Question 1

The best indicator of how well a company's strategy is working is whether the company is

Accepted Answer

A)  achieving its stated financial objectives, its financial performance equates to the industry average, and market share gains reflect short-term preferences for capacity maximization. 
B)  attentive to its poor execution in functional areas, business goals are stretch, and the value proposition has a product focus. 
C)  geared to initiatives designed to build market share and to promote corporate responsibility. 
D)  achieving its stated financial and strategic objectives, its financial performance is better than the industry average, and it is gaining customers and increasing its market share. 
E)  geared to initiatives to promote corporate social responsibility. 
A)  achieving its stated financial objectives, its financial performance equates to the industry average, and market share gains reflect short-term preferences for capacity maximization. 
B)  attentive to its poor execution in functional areas, business goals are stretch, and the value proposition has a product focus. 
C)  geared to initiatives designed to build market share and to promote corporate responsibility. 
D)  achieving its stated financial and strategic objectives, its financial performance is better than the industry average, and it is gaining customers and increasing its market share. 
E)  geared to initiatives to promote corporate social responsibility.

Question 2

Which of the following is NOT an option for remedying a cost disadvantage associated with activities performed by forward channel allies (wholesale distributors and retail dealers)?

Accepted Answer

A)  changing to a more economical distribution strategy such as putting more emphasis on cheaper distribution channels (perhaps direct sales via the Internet) or perhaps integrating forward into company-owned retail outlets 
B)  enhancing differentiation through activities such as cooperative advertising at the forward end of the value chain 
C)  pressuring distributors/dealers and other forward-channel allies to reduce their costs and markups 
D)  insisting on across-the-board cost cuts in all value chain activities-those performed by suppliers, those performed in-house, and those performed by distributors/dealers 
E)  collaborating with forward channel allies to identify win-win opportunities to reduce costs 
A)  changing to a more economical distribution strategy such as putting more emphasis on cheaper distribution channels (perhaps direct sales via the Internet) or perhaps integrating forward into company-owned retail outlets 
B)  enhancing differentiation through activities such as cooperative advertising at the forward end of the value chain 
C)  pressuring distributors/dealers and other forward-channel allies to reduce their costs and markups 
D)  insisting on across-the-board cost cuts in all value chain activities-those performed by suppliers, those performed in-house, and those performed by distributors/dealers 
E)  collaborating with forward channel allies to identify win-win opportunities to reduce costs

Question 3

A much-used and potent managerial tool for determining whether a company performs particular functions or activities in a manner that represents "the best practice" when both cost and effectiveness are taken into account is

Accepted Answer

A)  competitive strength analysis. 
B)  activity-based costing. 
C)  resource cost mapping. 
D)  SWOT analysis. 
E)  benchmarking. 
A)  competitive strength analysis. 
B)  activity-based costing. 
C)  resource cost mapping. 
D)  SWOT analysis. 
E)  benchmarking.

Question 4

Which of the following is NOT a reliable measure of how well a company's current strategy is working?

Accepted Answer

A)  whether the company's sales are growing faster, slower, or about the same pace as the industry as a whole, thus resulting in a rising, falling, or stable market share 
B)  whether it has a larger number of competitive assets than competitive liabilities and whether it has a superior quality product 
C)  the firm's image and reputation with its customers 
D)  whether its profit margins are rising or falling and how large its margins are relative to those of its rivals 
E)  evidence of improvement in internal processes such as defect rate, order fulfillment, delivery times, days of inventory, and employee productivity 
A)  whether the company's sales are growing faster, slower, or about the same pace as the industry as a whole, thus resulting in a rising, falling, or stable market share 
B)  whether it has a larger number of competitive assets than competitive liabilities and whether it has a superior quality product 
C)  the firm's image and reputation with its customers 
D)  whether its profit margins are rising or falling and how large its margins are relative to those of its rivals 
E)  evidence of improvement in internal processes such as defect rate, order fulfillment, delivery times, days of inventory, and employee productivity

Question 5

A company resource weakness or competitive deficiency

Accepted Answer

A)  represents a problem that needs to be turned into a strength because weaknesses prevent a firm from being a winner in the marketplace. 
B)  causes the company to fall into a lower strategic group than it otherwise could compete in. 
C)  prevents a company from having a distinctive competence. 
D)  is something a company lacks or does poorly (in comparison to rivals) or a condition that puts it at a disadvantage in the marketplace. 
E)  usually stems from having a missing link or links in the industry value chain. 
A)  represents a problem that needs to be turned into a strength because weaknesses prevent a firm from being a winner in the marketplace. 
B)  causes the company to fall into a lower strategic group than it otherwise could compete in. 
C)  prevents a company from having a distinctive competence. 
D)  is something a company lacks or does poorly (in comparison to rivals) or a condition that puts it at a disadvantage in the marketplace. 
E)  usually stems from having a missing link or links in the industry value chain.

Question 6

Quantitative measures of a company's competitive strength

Accepted Answer

A)  signal which competitor has the most distinctive competencies and which competitor has the fewest. 
B)  provide useful indicators of how a company compares against key rivals, factor by factor and capability by capability-thus indicating whether the company has a net overall competitive advantage or disadvantage against each rival. 
C)  reveal which competitors are in the best and worst strategic groups. 
D)  show which industry rival has the best overall market opportunities and which competitor has the poorest market opportunities. 
E)  pinpoint which industry rival is subject to the least amount of competitive pressures from the five competitive forces. 
A)  signal which competitor has the most distinctive competencies and which competitor has the fewest. 
B)  provide useful indicators of how a company compares against key rivals, factor by factor and capability by capability-thus indicating whether the company has a net overall competitive advantage or disadvantage against each rival. 
C)  reveal which competitors are in the best and worst strategic groups. 
D)  show which industry rival has the best overall market opportunities and which competitor has the poorest market opportunities. 
E)  pinpoint which industry rival is subject to the least amount of competitive pressures from the five competitive forces.

Question 7

Which of the following is NOT an example of a threat to a company's future profitability and well-being?

Accepted Answer

A)  the likely entry of potent new competitors 
B)  the lack of a well-known brand name with which to attract new customers and help retain existing customers 
C)  shifts in buyer needs and tastes away from the industry's product 
D)  costly new regulatory requirements 
E)  growing bargaining power on the part of the company's major customers and major suppliers 
A)  the likely entry of potent new competitors 
B)  the lack of a well-known brand name with which to attract new customers and help retain existing customers 
C)  shifts in buyer needs and tastes away from the industry's product 
D)  costly new regulatory requirements 
E)  growing bargaining power on the part of the company's major customers and major suppliers

Question 8

Benchmarking provides a company with which of the following?

Accepted Answer

A)  hard evidence of cost competitiveness 
B)  proof of resource availability 
C)  a company strategy 
D)  verification of total cost ownership 
E)  improvements to internal processes 
A)  hard evidence of cost competitiveness 
B)  proof of resource availability 
C)  a company strategy 
D)  verification of total cost ownership 
E)  improvements to internal processes

Question 9

The best quantitative evidence of whether a company's present strategy is working well is

Accepted Answer

A)  whether the company has more competitive assets than it does competitive liabilities. 
B)  whether the company is in the industry's best strategic group. 
C)  the caliber of results the strategy is producing, specifically whether the company is achieving its financial and strategic objectives and whether it is an above-average industry performer. 
D)  whether the company has a shorter value chain than close rivals. 
E)  whether the company is in the Fortune 500. 
A)  whether the company has more competitive assets than it does competitive liabilities. 
B)  whether the company is in the industry's best strategic group. 
C)  the caliber of results the strategy is producing, specifically whether the company is achieving its financial and strategic objectives and whether it is an above-average industry performer. 
D)  whether the company has a shorter value chain than close rivals. 
E)  whether the company is in the Fortune 500.

Question 10

When an activity becomes something a company has learned to perform proficiently and capably, the company is said to have a

Accepted Answer

A)  competence. 
B)  competitive advantage over rivals. 
C)  key value chain proficiency. 
D)  distinctive capability. 
E)  resource advantage. 
A)  competence. 
B)  competitive advantage over rivals. 
C)  key value chain proficiency. 
D)  distinctive capability. 
E)  resource advantage.

Question 11

The three main areas in the value chain where significant differences in the costs of competing firms can occur include

Accepted Answer

A)  age of plants and equipment, number of employees, and advertising costs. 
B)  operating-level activities, functional area activities, and line of business activities. 
C)  the nature and makeup of their own internal operations, the activities performed by suppliers, and the activities performed by wholesale distribution and retailing allies. 
D)  human resource activities (particularly labor costs), vertical integration activities, and strategic partnership activities. 
E)  variable cost activities, fixed cost activities, and administrative activities. 
A)  age of plants and equipment, number of employees, and advertising costs. 
B)  operating-level activities, functional area activities, and line of business activities. 
C)  the nature and makeup of their own internal operations, the activities performed by suppliers, and the activities performed by wholesale distribution and retailing allies. 
D)  human resource activities (particularly labor costs), vertical integration activities, and strategic partnership activities. 
E)  variable cost activities, fixed cost activities, and administrative activities.

Question 12

An option for NOT remedying an internal cost disadvantage includes

Accepted Answer

A)  investing in productivity-enhancing, cost-saving technological improvements. 
B)  redesigning the product or some of its components to facilitate speedier and more economical manufacture or assembly. 
C)  implementing the use of best practices throughout the company, particularly for high-cost activities. 
D)  eliminating some cost-producing activities altogether by revamping the value chain. 
E)  performing activities in the same way as done earlier. 
A)  investing in productivity-enhancing, cost-saving technological improvements. 
B)  redesigning the product or some of its components to facilitate speedier and more economical manufacture or assembly. 
C)  implementing the use of best practices throughout the company, particularly for high-cost activities. 
D)  eliminating some cost-producing activities altogether by revamping the value chain. 
E)  performing activities in the same way as done earlier.

Question 13

When a company has a proficiency in performing a strategically and competitively important value chain activity better than its rivals, it is said to have a

Accepted Answer

A)  company competence. 
B)  core competence. 
C)  distinctive competence. 
D)  key value chain proficiency. 
E)  competitive advantage over rivals. 
A)  company competence. 
B)  core competence. 
C)  distinctive competence. 
D)  key value chain proficiency. 
E)  competitive advantage over rivals.

Question 14

Which of the following areas within a company's total value chain system can managers use to improve efficiency and effectiveness?

Accepted Answer

A)  a company's own internal activity segments, the suppliers' part, and the forward (distribution) channel portion of the value chain system 
B)  a company's reinforced activities identified as efficiency measures for improved effectiveness 
C)  only the internal activity segments 
D)  only the suppliers' part 
E)  only the distributors' channel portion 
A)  a company's own internal activity segments, the suppliers' part, and the forward (distribution) channel portion of the value chain system 
B)  a company's reinforced activities identified as efficiency measures for improved effectiveness 
C)  only the internal activity segments 
D)  only the suppliers' part 
E)  only the distributors' channel portion

Question 15

Imitation by rivals is most challenging when

Accepted Answer

A)  resources are unique. 
B)  resources must be built over time. 
C)  capabilities reflect a high level of social complexity and causal ambiguity. 
D)  resources and capabilities require a high level of capital investment. 
E)  resources are primarily intangible. 
A)  resources are unique. 
B)  resources must be built over time. 
C)  capabilities reflect a high level of social complexity and causal ambiguity. 
D)  resources and capabilities require a high level of capital investment. 
E)  resources are primarily intangible.

Question 16

Identify the six questions to consider in evaluating a company's ability to compete successfully against market rivals.

Accepted Answer

The six questions are as follows: 1. How

Question 17

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 18

Tangible resources DO NOT include

Accepted Answer

A)  physical resources. 
B)  financial resources. 
C)  human assets. 
D)  technological assets. 
E)  organizational resources. 
A)  physical resources. 
B)  financial resources. 
C)  human assets. 
D)  technological assets. 
E)  organizational resources.

Question 19

In determining the various strategic issues that a company needs to address, managers need to consider BOTH the results of its analysis of the company's external environment and the results of its evaluation of the company's resources and competitive position. True or false? Explain and defend your answer.

Accepted Answer

A) True 
 B)False

Question 20

Activity-based costing is used to evaluate a company's cost-competitiveness and

Accepted Answer

A)  determine whether the value chains of rival companies are similar or different. 
B)  benchmark the costs of primary value chain activities against the costs of the support value chain activities. 
C)  determine the costs of each primary and support activity comprising a company's value chain and thereby reveal the nature and makeup of a company's internal cost structure. 
D)  determine the costs of each strategic action a company initiates. 
E)  analyze the costs of each primary activity. 
A)  determine whether the value chains of rival companies are similar or different. 
B)  benchmark the costs of primary value chain activities against the costs of the support value chain activities. 
C)  determine the costs of each primary and support activity comprising a company's value chain and thereby reveal the nature and makeup of a company's internal cost structure. 
D)  determine the costs of each strategic action a company initiates. 
E)  analyze the costs of each primary activity.

The best indicator of how well a company's strategy is working is whether the company is

Which of the following is NOT an option for remedying a cost disadvantage associated with activities performed by forward channel allies (wholesale distributors and retail dealers)?

A much-used and potent managerial tool for determining whether a company performs particular functions or activities in a manner that represents "the best practice" when both cost and effectiveness are taken into account is

Which of the following is NOT a reliable measure of how well a company's current strategy is working?

A company resource weakness or competitive deficiency

Quantitative measures of a company's competitive strength

Which of the following is NOT an example of a threat to a company's future profitability and well-being?

Benchmarking provides a company with which of the following?

The best quantitative evidence of whether a company's present strategy is working well is

When an activity becomes something a company has learned to perform proficiently and capably, the company is said to have a

The three main areas in the value chain where significant differences in the costs of competing firms can occur include

An option for NOT remedying an internal cost disadvantage includes

When a company has a proficiency in performing a strategically and competitively important value chain activity better than its rivals, it is said to have a

Which of the following areas within a company's total value chain system can managers use to improve efficiency and effectiveness?

Imitation by rivals is most challenging when

Identify the six questions to consider in evaluating a company's ability to compete successfully against market rivals.

Activity-based costing

Tangible resources DO NOT include

Activity-based costing is used to evaluate a company's cost-competitiveness 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

The best indicator of how well a company's strategy is working is whether the company is

Which of the following is NOT an option for remedying a cost disadvantage associated with activities performed by forward channel allies (wholesale distributors and retail dealers)?

A much-used and potent managerial tool for determining whether a company performs particular functions or activities in a manner that represents "the best practice" when both cost and effectiveness are taken into account is

Which of the following is NOT a reliable measure of how well a company's current strategy is working?

A company resource weakness or competitive deficiency

Quantitative measures of a company's competitive strength

Which of the following is NOT an example of a threat to a company's future profitability and well-being?

Benchmarking provides a company with which of the following?

The best quantitative evidence of whether a company's present strategy is working well is

When an activity becomes something a company has learned to perform proficiently and capably, the company is said to have a

The three main areas in the value chain where significant differences in the costs of competing firms can occur include

An option for NOT remedying an internal cost disadvantage includes

When a company has a proficiency in performing a strategically and competitively important value chain activity better than its rivals, it is said to have a

Which of the following areas within a company's total value chain system can managers use to improve efficiency and effectiveness?

Imitation by rivals is most challenging when

Identify the six questions to consider in evaluating a company's ability to compete successfully against market rivals.

Activity-based costing

Tangible resources DO NOT include

Activity-based costing is used to evaluate a company's cost-competitiveness 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