Question 1

Which of the following is NOT an example of an external threat to a company's future profitability?

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 2

A useful way to identify a company's resources is to view them as

Accepted Answer

A)  divided into two main categories, tangible and intangible. 
B)  productive inputs or competitive assets, except human assets and intellectual capital, which are considered capabilities or competencies. 
C)  physical resources, such as the company's brand, image, and reputation assets. 
D)  an inventory or a collection of the firm's strengths, weaknesses, opportunities, and threats. 
E)  intangible resources such as patents, copyrights, and technological processes. 
A)  divided into two main categories, tangible and intangible. 
B)  productive inputs or competitive assets, except human assets and intellectual capital, which are considered capabilities or competencies. 
C)  physical resources, such as the company's brand, image, and reputation assets. 
D)  an inventory or a collection of the firm's strengths, weaknesses, opportunities, and threats. 
E)  intangible resources such as patents, copyrights, and technological processes.

Question 3

Tangible resources include

Accepted Answer

A)  human assets and intellectual capital, which can include the talent of the work force and the creativity and innovativeness of certain personnel. 
B)  reputational assets, which can include the company's reputation for quality, service, and reliability as well as their reputation for fair dealings with suppliers. 
C)  relationships such as alliances that provide access to technologies, specialized know-how, or geographic markets. 
D)  technological assets such as patents, copyrights, and innovation technologies. 
E)  company culture and incentive system, which includes the norms of behavior and business principles. 
A)  human assets and intellectual capital, which can include the talent of the work force and the creativity and innovativeness of certain personnel. 
B)  reputational assets, which can include the company's reputation for quality, service, and reliability as well as their reputation for fair dealings with suppliers. 
C)  relationships such as alliances that provide access to technologies, specialized know-how, or geographic markets. 
D)  technological assets such as patents, copyrights, and innovation technologies. 
E)  company culture and incentive system, which includes the norms of behavior and business principles.

Question 4

A core competence

Accepted Answer

A)  detracts from a company's arsenal of competitive capabilities and competitive assets and is not a resource strength considered to be genuine. 
B)  is typically results-based, residing in a company's tangible physical assets on the balance sheet. 
C)  is often grounded in a single department's set of knowledge and expertise. 
D)  is an activity that a firm performs proficiently that is also central to its strategy and competitive success. 
E)  is a proficiently performed external activity. 
A)  detracts from a company's arsenal of competitive capabilities and competitive assets and is not a resource strength considered to be genuine. 
B)  is typically results-based, residing in a company's tangible physical assets on the balance sheet. 
C)  is often grounded in a single department's set of knowledge and expertise. 
D)  is an activity that a firm performs proficiently that is also central to its strategy and competitive success. 
E)  is a proficiently performed external activity.

Question 5

Which of the following is NOT an example of an external threat to a company's future profitability?

Accepted Answer

A)  lack of a distinctive competence 
B)  potential of a hostile takeover 
C)  adverse changes in foreign exchange rates 
D)  unfavorable demographic shifts 
E)  introduction of restrictive trade policies in countries where the company does business 
A)  lack of a distinctive competence 
B)  potential of a hostile takeover 
C)  adverse changes in foreign exchange rates 
D)  unfavorable demographic shifts 
E)  introduction of restrictive trade policies in countries where the company does business

Question 6

Which of the following most accurately reflect a company's resource strengths?

Accepted Answer

A)  its core competencies, competitive capabilities, and valuable intangible assets 
B)  sizes of its unit sales, revenues, and market share vis-à-vis those of key rivals 
C)  sizes of its profit margins and return on investment vis-à-vis those of key rivals 
D)  whether it has more primary activities in its value chain than close rivals and a better overall value chain than these rivals 
E)  whether it has a more profitable business model than close rivals 
A)  its core competencies, competitive capabilities, and valuable intangible assets 
B)  sizes of its unit sales, revenues, and market share vis-à-vis those of key rivals 
C)  sizes of its profit margins and return on investment vis-à-vis those of key rivals 
D)  whether it has more primary activities in its value chain than close rivals and a better overall value chain than these rivals 
E)  whether it has a more profitable business model than close rivals

Question 7

Costs and price differences among competing companies can have origins in activities performed by

Accepted Answer

A)  the company's internally performed activities (its own value chain) compared to the cost structure of the internally performed activities of rival companies. 
B)  value chains of the company's suppliers. 
C)  value chains of a company's distributors and retail dealers and forward channel allies. 
D)  the company's internally performed activities (its own value chain), but also on costs in the value chain of its suppliers and distribution channel allies. 
E)  whether the company has a longer or shorter value chain than its close rivals. 
A)  the company's internally performed activities (its own value chain) compared to the cost structure of the internally performed activities of rival companies. 
B)  value chains of the company's suppliers. 
C)  value chains of a company's distributors and retail dealers and forward channel allies. 
D)  the company's internally performed activities (its own value chain), but also on costs in the value chain of its suppliers and distribution channel allies. 
E)  whether the company has a longer or shorter value chain than its close rivals.

Question 8

Which of the following is NOT one of the objectives of benchmarking?

Accepted Answer

A)  to identify the best practices in performing various value chain activities 
B)  to learn how best practice companies achieve lower costs or better results in performing benchmarked activities 
C)  to help construct a company value chain and identify which activities are primary and which are support activities 
D)  to develop cross-company comparisons of the costs of performing specific value chain activities 
E)  to take actions to improve a company's cost competitiveness when benchmarking reveals that its costs and results of performing an activity are not as good as what other companies have achieved 
A)  to identify the best practices in performing various value chain activities 
B)  to learn how best practice companies achieve lower costs or better results in performing benchmarked activities 
C)  to help construct a company value chain and identify which activities are primary and which are support activities 
D)  to develop cross-company comparisons of the costs of performing specific value chain activities 
E)  to take actions to improve a company's cost competitiveness when benchmarking reveals that its costs and results of performing an activity are not as good as what other companies have achieved

Question 9

In conducting a SWOT analysis, is it enough to simply compile lists of the company's strengths, weaknesses, opportunities, and threats? Why or why not?

Accepted Answer

Simply making lists of a company's stren

Question 10

One of the most telling signs of whether a company's market position is strong or precarious is

Accepted Answer

A)  whether its product is strongly or weakly differentiated from rivals. 
B)  whether its prices and costs are competitive with those of key rivals. 
C)  whether it has a lower stock price than key rivals. 
D)  the opinions of buyers regarding which seller has the best product quality and customer service. 
E)  whether it is in a bigger or smaller strategic group than its closest rivals. 
A)  whether its product is strongly or weakly differentiated from rivals. 
B)  whether its prices and costs are competitive with those of key rivals. 
C)  whether it has a lower stock price than key rivals. 
D)  the opinions of buyers regarding which seller has the best product quality and customer service. 
E)  whether it is in a bigger or smaller strategic group than its closest rivals.

Question 11

When companies engage in value-creating activities, they do so by

Accepted Answer

A)  focusing on exploiting a company's best-executed operating strategy. 
B)  concentrating on efficient performance of the company's primary value chain activities. 
C)  concentrating on minimizing the costs associated with the design of a product or service. 
D)  drawing on specific company resources and capabilities that underlie and enable the activity. 
E)  focusing on working with forward-channel allies to develop capabilities to outmatch the capabilities of rivals. 
A)  focusing on exploiting a company's best-executed operating strategy. 
B)  concentrating on efficient performance of the company's primary value chain activities. 
C)  concentrating on minimizing the costs associated with the design of a product or service. 
D)  drawing on specific company resources and capabilities that underlie and enable the activity. 
E)  focusing on working with forward-channel allies to develop capabilities to outmatch the capabilities of rivals.

Question 12

What are the three main approaches to rectifying a weakness in a company's customer value proposition?

Accepted Answer

The three moves to achieve better cost c

Question 13

For a company to translate its performance of value chain activities into competitive advantage, it must

Accepted Answer

A)  undertake ongoing and persistent efforts to be cost-efficient and develop differentiation advantages. 
B)  have more core competencies than rivals. 
C)  have at least three distinctive competencies. 
D)  have competencies that allow it to produce the highest-quality product in the industry. 
E)  have more competitive assets than competitive liabilities. 
A)  undertake ongoing and persistent efforts to be cost-efficient and develop differentiation advantages. 
B)  have more core competencies than rivals. 
C)  have at least three distinctive competencies. 
D)  have competencies that allow it to produce the highest-quality product in the industry. 
E)  have more competitive assets than competitive liabilities.

Question 14

Identifying the strategic issues a company faces and compiling a "worry list" of problems and roadblocks is an important component of company situation analysis because

Accepted Answer

A)  without a precise fix on what problems/issues a company confronts, managers cannot know what the industry's key success factors are. 
B)  the "worry list" sets the management agenda for taking actions to improve the company's performance and business outlook. 
C)  without a precise fix on what problems/roadblocks a company confronts, managers are less clear about what value chain activities to benchmark. 
D)  these issues and obstacles must be cleared before management can focus clearly on what is the best strategy for the company to pursue. 
E)  the "worry list" helps company managers clarify their thinking about how best to modify the company's value chain. 
A)  without a precise fix on what problems/issues a company confronts, managers cannot know what the industry's key success factors are. 
B)  the "worry list" sets the management agenda for taking actions to improve the company's performance and business outlook. 
C)  without a precise fix on what problems/roadblocks a company confronts, managers are less clear about what value chain activities to benchmark. 
D)  these issues and obstacles must be cleared before management can focus clearly on what is the best strategy for the company to pursue. 
E)  the "worry list" helps company managers clarify their thinking about how best to modify the company's value chain.

Question 15

Which of the following is NOT an analytical tool for revealing a company's competitiveness and for helping to match the strategy to the company's own particular circumstances?

Accepted Answer

A)  resource and capability analysis 
B)  SWOT 
C)  value chain analysis 
D)  best practice concept 
E)  competitive strength analysis 
A)  resource and capability analysis 
B)  SWOT 
C)  value chain analysis 
D)  best practice concept 
E)  competitive strength analysis

Question 16

Key financial ratios that help to measure a company's profitability DO NOT include

Accepted Answer

A)  inventory turnover. 
B)  return on capital employed. 
C)  net return on assets. 
D)  operating profit margin. 
E)  return on stockholders' equity. 
A)  inventory turnover. 
B)  return on capital employed. 
C)  net return on assets. 
D)  operating profit margin. 
E)  return on stockholders' equity.

Question 17

Organizational capabilities are virtually always

Accepted Answer

A)  knowledge-based, residing in people and in the company's intellectual capital, or in organizational processes and systems, which embody tacit knowledge. 
B)  more complex than resources and are exercised only through key personnel. 
C)  require constant evaluation to ensure cooperative support from management. 
D)  easier and less challenging to categorize than resources because there are fewer to be concerned about. 
E)  reflective of the industry's driving forces. 
A)  knowledge-based, residing in people and in the company's intellectual capital, or in organizational processes and systems, which embody tacit knowledge. 
B)  more complex than resources and are exercised only through key personnel. 
C)  require constant evaluation to ensure cooperative support from management. 
D)  easier and less challenging to categorize than resources because there are fewer to be concerned about. 
E)  reflective of the industry's driving forces.

Question 18

Explain why a weighted competitive strength assessment is important.

Accepted Answer

Industry and competitive analyses reveal

Question 19

Benchmarking involves

Accepted Answer

A)  comparing how different companies perform various value chain activities and then making cross-company comparisons of the costs and effectiveness of these activities. 
B)  checking whether a company has achieved more of its financial and strategic objectives over the past five years relative to its direct competitors. 
C)  studying whether a company's resource strengths are more/less powerful than the resource strengths of rival companies. 
D)  studying how a company's competitive capabilities stack up against the competitive capabilities of selected companies known to have world-class competitive capabilities. 
E)  comparing the best practices in one industry against the best practices in another industry. 
A)  comparing how different companies perform various value chain activities and then making cross-company comparisons of the costs and effectiveness of these activities. 
B)  checking whether a company has achieved more of its financial and strategic objectives over the past five years relative to its direct competitors. 
C)  studying whether a company's resource strengths are more/less powerful than the resource strengths of rival companies. 
D)  studying how a company's competitive capabilities stack up against the competitive capabilities of selected companies known to have world-class competitive capabilities. 
E)  comparing the best practices in one industry against the best practices in another industry.

Question 20

A company's competitive strength scores pinpoint its strengths and weaknesses against rivals and

Accepted Answer

A)  suggest the company use its strengths to exploit its own competitive liabilities. 
B)  point directly to the kinds of offensive/defensive actions it can use to exploit its competitive strengths and reduce its competitive liabilities. 
C)  point directly to the company to use its weaknesses as offensive moves to challenge rivals' weaknesses. 
D)  suggest receptivity for astute companies to drive their operating practices if the strength scores are very low. 
E)  point directly to accepting the competitive strength scores on face value. 
A)  suggest the company use its strengths to exploit its own competitive liabilities. 
B)  point directly to the kinds of offensive/defensive actions it can use to exploit its competitive strengths and reduce its competitive liabilities. 
C)  point directly to the company to use its weaknesses as offensive moves to challenge rivals' weaknesses. 
D)  suggest receptivity for astute companies to drive their operating practices if the strength scores are very low. 
E)  point directly to accepting the competitive strength scores on face value.

Which of the following is NOT an example of an external threat to a company's future profitability?

A useful way to identify a company's resources is to view them as

Tangible resources include

A core competence

Which of the following is NOT an example of an external threat to a company's future profitability?

Which of the following most accurately reflect a company's resource strengths?

Costs and price differences among competing companies can have origins in activities performed by

Which of the following is NOT one of the objectives of benchmarking?

In conducting a SWOT analysis, is it enough to simply compile lists of the company's strengths, weaknesses, opportunities, and threats? Why or why not?

One of the most telling signs of whether a company's market position is strong or precarious is

When companies engage in value-creating activities, they do so by

What are the three main approaches to rectifying a weakness in a company's customer value proposition?

For a company to translate its performance of value chain activities into competitive advantage, it must

Identifying the strategic issues a company faces and compiling a "worry list" of problems and roadblocks is an important component of company situation analysis because

Which of the following is NOT an analytical tool for revealing a company's competitiveness and for helping to match the strategy to the company's own particular circumstances?

Key financial ratios that help to measure a company's profitability DO NOT include

Organizational capabilities are virtually always

Explain why a weighted competitive strength assessment is important.

Benchmarking involves

A company's competitive strength scores pinpoint its strengths and weaknesses against rivals and

What Is Strategy and Why Is It Important

Leading the Process of Crafting and Executing Strategy

Evaluating a Companys External Environment

The Five Generic Competitive Strategies: Which One to Employ

Supplementing the Chosen Competitive Strategy: Other Important Business Strategy Choices

Strategies for Competing in Foreign Markets

Diversification: Strategies for Managing a Group of Businesses

Ethical Business Strategies, Social Responsibility, and Environmental Sustainabil ITY

Building an Organization Capable of Good Strategy Execution

Managing Internal Operations: Actions That Promote Good Strategy Execution

Corporate Culture and Leadership: Keys to Good Strategy Execution

Filters

Exam 4: Evaluating a Companys Resources and Competitive Position

Which of the following is NOT an example of an external threat to a company's future profitability?

A useful way to identify a company's resources is to view them as

Tangible resources include

A core competence

Which of the following is NOT an example of an external threat to a company's future profitability?

Which of the following most accurately reflect a company's resource strengths?

Costs and price differences among competing companies can have origins in activities performed by

Which of the following is NOT one of the objectives of benchmarking?

In conducting a SWOT analysis, is it enough to simply compile lists of the company's strengths, weaknesses, opportunities, and threats? Why or why not?

One of the most telling signs of whether a company's market position is strong or precarious is

When companies engage in value-creating activities, they do so by

What are the three main approaches to rectifying a weakness in a company's customer value proposition?

For a company to translate its performance of value chain activities into competitive advantage, it must

Identifying the strategic issues a company faces and compiling a "worry list" of problems and roadblocks is an important component of company situation analysis because

Which of the following is NOT an analytical tool for revealing a company's competitiveness and for helping to match the strategy to the company's own particular circumstances?

Key financial ratios that help to measure a company's profitability DO NOT include

Organizational capabilities are virtually always

Explain why a weighted competitive strength assessment is important.

Benchmarking involves

A company's competitive strength scores pinpoint its strengths and weaknesses against rivals and

What Is Strategy and Why Is It Important

Leading the Process of Crafting and Executing Strategy

Evaluating a Companys External Environment

The Five Generic Competitive Strategies: Which One to Employ

Supplementing the Chosen Competitive Strategy: Other Important Business Strategy Choices

Strategies for Competing in Foreign Markets

Diversification: Strategies for Managing a Group of Businesses

Ethical Business Strategies, Social Responsibility, and Environmental Sustainabil ITY

Building an Organization Capable of Good Strategy Execution

Managing Internal Operations: Actions That Promote Good Strategy Execution

Corporate Culture and Leadership: Keys to Good Strategy Execution

Filters