Question

Answer the 3 multiple choice questions and provide a written paragraph as to why you selected your answer.

Required/ Graded

10 questions: CU 1.0

Points: 3

1. A good mission statement has what form of orientation as its main focus?

A) an employee orientation.

B) a customer orientation.

C) a shareholder orientation.

D) an environmental orientation.

E) a profit orientation.

2. According to Porter, what is usually the most powerful of the five competitive forces? Select you answer from the options and explain your reason for the selection.

A) Potential development of substitute products

B) Bargaining power of suppliers

C) Bargaining power of consumers

D) Rivalry among competing firms

E) Potential entry of new competitors

3. In general, what happens to American goods in overseas markets when there is a strong dollar?

A) They are less expensive.

B) They are more attractive.

C) They are cheaper.

D) They are more expensive.

E) They are desirable.

Answer 1

1. Answer is B

A good mission statement must focus on customer orientation as it's main purpose of existence is to satisfy customer's need. Therefore, to create value to customer is it's main mission.

2.Answer is D

According to Porter, the most powerful force is Rivalry among competing firms as it considers the strength of the competing firms. If there are large number of competitors in an industry, there will be a cut throat competition and aggressive price-cut. On the other hand, if few competitors are there you can make healthy profits.

3.Answer is D.

When the dollar becomes stronger, American goods in the overseas market are more expensive as exchange rate per dollar is low in the overseas market and they will export rather than import the goods from US.