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WPC 480 Exam 1 with correct Answers
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WPC 480 Exam 1 with correct Answers
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WPC 480 Exam 1 with correct AnswersAckbar, iiInc. iihas iihad ii40% iigrowth iiin iiaccounting iiprofits iifor iiseveral iiyears, iiand iieach
iinew iiyear iihas iibeen iithe iihighest iiprofits iiAckbar iihas iiever iihad. iiWhat iican iiyou
iiconclude iifrom iithis iiinformation iiabout iiAckbar's iicompetitive iiadvantage? ii- iiAnswers ii-
Competitive iiadvantage iicannot iibe iiassessed
Firms iithat iioutperform iitheir iicompetitors iihave iia iihigh iiquality iiplanned iistrategy. ii-
iiAnswers ii-False
A iifirm iimay iihave iinegative iiprofits iifor iiseveral iiyears iiin iia iirow iiand iistill iidecide iito
iigive iia iibig iiperformance iibonus iito iithe iiCEO iior iiother iitop iiexecutives. iiWhat iiis iithe
iibest iiexplanation iifor iigetting iia iibonus iiwhen iiyou iiaren't iimaking iia iiprofit? ii- iiAnswers
ii-The iifirm iihas iibeen iigrowing iirapidly, iialong iiwith iithe iiprice iiof iithe iistock.
For iieach iiof iithe iiways iito iimeasure iifirm iiperformance iimatch iiit iiwith iithe iimajor iisource
iiof iiinaccuracy iias iian iiestimate iiof iithe iivalue iiand iior iiperformance iiof iithe iifirm. ii
1. iiAccounting iivalue
2. iiShareholder iivalue
3. iiBalanced iiscorecard ii- iiAnswers ii-1. iiBased iion iihistorical iidata
2. iiBased iion iipredictions iiof iifuture iigrowth
3. iiBased iion iiperception iiof iivalue iiby iicustomers
Which iiof iithe iifollowing iiare iiproblems iiwith iiasking iisuccessful iifirms iito iiexplain iihow
iithey iiachieved iitheir iisuccess iiAFTER iithey iibecome iisuccessful? ii- iiAnswers ii--People
iitend iito iireverse iithe iicausality iiand iiforget iithat iisuccess iicame iiunexpectedly iibefore
iithe iistrategy. ii
- iiPeople iitend iito iiattribute iitheir iisuccess iito iitheir iiown iiefforts. ii
-People iitend iito iiforget iiall iithe iimistakes iimade iialong iithe iiway
Match iithe iiway iiof iimeasuring iifirm iiperformance iiwith iithe iisituation iior iicondition iiwhere
iithe iimetric iiwill iibe iimost iiuseful iito iia iistrategic iianalyst.
1. iiAccounting iivalue
2. iiShareholder iivalue
3. iiBalanced iiscorecard ii- iiAnswers ii-1. iiFirm's iivalue iiis iimostly iiin iitangible iiassets. ii
2. iiFirm iiis iirapidly iigrowing iiin iiseveral iimarkets. ii
3. iiFirms iisells iia iiproduct iiwhere iibrand iiand iistatus iiare iiimportant.
What iiis iithe iihalo iieffect? ii- iiAnswers ii-It iiis iiattributing iiperformance iiof iia iifirm iito iithe
iiskill iiof iithe iitop iimanager.
, Why iiis iithe iihalo iieffect iian iiirrational iibias iiof iiperception ii- iithat iiis, iiwhy iiis iithe iihalo
iieffect iiwrong? ii- iiAnswers ii-The iitop iimanager iihas iiauthority iiover iithe iifirm, iibut
iidoesn't iicontrol iithe iientire iifirm.
Theories iiabout iifirm iiperformance iiought iito iibe iiconstructed iiby iistudying iiboth iifirms
iithat iisucceed iiand iifirms iithat iifail. ii- iiAnswers ii-True.
What iiis iithe iimain iireason iito iido iian iiindustry iianalysis? ii- iiAnswers ii-Identify iiall iifirms
iithat iican iitake iiprofits iigenerated iiby iiyour iifirm.
What iiis iithe iisecond, iicritical iistep iiin iidoing iian iiindustry iianalysis? ii(NOTE: iiyou iimay
iihave iito iiiterate iion iithis iistep iias iiyour iianalysis iileads iiyou iito iirefine iithis iistep iiand
iiyou iido iithe iianalysis iiagain.) ii- iiAnswers ii-Identify iirelevant iicompetitors iithat iidefine
iiyour iiindustry iior iiindustry iigroup.
What iiis iithe iifirst, iicritical iistep iiin iidoing iian iiindustry iianalysis? ii- iiAnswers ii-Set iia iigoal
iior iispecific iiquestion iito iianswer iifrom iidoing iithe iiindustry iianalysis
Identify iithe iiunderling iiforces iithat iigenerally iiimprove iithe iiindustry iistructure iifor
iimembers iiof iithe iiindustry.
1. iiRivalry iibetween iicompetitors
2. iiSupplier iiand iibuyer iipower
3. iiSupplier iiand iibuyer iipower
4. iiThreat iiof iientrants
5. iiSubstitutes
6. iiComplements ii- iiAnswers ii-1. iiConcentration iiin iithe iiindustry iiis iihigh.
2. iiBargaining iipower iiof iiindustry iifirms iibased iion iioptions iiavailable. ii
3. iiPrice iisensitivity iibased iion iilimited iidifferentiation iiof iiproducts. ii
4. iiTime iinecessary iito iilearn iihow iito iiuse iiindustry's iitechnology. ii
5. iiRelative iiperformance iiof iiprice/output iiis iilower iithan iiindustry iiofferings. ii
6. iiMany iifirms iioffer iicomplements iithat iiare iivery iisimilar.
When iinot iiall iicompetitors iiwithin iian iiindustry iiare iisubstantive iicompetitors, iian iianalyst
iishould iisplit iithe iiindustry iiinto iigroups iiof iiclose iicompetitors iiand iithen iianalyze iithe
iiindustry iigroups iiseparately. ii- iiAnswers ii-True
In iithe iiPESTEL iiframework, iithe iifirst ii"E" iistands iifor ii"economic" iiand iirefers iito iithe
iimacro-economic iiconditions iiof iinations iior iiacross iinations. ii- iiAnswers ii-True
What iiis iithe iiprimary iireason iifor iia iistrategic iianalyst iifocused iion iithe iicompetitive
iiadvantage iiof iia iisingle iifirm iito iido iia iiPESTEL iianalysis? ii- iiAnswers ii-Specifically
iiidentify iihow iivery iibig iiforces iiin iithe iiworld iiaffect iia iifirm's iiperformance.
The iiinternal iicapacities iiof iia iifirm ii(e.g. iicapabilities, iicore iicompetences, iiresources)
iiare iimore iilikely iito iibe iia iisource iiof iicompetitive iiadvantage iithan iithe iiexternal
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