Pulse Mobiles Inc. is a cell phone manufacturing company. Its latest range of smartphones bears a straight resemblance to the Y-series range of smartphones from Talkie Gen Inc., in terms of its shape and look-and-feel.
Pulse Mobiles Inc. is a cell phone manufacturing company. Its latest range of smartphones bears a straight resemblance to the Y-series range of smartphones from Talkie Gen Inc., in terms of its shape and look-and-feel. Which of the following strategies has Pulse Mobiles Inc. used to replicate the valuable and rare resource of Talkie Gen Inc.?
direct imitation
strategic equivalence
innovation
substitution
Question 2 The fixed asset turnover of a company is 8.3. What do you infer from this?
Every dollar spent on the company’s fixed assets generates $8.30 of revenue.
The cost of capital invested on fixed assets is 8.3% of the total profit.
8.3% of the company’s revenue is invested in fixed assets.
The return on fixed assets will break even in 8.3 years.
Question 3 Both Blue Horizons Electronics Inc. and CLR Inc. have achieved cost parity in the television market. To gain and sustain a competitive advantage against CLR, Blue Horizons Electronics should
achieve differentiation parity with CLR.
create greater perceived economic value than CLR.
keep its value gap lower than that of CLR.
increase its cost of production to more than that of CLR.
Question 4 Golden Harvest is a restaurant located inside a five-star hotel. It caters mainly to customers who are concerned about quality dining rather than the prices. In this scenario, which of the following will be a part of Golden Harvest’s strategic group?
a food kiosk in an adjacent subway station
a mobile food cart parked opposite to the five-star hotel
a premium rooftop restaurant in the same city
a nearby fast-food restaurant
Question 5 Demand for traditional fast-food providers such as McDonald’s, Burger King, and Wendy’s has been on a decline in recent years. Consumers have become more health conscious and demand has shifted to alternative restaurants like Subway, Chick-fil-A, and Chipotle. Attempts by McDonald’s and Wendy’s to steal customers from one another include frequent discounting tactics such as dollar menus. Such competitive actions are indicative of
profitability increases.
perfect competition.
natural monopolies.
cutthroat competition.
Question 6 Smooth Fusion Inc. is a software company, which has built and acquired numerous assets over the years. According to the resource-based view of a firm, which of the following assets of Smooth Fusion Inc. will best enable it to gain and sustain a competitive advantage?
the headquarters owned by the company
the capital raised by the company from its shareholders
the resources of the company that are mobile
the expertise acquired by the employees in the company
Question 7 Both BioThink Inc. and GD Pharma Inc. have discovered similar vaccines to prevent cancer. While GD Pharma’s vaccine sells at $100 per unit, BioThink sells its vaccine at $90 per unit. This price differentiation has mainly been attributed to the companies’ capital decisions. While BioThink used its retained earnings to develop the vaccine, GD Pharma borrowed funds from banks to develop the vaccine. Thus, GD Pharma pays a higher interest on its capital, which makes it necessary to price its vaccine higher. Thus, the key driver for BioThink’s competitive advantage is
low-cost input factors.
economies of scale.
superior customer service.
availability of complements.
Question 8 Blue Billion Inc. is a large company that sells a variety of products such as cosmetics, jewelry, frozen foods, navigation electronics, and airplanes. Apart from this, the company also has a strong presence in the service industry through its chain of dance studios, casinos, and nightclubs. Each of its product divisions operates as an individual business and is responsible for its own profits and losses. Thus, these product divisions under Blue Billion can be referred to as
corporations.
limited liability companies.
functional departments.
strategic business units.
Question 9 Onyxo Inc., a consumer electronics company, is the leading manufacturer of LCD televisions. LCD technology has been its core competency and the company holds 80 percent shares in that market. However, Onyxo Inc.’s competitors have now moved on to advance technologies like LED and 3-D televisions. According to the dynamic capabilities perspective, what should Onyxo Inc. do?
Onyxo Inc. should work on enhancing the mobility of its core competency.
Onyxo Inc. should start working on LED and 3-D television technologies to adapt its core competency to suit the external environment.
Onyxo Inc. should stick to its existing core competency, that is LCD technology, as it is the best in that segment.
Onyxo Inc. should take proactive steps to reduce the causal ambiguity and socially complexity of its core competency.
Question 10Home Smart Inc. is a chain of supermarkets that sells its products at higher prices than its competitors. Yet, the supermarket chain has a large customer base due to its wide product portfolio and superior customer service. Which of the following generic business strategies has Home Smart adopted in this scenario?
market penetration
cost-leadership
differentiation
product diversification
Question 11 Beats Electronics has been able to outperform Audio-Technica, Bose, JBL, Skullcandy, Sennheiser, and Sony in the high-end, premium headphone market. Which of the following statements accurately explains one of the main reasons for the success of Beat?
It created a perception that owning its products was cool.
It emphasized marketing over core competency.
It focused on sponsoring future athletic superstars.
It produced the highest-quality headphones.
Question 12 Chat Zone Inc., a telecommunication company, had been drastically losing its market share due to tough competition in the industry. The management hired a reputed consulting firm to advice the company. The experts from the consulting firm pointed out that the company primarily lost out on its competitive advantage due to its tedious internal policies and procedures. These ineffective policies and procedures made the company operations, marketing, and after-sales service inefficient. Chat Zone Inc. can best solve its problem by working on its
support activities.
immobile assets.
resource flows.
resource stocks.
Question 13 In the multiplex industry, Vibrant Movies Inc. is an upscale multiplex that focuses on superior customer experience. The firm charges premium prices for its movie tickets and services. Global Cine Inc., in contrast, charges the lowest price in the industry with its no-frills approach. In between these two segments is True Movies Inc., which offers a customer experience comparable to that of Vibrant Movies at a price almost as low as that of Global Cine. What strategy is True Movies pursuing in this scenario?
product diversification strategy
liquidation strategy
blue ocean strategy
market penetration strategy
Question 14 Patterson Foods Inc. was the first company to start selling energy bars in its country—a product that gained popularity among diverse groups. Soon, other companies started to sell their own brands of energy bars, thereby giving Patterson Foods ample competition. In response, Patterson Foods decided to limit its variety of energy bars to only four. However, it ensured that these four varieties were low in calories and low in cost. With this innovation, Patterson Foods Inc. consistently outperformed its competitors for ten years. In this scenario, Patterson Foods Inc. maintained a ________ through its innovative strategy.
sustainable competitive advantage
consistent power position
fiduciary responsibility
balanced scorecard
Question 15 The telecom industry in the country of New Taria is an industry characterized by the presence of strong network effects, high brand loyalty, high economies of scale, and proprietary technology among incumbent firms. Thus, in the telecom industry, the
threat of new entrants is most likely low.
threat of substitutes is most likely high.
bargaining power of buyers is most likely low.
entry barriers are most likely nonexistent.
Question 16 The board at TriCom Manufacturing Corp. has decided to allocate 20 percent of the company’s shares to its workforce, at a discounted price. Apart from being a valued investment, the plan will allow the employees to take personal responsibility for the firm’s performance. Which of the following employee incentive schemes does this best illustrate?
employee gratuity fund
employee emergency loan program
employee stock ownership plan
employee provident fund
Question 17 Which of the following is an advantage of the balanced-scorecard?
It allows managers to translate a firm’s vision into measureable operational goals.
Its implementation is a one-time effort and does not require continuous tracking of metrics or updating of strategic objectives.
The balanced-scorecard is independent of the skills of the managers responsible for its implementation.
It is a tool for both strategic formulation and strategic implementation.
Question 18 Trader Joe’s successfully used a blue ocean strategy by offering lower cost food than Whole Foods for the same market of patrons. By doing this, Trader Joe’s was able to
create higher value creation and thus generate greater profit margins.
gain a market share and make up the loss in margin through increased pricing.
create higher value creation and thus generate greater sales.
gain a market share and make up the loss in margin through increased sales.
Question 19Soapsuds Inc., a manufacturer of cleaning agents, supplies its products to All Needs Inc., a supermarket chain. It demands that All Needs create more shelf space in its stores for Soapsuds’ products. However, All Needs Inc. refuses to do this. Instead, it decides to produce its own range of cleaning agents with its own label “All Wash.” In this scenario, All Needs Inc. has exercised its bargaining power as a buyer through
backward integration.
product differentiation.
forward integration.
crowdsourcing.
Question 20 Which of the following is the most accurate characterization of stakeholder theory?
an approach to understanding a firm as embedded in a network of internal and external constituencies that each make contributions and expect consideration in return
an approach to understanding a firm, which involves balancing multiple internal and external performance metrics in order to gain a competitive advantage
an approach to understanding a firm as being in a highly competitive industry, which requires the use of effective market capitalization to gain a competitive advantage
an approach to understanding a firm, which involves balancing tangible assets and intangible assets to achieve high accounting profitability
Collepals.com Plagiarism Free Papers
Are you looking for custom essay writing service or even dissertation writing services? Just request for our write my paper service, and we'll match you with the best essay writer in your subject! With an exceptional team of professional academic experts in a wide range of subjects, we can guarantee you an unrivaled quality of custom-written papers.
Get ZERO PLAGIARISM, HUMAN WRITTEN ESSAYS
Why Hire Collepals.com writers to do your paper?
Quality- We are experienced and have access to ample research materials.
We write plagiarism Free Content
Confidential- We never share or sell your personal information to third parties.
Support-Chat with us today! We are always waiting to answer all your questions.
