Chapter 11

Chapter 11
Student: ___________________________________________________________________________

1.

As coca-cola faced problems in the late 1990s, Douglas Daft changed strategies and focussed on
____________?
A. price
B. quantity
C. quality
D. tailoring strategy to meet local needs
E. centralizing firm decisions in Atlanta

2.

Profit can be defined as:
A. costs minus profits
B. the difference between time and money
C. quantity times profit
D. sales plus costs
E. the difference between TR and TC

3.

A firm's __________ can be defined as the actions that managers take to attain the goals of the firm.
A. systems
B. value chain
C. operations
D. strategy
E. plans

4.

Sally creates _______, when she develops a way to maximize long-term profitability.
A. a strategy
B. a mission
C. competitors
D. a design
E. competitive advantage

5.

_______ is the difference between total revenues and total costs.
A. Strategy
B. Profit
C. Asset
D. Economies of scale
E. Gross margin

6.

A simple example of _______ is rate of return on sales.
A. strategy
B. economies of scale
C. profitability
D. primary activity
E. profit

7.

A basic condition that determines a firm's profits is:
A. the firm's costs of distribution.
B. taxes.
C. the amount of value customers place on the firm's goods.
D. government regulations.
E. variable costs

8.

Actions that managers take to attain the firm's goals are referred to as _____.
A. value chain activities
B. strategies
C. systems
D. operations
E. tactics

9.

There are two basic strategies for improving a firm's profitability. These are:
A. a differentiation strategy and a low-cost strategy
B. a premier strategy and a generic strategy
C. a high-cost strategy and a low-cost strategy
D. a comparison strategy and a low-cost strategy
E. a diversification strategy and a low-cost strategy

10. A company creates _______ by converting inputs that cost C into a product on which consumers place a value of V.
A. value
B. wants
C. profits
D. demand
E.