MGT 449 exam 1 practice questions || with Errorless Solutions 100%.
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Course
MGT 449
Institution
MGT 449
1) Keeping in mind Apple's competitive advantage, which of the following products was introduced by Apple in 2007?
A) iPhone
B) iTunes
C) iPod
D) iPad correct answers A) iPhone
2) ________ is best described as a set of goal-directed actions a firm takes to gain and sustain superior perfor...
MGT 449 exam 1 practice questions || with Errorless
Solutions 100%.
1) Keeping in mind Apple's competitive advantage, which of the following products was
introduced by Apple in 2007?
A) iPhone
B) iTunes
C) iPod
D) iPad correct answers A) iPhone
2) ________ is best described as a set of goal-directed actions a firm takes to gain and sustain
superior performance relative to competitors.
A) Credo
B) Competency management
C) Strategy
D) Behavior modification correct answers C) Strategy
In ________, a firm frames a guiding policy to address the competitive challenge.
A) strategy implementation
B) strategy control
C) strategy formulation
D) strategy analysis correct answers C) strategy formulation
Through ________, a firm puts its guiding policy into practice by employing a set of coherent
actions.
A) strategy formulation
B) strategy analysis
C) strategy control
D) strategy implementation correct answers D) strategy implementation
A firm that achieves superior performance relative to other firms in the same industry or the
industry average has a(n) ________.
A) equity leverage
B) power position
C) competitive advantage
D) balanced scorecard correct answers C) competitive advantage
Cadia Foods Inc. was the first company to start selling energy drinks in its country—a product
that gained popularity among diverse groups. Soon, other companies started to sell their own
brands of energy drinks, thereby giving Cadia Foods ample competition. In response, Cadia
Foods decided to limit its variety of energy drinks to only two. However, it ensured that these
two flavors were free of calories and low in cost. With this innovation, Cadia Foods Inc.
consistently outperformed its competitors for ten years. In this scenario, Cadia Foods Inc. has
maintained a ________ through its innovative strategy.
A) fiduciary responsibility
, B) balanced scorecard
C) consistent power position
D) sustainable competitive advantage correct answers D) sustainable competitive advantage
Which of the following scenarios illustrates a firm that has a sustainable competitive advantage?
A) SM Inc. almost doubled its sales to 8500 units this year compared to its previous year's sales
of 5000 units, though the industry average is 10,000 units.
B) Newon Inc. generated a revenue of $300,000 this financial year, which is close to the
industrial revenue average of $320,000.
C) TrueLink Corp. was able to hold its market share of 68 percent in the social networking
industry for more than three years.
D) Max Electrova Inc. was able to outperform its competitors with its new production system, in
terms of revenue, for a brief period of four months. correct answers C) TrueLink Corp. was able
to hold its market share of 68 percent in the social networking industry for more than three years.
If SA Pharmaceuticals obtains an 18 percent return on invested capital, which of the following
will help determine if it has a competitive advantage over other pharmaceutical companies?
A) Assessing the value based on the shareholders' expectations of return on their capital
B) Comparing the return to the return on invested capital obtained by other firms in the industry
C) Evaluating the liquidity ratios for other pharmaceutical companies
D) Comparing the value to the history of the firm's return of investment over a number of years
correct answers B) Comparing the return to the return on invested capital obtained by other firms
in the industry
Underperformance relative to other firms in the same industry or the industry average results in
a(n) ________ for a firm.
A) competitive disadvantage
B) sustainable competitive advantage
C) increased power distance
D) diseconomies of scope correct answers A) competitive disadvantage
Exis Inc. and Stelma Inc. are two companies that have been manufacturing typewriters for almost
30 years. Due to the reduced demand for typewriters today, both companies' average return on
invested capital is approximately -5 percent. The current industry average is 2 percent. In this
scenario, Exis Inc. and Stelma Inc. most likely have:
A) economies of scope instead of economies of scale.
B) competitive advantage over other firms in their industry.
C) strategic alliance with each other.
D) competitive parity with each other. correct answers D) competitive parity with each other.
For a firm that operates in an industry where competition is high, which of the following
practices will result in inferior performance?
A) Trying to be everything to everybody by combining different competitive strategies
B) Choosing a distinct but different strategic position in the industry
C) Working toward increasing the difference between value creation and cost
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