1. which of the following best explains why zoos are not affected by the threats of new entrants?
- starting a zoo has a high entry cost.
- customers do not have replacement activities.
- substitutions for attending the zoo are much lower quality.
- the zoo industry is growing rapidly.

2. a is a network of value-creating activities.
- value pyramid
- value chain
- value network
- value system

3. which of the following is not a potential disadvantage of a low-cost strategy?
- consumer tastes can change over time.
- firms with a focus strategy can potentially have prices just as low.
- other firms can neutralize the advantage by cutting prices to the same level.
- firms with access to better technology can obtain even lower prices.

4. paul wants to start a landscaping business. an example of a differentiation strategy he might try is
- advertising nationwide in a variety of gardening magazines.
- using only trees and grasses that are naturally pest resistant.
- offering discounts to repeat customers.
- selling at prices comparable to large home-improvement garden centers.

5. after creating an organizational strategy based on porter's models, a company can
- develop information systems.
- create process models.
- calculate inputs and outputs.
- examine market structure.

6. by choosing a(n) an organization responds to the structure of its industry.
- brand image
- competitive strategy
- advertising policy
- business process

7. the owner of harriet's hair studio is hoping to increase customer loyalty by offering free hair trims in between hair-coloring appointments. which of the five forces in porter's model is harriet addressing?
- the threat of new entrants
- the bargaining power of supplies
- the bargaining power of customers
- rivalry

8. which of the following does not affect a company's organizational strategy?
- porter's generic strategies model
- porter's value chain model
- porter's competitive institutions model
- porter's five forces model

9. which of he following situations represents a strong bargaining power of suppliers?
- a winter coat outlet at the beginning of spring
- strawberry growers following an unexpected frost
- jewelry store liquidation following a decision to close the business
- apartment prices in a saturated rental market

10. which of the following represents inbound logistics for a bookstore?
- allowing customers to fill out a satisfaction survey
- featuring a book signing by a popular author
- purchasing books from a publishing house
- recruiting and retaining high-quality employees