Question 1

If a company's profitability is higher than the industry average, it has a competitive advantage.

Accepted Answer

A) True 
 B)False

Question 2

Mike works as a corporate trainer, teaching new employees how to perform manufacturing tasks. Mike works in which value chain activity?

Accepted Answer

A)  Research and development 
B)  Production 
C)  Materials management 
D)  Human resources 
E)  Company infrastructure 
A)  Research and development 
B)  Production 
C)  Materials management 
D)  Human resources 
E)  Company infrastructure

Question 3

Strong brand loyalty reduces customer defection rates.

Accepted Answer

A) True 
 B)False

Question 4

Ford Motors developed the Explorer sport utility vehicle, the number one selling SUV in the U.S., based on an extensive study of customer preferences. Which value chain activity of Ford conducted those studies?

Accepted Answer

A)  Research and development 
B)  Marketing and sales 
C)  Materials management 
D)  Human resources 
E)  Company infrastructure 
A)  Research and development 
B)  Marketing and sales 
C)  Materials management 
D)  Human resources 
E)  Company infrastructure

Question 5

Efficiency, quality, innovation, and customer responsiveness are the four generic building blocks of competitive advantage.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is not correct concerning self-managed teams?

Accepted Answer

A)  Increased responsibility and empowerment are seen as motivators. 
B)  Performance bonuses linked to team production and quality targets are seen as motivators. 
C)  Cost savings arise from eliminating supervisors. 
D)  A flatter organizational hierarchy is created. 
E)  All of these statements are correct. 
A)  Increased responsibility and empowerment are seen as motivators. 
B)  Performance bonuses linked to team production and quality targets are seen as motivators. 
C)  Cost savings arise from eliminating supervisors. 
D)  A flatter organizational hierarchy is created. 
E)  All of these statements are correct.

Question 7

A company's customers are a good source of quality information but of little use as a source of new product ideas.

Accepted Answer

A) True 
 B)False

Question 8

Discuss the relationships between competitive advantage, distinctive competencies, resources, and capabilities.

Accepted Answer

The primary objective of strategy is to

Question 9

The more value a company creates for its customers, the more willing customers are to pay a higher price.

Accepted Answer

A) True 
 B)False

Question 10

Cost accountants are responsible for gathering and monitoring data used for controlling the organization's costs. Cost accountants work in which value chain activity?

Accepted Answer

A)  Research and development 
B)  Company infrastructure 
C)  Materials management 
D)  Marketing and sales 
E)  Human resources 
A)  Research and development 
B)  Company infrastructure 
C)  Materials management 
D)  Marketing and sales 
E)  Human resources

Question 11

A value chain is a sequence of activities for transforming inputs into outputs that are valued by customers.

Accepted Answer

A) True 
 B)False

Question 12

In the value chain, research and development (R&D) is concerned with the design of products and production processes.

Accepted Answer

A) True 
 B)False

Question 13

Which primary activity in the value chain is concerned with the design of products and production processes?

Accepted Answer

A)  Materials management 
B)  Marketing and sales 
C)  Research and development 
D)  Production 
E)  Company infrastructure 
A)  Materials management 
B)  Marketing and sales 
C)  Research and development 
D)  Production 
E)  Company infrastructure

Question 14

The primary value chain activities create value for the customer, while the support activities play no part in creating value.

Accepted Answer

A) True 
 B)False

Question 15

Additional sources of enhanced customer responsiveness include superior design, superior service, and superior after sales service and support.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is not consistent with the philosophy underlying quality improvement methodologies?

Accepted Answer

A)  Improved quality reduces costs through less rework, fewer mistakes, and fewer delays. 
B)  Better quality leads to higher market share and allows the company to raise prices. 
C)  Senior managers must buy into quality improvement programs and communicate their importance to the organization. 
D)  Quality improvement methodologies recognize that quality problems generally come from worker error. 
E)  All of these are consistent with quality improvement methodologies. 
A)  Improved quality reduces costs through less rework, fewer mistakes, and fewer delays. 
B)  Better quality leads to higher market share and allows the company to raise prices. 
C)  Senior managers must buy into quality improvement programs and communicate their importance to the organization. 
D)  Quality improvement methodologies recognize that quality problems generally come from worker error. 
E)  All of these are consistent with quality improvement methodologies.

Question 17

The simplest measure of efficiency is the quantity of inputs that it takes to produce a given output.

Accepted Answer

A) True 
 B)False

Question 18

Flexible manufacturing technology includes all of the following except

Accepted Answer

A)  reduce setup time for complex equipment 
B)  use individual machines through better scheduling 
C)  increase product design and distribution 
D)  improve quality control 
E)  mass customization of outputs 
A)  reduce setup time for complex equipment 
B)  use individual machines through better scheduling 
C)  increase product design and distribution 
D)  improve quality control 
E)  mass customization of outputs

Question 19

____________ are factors that make it difficult for a competitor to copy a company's distinctive competencies.

Accepted Answer

A)  Barriers to innovation 
B)  Organizational inertia 
C)  Competitive dynamics 
D)  Barriers to imitation 
E)  Strategic commitments 
A)  Barriers to innovation 
B)  Organizational inertia 
C)  Competitive dynamics 
D)  Barriers to imitation 
E)  Strategic commitments

Question 20

The principle tool that most managers now use to increase the reliability of their product offering is the Six Sigma quality improvement methodology.

Accepted Answer

A) True 
 B)False

If a company's profitability is higher than the industry average, it has a competitive advantage.

Mike works as a corporate trainer, teaching new employees how to perform manufacturing tasks. Mike works in which value chain activity?

Strong brand loyalty reduces customer defection rates.

Ford Motors developed the Explorer sport utility vehicle, the number one selling SUV in the U.S., based on an extensive study of customer preferences. Which value chain activity of Ford conducted those studies?

Efficiency, quality, innovation, and customer responsiveness are the four generic building blocks of competitive advantage.

Which of the following is not correct concerning self-managed teams?

A company's customers are a good source of quality information but of little use as a source of new product ideas.

Discuss the relationships between competitive advantage, distinctive competencies, resources, and capabilities.

The more value a company creates for its customers, the more willing customers are to pay a higher price.

Cost accountants are responsible for gathering and monitoring data used for controlling the organization's costs. Cost accountants work in which value chain activity?

A value chain is a sequence of activities for transforming inputs into outputs that are valued by customers.

In the value chain, research and development (R&D) is concerned with the design of products and production processes.

Which primary activity in the value chain is concerned with the design of products and production processes?

The primary value chain activities create value for the customer, while the support activities play no part in creating value.

Additional sources of enhanced customer responsiveness include superior design, superior service, and superior after sales service and support.

Which of the following is not consistent with the philosophy underlying quality improvement methodologies?

The simplest measure of efficiency is the quantity of inputs that it takes to produce a given output.

Flexible manufacturing technology includes all of the following except

____________ are factors that make it difficult for a competitor to copy a company's distinctive competencies.

The principle tool that most managers now use to increase the reliability of their product offering is the Six Sigma quality improvement methodology.

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

Exam 4: Building Competitive Advantage

If a company's profitability is higher than the industry average, it has a competitive advantage.

Mike works as a corporate trainer, teaching new employees how to perform manufacturing tasks. Mike works in which value chain activity?

Strong brand loyalty reduces customer defection rates.

Ford Motors developed the Explorer sport utility vehicle, the number one selling SUV in the U.S., based on an extensive study of customer preferences. Which value chain activity of Ford conducted those studies?

Efficiency, quality, innovation, and customer responsiveness are the four generic building blocks of competitive advantage.

Which of the following is not correct concerning self-managed teams?

A company's customers are a good source of quality information but of little use as a source of new product ideas.

Discuss the relationships between competitive advantage, distinctive competencies, resources, and capabilities.

The more value a company creates for its customers, the more willing customers are to pay a higher price.

Cost accountants are responsible for gathering and monitoring data used for controlling the organization's costs. Cost accountants work in which value chain activity?

A value chain is a sequence of activities for transforming inputs into outputs that are valued by customers.

In the value chain, research and development (R&D) is concerned with the design of products and production processes.

Which primary activity in the value chain is concerned with the design of products and production processes?

The primary value chain activities create value for the customer, while the support activities play no part in creating value.

Additional sources of enhanced customer responsiveness include superior design, superior service, and superior after sales service and support.

Which of the following is not consistent with the philosophy underlying quality improvement methodologies?

The simplest measure of efficiency is the quantity of inputs that it takes to produce a given output.

Flexible manufacturing technology includes all of the following except

____________ are factors that make it difficult for a competitor to copy a company's distinctive competencies.

The principle tool that most managers now use to increase the reliability of their product offering is the Six Sigma quality improvement methodology.

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