Question 1

What are the two main categories in a value chain analysis?

Accepted Answer

A)  Primary value activities and secondary value activities 
B)  Primary value activities and support value activities 
C)  Primary value activities and strengthening value activities 
D)  None of these 
A)  Primary value activities and secondary value activities 
B)  Primary value activities and support value activities 
C)  Primary value activities and strengthening value activities 
D)  None of these

Question 2

What are tasks performed by people that customers will buy to satisfy a want or need?

Accepted Answer

A)  Goods 
B)  Services 
C)  Production 
D)  Productivity 
A)  Goods 
B)  Services 
C)  Production 
D)  Productivity

Question 3

Which of the following decisions does a firm need to make as soon as it has identified the activities from the value chain that are bringing the highest added value to their customers?

Accepted Answer

A)  Target high value-adding activities to further enhance their value 
B)  Target low value-adding activities to increase their value 
C)  Perform some combination of the two 
D)  All of these 
A)  Target high value-adding activities to further enhance their value 
B)  Target low value-adding activities to increase their value 
C)  Perform some combination of the two 
D)  All of these

Question 4

All of the following are common tools used in industry to analyze and develop competitive advantages, except ________.

Accepted Answer

A)  Five Forces Model 
B)  Three Generic Strategies 
C)  Competitive analysis model 
D)  Value chain analysis 
A)  Five Forces Model 
B)  Three Generic Strategies 
C)  Competitive analysis model 
D)  Value chain analysis

Question 5

Michael Porter defined the Five Forces Model and the potential pressures that can hurt sales. Which of the following is not one of the potential pressures that can hurt sales?

Accepted Answer

A)  Suppliers can drive down profits by charging more for supplies 
B)  New market entrants can steal potential investment capital 
C)  Substitute products can steal customers 
D)  Competition can steal customers 
A)  Suppliers can drive down profits by charging more for supplies 
B)  New market entrants can steal potential investment capital 
C)  Substitute products can steal customers 
D)  Competition can steal customers

Question 6

Managers use four common tools to analyze competitive intelligence and develop competitive advantages. Which of the following is not one of these tools?

Accepted Answer

A)  The three generic strategies 
B)  The Five Forces Model 
C)  First-mover advantage 
D)  SWOT analysis 
A)  The three generic strategies 
B)  The Five Forces Model 
C)  First-mover advantage 
D)  SWOT analysis

Question 7

What is a standardized set of activities that accomplishes a specific task?

Accepted Answer

A)  Business strategy 
B)  Business outcome 
C)  Business process 
D)  Knowledge process 
A)  Business strategy 
B)  Business outcome 
C)  Business process 
D)  Knowledge process

Question 8

Which group of stakeholders' primary interests include fair compensation, job security, and ethical conduct/treatment?

Accepted Answer

A)  Employees 
B)  Shareholders/Investors 
C)  Community 
D)  Customers 
A)  Employees 
B)  Shareholders/Investors 
C)  Community 
D)  Customers

Question 9

Which of the following is considered a good?

Accepted Answer

A)  Cars 
B)  Teaching 
C)  Waiting tables 
D)  All of the choices are correct 
A)  Cars 
B)  Teaching 
C)  Waiting tables 
D)  All of the choices are correct

Question 10

What is a person or group that has an interest or concern in an organization?

Accepted Answer

A)  Stakeholder 
B)  Business strategy 
C)  Supplier 
D)  Partner 
A)  Stakeholder 
B)  Business strategy 
C)  Supplier 
D)  Partner

Question 11

There are many challenges to changing doctors, including transferring medical records and losing the doctor-patient relationship along with the doctor's knowledge of the patient's history. Changing doctors provides a great example of switching costs.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following represents a company in a supply chain?

Accepted Answer

A)  Customer and competitor. 
B)  Supplier and competitor. 
C)  Knowledge worker and supplier. 
D)  Supplier and customer. 
A)  Customer and competitor. 
B)  Supplier and competitor. 
C)  Knowledge worker and supplier. 
D)  Supplier and customer.

Question 13

In terms of system thinking, what is input?

Accepted Answer

A)  Data entered in a computer 
B)  Controls to ensure correct processes 
C)  The resulting information from the computer program 
D)  The computer program that processes the data 
A)  Data entered in a computer 
B)  Controls to ensure correct processes 
C)  The resulting information from the computer program 
D)  The computer program that processes the data

Question 14

What is threat of new entrants?

Accepted Answer

A)  The ability of buyers to affect the price they must pay for an item 
B)  The suppliers' ability to influence the prices they charge for supplies (including materials, labor, and services) 
C)  High when it is easy for new competitors to enter a market and low when there are significant entry barriers to joining a market 
D)  High when there are many alternatives to a product or service and low when there are few alternatives from which to choose 
A)  The ability of buyers to affect the price they must pay for an item 
B)  The suppliers' ability to influence the prices they charge for supplies (including materials, labor, and services) 
C)  High when it is easy for new competitors to enter a market and low when there are significant entry barriers to joining a market 
D)  High when there are many alternatives to a product or service and low when there are few alternatives from which to choose

Question 15

Assume you are in the business of producing and selling hamburgers. If you could produce more hamburgers with the same input what would happen to your productivity and profits assuming the price of your hamburgers remains the same?

Accepted Answer

A)  Increase in productivity, decrease in profits 
B)  Increase in productivity, increase in profits 
C)  Decrease in productivity, decrease in profits 
D)  Decrease in productivity, increase in profits 
A)  Increase in productivity, decrease in profits 
B)  Increase in productivity, increase in profits 
C)  Decrease in productivity, decrease in profits 
D)  Decrease in productivity, increase in profits

Question 16

What is the support value activity that provides employees with training, hiring, and compensation?

Accepted Answer

A)  Procurement 
B)  Operations resource management 
C)  Human resource management 
D)  Firm infrastructure 
A)  Procurement 
B)  Operations resource management 
C)  Human resource management 
D)  Firm infrastructure

Question 17

Polaroid had a unique competitive advantage for many years until it forgot to observe competitive intelligence. The firm went bankrupt when people began taking digital pictures. Polaroid provides a great example of Porter's supplier power.

Accepted Answer

A) True 
 B)False

Question 18

To combat business challenges, leaders communicate and execute business strategies (from the Greek word stratus for army and ago for leading).

Accepted Answer

A) True 
 B)False

Question 19

What is buyer power?

Accepted Answer

A)  The ability of buyers to affect the price they must pay for an item. 
B)  The suppliers' ability to influence the prices they charge for supplies (including materials, labor, and services). 
C)  High when it is easy for new competitors to enter a market and low when there are significant entry barriers to joining a market. 
D)  High when there are many alternatives to a product or service and low when there are few alternatives from which to choose. 
A)  The ability of buyers to affect the price they must pay for an item. 
B)  The suppliers' ability to influence the prices they charge for supplies (including materials, labor, and services). 
C)  High when it is easy for new competitors to enter a market and low when there are significant entry barriers to joining a market. 
D)  High when there are many alternatives to a product or service and low when there are few alternatives from which to choose.

Question 20

Broad differentiation, broad cost leadership, and ________ create the three generic strategies identified by Porter.

Accepted Answer

A)  Narrow market leadership 
B)  High cost versus low cost 
C)  Focused strategy 
D)  None of these 
A)  Narrow market leadership 
B)  High cost versus low cost 
C)  Focused strategy 
D)  None of these

Exam 2: Identifying Competitive Advantages

What are the two main categories in a value chain analysis?

What are tasks performed by people that customers will buy to satisfy a want or need?

Which of the following decisions does a firm need to make as soon as it has identified the activities from the value chain that are bringing the highest added value to their customers?

All of the following are common tools used in industry to analyze and develop competitive advantages, except ________.

Michael Porter defined the Five Forces Model and the potential pressures that can hurt sales. Which of the following is not one of the potential pressures that can hurt sales?

Managers use four common tools to analyze competitive intelligence and develop competitive advantages. Which of the following is not one of these tools?

What is a standardized set of activities that accomplishes a specific task?

Which group of stakeholders' primary interests include fair compensation, job security, and ethical conduct/treatment?

Which of the following is considered a good?

What is a person or group that has an interest or concern in an organization?

There are many challenges to changing doctors, including transferring medical records and losing the doctor-patient relationship along with the doctor's knowledge of the patient's history. Changing doctors provides a great example of switching costs.

Which of the following represents a company in a supply chain?

In terms of system thinking, what is input?

What is threat of new entrants?

Assume you are in the business of producing and selling hamburgers. If you could produce more hamburgers with the same input what would happen to your productivity and profits assuming the price of your hamburgers remains the same?

What is the support value activity that provides employees with training, hiring, and compensation?

Polaroid had a unique competitive advantage for many years until it forgot to observe competitive intelligence. The firm went bankrupt when people began taking digital pictures. Polaroid provides a great example of Porter's supplier power.

To combat business challenges, leaders communicate and execute business strategies (from the Greek word stratus for army and ago for leading).

What is buyer power?

Broad differentiation, broad cost leadership, and ________ create the three generic strategies identified by Porter.

Business Driven Technology

Strategic Initiatives for Implementing Competitive Advantages

Measuring the Success of Strategic Initiatives

Organizational Structures That Support Strategic Initiatives

Valuing and Storing Organizational Informationdatabases

Accessing Organizational Informationdata Warehouses

Understanding Big Data and Its Impact on Business

Enabling the Organizationdecision Making

Extending the Organizationsupply Chain Management

Building a Customer-Centric Organizationcustomer Relationship Management

Integrating the Organization From End to Endenterprise Resource Planning

Creating Innovative Organizations

Ebusiness

Creating Collaborative Partnerships

Integrating Wireless Technology in Business

Developing Software to Streamline Operations

Methodologies for Supporting Agile Organizations

Managing Organizational Projects

Business Driven Technology

Identifying Competitive Advantages

Strategic Initiatives for Implementing Competitive Advantages

Measuring the Success of Strategic Initiatives

Organizational Structures That Support Strategic Initiatives

Valuing and Storing Organizational Informationdatabases

Accessing Organizational Informationdata Warehouses

Understanding Big Data and Its Impact on Business

Enabling the Organizationdecision Making

Extending the Organizationsupply Chain Management

Building a Customer-Centric Organizationcustomer Relationship Management

Integrating the Organization From End to Endenterprise Resource Planning

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