Question 1

The difference between a core competence and a distinctive competence is that a

Accepted Answer

A) distinctive competence refers to a company's strongest resource or competitive capability, whereas a core competence refers to a company's lowest-cost and most efficiently executed value-chain activity. 
B) core competence usually resides in a company's base of intellectual capital, whereas a distinctive competence stems from the superiority of a company's physical and tangible assets. 
C) core competence is a competitively and strategically relevant activity that a firm performs well compared to its other activities, whereas a distinctive competence is a competitively relevant activity a firm performs well compared to other rival firms. 
D) core competence represents a resource strength, whereas a distinctive competence is achieved by having more resource strengths than rival companies. 
E) core competence usually resides in a company's technology and physical assets, whereas a distinctive competence usually resides in a company's know-how, expertise, and intellectual capital. 
A) distinctive competence refers to a company's strongest resource or competitive capability, whereas a core competence refers to a company's lowest-cost and most efficiently executed value-chain activity. 
B) core competence usually resides in a company's base of intellectual capital, whereas a distinctive competence stems from the superiority of a company's physical and tangible assets. 
C) core competence is a competitively and strategically relevant activity that a firm performs well compared to its other activities, whereas a distinctive competence is a competitively relevant activity a firm performs well compared to other rival firms. 
D) core competence represents a resource strength, whereas a distinctive competence is achieved by having more resource strengths than rival companies. 
E) core competence usually resides in a company's technology and physical assets, whereas a distinctive competence usually resides in a company's know-how, expertise, and intellectual capital.

Question 2

The spotlight in analyzing a company's resources, internal circumstances, and competitiveness includes such questions/concerns as

Accepted Answer

A) whether the company is located all over the globe. 
B) whether the company's key success factors are more dominant than the key success factors of close rivals. 
C) whether the company has the industry's most efficient and effective value chain. 
D) what the company's resource strengths and weaknesses are in relation to the market opportunities and external threats. 
E) what new acquisitions the company would be well advised to make in order to strengthen its financial performance and overall balance sheet position. 
A) whether the company is located all over the globe. 
B) whether the company's key success factors are more dominant than the key success factors of close rivals. 
C) whether the company has the industry's most efficient and effective value chain. 
D) what the company's resource strengths and weaknesses are in relation to the market opportunities and external threats. 
E) what new acquisitions the company would be well advised to make in order to strengthen its financial performance and overall balance sheet position.

Question 3

The competitive power of a company's resource strength is not measured by which one of the following tests?

Accepted Answer

A) Is the resource rare and something rivals lack? 
B) Is the resource strength something that a company has internally rather than in collaborative arrangements with outsiders? 
C) Is the resource strength easily trumped by the substitute resources/capabilities of rivals? 
D) Is the resource strength hard to copy? 
E) Is the resource strength competitively valuable, having the potential to contribute to a competitive advantage? 
A) Is the resource rare and something rivals lack? 
B) Is the resource strength something that a company has internally rather than in collaborative arrangements with outsiders? 
C) Is the resource strength easily trumped by the substitute resources/capabilities of rivals? 
D) Is the resource strength hard to copy? 
E) Is the resource strength competitively valuable, having the potential to contribute to a competitive advantage?

Question 4

When SunPower's managers engage in the process of developing a list of questions to evaluate their company's internal situation, which question does not address the task of evaluating SunPower's resources and competitive position?

Accepted Answer

A) What strategic issues and problems merit front-burner managerial attention at SunPower? 
B) How well is SunPower's present strategy working? 
C) Which are SunPower's least and most profitable geographic market segments? 
D) Is SunPower competitively stronger or weaker than key rivals? 
E) How do SunPower's value chain activities impact its cost structure and customer value proposition? 
A) What strategic issues and problems merit front-burner managerial attention at SunPower? 
B) How well is SunPower's present strategy working? 
C) Which are SunPower's least and most profitable geographic market segments? 
D) Is SunPower competitively stronger or weaker than key rivals? 
E) How do SunPower's value chain activities impact its cost structure and customer value proposition?

Question 5

Explain why a weighted competitive strength assessment is important and useful to strategic managers.

Accepted Answer

Industry and competitive analyses reveal

Question 6

To build a competitive advantage by out-managing rivals in performing value chain activities, a company must

Accepted Answer

A) position itself in the industry's more favorably situated strategic group. 
B) develop resource strengths that will enable it to pursue the industry's most attractive opportunities. 
C) develop core competencies and maybe a distinctive competence that rivals don't have or can't quite match and that are instrumental in helping it deliver attractive value to customers. 
D) outsource all of its value chain activities to world-class vendors and suppliers. 
E) eliminate its resource weaknesses. 
A) position itself in the industry's more favorably situated strategic group. 
B) develop resource strengths that will enable it to pursue the industry's most attractive opportunities. 
C) develop core competencies and maybe a distinctive competence that rivals don't have or can't quite match and that are instrumental in helping it deliver attractive value to customers. 
D) outsource all of its value chain activities to world-class vendors and suppliers. 
E) eliminate its resource weaknesses.

Question 7

A company requires a dynamically evolving portfolio of resources and capabilities to

Accepted Answer

A) assist the strategic planning team in overall direction. 
B) sustain complex manufacturing systems as a strategic recall. 
C) sustain its competitiveness and help drive improvements in its performance. 
D) sustain benefits of high market share as an interest in growth strategies. 
E) transform knowledge into a management style supporting competition in a globally diverse world. 
A) assist the strategic planning team in overall direction. 
B) sustain complex manufacturing systems as a strategic recall. 
C) sustain its competitiveness and help drive improvements in its performance. 
D) sustain benefits of high market share as an interest in growth strategies. 
E) transform knowledge into a management style supporting competition in a globally diverse world.

Question 8

When strategic managers assess the competitive power of company resources, what matters is

Accepted Answer

A) whether it helps differentiate a company's product offering from the product offerings of rival firms. 
B) whether the resource is really competitively valuable, if it is rare and something competitors lack, how hard it is to copy or imitate, and how easily it can be trumped by the substitute resource strengths and competitive capabilities of rivals. 
C) whether customers are aware of the resource and view it positively enough to boost the company's brand name reputation. 
D) whether the resource is something rivals are unable to perform, if it is an important differentiating product or service feature, how strongly it contributes to the company's brand image, and if it is the foundation of a cost-based advantage. 
E) whether the resource is technology based or based on superior marketing know-how. 
A) whether it helps differentiate a company's product offering from the product offerings of rival firms. 
B) whether the resource is really competitively valuable, if it is rare and something competitors lack, how hard it is to copy or imitate, and how easily it can be trumped by the substitute resource strengths and competitive capabilities of rivals. 
C) whether customers are aware of the resource and view it positively enough to boost the company's brand name reputation. 
D) whether the resource is something rivals are unable to perform, if it is an important differentiating product or service feature, how strongly it contributes to the company's brand image, and if it is the foundation of a cost-based advantage. 
E) whether the resource is technology based or based on superior marketing know-how.

Question 9

If you were asked to conduct a SWOT analysis for Procter & Gamble, you would not be able to assess

Accepted Answer

A) how to improve Procter & Gamble's strategy by building on its strengths and capabilities 
B) which market opportunities are best suited to Procter & Gamble's strengths and capabilities 
C) which of Procter & Gamble's resource weaknesses and deficiencies need to be corrected so as to better enable the pursuit of important market opportunities and to better defend against certain external threats 
D) how Procter & Gamble could turn a core competence into a distinctive competence 
E) whether any of Procter & Gamble's resource strengths can be used to help lessen the impact of external threats 
A) how to improve Procter & Gamble's strategy by building on its strengths and capabilities 
B) which market opportunities are best suited to Procter & Gamble's strengths and capabilities 
C) which of Procter & Gamble's resource weaknesses and deficiencies need to be corrected so as to better enable the pursuit of important market opportunities and to better defend against certain external threats 
D) how Procter & Gamble could turn a core competence into a distinctive competence 
E) whether any of Procter & Gamble's resource strengths can be used to help lessen the impact of external threats

Question 10

An external threat to a company's future profitability does not include

Accepted Answer

A) the lack of a distinctive competence 
B) new legislation that entails burdensome and costly government regulations 
C) slowdowns in market growth 
D) more intense competitive pressures 
E) the introduction of restrictive trade policies in countries where the company does business 
A) the lack of a distinctive competence 
B) new legislation that entails burdensome and costly government regulations 
C) slowdowns in market growth 
D) more intense competitive pressures 
E) the introduction of restrictive trade policies in countries where the company does business

Question 11

Starbucks has hired you to make a systematic inventory of its competitive capabilities. To do so, you would conduct an assessment of Starbucks'

Accepted Answer

A) resources and functions. 
B) competitive set via a strategy matrix. 
C) sustainability initiatives and resource bundles. 
D) cross-functional systems and collaborative resource methodology. 
E) financial statements and managerial depth charts. 
A) resources and functions. 
B) competitive set via a strategy matrix. 
C) sustainability initiatives and resource bundles. 
D) cross-functional systems and collaborative resource methodology. 
E) financial statements and managerial depth charts.

Question 12

Remedying a supplier-related cost disadvantage would not entail

Accepted Answer

A) integrating backward into the business of high-cost suppliers in an effort to reduce the costs of the items being purchased. 
B) negotiating more favorable prices with suppliers. 
C) collaborating closely with suppliers to identify mutual cost-saving opportunities. 
D) switching to lower-priced substitute inputs. 
E) persuading forward channel allies to implement best practices. 
A) integrating backward into the business of high-cost suppliers in an effort to reduce the costs of the items being purchased. 
B) negotiating more favorable prices with suppliers. 
C) collaborating closely with suppliers to identify mutual cost-saving opportunities. 
D) switching to lower-priced substitute inputs. 
E) persuading forward channel allies to implement best practices.

Question 13

Activity-based costing

Accepted Answer

A) is an accounting system that assigns a company's expenses to whichever activity in a company's value chain is responsible for creating the cost. 
B) involves using benchmarking techniques to develop cost estimates for the value chain activities of each major rival. 
C) is a powerful tool for identifying the different pieces of a company's value chain and classifying them as primary activities and support activities. 
D) involves determining which value chain activities represent variable costs and which represent fixed costs. 
E) is a tool for identifying the activities that cause a company's product to be strongly differentiated from the products of rivals. 
A) is an accounting system that assigns a company's expenses to whichever activity in a company's value chain is responsible for creating the cost. 
B) involves using benchmarking techniques to develop cost estimates for the value chain activities of each major rival. 
C) is a powerful tool for identifying the different pieces of a company's value chain and classifying them as primary activities and support activities. 
D) involves determining which value chain activities represent variable costs and which represent fixed costs. 
E) is a tool for identifying the activities that cause a company's product to be strongly differentiated from the products of rivals.

Question 14

A distinctive competence is not

Accepted Answer

A) a competitively important activity that a company performs better than its rivals. 
B) typically less restrictive for rivals to copy than a core competence. 
C) a basis for sustainable competitive advantage. 
D) considered as a superior internal strength. 
E) capable of delivering stand-out value to customers (in the form of lower prices, better product performance, or superior service). 
A) a competitively important activity that a company performs better than its rivals. 
B) typically less restrictive for rivals to copy than a core competence. 
C) a basis for sustainable competitive advantage. 
D) considered as a superior internal strength. 
E) capable of delivering stand-out value to customers (in the form of lower prices, better product performance, or superior service).

Question 15

In evaluating how well a company's strategy is working, the best place to start is with a

Accepted Answer

A) SWOT analysis. 
B) clear view of what that strategy entails. 
C) value chain analysis. 
D) competitive strength analysis. 
E) financial ratio analysis. 
A) SWOT analysis. 
B) clear view of what that strategy entails. 
C) value chain analysis. 
D) competitive strength analysis. 
E) financial ratio analysis.

Question 16

The best example of a company resource is

Accepted Answer

A) having higher earnings per share and a higher return on shareholders' equity investment than key rivals. 
B) being totally self-sufficient such that the company does not have to rely in any way on key suppliers, partnerships with outsiders, or strategic alliances. 
C) having proven technological expertise and an ability to churn out new and improved products on a regular basis. 
D) having a larger number of competitive assets than competitive liabilities. 
E) having more built-in key success factors than rivals. 
A) having higher earnings per share and a higher return on shareholders' equity investment than key rivals. 
B) being totally self-sufficient such that the company does not have to rely in any way on key suppliers, partnerships with outsiders, or strategic alliances. 
C) having proven technological expertise and an ability to churn out new and improved products on a regular basis. 
D) having a larger number of competitive assets than competitive liabilities. 
E) having more built-in key success factors than rivals.

Question 17

Starwood Hotels' company resource strengths consist of

Accepted Answer

A) its core competencies in site selection, construction, reservations systems, and operations. 
B) the magnitude of its unit sales, revenues, and market share vis-à-vis those of key hotel industry rivals. 
C) the magnitude of its profit margins and return on investment vis-à-vis those of key hotel industry rivals. 
D) whether it has more primary activities in its value chain than close rivals and a better overall value chain than its rivals in the hotel industry. 
E) whether it has a more profitable business model than close rivals in the hotel industry. 
A) its core competencies in site selection, construction, reservations systems, and operations. 
B) the magnitude of its unit sales, revenues, and market share vis-à-vis those of key hotel industry rivals. 
C) the magnitude of its profit margins and return on investment vis-à-vis those of key hotel industry rivals. 
D) whether it has more primary activities in its value chain than close rivals and a better overall value chain than its rivals in the hotel industry. 
E) whether it has a more profitable business model than close rivals in the hotel industry.

Question 18

Identifying the primary and secondary activities that comprise a company's value chain

Accepted Answer

A) indicates whether a company's resource strengths will ultimately translate into greater value for shareholders. 
B) reveals whether a company's resource strengths are well-matched to the industry's key success factors. 
C) is the first step in understanding a company's cost structure (since each activity in the value chain gives rise to costs). 
D) is called benchmarking. 
E) is called resource value analysis. 
A) indicates whether a company's resource strengths will ultimately translate into greater value for shareholders. 
B) reveals whether a company's resource strengths are well-matched to the industry's key success factors. 
C) is the first step in understanding a company's cost structure (since each activity in the value chain gives rise to costs). 
D) is called benchmarking. 
E) is called resource value analysis.

Question 19

A good example of a company's resources does not include

Accepted Answer

A) more intellectual capital and better e-commerce capabilities than rivals 
B) fruitful partnerships or alliances with suppliers that reduce costs and/or enhance product quality and performance 
C) having higher earnings per share and a higher stock price than key rivals 
D) a well-known brand name and enjoying the confidence of customers 
E) a lower-cost value chain than rivals 
A) more intellectual capital and better e-commerce capabilities than rivals 
B) fruitful partnerships or alliances with suppliers that reduce costs and/or enhance product quality and performance 
C) having higher earnings per share and a higher stock price than key rivals 
D) a well-known brand name and enjoying the confidence of customers 
E) a lower-cost value chain than rivals

Question 20

When a company performs a particular competitively important activity truly well in comparison to its rivals, it is said to have a

Accepted Answer

A) company competence. 
B) strategic resource. 
C) distinctive competence. 
D) core competence. 
E) key success factor. 
A) company competence. 
B) strategic resource. 
C) distinctive competence. 
D) core competence. 
E) key success factor.

The difference between a core competence and a distinctive competence is that a

The spotlight in analyzing a company's resources, internal circumstances, and competitiveness includes such questions/concerns as

The competitive power of a company's resource strength is not measured by which one of the following tests?

When SunPower's managers engage in the process of developing a list of questions to evaluate their company's internal situation, which question does not address the task of evaluating SunPower's resources and competitive position?

Explain why a weighted competitive strength assessment is important and useful to strategic managers.

To build a competitive advantage by out-managing rivals in performing value chain activities, a company must

A company requires a dynamically evolving portfolio of resources and capabilities to

When strategic managers assess the competitive power of company resources, what matters is

If you were asked to conduct a SWOT analysis for Procter & Gamble, you would not be able to assess

An external threat to a company's future profitability does not include

Starbucks has hired you to make a systematic inventory of its competitive capabilities. To do so, you would conduct an assessment of Starbucks'

Remedying a supplier-related cost disadvantage would not entail

Activity-based costing

A distinctive competence is not

In evaluating how well a company's strategy is working, the best place to start is with a

The best example of a company resource is

Starwood Hotels' company resource strengths consist of

Identifying the primary and secondary activities that comprise a company's value chain

A good example of a company's resources does not include

When a company performs a particular competitively important activity truly well in comparison to its rivals, it is said to have a

What Is Strategy and Why Is It Important?

Charting a Companys Direction

Evaluating a Companys External Environment

The Five Generic Competitive Strategies

Strengthening a Companys Competitive Position

Strategies for Competing in International Markets

Corporate Strategy

Ethics, Corporate Social Responsibility, Environmental Sustainability, and Strategy

Building an Organization Capable of Good Strategy Execution

Managing Internal Operations

Corporate Culture and Leadership

Filters

Exam 4: Evaluating a Companys Resources, Capabilities, and Competitiveness

The difference between a core competence and a distinctive competence is that a

The spotlight in analyzing a company's resources, internal circumstances, and competitiveness includes such questions/concerns as

The competitive power of a company's resource strength is not measured by which one of the following tests?

When SunPower's managers engage in the process of developing a list of questions to evaluate their company's internal situation, which question does not address the task of evaluating SunPower's resources and competitive position?

Explain why a weighted competitive strength assessment is important and useful to strategic managers.

To build a competitive advantage by out-managing rivals in performing value chain activities, a company must

A company requires a dynamically evolving portfolio of resources and capabilities to

When strategic managers assess the competitive power of company resources, what matters is

If you were asked to conduct a SWOT analysis for Procter & Gamble, you would not be able to assess

An external threat to a company's future profitability does not include

Starbucks has hired you to make a systematic inventory of its competitive capabilities. To do so, you would conduct an assessment of Starbucks'

Remedying a supplier-related cost disadvantage would not entail

Activity-based costing

A distinctive competence is not

In evaluating how well a company's strategy is working, the best place to start is with a

The best example of a company resource is

Starwood Hotels' company resource strengths consist of

Identifying the primary and secondary activities that comprise a company's value chain

A good example of a company's resources does not include

When a company performs a particular competitively important activity truly well in comparison to its rivals, it is said to have a

What Is Strategy and Why Is It Important?

Charting a Companys Direction

Evaluating a Companys External Environment

The Five Generic Competitive Strategies

Strengthening a Companys Competitive Position

Strategies for Competing in International Markets

Corporate Strategy

Ethics, Corporate Social Responsibility, Environmental Sustainability, and Strategy

Building an Organization Capable of Good Strategy Execution

Managing Internal Operations

Corporate Culture and Leadership

Filters