Day 6

Question 1

What are the factors internal to an organization that are strengths and weaknesses?

Answer 1

1. Marketing effectiveness
2. Innovation of product lines
3. Competence of MGMT

MCQ-03580

Question 2

Define: Balanced Score Card Review

Answer 2

Summarizes measures of achievement of critical success factors, does not represent the objective review of internal and external factors that may impact the achievement of strategy

MCQ-03750

Question 3

What is strategic planning?

Answer 3

It establishes the general direction of the organization

MCQ-05592

Question 4

Patents are an example of what?

Answer 4

Barriers to entry

MCQ-03810

Question 5

What are Michael Porters five forces that affect profitability?

Answer 5

1. Existence of a substitute product
2. Barriers to market entry
3. Bargaining power of customers
4. Market competitiveness
5. Bargaining power of suppliers

MCQ-04877

Question 6

What are the reasons why competition becomes a stronger force?

Answer 6

• the market is not growing fast
• several equal sized firms
• customer’s do not have brand preference
• the cost of exiting the market are higher than the cost of continuing to operate
• some firms profit from certain moves to increase market share
• firms in the market use various types of strategic plans

MCQ-03585

Question 7

Factors that increase the bargaining power of customers:

Answer 7

• customers make up a large volume of the firm’s sales
• there is much information available to customers
• the buyers have low switching costs
• there are a high number of alternative suppliers

MCQ-03595

Question 8

When does a form have competitive advantage in a market?

Answer 8

When the firm’s TOTAL costs are less than a close rival firm

MCQ-04077

Question 9

The manufacturer of a high priced car emphasizes prestige, performance, and safety. What strategy is the manufacturer using?

Answer 9

Differentiation focused on a broad range of buyers

Note: the manufacturer is focusing on multiple aspects, if it was only prestige than the manufacturer would be focusing on a niche buyer

MCQ-07030

Question 10

When does a differentiation strategy fail?

Answer 10

The value of the firm’s differentiation premium does not exceed it’s cost

MCQ-03609

Question 11

NAFTA offers trading partners operating within it’s boundaries reductions in tariffs on products in exchange for compliance with limits on imported labor and materials. What is this practice known as?

Answer 11

Sourcing Requirement

MCQ-06106

Question 12

The transfer price set by the parent or subsidiary for goods and services most likely can be used by multinational companies to:

Answer 12

Transfer as much of the cost as allowable to the country with the highest tax burden

MCQ-14821