MGMT 352 Exam I Review

Front

Anders is researching sociocultural factors related to his employer, a sporting goods manufacturer. Which of the following would be part of the sociocultural forces in a firm's external environment? Options: the rate of employee attrition within the firm, the laws protecting small enterprises in a nation, the family size of the firm's target market, the interest rates prevalent in an economy

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the family size of the firm's target market

Front

What is the total perceived consumer benefits when a firm incurs $100 to manufacture an office table, fixes the market price at $250, discounts it to $200, and the maximum a person is willing to pay is $180?

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180

Front

In an industry, the threat of entry is high when: capital requirements are low, network effects are strong, switching costs are high, expected returns are low.

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capital requirements are low.

Front

What industry competitive structure does the iron ore industry best illustrate, given that companies manufacturing shipping containers base their purchase decision solely on price due to a large number of sellers and the undifferentiated nature of iron ore? Options: monopolistic competition, perfect competition, oligopoly, monopoly

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perfect competition

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Economies of scale are cost advantages that accrue for firms with

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larger output.

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The primary objective of Porter’s five forces model is to

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understand the profit potential of industries.

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In the five forces model developed by Michael Porter, ________ is not defined narrowly as a firm’s closest competitors but rather more broadly to include other factors in an industry like buyers, suppliers, potential new entry of other firms, and the threat of substitutes.

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competition

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Trendline Architects’ core competency is building multi-family housing in urban areas. This competency is based primarily on the decisions made by the company’s top management over several years to focus on building in densely populated cities. This process is called

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path dependence.

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Which of the following is a feature of the maturity stage of the industry life cycle? Options: The industry structure is more monopolistically competitive., The competitive intensity within the industry is at its peak., The market reaches its maximum size., The focus on product innovation is higher than that on process innovation.

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The market reaches its maximum size.

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When pursuing a Blue Ocean strategy, a firm in a crowded marketplace attempts to out-compete rivals on both cost and product features with the goal of gaining market share at the expense of other competitors in the same industry.

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False