A. internal strengths change with its external environment in a dynamic fashion.
B. resource advantage is not causally ambiguous or socially complex.
, C. resource advantage is maintained for a short period of time.
D. competitive advantage is derived from static resource or market advantages.
A. internal strengths change with its external environment in a dynamic fashion.
CH. 4: Superlative Productions spent 10 million dollars to buy the rights to a best-selling novel. The
company then prepared for production by hiring a screenwriter to adapt the novel, casting the main
roles, renting cameras and other equipment, and scouting locations in southern Arizona. Which of the
following pairs of resources are both intangible?
A. money spent to buy rights to the novel; screenwriter's experience adapting novels
B. best-selling novel; locations in southern Arizona
C. money spent to buy rights to the novel; locations in southern Arizona
D. best-selling novel; screenwriter's experience adapting novels
D. best-selling novel; screenwriter's experience adapting novels
CH. 4: Amazon.com's network of distribution centers allow it to drastically reduce its delivery times
compared to other online retailers. These distribution centers are examples of Amazon's
A. capabilities.
B. intangible resources.
C. tangible resources.
D. core competency.
C. tangible resources.
CH. 4: Iceberg Storage, a leading hard drive manufacturer, recently filed for bankruptcy. While most of
Iceberg's competitors were shifting away from physical data storage devices toward online cloud
storage services, Iceberg invested most of its retained earnings in the effort to improve its hard drives.
Once the hard-drive market drastically declined, Iceberg Storage was unable to capitalize on the new
technology. Which of the following does this scenario best illustrate?
A. social complexity
B. causal ambiguity
C. knowledge diffusion
