Question 1

Which of the following is not a primary activity in Porter's value chain?
A) Inbound logistics
B) Operations
C) Outbound logistics
D) Human resource management
E) Marketing & sales

Accepted Answer

The answer of Which of the following is not a...

Question 2

Which of the following is not a supporting activity in Porter's value chain?
A) Firm infrastructure
B) Sales
C) Technology Development
D) Procurement

Accepted Answer

Sales is considered a primary activity in Porter's value chain, while the others are supporting activities.

Question 3

Which of the following is not true about Canon?
A) Developed an extensive repair network
B) Second mover in the office copier market
C) Offered customers the possibility to diagnose and replace defective modules themselves
D) Gradual focus on more sophisticated products

Accepted Answer

The answer of Which of the following is not true...

Question 4

Which of the following is true about stage one of an industry life cycle?
A) Sales figures are high.
B) Potential users are sophisticated.
C) New entrants may be numerous
D) Large firms dominate.

Accepted Answer

In stage one of an industry life cycle, known as the introduction stage, new entrants may be numerous as companies try to capitalize on a new market opportunity.

Question 5

Which of the following is not true about stage four of the industry life cycle?
A) Only large firms compete.
B) A service and experience orientation dominates.
C) Highly profitable niches are available in otherwise competitive markets.
D) Knowledgeable users are very demanding about their requirements.

Accepted Answer

In stage four of the industry life cycle, which is the decline stage, not only large firms compete; smaller firms can also find opportunities, especially in niche markets.

Question 6

________ theories help the strategist identify critical aspects of a problematic situation, rather than offer solutions to problems.
A) Human capital
B) Social capital
C) Frame
D) Life

Accepted Answer

Frame theories help strategists understand and identify critical aspects of a situation by providing different perspectives or "frames" through which to view the problem, rather than offering direct solutions.

Question 7

Economies of ________ are cost savings enjoyed through more efficient production of larger volumes of a product or service.
A) Scope
B) Scale
C) Systems
D) Sales

Accepted Answer

Economies of scale refer to the cost savings that result from producing larger volumes of a product or service.

Question 8

The practice of grouping a set of products or services together as a package is known as:
A) Selling
B) Customizing
C) Bundling
D) Standardizing

Accepted Answer

Bundling is the practice of grouping a set of products or services together as a package.

Question 9

_____ innovation is the practice of drawing innovative ideas from multiple sources.
A) Closed
B) Open
C) External
D) Internal

Accepted Answer

Open innovation is the practice of drawing innovative ideas from multiple sources, both internal and external to the organization.

Question 10

Which company pioneered the razor and blades model?
A) Bic
B) Gillette
C) Sword
D) Netflix

Accepted Answer

Gillette is credited with pioneering the razor and blades business model, where the razor is sold at a low price or given away for free, while the blades (which need regular replacement) are sold at a higher margin.

Question 11

Which of the following is not currently a dominant player in the game console market?
A) Atari
B) Microsoft
C) Nintendo
D) Sony

Accepted Answer

Atari is not currently a dominant player in the game console market.

Question 12

A _______ model describes when a customer pays a periodic fee for access to a specified good, service or experience.
A) Razor and blades
B) Subscription
C) Broker
D) Advertising

Accepted Answer

A subscription model describes when a customer pays a periodic fee for access to a specified good, service or experience.

Question 13

Which of the following is not true about Netflix?
A) Is the only company video rental company that pursues a subscription model
B) Has patented its 'dynamic queuing' system of communication and delivery
C) Business model requires close attention to inventory and logistics
D) Continues to innovate

Accepted Answer

Netflix is not the only video rental company that pursues a subscription model; other companies have also adopted similar models.

Question 14

Which of the following is not an example of a modified razor and blades model?
A) Consoles and games
B) Cell phone and airtime contract
C) TV dish and contract
D) Ebay

Accepted Answer

Ebay does not follow the razor and blades model, as it is an online marketplace where users buy and sell goods, rather than a model where a primary product is sold at a low price to drive sales of complementary goods.

Question 15

Which two models does Google combine?
A) Advertising and razor and blades
B) Subscription and advertising
C) Subscription and broker
D) Broker and advertising

Accepted Answer

The answer of Which two models does Google combine?
A) Advertising...

Question 16

Which of the following was the first mover in the internet browser industry?
A) Microsoft
B) Mozilla
C) Netscape
D) Safari

Accepted Answer

Netscape was the first mover in the internet browser industry with its Netscape Navigator, which was released in 1994 before other major browsers.

Question 17

Stage ____ of the industry life cycle is characterized by a mixture of small and large firms, highly profitable niches in otherwise competitive markets, and knowledgeable users who are very demanding about their requirements.
A) one
B) two
C) three
D) four

Accepted Answer

The answer of Stage ____ of the industry life cycle...

Question 18

What percentage of all franchising in the United States does McDonald's retail sales constitute?
A) 1%
B) 10%
C) 50%
D) 99%

Accepted Answer

McDonald's is the largest franchisor in the United States, with over 14,000 franchisees.

Question 19

Which of the following is not true about the Virgin Rail Group?
A) Uses a hub and spoke system
B) Provides more customer services such as meal carts
C) Uses a point-to-point system
D) Is an industry with ever increasing passenger traffic

Accepted Answer

Virgin Rail Group uses a hub and spoke system, not a point-to-point system.

Question 20

Which of the following is true about franchising?
A) In the US, approximately 1 in every 2 retail businesses is a franchise.
B) Franchising is on the decline in the US, Europe and South America.
C) Franchising is moving into services such as residential cleaning and wholesale distribution.
D) There are 1,000 franchising companies around the world.

Accepted Answer

Franchising is expanding into various service sectors, including residential cleaning and wholesale distribution, as businesses seek to capitalize on established brand recognition and operational models.

Quiz 6: Specifying a Business Model

Which of the following is not a primary activity in Porter's value chain?

Which of the following is not a supporting activity in Porter's value chain?

Which of the following is not true about Canon?

Which of the following is true about stage one of an industry life cycle?

Which of the following is not true about stage four of the industry life cycle?

________ theories help the strategist identify critical aspects of a problematic situation, rather than offer solutions to problems.

Economies of ________ are cost savings enjoyed through more efficient production of larger volumes of a product or service.

The practice of grouping a set of products or services together as a package is known as:

_____ innovation is the practice of drawing innovative ideas from multiple sources.

Which company pioneered the razor and blades model?

Which of the following is not currently a dominant player in the game console market?

A _______ model describes when a customer pays a periodic fee for access to a specified good, service or experience.

Which of the following is not true about Netflix?

Which of the following is not an example of a modified razor and blades model?

Which two models does Google combine?

Which of the following was the first mover in the internet browser industry?

Stage ____ of the industry life cycle is characterized by a mixture of small and large firms, highly profitable niches in otherwise competitive markets, and knowledgeable users who are very demanding about their requirements.

What percentage of all franchising in the United States does McDonald's retail sales constitute?

Which of the following is not true about the Virgin Rail Group?

Which of the following is true about franchising?