Business & Management Test: Business Strategy (Short)

2.

Porter’s five forces discusses the forces in the environment that has influence on a company they are: Suppliers, Competitors, Customers, New Entrants and __________________?

Unions
Substitutes
Govenment

Correct Answer

A. Substitutes

Explanation

Porter's five forces framework analyzes the competitive environment of a company and identifies the factors that can impact its profitability. The forces mentioned in the question - suppliers, competitors, customers, new entrants - are all external factors that affect a company's operations. The correct answer, substitutes, refers to alternative products or services that can fulfill the same customer needs. Substitutes can pose a threat to a company's market share and profitability if customers choose to switch to these alternatives instead of the company's offerings. Therefore, substitutes are an important force that needs to be considered in assessing a company's competitive position.

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3.

Two unassailable assumptions of industry: No two organizations are totally different and, ______________________.(select an answer from below)

No two are the same
The customer selects the company(advertising does not influence)
Price and quality dictate your business

Correct Answer

A. No two are the same

Explanation

The given correct answer suggests that one of the assumptions of the industry is that no two organizations are exactly the same. This means that each organization has its own unique characteristics, such as its culture, structure, processes, and strategies. This assumption recognizes that even organizations operating in the same industry will have differences in terms of their products, services, target markets, competitive advantage, and overall business approach. It emphasizes the importance of understanding and appreciating these differences when analyzing and making decisions about the industry.

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4.

Strategic Groups are a cluster of firms that share similar strategies which one below is not one of the characteristics of that group:

Breadth of product and georgraphic scope
Price and Quality
Location

Correct Answer

A. Location

Explanation

Location is not one of the characteristics of a strategic group. Strategic groups are formed based on firms that share similar strategies, such as their target market, product offerings, and competitive advantages. Location refers to the physical location of a firm's operations or offices, which may vary even within the same strategic group. Therefore, it is not a defining characteristic of a strategic group.

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5.

The Value Chain is a process of value-creating activities that state a firm is profitable to the extent the value it receives exceeds the total costs involved in creating its product or service. There are two sections to the value chain they are:

Support activities and Primary Activities
Manufacturing Activities and Support Activities
Function activities and Logistical activities.

Correct Answer

A. Support activities and Primary Activities

Explanation

The correct answer is Support activities and Primary Activities. The value chain consists of both support activities and primary activities. Support activities are those that provide support to the primary activities and include activities such as procurement, technology development, human resource management, and infrastructure. Primary activities, on the other hand, are directly involved in the creation and delivery of the product or service and include activities such as inbound logistics, operations, outbound logistics, marketing and sales, and service. Both support activities and primary activities are essential in creating value for the firm and contributing to its profitability.

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6.

Industries in which proportionally more value is added in __________ activities, such as logistics, are more likely to benefit from a global strategy.

Marketing
Downstream
Upstream

Correct Answer

A. Upstream

Explanation

Industries in which proportionally more value is added in upstream activities, such as logistics, are more likely to benefit from a global strategy. Upstream activities refer to the stages of production that involve acquiring raw materials, manufacturing, and distributing inputs to the next stage. By focusing on the upstream activities, industries can streamline their supply chain, optimize efficiency, and reduce costs, which are crucial elements for a successful global strategy. Therefore, industries that heavily rely on upstream activities are more likely to benefit from a global approach.

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2

7.

Multinational firms are constantly faced with the dilemma of choosing between _ and _____.

Local adaptation; global integration
Global adaptation; local integration
Global adaptation; global integration

Correct Answer

A. Local adaptation; global integration

Explanation

Multinational firms often face the challenge of balancing the need for local adaptation, which involves customizing their products or services to meet the specific preferences and requirements of each local market, with the goal of global integration, which involves standardizing certain aspects of their operations and products to achieve economies of scale and consistent branding across different markets. This dilemma arises because firms need to strike a balance between catering to local market demands and achieving efficiency and consistency on a global scale.

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8.

Primary participants in corporate governance are ______, _, and ______.

CEO; outside stakeholders; board of directors
Management; stakeholders; community
Shareholders; management; board of directors

Correct Answer

A. Shareholders; management; board of directors

Explanation

The primary participants in corporate governance are shareholders, management, and the board of directors. Shareholders are the owners of the company and have the ultimate decision-making power. Management is responsible for running the day-to-day operations of the company and implementing the strategies set by the board of directors. The board of directors is elected by the shareholders and is responsible for overseeing the management, making important decisions, and ensuring that the company is being run in the best interest of the shareholders.

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4

Business & Management Test: Business Strategy (Short)

The External Environment consists of six factors. Which one below is not one of those factors:

Quiz Preview

Porter’s five forces discusses the forces in the environment that has influence on a company they are: Suppliers, Competitors, Customers, New Entrants and __________________?

Two unassailable assumptions of industry: No two organizations are totally different and, ______________________.(select an answer from below)

Strategic Groups are a cluster of firms that share similar strategies which one below is not one of the characteristics of that group:

The Value Chain is a process of value-creating activities that state a firm is profitable to the extent the value it receives exceeds the total costs involved in creating its product or service. There are two sections to the value chain they are:

Industries in which proportionally more value is added in __________ activities, such as logistics, are more likely to benefit from a global strategy.

Multinational firms are constantly faced with the dilemma of choosing between _ and _____.

Primary participants in corporate governance are ______, _, and ______.

Business & Management Test: Business Strategy (Short)

The External Environment consists of six factors. Which one below is not one of those factors:

Quiz Preview

Porter’s five forces discusses the forces in the environment that has influence on a company they are: Suppliers, Competitors, Customers, New Entrants and __________________?

Two unassailable assumptions of industry: No two organizations are totally different and, ______________________.(select an answer from below)

Strategic Groups are a cluster of firms that share similar strategies which one below is not one of the characteristics of that group:

The Value Chain is a process of value-creating activities that state a firm is profitable to the extent the value it receives exceeds the total costs involved in creating its product or service. There are two sections to the value chain they are:

Industries in which proportionally more value is added in __________ activities, such as logistics, are more likely to benefit from a global strategy.

Multinational firms are constantly faced with the dilemma of choosing between _______ and ___________.

Primary participants in corporate governance are __________, _________, and __________.

Multinational firms are constantly faced with the dilemma of choosing between _ and _____.

Primary participants in corporate governance are ______, _, and ______.