Reference no: EM132989960

1) Green Frog is an environmentally friendly firm in the cosmetics industry. If during the strategic planning process Green Frog tried to determine the critical threats and opportunities in its competitive environment, it would be performing a(n) _________ analysis.

a) Internal
b) External
c) WACC
d) Economic

2) Accounts receivable turnover is an example of which type of ratio?

a) Profitability
b) Activity
c) Liquidity
d) Leverage

3) Frequent price cutting by firms in an industry, frequent introduction of new products by firms in an industry and intense advertising campaigns are indications of:

a) high power of buyers.
b) high threat of new entrants.
c) high levels of direct competition.
d) high threat of substitutes.

4) _______ costs exist when customers make investments in order to use a firm's particular products or services.

a) First-mover-switching
b) Technological leadership-switching
c) Customer-switching
d) Process-switching

5) To the extent that a firm's resources and capabilities enhance a firm's competitive position by enabling a firm to exploit its opportunities or neutralize its threats, these resources and capabilities are valuable and are known as:

a) temporary competitive advantages.
b) sustainable competitive advantages.
c) core competencies.
d) strengths.

6) Which of the following is likely to be a rare source of cost advantage?

a) Technological software
b) When the efficient size of a firm or plant is significantly smaller than the total size of an industry
c) Diseconomies of scale
d) Technological hardware

7) Which of the following bases of product differentiation is almost always easy to duplicate?

a) Product features
b) Product mix
c) Product customization
d) Consumer marketing

8) Which of the following is NOT a type of option to combat technological and market uncertainty according to Rita McGrath and Ian MacMillan?

a) Staged
b) Scouting
c) Stepping-stone
d) Positioning

9) Generally, long-run profits for firms that cheat on purely collusive agreements fall ________ the perfect competition, zero-economic-profit solution and the perfect competition, shared-monopoly-profit solution.

a) clearly outside of
b) at one side of
c) somewhere outside of
d) somewhere between

10) A firm is likely to be among the first in its industry to vertically dis-integrate an exchange when:

a) the firm concludes that the level of specific investment required to manage an economic exchange is high.
b) the firm believes that the exchange is costly to imitate.
c) the level of uncertainty about the value of an exchange has increased.
d) the firm believes that the exchange is rare.