Question 1

________ are the competencies or skills that a firm employs to transform inputs into outputs.

Accepted Answer

A)  Tangible resources 
B)  Reputational resources 
C)  Organizational capabilities 
D)  Intangible resources 
A)  Tangible resources 
B)  Reputational resources 
C)  Organizational capabilities 
D)  Intangible resources

Question 2

General administration is sometimes viewed as only ________, but it can be a powerful source of competitive advantage.

Accepted Answer

A)  income 
B)  value 
C)  overhead 
D)  unimportant 
A)  income 
B)  value 
C)  overhead 
D)  unimportant

Question 3

Which of the following would be most difficult to assess?

Accepted Answer

A)  the liquidity position of a firm 
B)  market share growth 
C)  the legitimacy and reputation of a firm 
D)  the efficiency with which a firm utilizes its assets 
A)  the liquidity position of a firm 
B)  market share growth 
C)  the legitimacy and reputation of a firm 
D)  the efficiency with which a firm utilizes its assets

Question 4

Chipolte is a fast-food, Mexican cuisine restaurant that bases its value-creating activities on streamlined operations. Discuss this value-chain primary activity and how Chipolte usesitto its advantage. Refer to Strategy Spotlight 3.1 for details.

Accepted Answer

Chipolte achieves remarkable increases i

Question 5

In contrast to ________ interactions, which allow the firm to gain insights on the needs of a particular customer, ________ offers the opportunity to leverage the wisdom of a larger crowd.

Accepted Answer

A)  consumer; sourcing 
B)  prosumer; outsourcing 
C)  prosumer; crowdsourcing 
D)  marketing; crowdsourcing 
A)  consumer; sourcing 
B)  prosumer; outsourcing 
C)  prosumer; crowdsourcing 
D)  marketing; crowdsourcing

Question 6

Financial analysis provides an accurate way to assess the relative strengths of firms and can be used as a complete guide to study companies.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is not a factor that helps to explain the extent to which employees and managers will be able to obtain a proportionately high level of the profits that they generate?

Accepted Answer

A)  Employees have high bargaining power. 
B)  The cost of employee replacement is high. 
C)  The cost of exit is high for an employee. 
D)  Managers have low bargaining power. 
A)  Employees have high bargaining power. 
B)  The cost of employee replacement is high. 
C)  The cost of exit is high for an employee. 
D)  Managers have low bargaining power.

Question 8

________ ratios reflect whether a firm is efficiently using its resources,

Accepted Answer

A)  Turnover 
B)  Leverage 
C)  Liquidity. 
D)  Profitability 
A)  Turnover 
B)  Leverage 
C)  Liquidity. 
D)  Profitability

Question 9

For a resource to provide a firm with the potential for a sustainable competitive advantage, it must have four attributes. Which of the following is not one of these attributes?

Accepted Answer

A)  rare 
B)  valuable 
C)  easy for competitors to substitute 
D)  difficult for competitors to imitate 
A)  rare 
B)  valuable 
C)  easy for competitors to substitute 
D)  difficult for competitors to imitate

Question 10

A firm's financial position should not be analyzed in isolation. Important reference points are needed. Discuss how historical comparisons, comparisons with industry norms, and comparisons with key competitors can be used to make financial analysis more meaningful.

Accepted Answer

The financial position of a firm should

Question 11

Discuss the four criteria that the resources of a firm must possess to maintain a sustainable advantage. Give an example of one of these criteria.

Accepted Answer

For a resource to provide a firm with th

Question 12

A competitive advantage based on inimitability can be sustained for at least some time, if it has the following characteristics:

Accepted Answer

A)  psychographic uniqueness, path dependency, causal ambiguity, and substitutability. 
B)  physical uniqueness, path dependency, causal ambiguity, and social complexity. 
C)  rarity, path dependency, causal ambiguity, and social substitutability. 
D)  geographic uniqueness, cause dependency, social ambiguity, and path complexity. 
A)  psychographic uniqueness, path dependency, causal ambiguity, and substitutability. 
B)  physical uniqueness, path dependency, causal ambiguity, and social complexity. 
C)  rarity, path dependency, causal ambiguity, and social substitutability. 
D)  geographic uniqueness, cause dependency, social ambiguity, and path complexity.

Question 13

In making the decision to enter the pharmaceutical industry, a company would not need to consider which of the following?

Accepted Answer

A)  historical comparisons 
B)  comparisons with industry norms 
C)  comparisons with key competitors 
D)  comparisons with non-competitors 
A)  historical comparisons 
B)  comparisons with industry norms 
C)  comparisons with key competitors 
D)  comparisons with non-competitors

Question 14

Which of the following is a support activity?

Accepted Answer

A)  inbound logistics 
B)  customer service 
C)  technology development 
D)  operations 
A)  inbound logistics 
B)  customer service 
C)  technology development 
D)  operations

Question 15

When Nordstrom, the Seattle-based department store chain, aids customers with after-sales support, it exemplifies which primary value-chain activity?

Accepted Answer

A)  operations 
B)  outbound logistics 
C)  inbound logistics 
D)  service 
A)  operations 
B)  outbound logistics 
C)  inbound logistics 
D)  service

Question 16

If managers do not recognize from the beginning that the balanced scorecard is not a ________ and fail to commit to it long term, the organization will be disappointed.

Accepted Answer

A)  panacea 
B)  quick fix 
C)  marketing ploy 
D)  cheap solution 
A)  panacea 
B)  quick fix 
C)  marketing ploy 
D)  cheap solution

Question 17

Which of the following is a profitability ratio?

Accepted Answer

A)  current ratio 
B)  total debt ratio 
C)  total asset turnover 
D)  return on equity 
A)  current ratio 
B)  total debt ratio 
C)  total asset turnover 
D)  return on equity

Question 18

Human resource management consists of activities involved in the recruiting, hiring, training, development, and compensation of all types of personnel. It supports

Accepted Answer

A)  only individual primary activities. 
B)  mostly support activities but does have some impact on primary activities. 
C)  only individual support activities. 
D)  both individual primary and support activities and the entire value chain. 
A)  only individual primary activities. 
B)  mostly support activities but does have some impact on primary activities. 
C)  only individual support activities. 
D)  both individual primary and support activities and the entire value chain.

Question 19

The best measure of company ability to meet imminent financial obligations is known as the

Accepted Answer

A)  debt ratio. 
B)  profit margin. 
C)  total asset turnover. 
D)  current ratio. 
A)  debt ratio. 
B)  profit margin. 
C)  total asset turnover. 
D)  current ratio.

Question 20

Which of the following lists consists of support activities?

Accepted Answer

A)  human resource management, technology development, customer service, and procurement 
B)  human resource management, customer service, marketing and sales, and operations 
C)  customer service, information systems, technology development, and procurement 
D)  human resource management, technology development, procurement, and general administration 
A)  human resource management, technology development, customer service, and procurement 
B)  human resource management, customer service, marketing and sales, and operations 
C)  customer service, information systems, technology development, and procurement 
D)  human resource management, technology development, procurement, and general administration

________ are the competencies or skills that a firm employs to transform inputs into outputs.

General administration is sometimes viewed as only ________, but it can be a powerful source of competitive advantage.

Which of the following would be most difficult to assess?

Chipolte is a fast-food, Mexican cuisine restaurant that bases its value-creating activities on streamlined operations. Discuss this value-chain primary activity and how Chipolte usesitto its advantage. Refer to Strategy Spotlight 3.1 for details.

In contrast to interactions, which allow the firm to gain insights on the needs of a particular customer, offers the opportunity to leverage the wisdom of a larger crowd.

Financial analysis provides an accurate way to assess the relative strengths of firms and can be used as a complete guide to study companies.

Which of the following is not a factor that helps to explain the extent to which employees and managers will be able to obtain a proportionately high level of the profits that they generate?

________ ratios reflect whether a firm is efficiently using its resources,

For a resource to provide a firm with the potential for a sustainable competitive advantage, it must have four attributes. Which of the following is not one of these attributes?

A firm's financial position should not be analyzed in isolation. Important reference points are needed. Discuss how historical comparisons, comparisons with industry norms, and comparisons with key competitors can be used to make financial analysis more meaningful.

Discuss the four criteria that the resources of a firm must possess to maintain a sustainable advantage. Give an example of one of these criteria.

A competitive advantage based on inimitability can be sustained for at least some time, if it has the following characteristics:

In making the decision to enter the pharmaceutical industry, a company would not need to consider which of the following?

Which of the following is a support activity?

When Nordstrom, the Seattle-based department store chain, aids customers with after-sales support, it exemplifies which primary value-chain activity?

If managers do not recognize from the beginning that the balanced scorecard is not a ________ and fail to commit to it long term, the organization will be disappointed.

Which of the following is a profitability ratio?

Human resource management consists of activities involved in the recruiting, hiring, training, development, and compensation of all types of personnel. It supports

The best measure of company ability to meet imminent financial obligations is known as the

Which of the following lists consists of support activities?

Strategic Management Creating Competitive Advantages

Analyzing the External Environment of the Firm Creating Competitive Advantages

Recognizing a Firm's Intellectual Assets Moving beyond a Firm's Tangible Resources

Business-Level Strategy Creating and Sustaining Competitive Advantages

Corporate-Level Strategy Creating Value through Diversification

International Strategy Creating Value in Global Markets

Entrepreneurial Strategy and Competitive Dynamics

Strategic Control and Corporate Governance

Creating Effective Organizational Designs

Strategic Leadership Creating a Learning Organization and an Ethical Organization

Managing Innovation and Fostering Corporate Entrepreneurship

Filters

Exam 3: Assessing the Internal Environment of the Firm

________ are the competencies or skills that a firm employs to transform inputs into outputs.

General administration is sometimes viewed as only ________, but it can be a powerful source of competitive advantage.

Which of the following would be most difficult to assess?

Chipolte is a fast-food, Mexican cuisine restaurant that bases its value-creating activities on streamlined operations. Discuss this value-chain primary activity and how Chipolte usesitto its advantage. Refer to Strategy Spotlight 3.1 for details.

In contrast to ________ interactions, which allow the firm to gain insights on the needs of a particular customer, ________ offers the opportunity to leverage the wisdom of a larger crowd.

Financial analysis provides an accurate way to assess the relative strengths of firms and can be used as a complete guide to study companies.

Which of the following is not a factor that helps to explain the extent to which employees and managers will be able to obtain a proportionately high level of the profits that they generate?

________ ratios reflect whether a firm is efficiently using its resources,

For a resource to provide a firm with the potential for a sustainable competitive advantage, it must have four attributes. Which of the following is not one of these attributes?

A firm's financial position should not be analyzed in isolation. Important reference points are needed. Discuss how historical comparisons, comparisons with industry norms, and comparisons with key competitors can be used to make financial analysis more meaningful.

Discuss the four criteria that the resources of a firm must possess to maintain a sustainable advantage. Give an example of one of these criteria.

A competitive advantage based on inimitability can be sustained for at least some time, if it has the following characteristics:

In making the decision to enter the pharmaceutical industry, a company would not need to consider which of the following?

Which of the following is a support activity?

When Nordstrom, the Seattle-based department store chain, aids customers with after-sales support, it exemplifies which primary value-chain activity?

If managers do not recognize from the beginning that the balanced scorecard is not a ________ and fail to commit to it long term, the organization will be disappointed.

Which of the following is a profitability ratio?

Human resource management consists of activities involved in the recruiting, hiring, training, development, and compensation of all types of personnel. It supports

The best measure of company ability to meet imminent financial obligations is known as the

Which of the following lists consists of support activities?

Strategic Management Creating Competitive Advantages

Analyzing the External Environment of the Firm Creating Competitive Advantages

Recognizing a Firm's Intellectual Assets Moving beyond a Firm's Tangible Resources

Business-Level Strategy Creating and Sustaining Competitive Advantages

Corporate-Level Strategy Creating Value through Diversification

International Strategy Creating Value in Global Markets

Entrepreneurial Strategy and Competitive Dynamics

Strategic Control and Corporate Governance

Creating Effective Organizational Designs

Strategic Leadership Creating a Learning Organization and an Ethical Organization

Managing Innovation and Fostering Corporate Entrepreneurship

Filters

In contrast to interactions, which allow the firm to gain insights on the needs of a particular customer, offers the opportunity to leverage the wisdom of a larger crowd.