Question 1

Michael Porter has argued that low cost and differentiation are the two basic strategies for creating value and attaining a competitive advantage in an industry.

Accepted Answer

A) True 
 B)False  True

Question 2

Which of the following is not part of the positioning strategy that a company adopts for a product?

Accepted Answer

A)  price 
B)  product features 
C)  focus groups 
D)  advertising 
E)  promotion 
A)  price 
B)  product features 
C)  focus groups 
D)  advertising 
E)  promotion C

Question 3

A company can create quality as excellence by emphasizing attributes of service associated with the product that include all of the following except

Accepted Answer

A)  ordering ease 
B)  prompt delivery 
C)  easy installation 
D)  increasing innovation 
E)  maintenance services 
A)  ordering ease 
B)  prompt delivery 
C)  easy installation 
D)  increasing innovation 
E)  maintenance services D

Question 4

The R&D function of the value chain can help to lower costs or raise the value of a product and permit a company to charge higher prices.

Accepted Answer

A) True 
 B)False

Question 5

Innovation can result in new products that better satisfy customer needs, improved quality of existing products, or reduced costs.

Accepted Answer

A) True 
 B)False

Question 6

Process innovation is the development of a new process for producing products and delivering them to customers.

Accepted Answer

A) True 
 B)False

Question 7

Which of the follow support activities in the value chain refers to the company-wide context within which all the other value creation activities take place?

Accepted Answer

A)  Human resources 
B)  Information systems 
C)  Operations 
D)  Materials management 
E)  Company infrastructure 
A)  Human resources 
B)  Information systems 
C)  Operations 
D)  Materials management 
E)  Company infrastructure

Question 8

Which of the following statements concerning customer defection rates is incorrect?

Accepted Answer

A)  Defection rates are determined by customer loyalty. 
B)  The longer a company holds on to a customer, the volume of customer-generated unit sales is greater and the average cost of each sale is lower. 
C)  Lowering customer defection rates allows a company to achieve a lower cost structure. 
D)  R&D should address the issue of customer loyalty in product development. 
E)  There is a positive relationship between length of time that a customer stays with the company and profit per customer. 
A)  Defection rates are determined by customer loyalty. 
B)  The longer a company holds on to a customer, the volume of customer-generated unit sales is greater and the average cost of each sale is lower. 
C)  Lowering customer defection rates allows a company to achieve a lower cost structure. 
D)  R&D should address the issue of customer loyalty in product development. 
E)  There is a positive relationship between length of time that a customer stays with the company and profit per customer.

Question 9

In the value chain, support activities are those involved in the physical creation of the product, its marketing and delivery to buyers, and its after-sales service.

Accepted Answer

A) True 
 B)False

Question 10

Learning effects are cost savings that come from learning through extensive R&D.

Accepted Answer

A) True 
 B)False

Question 11

Strong leadership from top management is

Accepted Answer

A)  a value chain support activity. 
B)  needed to attain economies of scale. 
C)  needed to build brand loyalty. 
D)  part of the human resources value chain activity. 
E)  a primary activity in the value chain. 
A)  a value chain support activity. 
B)  needed to attain economies of scale. 
C)  needed to build brand loyalty. 
D)  part of the human resources value chain activity. 
E)  a primary activity in the value chain.

Question 12

Which of the following is not an intangible resource?

Accepted Answer

A)  Technological know-how 
B)  A well-known brand name 
C)  a favorable corporate reputation 
D)  Marketing know-how 
E)  Plant and equipment 
A)  Technological know-how 
B)  A well-known brand name 
C)  a favorable corporate reputation 
D)  Marketing know-how 
E)  Plant and equipment

Question 13

The intellectual property of an organization is

Accepted Answer

A)  a tangible resource. 
B)  an intangible resource. 
C)  a tangible capability. 
D)  an intangible capability. 
E)  a tangible competence. 
A)  a tangible resource. 
B)  an intangible resource. 
C)  a tangible capability. 
D)  an intangible capability. 
E)  a tangible competence.

Question 14

The two least important components of efficiency for many companies are employee productivity and capital productivity.

Accepted Answer

A) True 
 B)False

Question 15

The more firm-specific and difficult to imitate is a resource, the more likely a company is to have a/an ____________________.

Accepted Answer

A)  tangible resource. 
B)  intangible resource. 
C)  distinctive competency. 
D)  effective marketing strategy. 
E)  strong barrier to imitation. 
A)  tangible resource. 
B)  intangible resource. 
C)  distinctive competency. 
D)  effective marketing strategy. 
E)  strong barrier to imitation.

Question 16

Defection rate refers to the percentage of a company's employees who defect every year to competitors.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following functions does not contribute to increased efficiency?

Accepted Answer

A)  Research and development 
B)  Production 
C)  Marketing 
D)  Materials management 
E)  All of these contribute to increased efficiency. 
A)  Research and development 
B)  Production 
C)  Marketing 
D)  Materials management 
E)  All of these contribute to increased efficiency.

Question 18

The reasons that explain why so many new products fail to generate an economic return include all of the following except

Accepted Answer

A)  the demand for innovations is inherently uncertain. 
B)  the technology is poorly commercialized. 
C)  many fail because of poor positioning strategy. 
D)  development costs are not kept in check. 
E)  the products are slow to get to the market. 
A)  the demand for innovations is inherently uncertain. 
B)  the technology is poorly commercialized. 
C)  many fail because of poor positioning strategy. 
D)  development costs are not kept in check. 
E)  the products are slow to get to the market.

Question 19

Primary activities of the value chain relate to the design creation, and delivery of the product, its marketing, and its support and after-sale service.

Accepted Answer

A) True 
 B)False

Question 20

Give one example of a firm that has achieved a distinctive competency in efficiency, and describe that competency. Then do the same for a firm with a distinctive competency in quality, innovation, and responsiveness to customers.

Accepted Answer

Wal-Mart is able to buy its products in

Michael Porter has argued that low cost and differentiation are the two basic strategies for creating value and attaining a competitive advantage in an industry.

Which of the following is not part of the positioning strategy that a company adopts for a product?

A company can create quality as excellence by emphasizing attributes of service associated with the product that include all of the following except

The R&D function of the value chain can help to lower costs or raise the value of a product and permit a company to charge higher prices.

Innovation can result in new products that better satisfy customer needs, improved quality of existing products, or reduced costs.

Process innovation is the development of a new process for producing products and delivering them to customers.

Which of the follow support activities in the value chain refers to the company-wide context within which all the other value creation activities take place?

Which of the following statements concerning customer defection rates is incorrect?

In the value chain, support activities are those involved in the physical creation of the product, its marketing and delivery to buyers, and its after-sales service.

Learning effects are cost savings that come from learning through extensive R&D.

Strong leadership from top management is

Which of the following is not an intangible resource?

The intellectual property of an organization is

The two least important components of efficiency for many companies are employee productivity and capital productivity.

The more firm-specific and difficult to imitate is a resource, the more likely a company is to have a/an ____________________.

Defection rate refers to the percentage of a company's employees who defect every year to competitors.

Which of the following functions does not contribute to increased efficiency?

The reasons that explain why so many new products fail to generate an economic return include all of the following except

Primary activities of the value chain relate to the design creation, and delivery of the product, its marketing, and its support and after-sale service.

Give one example of a firm that has achieved a distinctive competency in efficiency, and describe that competency. Then do the same for a firm with a distinctive competency in quality, innovation, and responsiveness to customers.

The Strategy-Making Process

The Mission, Governance, and Business Ethics

External Analysis: the Identification of Opportunities and Threats

Business-Level Strategy and Competitive Positioning

Strategy in the Global Environment

Corporate-Level Strategy and Long-Run Profitability

Strategic Change: Implementing Strategies to Build and Develop a Company

Implementing Strategy Through Organizational Design

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Exam 4: Building Competitive Advantage

Michael Porter has argued that low cost and differentiation are the two basic strategies for creating value and attaining a competitive advantage in an industry.

Which of the following is not part of the positioning strategy that a company adopts for a product?

A company can create quality as excellence by emphasizing attributes of service associated with the product that include all of the following except

The R&D function of the value chain can help to lower costs or raise the value of a product and permit a company to charge higher prices.

Innovation can result in new products that better satisfy customer needs, improved quality of existing products, or reduced costs.

Process innovation is the development of a new process for producing products and delivering them to customers.

Which of the follow support activities in the value chain refers to the company-wide context within which all the other value creation activities take place?

Which of the following statements concerning customer defection rates is incorrect?

In the value chain, support activities are those involved in the physical creation of the product, its marketing and delivery to buyers, and its after-sales service.

Learning effects are cost savings that come from learning through extensive R&D.

Strong leadership from top management is

Which of the following is not an intangible resource?

The intellectual property of an organization is

The two least important components of efficiency for many companies are employee productivity and capital productivity.

The more firm-specific and difficult to imitate is a resource, the more likely a company is to have a/an ____________________.

Defection rate refers to the percentage of a company's employees who defect every year to competitors.

Which of the following functions does not contribute to increased efficiency?

The reasons that explain why so many new products fail to generate an economic return include all of the following except

Primary activities of the value chain relate to the design creation, and delivery of the product, its marketing, and its support and after-sale service.

Give one example of a firm that has achieved a distinctive competency in efficiency, and describe that competency. Then do the same for a firm with a distinctive competency in quality, innovation, and responsiveness to customers.

The Strategy-Making Process

The Mission, Governance, and Business Ethics

External Analysis: the Identification of Opportunities and Threats

Business-Level Strategy and Competitive Positioning

Strategy in the Global Environment

Corporate-Level Strategy and Long-Run Profitability

Strategic Change: Implementing Strategies to Build and Develop a Company

Implementing Strategy Through Organizational Design

Filters