Question:* What is a venture capital (VC) company?
Answer: • A company that speciliazes in providing investments to startups that usually have high a growth potential, but also higher risk than normal risk
Question:* What should be included in a business plan?
Answer: • All of these
Question:* Which is NOT a stage in the shifting basis of competition?
Answer: • None of these
Question:* If you are a company in a cyclical industry what is a good business strategy for you?
Answer: • Deal with the volatility by implementating cuts to compensations, reducing employee work hours, or laying off workers during bad times. Paying bonuses, ensuring enough inventory, and hiring in mass during good times.
Question:* Oil companies' business models are examples of what?
Answer: • Vertical Integration
Question:* What trait should an information-driven company have at its core?
Answer: • A flexible, decentralized structure
Question:* Why must change be a strategic function of business?
Answer: • Change in business is a constant disruption that can devastate the stability of a company
Question:* What performance management tool do companies use to measure and retain their competitive advantage?
Answer: • Balanced Scorecard
Question:* A demand curve is more price elastic when a price____________ ?
Answer: • Increases
Question:* What are two internal environmental factors that must be considered when developing a sound marketing strategy?
Answer: • Marketing mix and performance analysis
Question:* OPEC is an example of what?
Answer: • Cartel
Question:* What are profit margins?
Answer: • It is a ratio of profitability, calculated by net income divided by sales
Question:* What micro-economic analysis would you use to analyze economics, social factors, and government regulations?
Answer: • PEST or STEEP analysis
Question:* What is recombinant innovation?
Answer: • Take ideas from one context and apply it to another context
Question:* True of False? A Cost Leadership strategy places an emphasis on lower selling prices rather than lower costs.
Answer: • False
Question:* What is horizontal integration?
Answer: • A strategy where companies acquire or create products that are alike or complementary to one another
Question:* What does the T stand for in the PEST analysis?
Answer: • Technological
Question:* Which of the following is a benefit of Horizontal Integration?
Answer: • Both Economies of scale and Economies of scope
Question:* What is a hostile takeover?
Answer: • To acquire a company through the company's shareholders rather than the company's management
Question:* A competitive advantage suggests what?
Answer: • A company is outperforming its competitors
Question:* According to the Growth-share matrix, a high market growth rate and market share means you are:
Answer: • A Star
Question:* What is an example of a company that uses horizontal integration?
Answer: • Disney who creates movies, televison shows, toys, and theme parks for kids
Question:* How can companies avoid falling prey to "The Icarus Paradox"?
Answer: • Research and Development
Question:* What is disruptive innovation?
Answer: • Innovation that focuses on creating new markets or adding value to existing technologies in order to displace older technologies
Question:* When can dynamic management provide a much better platform for solving problems?
Answer: • In a chaotic situation that has expanded beyond the boundaries of typical business function
Question:* What is an example of a legal monopoly?
Answer: • Utility companies
Question:* Why might you use discovery-driven planning?
Answer: • It gives you time to learn, explore, and probe emerging markets
Question:* Which framework determines the competitive intensity of a market?
Answer: • The Porter Five Forces analysis
Question:* As a business owner if you notice a large amount of market segmentation occurring you should...
Answer: • Focus on finding a niche in the market
Question:* Which of the following would probably NOT be considered wrongful termination of an employee?
Answer: • Firing an employee who commits or threatens physical violence
Question:* What is a tariff?
Answer: • A tax on imports or exports
Question:* Which one of the following business structures is NOT a limited liability option?
Answer: • These are all examples of limited liabity business structures
Question:* What does the notion of a “learning organization” suggest?
Answer: • Companies must be successful at collecting and analyzing data to remain successful
Question:* How can you benefit from forming a LLC?
Answer: • You have limited liability like a corporation, but you do not pay corporate taxes.
Question:* How could market segmentation benefit you from a business strategy standpoint?
Answer: • It allows you to differentiate your product
Question:* What does LLC stand for?
Answer: • Limited Liability Company
Question:* What is a Cyclical Industry?
Answer: • A type of industry that tends to have high and low periods during speciific times
Question:* When Facebook purchased Instagram, it employed what type of strategy?
Answer: • Acquisition
Question:* Democratic Leadership style is also known as_____?
Answer: • Participative Leadership
Question:* What did companies replace their expansive multi-division portfolios with?
Answer: • Subsidiaries
Question:* Which of the following statements is true about blue ocean markets?
Answer: • All of these
Question:* What does the term "cash cow" mean in business?
Answer: • A business venture that generates a steady return profits with little maintenance or investment needed
Question:* What trait exists for both high market share and low market share companies?
Answer: • They can both be very profitable
Question:* What does CAPM stand for?
Answer: • Capital Asset Pricing Model
Question:* What is predatory pricing?
Answer: • Selling a product at a very low or unsustainable price in order to drive competitors out of business
Question:* What is one valid criticism of why it is NOT advised to rely on SWOT analysis?
Answer: • All of these
Question:* In consideration of marketing, what is customer churn, or attrition rate?
Answer: • The proportion of customers who leave the firm during a certain time period
Question:* What encompasses the lifetime value of a customer?
Answer: • The prediction of the net profit estimated for the entire future relationship with a customer
Question:* What is an "angel investor"?
Answer: • An investor that provides a startup with a seed investment, oftentimes also acting as advisers and confidants.
Question:* What does "markup" mean in retail businesses?
Answer: • The difference between how much a good or service costs to provide vs its actual selling price.
Question:* Which is NOT one of Porter's Five Forces?
Answer: • Monopolization
Question:* What is a legal monopoly?
Answer: • It is a monopoly that is protected by law from competition usually through government means where a company has been granted exclusive rights to offer a particlar service in a specific region
Question:* What is the advantage of a sole-proprietorship?
Answer: • All of these
Question:* What is the major difference between operational management and strategic management?
Answer: • Operational management focuses on internal issues, while strategic management focuses on external issues
Question:* What is customer acquisition cost?
Answer: • The cost associated with converting a potential customer into an actual customer
Question:* What is an example of a disruptive technology?
Answer: • All of these
Question:* A firm that decides the price of a good or service is a __________?
Answer: • Price Maker
Question:* Within the Porter Five Forces Analysis, what is defined as the ability of customers or suppliers to coerce the firm?
Answer: • Bargaining power
Question:* What is a disavantage for a sole-propietorship?
Answer: • Risk of Liability
Question:* How can a firm achieve a low cost operation?
Answer: • Economies of Scale
Question:* What is the benefit of a broad portfolio of assets?
Answer: • It reduces specific risk
Question:* Why is customer acquisition cost important?
Answer: • It can play a major role in calculating the value of a new customer and calculating your return on investment (ROI).
Question:* What is the primary focus of business strategy?
Answer: • Business strategy focuses on implementing cross-functional decisions involving resources and performance
Question:* What is an example of a company that could be considered to be in a cyclical industry?
Answer: • All of these
Question:* What organizational failure can cripple a business strategy?
Answer: • Lack of organization-wide flexibility
Question:* What does IPO stand for?
Answer: • Initial Public Offering
Question:* True or False? A SWOT analysis can be used for a person, place, or product.
Answer: • True
Question:* Which of these is illegal?
Answer: • All of these
Question:* What does SWOT stand for?
Answer: • Strengths, Weaknesses, Opportunities, Threats
Question:* Define a Differentiation Strategy
Answer: • A company that has a competitive advantage related to its products or services that make itself unique when compared to products or services of other traditional companies.
Question:* Why are profit margins important?
Answer: • All of these
Question:* What is an example of a company that uses vertical integration?
Answer: • All of these
Question:* Within SWOT analysis, what is an example of a threat?
Answer: • Competition
Question:* What is a strength of McDonald's business strategy?
Answer: • Brand Recognition
Question:* What does the S stand for in the SWAT analysis?
Answer: • Strengths
Question:* What is a good way to avoid discrimination lawsuits?
Answer: • All of these
Question:* In discovery-driven planning, general managers should:
Answer: • All of these
Question:* What are some of the possible disadvantages on relying on business cases when making strategic moves in business?
Answer: • All of these
Question:* Which of the following is a strategy used to gain a competitive advantage?
Answer: • (all of these)
Question:* What are the two main objectives of marketing?
Answer: • Increase sales and obtain a durable competitive advantage
Question:* In what scenario is your company ready for an IPO?
Answer: • All of these
Question:* What is a strategic alliance?
Answer: • A cooperative strategy in which two or more companies combine some of their resources and specialities for the purpose of creating a competive advantage
Question:* What is an important factor when determining a company's value?
Answer: • All of these
Question:* When does a Monopoly exist?
Answer: • A specific person or enterprise is the only supplier of a particular commodity
Question:* SWOT analysis is one of the earliest business strategy frameworks. What does it stand for?
Answer: • Strengths, Weaknesses, Opportunities, and Threats.
Question:* What is "The Icarus Paradox"?
Answer: • Businesses that bring about their own downfall through their own successes
Question:* In which situation would a joint venture make the most sense?
Answer: • A traditional software company that wants to expand into retail and a marketing company who specializes in retail sales
Question:* What company is an example of a brandnomer?
Answer: • Band-Aid
Question:* What ratio is used as an indicator of the size of a leading firm in relation to its industry?
Answer: • Concentration ratio
Question:* How many of porter's five forces refer to competition?
Answer: • Three
Question:* What market dominance trend is common in most industries?
Answer: • A declining trend
Question:* What is another name for dynamic management?
Answer: • Non-strategic management
Question:* What is a time-series cross-sectional model that accounts for variation such as seasonality in the hospitality industry?
Answer: • Pooled Regression
Question:* A firm employing a differentiation strategy is focusing on what?
Answer: • Customer loyalty
Question:* Which is not a value chain function?
Answer: • Innovation
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