Question 1

The building blocks of competitive advantage are efficiency, quality, innovation and customer responsiveness.

Accepted Answer

A) True 
 B)False  True

Question 2

Employee productivity is a common measure of efficiency.

Accepted Answer

A) True 
 B)False  True

Question 3

IBM's investment in mainframe computers, that proved disadvantageous when the market shifted to smaller personal computers, is an example of a prior strategic commitment.

Accepted Answer

A) True 
 B)False  True

Question 4

The simplest measure of efficiency is:

Accepted Answer

A)  the amount of money the company has to work with in the short term. 
B)  the ratio of revenues divided by invested capital. 
C)  the net profit expressed as a percentage of sales. 
D)  the total costs of producing products. 
E)  the quantity of inputs that it takes to produce a given output. 
A)  the amount of money the company has to work with in the short term. 
B)  the ratio of revenues divided by invested capital. 
C)  the net profit expressed as a percentage of sales. 
D)  the total costs of producing products. 
E)  the quantity of inputs that it takes to produce a given output.

Question 5

Ford Motors developed the Explorer sports utility vehicle in 1990, and it is still in the top ten best-selling sports utility vehicles in the United States, based on an extensive study of customer preferences. Which value chain activity of Ford conducted those studies?

Accepted Answer

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

Question 6

Which of the following is not a way that companies can avoid failure?

Accepted Answer

A)  Benchmarking 
B)  Continuous learning 
C)  Developing distinctive competencies 
D)  Exploiting luck 
E)  Following rigid business processes 
A)  Benchmarking 
B)  Continuous learning 
C)  Developing distinctive competencies 
D)  Exploiting luck 
E)  Following rigid business processes

Question 7

Absorptive capacity refers to the ability of an enterprise to identify, value, assimilate, and use new knowledge.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

Intellectual property protections, including patents, trademarks and copyrights, typically provide a barrier to imitation.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

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

Question 11

Customer response time is:

Accepted Answer

A)  the time taken for value to be placed on a company's products by customers. 
B)  the time taken for development of a new process for producing products and delivering them to customers. 
C)  the time taken for given inputs to be converted into an output. 
D)  the time taken for development of products that have superior attributes to existing products. 
E)  the time taken for a good to be delivered or a service to be performed. 
A)  the time taken for value to be placed on a company's products by customers. 
B)  the time taken for development of a new process for producing products and delivering them to customers. 
C)  the time taken for given inputs to be converted into an output. 
D)  the time taken for development of products that have superior attributes to existing products. 
E)  the time taken for a good to be delivered or a service to be performed.

Question 12

At the heart of any company's business model is the combination of congruent strategies aimed at creating distinctive competencies that differentiate its products and result in a lower cost structure.

Accepted Answer

A) True 
 B)False

Question 13

The ratio of net profit to invested capital is known as:

Accepted Answer

A)  return on invested capital. 
B)  return on sales. 
C)  capital turnover. 
D)  cost of goods sold. 
E)  sales, general, and administrative expenses. 
A)  return on invested capital. 
B)  return on sales. 
C)  capital turnover. 
D)  cost of goods sold. 
E)  sales, general, and administrative expenses.

Question 14

Lucy is an entrepreneur who is interested in opening her own bakery. She is concerned with obtaining money for equipment for the bakery such as ovens, pots and pans, and display cabinets. Lucy is trying to obtain intangible resources for her business.

Accepted Answer

A) True 
 B)False

Question 15

Factors that make it difficult for a competitor to copy a company's distinctive competencies are known as:

Accepted Answer

A)  barriers to imitation. 
B)  marketing know-how. 
C)  technological know-how. 
D)  support activities. 
E)  capabilities. 
A)  barriers to imitation. 
B)  marketing know-how. 
C)  technological know-how. 
D)  support activities. 
E)  capabilities.

Question 16

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

Accepted Answer

A)  Research and development 
B)  Marketing and sales 
C)  Logistics 
D)  Production 
E)  Service and support 
A)  Research and development 
B)  Marketing and sales 
C)  Logistics 
D)  Production 
E)  Service and support

Question 17

When a resource is said to be organized, this means that the company:

Accepted Answer

A)  identified the resource as a resource. 
B)  built a department to execute its operations using the resource. 
C)  takes the resource for granted and assumes its value. 
D)  has made it difficult to copy or imitate. 
E)  has developed a method for making sure it gets the most out of its unique strengths. 
A)  identified the resource as a resource. 
B)  built a department to execute its operations using the resource. 
C)  takes the resource for granted and assumes its value. 
D)  has made it difficult to copy or imitate. 
E)  has developed a method for making sure it gets the most out of its unique strengths.

Question 18

The intellectual property of an organization is a(n):

Accepted Answer

A)  tangible resource. 
B)  strategic commitment. 
C)  tangible capability. 
D)  barrier to change. 
E)  intangible resource. 
A)  tangible resource. 
B)  strategic commitment. 
C)  tangible capability. 
D)  barrier to change. 
E)  intangible resource.

Question 19

When conducting an internal analysis, strategic managers should:

Accepted Answer

A)  identify its internal resources and evaluate the quality of those resources. 
B)  only count something as a resource if the company is actively managing it. 
C)  always file for patents and trademarks on intellectual property. 
D)  exclude any resource as a source of competitive advantage if it isn't rare. 
E)  identify as many resources as possible, regardless of their value or rarity. 
A)  identify its internal resources and evaluate the quality of those resources. 
B)  only count something as a resource if the company is actively managing it. 
C)  always file for patents and trademarks on intellectual property. 
D)  exclude any resource as a source of competitive advantage if it isn't rare. 
E)  identify as many resources as possible, regardless of their value or rarity.

Question 20

Quality-as-excellence and quality-as-reliability are concepts that apply to goods but not services.

Accepted Answer

A) True 
 B)False

The building blocks of competitive advantage are efficiency, quality, innovation and customer responsiveness.

Employee productivity is a common measure of efficiency.

IBM's investment in mainframe computers, that proved disadvantageous when the market shifted to smaller personal computers, is an example of a prior strategic commitment.

The simplest measure of efficiency is:

Ford Motors developed the Explorer sports utility vehicle in 1990, and it is still in the top ten best-selling sports utility vehicles in the United States, based on an extensive study of customer preferences. Which value chain activity of Ford conducted those studies?

Which of the following is not a way that companies can avoid failure?

Absorptive capacity refers to the ability of an enterprise to identify, value, assimilate, and use new knowledge.

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

Intellectual property protections, including patents, trademarks and copyrights, typically provide a barrier to imitation.

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

Customer response time is:

At the heart of any company's business model is the combination of congruent strategies aimed at creating distinctive competencies that differentiate its products and result in a lower cost structure.

The ratio of net profit to invested capital is known as:

Lucy is an entrepreneur who is interested in opening her own bakery. She is concerned with obtaining money for equipment for the bakery such as ovens, pots and pans, and display cabinets. Lucy is trying to obtain intangible resources for her business.

Factors that make it difficult for a competitor to copy a company's distinctive competencies are known as:

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

When a resource is said to be organized, this means that the company:

The intellectual property of an organization is a(n):

When conducting an internal analysis, strategic managers should:

Quality-as-excellence and quality-as-reliability are concepts that apply to goods but not services.

Strategic Leadership: Managing the Strategy-Making Process for Competitive Advantage

External Analysis: The Identification of Opportunities and Threats

Building Competitive Advantage Through Functional-Level Strategies

Business-Level Strategy

Business-Level Strategy and the Industry Environment

Strategy and Technology

Strategy in the Global Environment

Corporate-Level Strategy: Horizontal Integration, Vertical Integration, and Strategic Outsourcing

Corporate-Level Strategy: Related and Unrelated Diversification

Corporate Performance, Governance, and Business Ethics

Implementing Strategy Through Organization

Filters

Exam 3: Internal Analysis: Resources and Competitive Advantage

The building blocks of competitive advantage are efficiency, quality, innovation and customer responsiveness.

Employee productivity is a common measure of efficiency.

IBM's investment in mainframe computers, that proved disadvantageous when the market shifted to smaller personal computers, is an example of a prior strategic commitment.

The simplest measure of efficiency is:

Ford Motors developed the Explorer sports utility vehicle in 1990, and it is still in the top ten best-selling sports utility vehicles in the United States, based on an extensive study of customer preferences. Which value chain activity of Ford conducted those studies?

Which of the following is not a way that companies can avoid failure?

Absorptive capacity refers to the ability of an enterprise to identify, value, assimilate, and use new knowledge.

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

Intellectual property protections, including patents, trademarks and copyrights, typically provide a barrier to imitation.

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

Customer response time is:

At the heart of any company's business model is the combination of congruent strategies aimed at creating distinctive competencies that differentiate its products and result in a lower cost structure.

The ratio of net profit to invested capital is known as:

Lucy is an entrepreneur who is interested in opening her own bakery. She is concerned with obtaining money for equipment for the bakery such as ovens, pots and pans, and display cabinets. Lucy is trying to obtain intangible resources for her business.

Factors that make it difficult for a competitor to copy a company's distinctive competencies are known as:

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

When a resource is said to be organized, this means that the company:

The intellectual property of an organization is a(n):

When conducting an internal analysis, strategic managers should:

Quality-as-excellence and quality-as-reliability are concepts that apply to goods but not services.

Strategic Leadership: Managing the Strategy-Making Process for Competitive Advantage

External Analysis: The Identification of Opportunities and Threats

Building Competitive Advantage Through Functional-Level Strategies

Business-Level Strategy

Business-Level Strategy and the Industry Environment

Strategy and Technology

Strategy in the Global Environment

Corporate-Level Strategy: Horizontal Integration, Vertical Integration, and Strategic Outsourcing

Corporate-Level Strategy: Related and Unrelated Diversification

Corporate Performance, Governance, and Business Ethics

Implementing Strategy Through Organization

Filters