1 This are all true about the Industry Structure, EXCEPT:

Group of answer choices

It presents an average level of competition with Dunkin Brands and Starbucks accounting for more than 60% of the market share.

The barriers of entry are low.

It's level of concentration is medium

It is currently in the mature stage.

2 The is true about profitability drivers and industry demand determinants:

Group of answer choices

The economic recession had no impact.

World pricing of coffee has little impact

Attitudes toward health is one key factor.

Per capita tea consumption is a main driver

3 All of these have a positive effect on market revenue, EXCEPT:

Group of answer choices

Per capita increase of coffee consumption.

Increase of disposable income.

Sharp decline in the domestic price of coffee.

Sharp increase in the world price of coffee.

4 Find the perfect match.

Group of answer choices

Threat of New Entrants

[ Choose ]

Refers to the barriers of entry (ease of starting a competing coffee shop).

Refers to the number of alternatives consumers could reasonable substitute a trip to a coffee shop with.

Refers to the level of advantage buyers enjoy when negotiating with the suppliers.

Refers to the level of competition in the industry, which is also influenced by the cost consumers incurr for switching coffee shops.

Refers to the level of advantage suppliers enjoy when negotiating with the coffee shops.

Threat of Substitutes

[ Choose ]

Refers to the barriers of entry (ease of starting a competing coffee shop).

Refers to the number of alternatives consumers could reasonable substitute a trip to a coffee shop with.

Refers to the level of advantage buyers enjoy when negotiating with the suppliers.

Refers to the level of competition in the industry, which is also influenced by the cost consumers incurr for switching coffee shops.

Refers to the level of advantage suppliers enjoy when negotiating with the coffee shops.

Bargaining Power of Buyers

[ Choose ]

Refers to the barriers of entry (ease of starting a competing coffee shop).

Refers to the number of alternatives consumers could reasonable substitute a trip to a coffee shop with.

Refers to the level of advantage buyers enjoy when negotiating with the suppliers.

Refers to the level of competition in the industry, which is also influenced by the cost consumers incurr for switching coffee shops.

Refers to the level of advantage suppliers enjoy when negotiating with the coffee shops.

Bargaining Power of Suppliers

[ Choose ]

Refers to the barriers of entry (ease of starting a competing coffee shop).

Refers to the number of alternatives consumers could reasonable substitute a trip to a coffee shop with.

Refers to the level of advantage buyers enjoy when negotiating with the suppliers.

Refers to the level of competition in the industry, which is also influenced by the cost consumers incurr for switching coffee shops.

Refers to the level of advantage suppliers enjoy when negotiating with the coffee shops.

Intensity of Competitive Rivalry

[ Choose ]

Refers to the barriers of entry (ease of starting a competing coffee shop).

Refers to the number of alternatives consumers could reasonable substitute a trip to a coffee shop with.

Refers to the level of advantage buyers enjoy when negotiating with the suppliers.

Refers to the level of competition in the industry, which is also influenced by the cost consumers incurr for switching coffee shops.

Refers to the level of advantage suppliers enjoy when negotiating with the coffee shops.

5 Michael Porter's Five Force Analysis includes the study of:

Group of answer choices

Threat of New Entrants, Threat of Substitutes, Bargaining Power of Buyers, Bargaining Power of Competitors, and, the Intensity of Competitive Rivalry

Threat of New Entrants, Threat of Substitutes, Bargaining Power of Buyers, Bargaining Power of Suppliers, and, the Intensity of Competitive Rivalry.

Threat of New Entrants, Threat of Substitutes, Bargaining Power of Buyers, Bargaining Power of Suppliers, and, the Intensity of Competitive Collaboration.

Threat of New Suppliers, Threat of Substitutes, Bargaining Power of Buyers, Bargaining Power of New Entrants, and, the Intensity of Competitive Collaboration.

6 If Porter's Analysis was done on a tiny Santa Monica base 1-location only coffee shop business, the impact of the Threat of New Entrants would be felt:

Group of answer choices

the same - no different

lower - less damaging

impossible to quantify, because it would depend on the sales numbers

higher - more damaging

7 If Porter's Analysis was done on a tiny Santa Monica base 1-location only coffee shop business, the impact of the Threat of Substitutes would be felt:

Group of answer choices

impossible to measure, because the menu options are different

higher - because it offers less menu options than a large coffee chain such as Starbucks

lower - because the smaller coffee enjoys a closer relationship with its customers

the same - because it is not related to a company's size

8 If Porter's Analysis was done on a tiny Santa Monica base 1-location only coffee shop business, the impact of the Bargaining Power of Suppliers would be felt:

Group of answer choices

lower - because the small coffee shop represents higher margins to the suppliers

higher - because the small coffee shop buys less quantities

the same - because there is only one price list

impossible to measure, because you were not given the dollar numbers

9 If Porter's Analysis was done on a tiny Santa Monica base 1-location only coffee shop business, the impact of the Bargaining Power of Buyers would be:

Group of answer choices

impossible to measure, because you were not given the dollar numbers

more - because the small coffee shop purchases more frequently

the same - because there is only one price list

less - because of the lower quantities negotiated

10 If Porter's Analysis was done on a tiny Santa Monica base 1-location only coffee shop business, the impact of the Competitive Rivalry would be felt:

Group of answer choices

less - because the small coffee shop only has one location

impossible to measure, because you were not given the sales numbers

the same - because the government regulates competition

more - because the small coffee shop has less financial resources to react

11 This is NOT one of Starbuck's core competence:

Group of answer choices

upreme customer service, clean and well-maintained stores that reflect the cultureof the communities in which they operate

providing each customer a unique"Starbucks Experience",

selling the finest quality coffee and related products at the lowest prices

building a high degree of customer loyaltywith a cult following

12 Find the perfect match related to a SWOT Analysis.

Group of answer choices

Strengths

[ Choose ]

It is something that a competitor is not doing today, but it could, if it decided to (because it has all the resources), which then would mean offering something better, more, or it would be perceived as better or more in the future. Basically, it is potentially a 'weakness" in the future.

Everything a competitor offers more, better, and/or is perceived as either better or more by its prospects and/or customers.

It is something that a company is not doing today, but it could, if it decided to (because it has all the resources), which then would mean offering something better, more, or it would be perceived as better or more in the future. Basically, it is potentially a 'strength" in the future.

Everything a company offers more, better, and/or is perceived as either better or more by its prospects and/or customers.

Weaknesses

[ Choose ]

It is something that a competitor is not doing today, but it could, if it decided to (because it has all the resources), which then would mean offering something better, more, or it would be perceived as better or more in the future. Basically, it is potentially a 'weakness" in the future.

Everything a competitor offers more, better, and/or is perceived as either better or more by its prospects and/or customers.

It is something that a company is not doing today, but it could, if it decided to (because it has all the resources), which then would mean offering something better, more, or it would be perceived as better or more in the future. Basically, it is potentially a 'strength" in the future.

Everything a company offers more, better, and/or is perceived as either better or more by its prospects and/or customers.

Opportunities

[ Choose ]

It is something that a competitor is not doing today, but it could, if it decided to (because it has all the resources), which then would mean offering something better, more, or it would be perceived as better or more in the future. Basically, it is potentially a 'weakness" in the future.

Everything a competitor offers more, better, and/or is perceived as either better or more by its prospects and/or customers.

It is something that a company is not doing today, but it could, if it decided to (because it has all the resources), which then would mean offering something better, more, or it would be perceived as better or more in the future. Basically, it is potentially a 'strength" in the future.

Everything a company offers more, better, and/or is perceived as either better or more by its prospects and/or customers.

Threats

[ Choose ]

It is something that a competitor is not doing today, but it could, if it decided to (because it has all the resources), which then would mean offering something better, more, or it would be perceived as better or more in the future. Basically, it is potentially a 'weakness" in the future.

Everything a competitor offers more, better, and/or is perceived as either better or more by its prospects and/or customers.

It is something that a company is not doing today, but it could, if it decided to (because it has all the resources), which then would mean offering something better, more, or it would be perceived as better or more in the future. Basically, it is potentially a 'strength" in the future.

Everything a company offers more, better, and/or is perceived as either better or more by its prospects and/or customers.

13 Considering what a Strength is, which of the following is a reasonable contender of a strength for a small one-store-only coffee shop business in Santa Monica, when it is facing off against large chains such as Starbucks?

Group of answer choices

higher discounts

cheaper coffee

more rewards

unique coffee drinks

14 Considering what a Weakness is, which of the following is a weakness for a small one-store-only coffee shop business in Santa Monica, when it is facing off against large chains such as Starbucks?

Group of answer choices

high prices

low sales leading to very low bargaining power with suppliers

much poorer customer service

large social media expenses

15 Considering what an Opportunity is, which of the following is an example of an opportunity for a small one-store-only coffee shop business in Santa Monica, when it is facing off against large chains such as Starbucks?

Group of answer choices

hiring of more employees

expansion into emerging markets

technological advances

specialize in more profitable segments, such as organic offerings

16 Considering what a Threat is, which of the following is an example of a Threat for a small one-store-only coffee shop business in Santa Monica, when it is facing off against large chains such as Starbucks?

Group of answer choices

less competition

more clients

increase prices

increased competition

17 VRIO Analysis answers the following four questions, EXCEPT:

Group of answer choices

Is a resource costly to IMITATE?

Is a resource Rare?

Is a firm Independent to choose its resources

Is a firm Organized to capture the value of the resources?

Is a resource Valuable?

18 A PEST Analysis refers to the following, EXCEPT:

Group of answer choices

Technological Influences

Social Influences

Political Influences

People Preferences

Economic Influences

19 Find the perfect match related to the Boston Matrix.

Group of answer choices

Stars

[ Choose ]

high growth products competing in markets where they are strong compared with the competition. Often Stars need heavy investment to sustain growth. Eventually growth will slow and, assuming they keep their market share, Stars will become Cash Cows

products with low market share operating in high growth markets. This suggests that they have potential, but may need substantial investment to grow market share at the expense of larger competitors. Management have to think hard about "Question Marks" - which ones should they invest in? Which ones should they allow to fail or shrink?

refers to products that have a low market share in unattractive, low-growth markets. Dogs may generate enough cash to break-even, but they are rarely, if ever, worth investing in. Dogs are usually sold or closed.

low-growth products with a high market share. These are mature, successful products with relatively little need for investment. They need to be managed for continued profit - so that they continue to generate the strong cash flows that the company needs for its Stars

Cash Cows

[ Choose ]

high growth products competing in markets where they are strong compared with the competition. Often Stars need heavy investment to sustain growth. Eventually growth will slow and, assuming they keep their market share, Stars will become Cash Cows

products with low market share operating in high growth markets. This suggests that they have potential, but may need substantial investment to grow market share at the expense of larger competitors. Management have to think hard about "Question Marks" - which ones should they invest in? Which ones should they allow to fail or shrink?

refers to products that have a low market share in unattractive, low-growth markets. Dogs may generate enough cash to break-even, but they are rarely, if ever, worth investing in. Dogs are usually sold or closed.

low-growth products with a high market share. These are mature, successful products with relatively little need for investment. They need to be managed for continued profit - so that they continue to generate the strong cash flows that the company needs for its Stars

Dogs

[ Choose ]

high growth products competing in markets where they are strong compared with the competition. Often Stars need heavy investment to sustain growth. Eventually growth will slow and, assuming they keep their market share, Stars will become Cash Cows

products with low market share operating in high growth markets. This suggests that they have potential, but may need substantial investment to grow market share at the expense of larger competitors. Management have to think hard about "Question Marks" - which ones should they invest in? Which ones should they allow to fail or shrink?

refers to products that have a low market share in unattractive, low-growth markets. Dogs may generate enough cash to break-even, but they are rarely, if ever, worth investing in. Dogs are usually sold or closed.

low-growth products with a high market share. These are mature, successful products with relatively little need for investment. They need to be managed for continued profit - so that they continue to generate the strong cash flows that the company needs for its Stars

Question Marks

[ Choose ]

high growth products competing in markets where they are strong compared with the competition. Often Stars need heavy investment to sustain growth. Eventually growth will slow and, assuming they keep their market share, Stars will become Cash Cows

products with low market share operating in high growth markets. This suggests that they have potential, but may need substantial investment to grow market share at the expense of larger competitors. Management have to think hard about "Question Marks" - which ones should they invest in? Which ones should they allow to fail or shrink?

refers to products that have a low market share in unattractive, low-growth markets. Dogs may generate enough cash to break-even, but they are rarely, if ever, worth investing in. Dogs are usually sold or closed.

low-growth products with a high market share. These are mature, successful products with relatively little need for investment. They need to be managed for continued profit - so that they continue to generate the strong cash flows that the company needs for its Stars

20 Find the perfect match.

Group of answer choices

Competitive advantage

[ Choose ]

the ability of an individual or group to carry out a particular economic activity more efficiently than another individual or group.

refers to an economy's ability to produce goods and services at a lower opportunity cost than that of trade partners.

company assets, attributes, or abilities that are difficult to duplicate or exceed; and provide a superior or favorable long term position over competitors.

a position that makes it likely a firm will outperform the competition in the long term.

refers a company's ability to outperform rivals due to unique, high demand, or superior quality products or services.

Comparative advantage

[ Choose ]

the ability of an individual or group to carry out a particular economic activity more efficiently than another individual or group.

refers to an economy's ability to produce goods and services at a lower opportunity cost than that of trade partners.

company assets, attributes, or abilities that are difficult to duplicate or exceed; and provide a superior or favorable long term position over competitors.

a position that makes it likely a firm will outperform the competition in the long term.

refers a company's ability to outperform rivals due to unique, high demand, or superior quality products or services.

Sustainable advantage

[ Choose ]

the ability of an individual or group to carry out a particular economic activity more efficiently than another individual or group.

refers to an economy's ability to produce goods and services at a lower opportunity cost than that of trade partners.

company assets, attributes, or abilities that are difficult to duplicate or exceed; and provide a superior or favorable long term position over competitors.

a position that makes it likely a firm will outperform the competition in the long term.

refers a company's ability to outperform rivals due to unique, high demand, or superior quality products or services.

Strategic Advantage

[ Choose ]

the ability of an individual or group to carry out a particular economic activity more efficiently than another individual or group.

refers to an economy's ability to produce goods and services at a lower opportunity cost than that of trade partners.

company assets, attributes, or abilities that are difficult to duplicate or exceed; and provide a superior or favorable long term position over competitors.

a position that makes it likely a firm will outperform the competition in the long term.

refers a company's ability to outperform rivals due to unique, high demand, or superior quality products or services.

Absolute Advantage

[ Choose ]

the ability of an individual or group to carry out a particular economic activity more efficiently than another individual or group.

refers to an economy's ability to produce goods and services at a lower opportunity cost than that of trade partners.

company assets, attributes, or abilities that are difficult to duplicate or exceed; and provide a superior or favorable long term position over competitors.

a position that makes it likely a firm will outperform the competition in the long term.

refers a company's ability to outperform rivals due to unique, high demand, or superior quality products or services.

21 Find the perfect match for the perceptual mapping of the following brands.

Group of answer choices

McCafe

[ Choose ]

Higher prices and emotional benefits

Lower prices and functional benefits

Average price and functional benefits

Lower prices and functional benefits, and higher emotional benefits

Starbucks

[ Choose ]

Higher prices and emotional benefits

Lower prices and functional benefits

Average price and functional benefits

Lower prices and functional benefits, and higher emotional benefits

Dunkin Donuts

[ Choose ]

Higher prices and emotional benefits

Lower prices and functional benefits

Average price and functional benefits

Lower prices and functional benefits, and higher emotional benefits

Small Coffee Shop in Santa Monica

[ Choose ]

Higher prices and emotional benefits

Lower prices and functional benefits

Average price and functional benefits

Lower prices and functional benefits, and higher emotional benefits