MGMT451_Exam 1_Practice_with_Answers

MGMT451_Exam 1_Practice_with_Answers - MGMT 451 Section 1...

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MGMT 451 Section 1 (9.00 – 10.15 am) Exam Review 1 True/False Indicate whether the statement is true or false. __F__ 1. When firms analyze the external environment, they typically have complete and unambiguous data. __T__ 2. A strategy’s success is determined not only by the firm’s initial competitive actions but also by how well it anticipates competitors’ responses to them and by how well the firm anticipates and responds to its competitors initial actions. __F__ 3. Alligator Enterprises has earned above-average returns since its founding five years ago. Since no other firm has challenged Alligator in its particular market niche, the firm’s owners can feel secure that Alligator has established a competitive advantage. __F__ 4. The I/O (industrial organization) model assumes that the uniqueness of a firm’s resources and capabilities are its main source of above-average returns. __F__ 5. Resources are considered rare when they have no structural equivalent. Multiple Choice Identify the choice that best completes the statement or answers the question. ____ 6. When resources and capabilities serve as a source of competitive advantage for a firm, the firm has created a(n) a. strategic mission. b. inspiring vision. c. core competence. d. sustainable market niche. ____ 7. Switching costs refer to the a. cost to a producer to exchange equipment in a facility when new technologies emerge. b. cost of changing the firm’s strategic group. c. one-time costs suppliers incur when selling to a different customer. d. one-time costs customers incur when buying from a different supplier. ____ 8. In the case of a retail business dependent on drive-in customers, the major cost disadvantage independent of scale would be a. favorable locations are not available. b. other competitors have proprietary product technology. c. access to raw materials is difficult. d. other competitors have government subsidies.
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____ 9. Competitor analysis focuses on a. firms with which the company competes directly. b. firms that produce products that are substitutes. c.
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MGMT451_Exam 1_Practice_with_Answers - MGMT 451 Section 1...

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