428midterm_prc_fall02 - C5 1 In an undifferentiated product...

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C5 1. In an undifferentiated product market where companies compete solely on the basis of cost, the second most cost efficient producer has little difficulty competing with the most efficient manufacturer. A) True B) False C2 2. Which of the following would be an entry barrier? A) large economies of scale B) low switching costs C) easy access to raw materials D) low capital requirements C3 3. For a resource to provide a firm with potential sustainable advantages it must satisfy only two criteria: rareness and difficulty in substitution. A) True B) False C1 4. Successful organizations are effective in motivating people. Employees work best when A) they are asked to “do their best.” B) work requirements are vague and unclear. C) they are striving toward specific goals. D) they are guided by an abstract mission statement. C3 5. The balanced scorecard enables managers to consider their business from all of the following perspectives except A) customer perspective. B) internal perspective. C) innovation and learning perspective. D) ethical perspective. C2 6. Interest rate increases have a ________ impact on the residential home construction industry and a ___ effect on industries that produce consumer necessities such as prescription drugs or basic grocery items. A) positive; negligible B) negative; negligible C) negative; positive D) positive; negative C1 7. The strategic management process entails three ongoing processes: A) analysis, actions, and feedback. B) analysis, decisions, and actions. C) analysis, evaluation, and critique. D) analysis, synthesis, and antithesis. C2 8. The more attractive the price/performance ratio of a substitute, the lower the level of industry profits. A) True B) False C4 9. As the competitive environment changes, strategic management must focus on different aspects of the organization. Recently strategic management has moved from focusing on A) intangible resources to tangible resources. B) tangible resources to intangible resources. C) working capital to fixed capital. D) fixed capital to working capital. C4 10. In a 360-degree evaluation and feedback system, ______________ rate a person's skill and performance. A) superiors B) direct reports C) colleagues D) all of the above Page 1
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C5 11. Which of the following is false regarding how a differentiation strategy can help a firm to improve its competitive position vis à vis Porter's five forces? A) by increasing a firm's margins, it avoids the need for a low cost position B) it helps a firm to deal with supplier power and reduces buyer power since buyers lack comparable alternatives C) supplier power is increased because suppliers will be able to charge higher prices for their inputs D) firms will enjoy high customer loyalty, thus experiencing less threat from substitutes than its competitors C4 12. Recently, in developed countries, a knowledge worker's loyalty to his or her employing firm has _____________compared to his or her loyalty to his or her profession and colleagues. A)
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428midterm_prc_fall02 - C5 1 In an undifferentiated product...

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