MBA 705 - Exam 1 Latest Update -

MBA 705 - Exam 1 Latest Update - Actual Exam 135 Questions with 100% Verified Correct Answers Guaranteed A+ Verified by Professor

• A decline in a nation's GDP for two or more consecutive quarters is known as
• a depression.
• a recession.
• economic stagnation.
• none of the above - CORRECT ANSWER: B. A decline in a nation's GDP for two or

more consecutive quarters.

A decline in GDP negatively affects all industries. (True of False) - CORRECT

ANSWER: False.

Some industries actually benefit from economic declines.

A firm always operates in a single, distinct industry:True or False - CORRECT

ANSWER: False.

Many firm have multiple business units, each of which operated in a distinct industry.

A key limitation of Porter's five forces model is its reliance on resource-based theory.

(True or False) - CORRECT ANSWER: False.

Porter's five forces model is based on the industrial organization perspective on firm performance, not the resource-based perspective.

A strategy seeks to develop and sustain competitive advantage. (True or False) -

CORRECT ANSWER: True 1 / 3

All industries fallow the stages of the industry life cycle Model:True or False -

CORRECT ANSWER: False.

Not all industries fallow the model.

Analysis of the Macroenvironment - CORRECT ANSWER: }Macroenvironmental forces

affect industries and individual firms within industries. The focus at this stage of analysis is on the industry, not the firm.}Certain forces may be more prominent in some industries than in others.

anthropogenic climate change - CORRECT ANSWER: The notion that human activity

(e.g., heavy manufacturing) has a substantial effect on global weather patterns.

At the global level, the period from World War II to the late 1980s was marked by

• an increase in trade protection.
• a decrease in trade protection.
• an absence of U.S. imports.

D. none of the above - CORRECT ANSWER: A. Global trade protectionism was

common from the mid-1940s through the 1980s.

barriers to entry - CORRECT ANSWER: factors that make it difficult and costly for an organization to enter a particular task environment or industry

Blockholders: - CORRECT ANSWER: Large shareholders who monitor firm strategies to ensure effective management.

Board of Directors - CORRECT ANSWER: Boards consist of officials elected by

shareholders who are responsible for monitoring activities in the organization. Boards

are responsible for:

• Evaluating top management's strategic proposals. 2 / 3

• Establishing broad direction for the firm
• Selecting and determining the compensation for the chief executive

Business model - CORRECT ANSWER: explains how the organization seeks to earn a

profit by selling its goods.

Progressive firms often devise innovative business models that extract revenue - and ultimately profits - from sources not identified by competitors.

Buyers Have Bargaining Power When: - CORRECT ANSWER: 1.Buyers are concentrated or each one purchases a significant percentage of total industry sales.

2.The products that the buyers purchase represent a significant percentage of the buyers' costs.

3.The products are standard or undifferentiated.

4.Buyers face few switching costs.

5.Buyers earn low profits, creating pressure for them to reduce their purchasing costs.

6.Buyers have the ability to become their own suppliers (backward integration).

7.The industry's product is relatively unimportant to the quality of the buyers' products or services.

8.Buyers have complete information.

Case Analysis Step 1 - Introduction of the Organization - CORRECT ANSWER: This

step provides background information and creates the context for the analysis.} When and how did the organization form?} Is the company public or private?} What is the firm's mission?} What is the firm's basic business model?

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