Exam 4: Building Competitive Advantage

A small reduction in materials and transportation costs can have a substantial impact on profitability.

With regard to quality as reliability, a product can be said to be reliable when it consistently does the job it was designed for, does it well, and rarely, if ever, breaks down.

Examples of successful new product launches include all of the following except

The price a company charges for a good or service is typically less than the value placed on that good or service by the customer.

There is a positive relationship between the length of time that a customer stays with a company and profit per customer.

Using the value chain model, which of the following primary activities is performed last, as inputs are transformed into outputs?

The four generic building blocks of competitive advantage are

Sourcing inputs from multiple suppliers is a strategy to

Just-in-time inventory systems

Competition can be viewed as a process driven by innovations.

Which of the following is not an advantage of flexible manufacturing?

John's bakery is able to produce exactly the right types of bread each day and have them available when customers come into the store. John's bakery is superior in

Explain how tangible and intangible resources and capabilities can lead to distinctive competencies. Give specific examples.

Customer defection rates are determined by customer loyalty which is a function of a company's ability to satisfy its customers.

To add value, R&D can increase a product's functionality to make it more attractive to customers.

The attributes of many physical products include the form, features, performance, durability, reliability, style, and design of the product.

Product and process innovation are perhaps the most important building blocks of competitive advantage.

Employee productivity is usually measured by output per employee and capital productivity by output per unit of invested capital.

When a company successfully implements Six Sigma quality, about how many units will be defective?

At Adam's bicycle shop, the primary value chain activity of production occurs each time a customer's bicycle is repaired.