MGMT 488 Final Exam T/F. If an industry has little cost for substitution like the pizza industry, it will automatically have lower profits. T/F. If suppliers gain leverage on prices it will intensify...

MGMT 488 Final Exam

1. T/F. If an industry has little cost for substitution like the pizza industry, it will automatically have lower profits.

2. T/F. If suppliers gain leverage on prices it will intensify industry competitiveness.

3. T/F. Buyers only gain control when industry products are commoditized.

4. T/F. An industry is profitable when at least 3 of 5 forces are “Stars”.

5. T/F. Low barriers to entry means low risk for the entrant

6. T/F. Low price strategies only work with high value

7. T/F. A differentiation strategy combined with low price is very profitable

8. T/F. A focused differentiation strategy combined with low price is very profitable

9. T/F. A broad differentiation strategy with highest price possible is very profitable

10. T/F. An example of a Focused differentiation is a solo cup.

11. T/F. An example of a broad price leader strategy is Little Caesars Pizza.

12. T/F. One of the pricing strategies is not a “me too” strategy.

13. T/F. A break even number to commercialize a product includes costs related to plant improvements.

14. GM wants to introduce a new engine as a RACE Solution for the new corvette. Profit on sales =

    $10, XXXXXXXXXXDevelopment costs were $750, XXXXXXXXXXMarketing materials were $150, XXXXXXXXXXPOS materials are $65, XXXXXXXXXXCSR Training $100, XXXXXXXXXXInventory costs for spares and replaceables is $45, XXXXXXXXXXMonthly website updates are $4, XXXXXXXXXXBling $75, XXXXXXXXXXMonthly Forced feed on Insta and Facebook is $75, XXXXXXXXXXHow many engines do they need to sell to Break Even?

    a. 119 b. 125 c. 124 d. 130

15. T/F. Start up costs for a pizza place in BR is about $15, XXXXXXXXXXA pizza costs $2.50 to make. A pizza place in BR would be profitable after:

    a. 6 weeks
    b. 12 weeks c. 1 year
    d. 18 Months

16. T/F. The balanced score card method of internal evaluation was designed specifically for customer satisfaction.

17. T/F. The 360 degree evaluation method is designed to focus on supervisor to subordinate goals and objectives.

18. T/F. The 360 degree evaluation method is designed to obtain corporate sales goals

19. T/F. In the growth stage of commercialization we want: Strong Sales increases, Growing

    Competition, developing brand recognition, additional financing to fund scaling up value chain

    activities.

20. T/F. RBV = Revenue Based Value

21. T/F. The more competitors there are in an industry the intense rivalry is

22. T/F. Product development starts with a goal

23. T/F. Marketing is a support to sales but never makes a sale

24. T/F. Price Points must consider sales volume and end profit goals

25. T/F This exam was easy