Question 1

Which of the following is not a common characteristic of capabilities?

Accepted Answer

A) They are valuable across multiple products or markets 
B) They are tacit 
C) They are easy to reduce to simple algorithms or procedure guides 
D) They are embedded in what Richard Nelson and Sidney Winter call organizational routines - well-honed patterns of performing activities inside an organization 
E) They can persist even though individuals leave the organization 
A) They are valuable across multiple products or markets 
B) They are tacit 
C) They are easy to reduce to simple algorithms or procedure guides 
D) They are embedded in what Richard Nelson and Sidney Winter call organizational routines - well-honed patterns of performing activities inside an organization 
E) They can persist even though individuals leave the organization C

Question 2

Which of the following is a capability?

Accepted Answer

A) Patents and trademarks 
B) Brand-name reputation 
C) Installed base 
D) Organizational culture 
E) Sourcing skills 
A) Patents and trademarks 
B) Brand-name reputation 
C) Installed base 
D) Organizational culture 
E) Sourcing skills E

Question 3

What kind of strategy is one by which a firm exploits its benefit or cost advantage through a higher market share rather than through high price-cost margins?

Accepted Answer

A) Pricing strategy 
B) Share strategy 
C) Margin strategy 
D) Focus strategy 
E) Generic strategy 
A) Pricing strategy 
B) Share strategy 
C) Margin strategy 
D) Focus strategy 
E) Generic strategy B

Question 4

Select the letter corresponding to the best answer.For a given consumer,any price-quality combination along the indifference curve yields the _______________.

Accepted Answer

A) Same consumer surplus 
B) Same maximum willingness-to-pay 
C) High consumer surplus 
D) Low consumer surplus 
E) Same competitive advantage 
A) Same consumer surplus 
B) Same maximum willingness-to-pay 
C) High consumer surplus 
D) Low consumer surplus 
E) Same competitive advantage

Question 5

What term describes the price at which a consumer is indifferent between buying a product and going without it?

Accepted Answer

A) Value creation 
B) Competitive advantage 
C) Consumer surplus 
D) Maximum willingness-to-pay 
E) Value chain 
A) Value creation 
B) Competitive advantage 
C) Consumer surplus 
D) Maximum willingness-to-pay 
E) Value chain

Question 6

Which of the following is a resource?

Accepted Answer

A) Brand promotion skills 
B) Yield management capabilities 
C) Ability to manage sourcing and procurement functions 
D) Workers with firm-specific expertise or know-how 
E) Ability to integrate order-taking, procurement, manufacturing and out-bound logistics 
A) Brand promotion skills 
B) Yield management capabilities 
C) Ability to manage sourcing and procurement functions 
D) Workers with firm-specific expertise or know-how 
E) Ability to integrate order-taking, procurement, manufacturing and out-bound logistics

Question 7

Which of the following represents producer surplus in the value creation equation,(B-P)+ (P-C)?

Accepted Answer

A) B 
B) P 
C) C 
D) B-P 
E) P-C 
A) B 
B) P 
C) C 
D) B-P 
E) P-C

Question 8

What term describes the situation when a firm earns a higher rate of economic profit than the average rate of economic profit of other firms competing within the same market?

Accepted Answer

A) Industry effect 
B) Competitive advantage 
C) Business unit effect 
D) Competitive position 
E) Market profitability economics 
A) Industry effect 
B) Competitive advantage 
C) Business unit effect 
D) Competitive position 
E) Market profitability economics

Question 9

What type of strategy seeks to serve all customer groups in the market by offering a full line of related products?

Accepted Answer

A) Generic strategy 
B) Margin strategy 
C) Focus strategy 
D) Share strategy 
E) Broad-coverage strategy 
A) Generic strategy 
B) Margin strategy 
C) Focus strategy 
D) Share strategy 
E) Broad-coverage strategy

Question 10

Under what type of strategy does a firm either offer a narrow set of varieties,serve a narrow set of customers,or do both?

Accepted Answer

A) Generic strategy 
B) Margin strategy 
C) Focus strategy 
D) Share strategy 
E) Broad-coverage strategy 
A) Generic strategy 
B) Margin strategy 
C) Focus strategy 
D) Share strategy 
E) Broad-coverage strategy

Question 11

Which of the following is a concept developed by Michael Porter that describes,in broad terms,how it positions itself to compete in the market it serves?

Accepted Answer

A) Value chain 
B) Generic strategy 
C) Benefit leadership 
D) Cost Leadership 
E) Focus 
A) Value chain 
B) Generic strategy 
C) Benefit leadership 
D) Cost Leadership 
E) Focus

Question 12

Which of the following is false with respect to the strategy of cost leadership?

Accepted Answer

A) A firm following a strategy of cost leadership is following a generic strategy narrow in scope 
B) A firm can follow a cost leadership strategy through achieving benefit parity by making products with the same B, but at a lower C than its rivals 
C) A firm can follow a cost leadership strategy through achieving benefit proximity by offering a B that is not much less than those of competitors 
D) A firm following a strategy of cost leadership creates more value than its competitors by offering products that have a lower C than those of its rivals 
E) A firm can follow a cost leadership strategy by offering a product that is qualitatively different from that of its rivals 
A) A firm following a strategy of cost leadership is following a generic strategy narrow in scope 
B) A firm can follow a cost leadership strategy through achieving benefit parity by making products with the same B, but at a lower C than its rivals 
C) A firm can follow a cost leadership strategy through achieving benefit proximity by offering a B that is not much less than those of competitors 
D) A firm following a strategy of cost leadership creates more value than its competitors by offering products that have a lower C than those of its rivals 
E) A firm can follow a cost leadership strategy by offering a product that is qualitatively different from that of its rivals

Question 13

When multiple firms' price-quality positions line up along the same indifference curve offering a consumer the same amount of consumer surplus,what term describes the situation?

Accepted Answer

A) Price-quality parity 
B) Price matching 
C) Maximum willingness-to-pay 
D) Consumer surplus parity 
E) Consumer surplus 
A) Price-quality parity 
B) Price matching 
C) Maximum willingness-to-pay 
D) Consumer surplus parity 
E) Consumer surplus

Question 14

What type of good is one whose quality can be assessed only after the customer has used it for a while?

Accepted Answer

A) Apparel 
B) Search good 
C) Experience good 
D) Office furniture 
E) Airline tickets 
A) Apparel 
B) Search good 
C) Experience good 
D) Office furniture 
E) Airline tickets

Question 15

What term describes the process of using market prices of unfinished and semifinished goods to estimate the incremental value-created by distinctive parts of the value chain?

Accepted Answer

A) Value-added analysis 
B) Value creation analysis 
C) Market value analysis 
D) Value benefit drivers 
E) Value cost drivers 
A) Value-added analysis 
B) Value creation analysis 
C) Market value analysis 
D) Value benefit drivers 
E) Value cost drivers

Question 16

Which of the following statements best describes a characteristic of geographic specialization focus strategies?

Accepted Answer

A) Offers a variety of products and/or sells to a variety of customer groups within a narrow geography 
B) Offers an array of product varieties to a limited class of customers 
C) Caters to the particular needs of the customer group served 
D) Offers a limited set of products to an array of different customer groups 
E) Does an especially good job satisfying a subset of the needs of the consumer groups being served 
A) Offers a variety of products and/or sells to a variety of customer groups within a narrow geography 
B) Offers an array of product varieties to a limited class of customers 
C) Caters to the particular needs of the customer group served 
D) Offers a limited set of products to an array of different customer groups 
E) Does an especially good job satisfying a subset of the needs of the consumer groups being served

Question 17

Which of the following represents consumer surplus in the value creation equation,(B-P)+ (P-C)?

Accepted Answer

A) B 
B) P 
C) C 
D) B-P 
E) P-C 
A) B 
B) P 
C) C 
D) B-P 
E) P-C

Question 18

What term best describes a targeting strategy in which the firm offers a variety or related products to a particular class of customers?

Accepted Answer

A) Broad-coverage strategy 
B) Focus Strategy 
C) Geographic specialization 
D) Product specialization 
E) Customer specialization 
A) Broad-coverage strategy 
B) Focus Strategy 
C) Geographic specialization 
D) Product specialization 
E) Customer specialization

Question 19

What type of good is one whose quality is relatively easy to evaluate before purchase?

Accepted Answer

A) Consumer packaged good 
B) Search good 
C) Experience good 
D) Automobile 
E) Appliance 
A) Consumer packaged good 
B) Search good 
C) Experience good 
D) Automobile 
E) Appliance

Question 20

Which of the following terms is a concept,developed by Michael Porter,which describes the activities within firms and across firms that add value along the way to the ultimate transacted good or service?

Accepted Answer

A) Five forces 
B) Value creation 
C) Value chain 
D) Consumer surplus 
E) Producer surplus 
A) Five forces 
B) Value creation 
C) Value chain 
D) Consumer surplus 
E) Producer surplus

Which of the following is not a common characteristic of capabilities?

Which of the following is a capability?

What kind of strategy is one by which a firm exploits its benefit or cost advantage through a higher market share rather than through high price-cost margins?

Select the letter corresponding to the best answer.For a given consumer,any price-quality combination along the indifference curve yields the _______________.

What term describes the price at which a consumer is indifferent between buying a product and going without it?

Which of the following is a resource?

Which of the following represents producer surplus in the value creation equation,(B-P)+ (P-C)?

What term describes the situation when a firm earns a higher rate of economic profit than the average rate of economic profit of other firms competing within the same market?

What type of strategy seeks to serve all customer groups in the market by offering a full line of related products?

Under what type of strategy does a firm either offer a narrow set of varieties,serve a narrow set of customers,or do both?

Which of the following is a concept developed by Michael Porter that describes,in broad terms,how it positions itself to compete in the market it serves?

Which of the following is false with respect to the strategy of cost leadership?

When multiple firms' price-quality positions line up along the same indifference curve offering a consumer the same amount of consumer surplus,what term describes the situation?

What type of good is one whose quality can be assessed only after the customer has used it for a while?

What term describes the process of using market prices of unfinished and semifinished goods to estimate the incremental value-created by distinctive parts of the value chain?

Which of the following statements best describes a characteristic of geographic specialization focus strategies?

Which of the following represents consumer surplus in the value creation equation,(B-P)+ (P-C)?

What term best describes a targeting strategy in which the firm offers a variety or related products to a particular class of customers?

What type of good is one whose quality is relatively easy to evaluate before purchase?

Which of the following terms is a concept,developed by Michael Porter,which describes the activities within firms and across firms that add value along the way to the ultimate transacted good or service?

Basic Microeconomic Principles

Economies of Scale and Scope

Agency and Coordination

The Power of Principles - an Historical Perspective

The Vertical Boundaries of the Firm

Organizing Vertical Boundariesvertical Integration and Its Alternatives

Diversificationpart Threemarket and Competitive Analysis

Competitors and Competition

Strategic Commitment

The Dynamics of Pricing Rivalry

Entry and Exit

Industry Analysispart Fourstrategic Position and Dynamics

Sustaining Competitive Advantage

The Origins of Competitive Advantage, innovation, evolution, and Environment part Five internal Organization

Performance Measurement and Incentives in Firms

Strategy and Structure

Environment, power, and Culture

Filters

Exam 13: Strategic Positioning for Competitive Advantage

Which of the following is not a common characteristic of capabilities?

Which of the following is a capability?

What kind of strategy is one by which a firm exploits its benefit or cost advantage through a higher market share rather than through high price-cost margins?

Select the letter corresponding to the best answer.For a given consumer,any price-quality combination along the indifference curve yields the _______________.

What term describes the price at which a consumer is indifferent between buying a product and going without it?

Which of the following is a resource?

Which of the following represents producer surplus in the value creation equation,(B-P)+ (P-C)?

What term describes the situation when a firm earns a higher rate of economic profit than the average rate of economic profit of other firms competing within the same market?

What type of strategy seeks to serve all customer groups in the market by offering a full line of related products?

Under what type of strategy does a firm either offer a narrow set of varieties,serve a narrow set of customers,or do both?

Which of the following is a concept developed by Michael Porter that describes,in broad terms,how it positions itself to compete in the market it serves?

Which of the following is false with respect to the strategy of cost leadership?

When multiple firms' price-quality positions line up along the same indifference curve offering a consumer the same amount of consumer surplus,what term describes the situation?

What type of good is one whose quality can be assessed only after the customer has used it for a while?

What term describes the process of using market prices of unfinished and semifinished goods to estimate the incremental value-created by distinctive parts of the value chain?

Which of the following statements best describes a characteristic of geographic specialization focus strategies?

Which of the following represents consumer surplus in the value creation equation,(B-P)+ (P-C)?

What term best describes a targeting strategy in which the firm offers a variety or related products to a particular class of customers?

What type of good is one whose quality is relatively easy to evaluate before purchase?

Which of the following terms is a concept,developed by Michael Porter,which describes the activities within firms and across firms that add value along the way to the ultimate transacted good or service?

Basic Microeconomic Principles

Economies of Scale and Scope

Agency and Coordination

The Power of Principles - an Historical Perspective

The Vertical Boundaries of the Firm

Organizing Vertical Boundariesvertical Integration and Its Alternatives

Diversificationpart Threemarket and Competitive Analysis

Competitors and Competition

Strategic Commitment

The Dynamics of Pricing Rivalry

Entry and Exit

Industry Analysispart Fourstrategic Position and Dynamics

Sustaining Competitive Advantage

The Origins of Competitive Advantage, innovation, evolution, and Environment part Five internal Organization

Performance Measurement and Incentives in Firms

Strategy and Structure

Environment, power, and Culture

Filters