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Which group of stakeholders' primary interests include exceptional customer service, high-quality products, and ethical dealings?


A) Partners/Suppliers
B) Shareholders/Investors
C) Community
D) Customers

E) A) and B)
F) C) and D)

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Which of the following are included as potential external opportunities in a SWOT analysis that are helpful to an organization?


A) Core competencies, market leaders, cost advantages, excellent management.
B) Lack of strategic direction, obsolete technologies, lack of managerial talent, outdated, product line.
C) Expanded product line, increase in demand, new markets, new regulations.
D) New entrants, substitute products, shrinking markets, costly regulatory requirements.

E) B) and D)
F) C) and D)

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What is a competitive advantage?


A) A product that an organization's customers place a lesser value on than similar offerings from a competitor.
B) A feature of a product or service on which customers place a lesser value than they do on similar offerings from a supplier.
C) A service that an organization's customers place a lesser value on than similar offerings from a supplier.
D) A feature of a product or service on which customers place a greater value than they do on similar offerings from competitors.

E) A) and B)
F) All of the above

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A system is a collection of parts that link to achieve a common purpose. Systems thinking is a way of monitoring ________.


A) The entire system.
B) A division within the sales role.
C) The executive team.
D) The company's competitors.

E) B) and D)
F) B) and C)

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Toby Bertram is an incoming freshman at your college. Toby is frustrated by the cost of books, tuition, and expenses, and he also needs to purchase a rather expensive laptop. In an effort to save money, Toby begins a Facebook group finding other college students who need to purchase laptops. Soon, Toby's Facebook group has close to 100,000 students. Toby decides to collectively approach different computer companies to see if his group qualifies for a special discount. What business strategy is Toby using to purchase laptops?


A) Collecting business intelligence
B) Decreasing entry barriers
C) Purchasing a substitute product
D) Increasing buyer power

E) All of the above
F) None of the above

Correct Answer

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The value chain will group a company's activities into two categories: primary value activities and support value activities.

A) True
B) False

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The goal of value chain analysis is to identify processes in which the firm can add value for the customer and create a competitive advantage for itself, with a ________ or ________.


A) Focused strategy, product differentiation
B) Focused strategy, cost advantage
C) Cost advantage, primary value activities
D) Cost advantage, product differentiation

E) None of the above
F) All of the above

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Which of the following is considered a service?


A) Cars
B) Groceries
C) Cutting hair
D) All of the choices are correct

E) B) and D)
F) B) and C)

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Your boss, David Ferrell, has asked you to analyze the soft drink industry using Porter's Five Forces Model. Which of the following represents buyer power in the soft drink industry?


A) Pepsi requires stores that carry Pepsi products to commit to minimum orders of 1,000 cases.
B) Walmart negotiates a lower cost per bottle from Coke in exchange for premium shelf space in every Walmart store.
C) Zevia Natural Diet Soda begins selling directly over the Internet.
D) Vitamin water, fruit juice, and coffee are all beverage options available to consumers.

E) A) and D)
F) A) and B)

Correct Answer

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In terms of system thinking, what is feedback?


A) Data entered in a computer
B) Controls to ensure correct processes
C) The resulting information from the computer program
D) The computer program that processes the data

E) A) and D)
F) B) and C)

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What is a value chain analysis?


A) Evaluation of an organization's strengths, weaknesses, opportunities, and threats to identify significant influences that work for or against business strategies
B) Analysis of the competitive forces within the environment in which a company operates to assess the potential for profitability in an industry
C) View of a firm as a series of business processes, each of which adds value to the product or service
D) Generic business strategies that are neither organization nor industry specific and can be applied to any business, product, or service

E) A) and B)
F) B) and D)

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Imagine you are creating a new product to sell in an up-and-coming market. Which of the below statements indicates that it would be easy for you as the new entrants to compete in this market?


A) The threat of new entrants' force is high in the up-and-coming market.
B) The threat of new entrants' force is low in the up-and-coming market.
C) The threat of new entrants' force is impossible to define in the up-and-coming market.
D) All of these depending on the time of year.

E) None of the above
F) A) and B)

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Which of the following is not considered a category within the primary value activities in a value chain analysis?


A) Inbound logistics
B) Firm infrastructure
C) Operations
D) Service

E) B) and C)
F) A) and C)

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What is a SWOT analysis?


A) Evaluation of an organization's strengths, weaknesses, opportunities, and threats to identify significant influences that work for or against business strategies.
B) Analysis of the competitive forces within the environment in which a company operates to assess the potential for profitability in an industry.
C) View of a firm as a series of business processes, each of which adds value to the product or service.
D) Generic business strategies that are neither organization nor industry specific and can be applied to any business, product, or service.

E) A) and D)
F) A) and B)

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What are services?


A) Material items or products that customers will buy to satisfy a want or need
B) Tasks performed by people that customers will buy to satisfy a want or need
C) The process where a business takes raw materials and processes them or converts them into a finished product for its goods or services
D) The rate at which goods and services are produced based upon total output given total inputs

E) A) and C)
F) B) and C)

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Todd Wallace works as the chief knowledge officer for Pennsylvania Lumber Company. He has been given the responsibility to create a product or service that will bring an added value to its customers to increase the company's revenue. Todd determines that the best value he can add is by creating a service that offers free next day shipping on any order over $50. Where in the value chain is Todd adding value?


A) The primary value activity outbound logistics
B) The primary value activity inbound logistics
C) The primary value activity marketing and sales
D) The primary value activity operations

E) A) and C)
F) A) and B)

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In terms of system thinking, what is the resulting information from the computer program?


A) Input
B) Output
C) Process
D) Feedback

E) None of the above
F) A) and C)

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Which of the following statements is correct when considering a SWOT analysis?


A) Strengths and weaknesses originate outside an organization.
B) Opportunities and threats originate outside an organization.
C) Strengths and threats originate inside an organization.
D) Opportunities and weaknesses organization outside an organization.

E) All of the above
F) None of the above

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Angela Lewis owns and operates one of the most successful local book stores in Buffalo, called The Bookworm. Each time a customer purchases their 10th book at The Bookworm, they receive a $5 off coupon. What is Angela attempting to create with her $5 off marketing program?


A) Reducing buyer power with a loyalty program
B) Increasing buyer power with a loyalty program
C) Decreasing supplier power with a differentiated product
D) Creating a substitute product

E) A) and D)
F) B) and D)

Correct Answer

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Which of the following is considered a service?


A) Selling groceries
B) Managing a team
C) Cutting hair
D) All of the choices are correct

E) C) and D)
F) None of the above

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