Question 1

Outsourcing provides a firm with greater strategic flexibility, reduced risk and increased opportunities to make investments in other value chain activities.

Accepted Answer

A) True 
 B)False

Question 2

Managers hope to identify their company's strengths, weaknesses, opportunities and threats by conducting an internal analysis.

Accepted Answer

A) True 
 B)False

Question 3

Human capital is usually the most valuable tangible resource that companies possess.

Accepted Answer

A) True 
 B)False

Question 4

McDonald's has a decor design studio in

Accepted Answer

A)  Grenoble, France 
B)  Denver, Colorado 
C)  Florence, Italy 
D)  Shanghai, China 
A)  Grenoble, France 
B)  Denver, Colorado 
C)  Florence, Italy 
D)  Shanghai, China

Question 5

According to the text, which of the following value chain activities would not be a good candidate for outsourcing?

Accepted Answer

A)  Customer service 
B)  Equipment installation 
C)  Providing software and design services 
D)  All of these activities could be good candidates for outsourcing 
A)  Customer service 
B)  Equipment installation 
C)  Providing software and design services 
D)  All of these activities could be good candidates for outsourcing

Question 6

When a company acquires a capability from an external supplier and uses that capability to create value for customers, the firm has engaged in

Accepted Answer

A)  benchmarking 
B)  outsourcing 
C)  diversification 
D)  international expansion 
A)  benchmarking 
B)  outsourcing 
C)  diversification 
D)  international expansion

Question 7

In order for a core competence to be considered a competitive advantage it must meet all of the following criteria EXCEPT

Accepted Answer

A)  it must be rare 
B)  it must be valuable 
C)  it must be difficult to imitate 
D)  it must be easily substitutable 
A)  it must be rare 
B)  it must be valuable 
C)  it must be difficult to imitate 
D)  it must be easily substitutable

Question 8

One of McDonald's capabilities is in employee training.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following value chain activities WOULD NOT be considered a primary value chain activity?

Accepted Answer

A)  Operations 
B)  Inbound logistics 
C)  Accounting 
D)  After sales service to individuals 
A)  Operations 
B)  Inbound logistics 
C)  Accounting 
D)  After sales service to individuals

Question 10

McDonald's organizational structure can best be viewed as

Accepted Answer

A)  centralized consistency. 
B)  freedom within a framework. 
C)  bureaucracy for burger excellence. 
D)  consistency within chaos. 
A)  centralized consistency. 
B)  freedom within a framework. 
C)  bureaucracy for burger excellence. 
D)  consistency within chaos.

Question 11

According to the text, one of the primary reasons for the decline in Coca-Cola's stock price in recent years has been

Accepted Answer

A)  their extensive use of outsourcing 
B)  their ineffective use of human capital 
C)  their inability to create a well-known, global brand name 
D)  their lack of a clear mission statement 
A)  their extensive use of outsourcing 
B)  their ineffective use of human capital 
C)  their inability to create a well-known, global brand name 
D)  their lack of a clear mission statement

Question 12

Imagine that a US-based firm wants to begin selling its products in Mexico. Which of the following resources or capabilities are necessary for the firm to succeed in entering the Mexican market?

Accepted Answer

A)  Manufacturing capacity to produce sufficient quantity of its products 
B)  Financial capital to support distribution in Mexico 
C)  Capability to market and sell its products in a country outside the US 
D)  All of these 
A)  Manufacturing capacity to produce sufficient quantity of its products 
B)  Financial capital to support distribution in Mexico 
C)  Capability to market and sell its products in a country outside the US 
D)  All of these

Question 13

Managers must understand their company's resources and capabilities in order to select an effective strategy.

Accepted Answer

A) True 
 B)False

Question 14

In the textbook, "value" is defined as

Accepted Answer

A)  "the lowest price." 
B)  "the ability to differentiate one product from another." 
C)  "the satisfaction a product creates for customers." 
D)  "the highest price." 
A)  "the lowest price." 
B)  "the ability to differentiate one product from another." 
C)  "the satisfaction a product creates for customers." 
D)  "the highest price."

Question 15

When "no resources or capabilities exist that can complete the tasks and provide the same value to customers,"a competency is said to be

Accepted Answer

A)  valuable 
B)  nonsubstitutable 
C)  rare 
D)  difficult to imitate 
A)  valuable 
B)  nonsubstitutable 
C)  rare 
D)  difficult to imitate

Question 16

The "value" of a tangible or intangible resource is determined by

Accepted Answer

A)  the resource's ability to create value for customers 
B)  the price paid to acquire or make the resource 
C)  the reputation that the company has in the eyes of customers 
D)  the price that customers pay for products or services that are made from the resource 
A)  the resource's ability to create value for customers 
B)  the price paid to acquire or make the resource 
C)  the reputation that the company has in the eyes of customers 
D)  the price that customers pay for products or services that are made from the resource

Question 17

When a company has deficiencies in resources or capabilities that make it hard for them to complete important tasks, these deficiencies are known as

Accepted Answer

A)  threats 
B)  strengths 
C)  weaknesses 
D)  intangible resources 
A)  threats 
B)  strengths 
C)  weaknesses 
D)  intangible resources

Question 18

What is the primary reason why managers conduct an internal analysis of their company's resources and capabilities?

Accepted Answer

A)  To make sure that the company's resources and capabilities are sufficient to implement the chosen business level strategy. 
B)  To make sure that managers are not being compensated too much for the value chain activities that they perform on a daily basis. 
C)  To identify the opportunities and threats that are present in the internal environment, especially those things that are beyond the managers' control. 
D)  To make sure that the firm is charging customers enough for the value that is being provided in the company's goods and services. 
A)  To make sure that the company's resources and capabilities are sufficient to implement the chosen business level strategy. 
B)  To make sure that managers are not being compensated too much for the value chain activities that they perform on a daily basis. 
C)  To identify the opportunities and threats that are present in the internal environment, especially those things that are beyond the managers' control. 
D)  To make sure that the firm is charging customers enough for the value that is being provided in the company's goods and services.

Question 19

Which of the following IS NOT a component of internal analysis?

Accepted Answer

A)  Identifying a company's resources and capabilities 
B)  Determining which of the firm's capabilities qualify as core competencies 
C)  Evaluating whether or not a firm's core competencies meet the criteria for competitive advantage 
D)  Identifying the opportunities and threats that have caused performance problems for the firm 
A)  Identifying a company's resources and capabilities 
B)  Determining which of the firm's capabilities qualify as core competencies 
C)  Evaluating whether or not a firm's core competencies meet the criteria for competitive advantage 
D)  Identifying the opportunities and threats that have caused performance problems for the firm

Question 20

What is the primary reason that a firm should decide to outsource a value chain activity?

Accepted Answer

A)  If the outside firm can perform the activity more efficiently than the firm could perform the activity internally. 
B)  If the firm identifies serious inefficiencies in how it completes one or more activities, it should consider outsourcing. 
C)  If outsourcing creates more value for the customer than continuing to complete the activity internally. 
D)  None of these. 
A)  If the outside firm can perform the activity more efficiently than the firm could perform the activity internally. 
B)  If the firm identifies serious inefficiencies in how it completes one or more activities, it should consider outsourcing. 
C)  If outsourcing creates more value for the customer than continuing to complete the activity internally. 
D)  None of these.

Outsourcing provides a firm with greater strategic flexibility, reduced risk and increased opportunities to make investments in other value chain activities.

Managers hope to identify their company's strengths, weaknesses, opportunities and threats by conducting an internal analysis.

Human capital is usually the most valuable tangible resource that companies possess.

McDonald's has a decor design studio in

According to the text, which of the following value chain activities would not be a good candidate for outsourcing?

When a company acquires a capability from an external supplier and uses that capability to create value for customers, the firm has engaged in

In order for a core competence to be considered a competitive advantage it must meet all of the following criteria EXCEPT

One of McDonald's capabilities is in employee training.

Which of the following value chain activities WOULD NOT be considered a primary value chain activity?

McDonald's organizational structure can best be viewed as

According to the text, one of the primary reasons for the decline in Coca-Cola's stock price in recent years has been

Imagine that a US-based firm wants to begin selling its products in Mexico. Which of the following resources or capabilities are necessary for the firm to succeed in entering the Mexican market?

Managers must understand their company's resources and capabilities in order to select an effective strategy.

In the textbook, "value" is defined as

When "no resources or capabilities exist that can complete the tasks and provide the same value to customers,"a competency is said to be

The "value" of a tangible or intangible resource is determined by

When a company has deficiencies in resources or capabilities that make it hard for them to complete important tasks, these deficiencies are known as

What is the primary reason why managers conduct an internal analysis of their company's resources and capabilities?

Which of the following IS NOT a component of internal analysis?

What is the primary reason that a firm should decide to outsource a value chain activity?

The Foundations of Strategic Management

Leading Strategically

Analyzing the External Environment

Business-Level Strategy

Multiproduct Strategies

Acquiring and Integrating Businesses

Competing Across Borders

Creating and Maintaining Alliances

Innovating Through Strategic Entrepreneurship

Filters

Exam 4: Analyzing the Firm

Outsourcing provides a firm with greater strategic flexibility, reduced risk and increased opportunities to make investments in other value chain activities.

Managers hope to identify their company's strengths, weaknesses, opportunities and threats by conducting an internal analysis.

Human capital is usually the most valuable tangible resource that companies possess.

McDonald's has a decor design studio in

According to the text, which of the following value chain activities would not be a good candidate for outsourcing?

When a company acquires a capability from an external supplier and uses that capability to create value for customers, the firm has engaged in

In order for a core competence to be considered a competitive advantage it must meet all of the following criteria EXCEPT

One of McDonald's capabilities is in employee training.

Which of the following value chain activities WOULD NOT be considered a primary value chain activity?

McDonald's organizational structure can best be viewed as

According to the text, one of the primary reasons for the decline in Coca-Cola's stock price in recent years has been

Imagine that a US-based firm wants to begin selling its products in Mexico. Which of the following resources or capabilities are necessary for the firm to succeed in entering the Mexican market?

Managers must understand their company's resources and capabilities in order to select an effective strategy.

In the textbook, "value" is defined as

When "no resources or capabilities exist that can complete the tasks and provide the same value to customers,"a competency is said to be

The "value" of a tangible or intangible resource is determined by

When a company has deficiencies in resources or capabilities that make it hard for them to complete important tasks, these deficiencies are known as

What is the primary reason why managers conduct an internal analysis of their company's resources and capabilities?

Which of the following IS NOT a component of internal analysis?

What is the primary reason that a firm should decide to outsource a value chain activity?

The Foundations of Strategic Management

Leading Strategically

Analyzing the External Environment

Business-Level Strategy

Multiproduct Strategies

Acquiring and Integrating Businesses

Competing Across Borders

Creating and Maintaining Alliances

Innovating Through Strategic Entrepreneurship

Filters