Virginia Business Strategy Coursera Quiz

Introduction to Strategic Analysis Quiz, 12 questions Question 1 1 point 1. Question 1 An organization's strategy is embodied in its ... Mission statement Mission, plan, and actions Chief executive officer Decl ...

Introduction to Strategic Analysis Quiz, 12 questions Question 1 1 point 1. Question 1 An organization's strategy is embodied in its ... Mission statement Mission, plan, and actions Chief executive officer Declared sales and targets 1. Question 1 What might a strategist learn about a nonprofit's strategy based on its mission statement: To provide dignified care to our city's aging population? Values, purpose, and scope Market opportunities and needs Capabilities and strengths Question 2 1 point 2. Question 2 The strategist’s challenge is to… Schlumberger-Private Build bridges between operations and outside investors Balance workload with other commitments Determine the most effective marketing plan for an organization Identify valuable competitive positions at the intersection of values, capabilities, and opportunities 2. Question 2 Which of the following best describes a strategist's main challenge? Understand answers to the three fundamental questions in order to recognize a firm's best competitive position Understand the capabilities of firms and industries in order to maximize their future profits Understand opportunities within an industry to improve a firm's competitive position Understand a firm's values and how they affect decision-making Question 3 1 point 3. Question 3 A new firm enters a perfectly competitive market. What impact will this have on average profits in the industry? Schlumberger-Private Economic profits increase industry-wide. No economic profits are earned. It earns high economic profits. Economic profits decrease industry-wide before rising again. 3. Question 3 How might entry impact a perfectly competitive market? As an industry, prices rise. Entry increases capacity constraints. Entry increases both accounting and economic profits. As an industry, the amount of output increases. Question 4 1 point 4. Question 4 In a perfectly competitive market, economic profits… Schlumberger-Private Are competed away as new entrants imitate incumbent firms Will increase as firms learn about customer preferences Are a byproduct of low cost, efficient production processes May persist for long periods 4. Question 4 Imagine several potato farmers operate in a competitive market. Farmer Jane decides to enter the market, shifting her 500 acre farm from corn to potatoes. What impact will her entry have on the profitability of the potato market? The profitability of the potato market will decrease. The profitability of the potato market will increase. The profitability of the potato market will remain the same. Question 5 1 point 5. Question 5 Which of the following cases BEST illustrates the generation of rents/economic profits? A firm has the greatest market share in its industry A firm has higher returns than an investment of similar risk A firm’s revenues exceed its costs Schlumberger-Private A firm has higher returns than an established, less risky competitor 5. Question 5 Economic profits--or rents--are present when... A firm has higher returns than an established, less risky competitor A firm has the greatest market share in its industry A firm has higher returns compared to an investment of similar risk A firm’s revenues exceed its costs Question 6 1 point 6. Question 6 What type of profits are earned by a firm whose return on equity is higher than its opportunity cost of capital? The firm earns neither positive economic profits nor positive accounting profits. The firm earns positive economic profits but not positive accounting profits. The firm earns positive accounting profits but not positive economic profits. The firm earns both positive accounting profits and positive economic profits. 6. Question 6 Schlumberger-Private Why do strategy analysts care about economic profits and not just accounting profits? Economic profits reflect the opportunity cost of deploying capital. Economic profits are the same as accounting profits. Economic profits reveal a firm's market share. Economic profits calculate a firm's profits after operating costs. Question 7 1 point 7. Question 7 Which of the following best describes who conducts a strategic analysis? Strategic analysts could be a wide variety of individuals within or associated with a firm as well as secondary stakeholders. Most strategic analyses are conducted by business unit general managers, such as a manager reviewing a marketing plan. Strategic analyses are conducted by a range of primary stakeholders. Strategic analyses are performed within a company by leadership and other employees. 7. Question 7 Why might a CEO, a consultant, or an investor conduct a strategic analysis? To assess an organization's current competitive position Schlumberger-Private To choose a single method of analyzing data To determine future profitability To better understand and make decisions about an industry Question 8 1 point 8. Question 8 In the real world... Profits are consistent over time Businesses rarely have a competitive advantage. Product markets are perfectly competitive. Average industry returns vary even after controlling for risk. Question 9 1 point 9. Question 9 When is a firm more likely to earn higher profits? There are barriers to entry or imitation Another firm holds a patent to a unique process or product Schlumberger-Private The firm's key resources and capabilities are easily imitated A firm and its rivals produces similarly designed products as that of a rival firm Question 10 1 point 10. Question 10 Would you complete a SWOT, competitor or environmental analysis to understand at the broadest level a firm's internal capabilities and its external competitive environment? Competitor analysis Environmental analysis SWOT analysis Question 11 1 point 11. Question 11 A pharmaceutical company is issued a patent on a powerful new arthritis medication. What impact might that patent have on its profitability in the pharmaceutical industry? A patent makes it less likely the firm will earn a profit. A patent likely will have little impact on the firm's profitability. A patent makes it more likely the firm will earn a profit. Question 12 1 point Schlumberger-Private 12. Question 12 How might an analyst use the environmental analysis tool? To understand the broad societal forces that impact a firm To understand and evaluate current or potential competitors To understand a firm's competitive strengths To test a strategic position I, Arijit Paul, understand that submitting work that isn’t my own may result in permanent failure of this course or deactivation of my Coursera account. Schlumberger-Private Analyzing Industry Structure Quiz, 12 questions Question 1 1 point 1. Question 1 Which of the following is a deterrent to entry into an industry? Incumbent firms are not aggressive The absence of learning curves in the industry Minimum efficient scale is relatively unimportant Excess capacity within the industry 1. Question 1 A firm with a large customer base relocates its order processing facility to take advantage of local pro-industry tax rates and sees increased profits as a result. Which of the five forces most threatens this company's competitive position? The bargaining power of buyers, since this company's large customer base gives consumers greater bargaining power Threat of entry, since there are no barriers to keep other firms who wish to enter the industry from locating in the same area and sharing the same tax advantage The bargaining power of suppliers, since right now only one firm has a production advantage (although that will diminish when other firms relocate) Schlumberger-Private The threat of substitutes, since firms can choose from among a variety of producers in the industry Question 2 1 point 2. Question 2 In which scenario is the threat of entry greatest? A firm holds a patent on a healthy and delicious no-cal ice cream. A firm is first out with gourmet, organic ice cream--and it's making great returns! A firm secures contracts with several national grocery store chains to be the sole producer of their store-brand ice cream. Customers are loyal to a firm's brand of indulgent ice cream and are willing to pay a premium for it. Question 3 1 point 3. Question 3 When are firms more likely to earn profits? When one very large firm dominates the market They are able to segment buyers on their willingness to pay for a good. When they engage in price wars. Schlumberger-Private When their customers can easily switch to another brand. 3. Question 3 A customer purchasing a mobile phone for personal use has ________ buying power than when purchasing mobile phones for __________. more, their family Less, a large team at a Fortune 500 company More, a sales team at a Fortune 500 company Question 4 1 point 4. Question 4 Which of the following is likely to lead to weaker bargaining power for buyers? Buyers are concentrated Buyers may backward integrate Buyers face low switching costs Buyers are unaware of the prices fellow buyers are paying Question 5 1 point Schlumberger-Private 5. Question 5 Imagine you run a higher-end, fast food chain that emphasizes freshness. You rely on various suppliers for everything from paper goods to food products. These same producers sell to other fast food chains and markets. For some items, such as paper goods and dry goods, you have several supplier options. For other items, such as ketchup and soda, getting the name brand matters to your customers. For still others, such as organic produce and meats, you rely on a few select suppliers. What might an analysis of the power of suppliers reveal? The power of your suppliers is relatively high overall, since there are so many of them. You need to consolidate to one vendor who can supply all your needs, since that will enhance your bargaining position. The power of your suppliers is relatively high in some key areas and relatively low in others. You might wish to explore alternatives for your organic produce and meats to ensure a more diverse supply. The power of your suppliers is relatively low overall, since you work with a diversity of vendors and can pick among them based on a balance of price and quality. Since organic produce and meats are a part of your brand, you need to stick with those suppliers. Question 6 1 point 6. Question 6 Gasoline prices fluctuate significantly over time, but these price changes have little effect on car travel. This indicates that demand is _____ and the threat of substitutes is _____. Inelastic, low Elastic, low Elastic, high Schlumberger-Private Inelastic, high Question 7 1 point 7. Question 7 Levi's jeans once dominated the denim market, but the company has increasingly lost market share to smaller companies who have gone after its consumers. Which factor most likely contributed to the intensity of this industry rivalry? Customers can't easily switch from one brand of jeans to another. There aren't very many ways to differentiate jeans. The denim market is vibrant and growing. Fixed production costs in manufacturing jeans are relatively low. All else being equal, which of the following is likely to lead to less intense rivalry in an industry? High degree of product differentiation Many competitors Heterogeneous yet similarly sized competitors High exit barriers Schlumberger-Private Question 8 1 point 8. Question 8 Why does a large number of competitors reduce industry profits? The threat of retaliation against entrants is higher. Each firm will compete for market share based on price. Customers are more likely to switch to a substitute product. Incumbent firms are more likely to benefit from economies of scale. . Question 8 Earthbound Farm dominates the growing organic produce market in the United States, selling nationally at markets such as Costco and Whole Foods. As an analyst, how might you describe their threat of rivalry within the organic produce market? Low Average High Question 9 Schlumberger-Private 1 point 9. Question 9 A small town has a thriving restaurant scene, with over a 150 dining establishments. Seeking to reduce costs, several restaurants join together to negotiate for table linen supplies and laundering. How might that impact firms in the table linen industry? Firms have decreased bargaining power, because the service they provide is cyclical (more around the holidays and during festivals and sporting events) rather than steady. Firms have decreased bargaining power, since they are negotiating with a larger block of buyers and competing against each other. Firms have increased bargaining power relative to the restaurants since they control valuable and necessary services. Firms have increased bargaining power, since there are so many of them. Question 10 1 point 10. Question 10 Why might an analyst complete a five forces analysis? To increase bargaining power To understand the profit potential in an industry To dominate the market To understand an individual firm's competitive advantage Question 11 Schlumberger-Private 1 point 11. Question 11 Review question: In the real world... Profits are consistent over time. Product markets are perfectly competitive. Average industry returns vary even after controlling for risk. Businesses rarely have a competitive advantage. 11. Question 11 Review question: Which of the following describes a perfectly competitive market? Knowledge is limited. Products are varied. There are few firms competing in an industry. Barriers to entry and exit a