Question 1

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.

Question 2

A company's value-creating activities can offer a competitive advantage in one of two ways

Accepted Answer

A)  contribute to greater efficiency and lower costs and provide a basis for differentiation. 
B)  contribute expense savings and enhance product exclusivity. 
C)  reduce cost disadvantages and market price anomalies. 
D)  contribute customer experience value and conserve operating functionality. 
E)  contribute to competitive assets and discontinue distinctive competencies. 
A)  contribute to greater efficiency and lower costs and provide a basis for differentiation. 
B)  contribute expense savings and enhance product exclusivity. 
C)  reduce cost disadvantages and market price anomalies. 
D)  contribute customer experience value and conserve operating functionality. 
E)  contribute to competitive assets and discontinue distinctive competencies.

Question 3

Calculating competitive strength ratings for a company and its rivals using the industry's most telling measures of competitive strength or weakness

Accepted Answer

A)  is a way of determining which competitor has the highest overall competitive advantage in the marketplace and which competitor is faced with the lowest overall competitive disadvantage. 
B)  is the most reliable indicator of which industry member has the highest overall product quality. 
C)  is a powerful way of revealing which competitors are in the best and worst strategic groups. 
D)  is the most reliable indicator of which industry member has the lowest overall costs and is the low-cost leader. 
E)  pinpoints which industry rivals are most insulated from the industry's driving forces. 
A)  is a way of determining which competitor has the highest overall competitive advantage in the marketplace and which competitor is faced with the lowest overall competitive disadvantage. 
B)  is the most reliable indicator of which industry member has the highest overall product quality. 
C)  is a powerful way of revealing which competitors are in the best and worst strategic groups. 
D)  is the most reliable indicator of which industry member has the lowest overall costs and is the low-cost leader. 
E)  pinpoints which industry rivals are most insulated from the industry's driving forces.

Question 4

Key "functional" strategies of a company include all of the following EXCEPT

Accepted Answer

A)  R&D, technology, and product design strategies. 
B)  production and information technology and supply chain management strategies. 
C)  human resource and finance strategies. 
D)  sales, marketing, and distribution strategies. 
E)  alliance and partnerships as well as merger and acquisition growth strategies. 
A)  R&D, technology, and product design strategies. 
B)  production and information technology and supply chain management strategies. 
C)  human resource and finance strategies. 
D)  sales, marketing, and distribution strategies. 
E)  alliance and partnerships as well as merger and acquisition growth strategies.

Question 5

Which of the following does NOT represent a potential core competence?

Accepted Answer

A)  skills in manufacturing a high-quality product at a low cost 
B)  know-how in creating and operating systems for cost-efficient supply chain management 
C)  the capability to fill customer orders accurately and swiftly 
D)  having a sprawling factory 
E)  the capability to speed new or next-generation products to the marketplace 
A)  skills in manufacturing a high-quality product at a low cost 
B)  know-how in creating and operating systems for cost-efficient supply chain management 
C)  the capability to fill customer orders accurately and swiftly 
D)  having a sprawling factory 
E)  the capability to speed new or next-generation products to the marketplace

Question 6

The competitive power of a company resource strength or competitive capability hinges on all of the following EXCEPT

Accepted Answer

A)  how hard it is for competitors to copy. 
B)  whether it is rare and something rivals lack. 
C)  whether it is really competitively valuable and has the potential to contribute to a competitive advantage. 
D)  whether it is nonsubstitutable. 
E)  whether it is readily available for rivals to adopt. 
A)  how hard it is for competitors to copy. 
B)  whether it is rare and something rivals lack. 
C)  whether it is really competitively valuable and has the potential to contribute to a competitive advantage. 
D)  whether it is nonsubstitutable. 
E)  whether it is readily available for rivals to adopt.

Question 7

External threats may pose various degrees of adversity upon the company and can surface from many sources and examples, EXCEPT for

Accepted Answer

A)  the advent of cheaper or better technologies. 
B)  the entry of lower-cost foreign competitors and restrictive foreign trade policies. 
C)  new burdensome regulations. 
D)  higher overall unit costs relative to those of key competitors. 
E)  rising prices on key inputs (such as energy costs). 
A)  the advent of cheaper or better technologies. 
B)  the entry of lower-cost foreign competitors and restrictive foreign trade policies. 
C)  new burdensome regulations. 
D)  higher overall unit costs relative to those of key competitors. 
E)  rising prices on key inputs (such as energy costs).

Question 8

A company lacking stand-alone resource strength should focus on bundling several resource strengths into a core competence. True or false? Explain and support your answer.

Accepted Answer

A) True 
 B)False

Question 9

Assume a firm is at a cost disadvantage with rivals because its internal costs are higher than rivals. Identify three strategic moves that it can make to restore cost parity.

Accepted Answer

To improve a company's cost competitiven

Question 10

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

Accepted Answer

A)  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)  a 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)  a 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)  a core competence represents a resource strength, whereas a distinctive competence is achieved by having more resource strengths than rival companies. 
E)  a 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)  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)  a 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)  a 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)  a core competence represents a resource strength, whereas a distinctive competence is achieved by having more resource strengths than rival companies. 
E)  a 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 11

One important indicator of how well a company's present strategy is working is whether

Accepted Answer

A)  it has more core competencies than close rivals. 
B)  its strategy is built around at least two of the industry's key success factors. 
C)  the company is achieving its financial and strategic objectives and whether it is an above-average industry performer. 
D)  it is customarily a first-mover in introducing new or improved products (a good sign) or a late-mover (a bad sign). 
E)  it is subject to weaker competitive forces and pressures than close rivals (a good sign) or stronger competitive forces and pressures (a bad sign). 
A)  it has more core competencies than close rivals. 
B)  its strategy is built around at least two of the industry's key success factors. 
C)  the company is achieving its financial and strategic objectives and whether it is an above-average industry performer. 
D)  it is customarily a first-mover in introducing new or improved products (a good sign) or a late-mover (a bad sign). 
E)  it is subject to weaker competitive forces and pressures than close rivals (a good sign) or stronger competitive forces and pressures (a bad sign).

Question 12

Which of the following is NOT pertinent in identifying a company's present strategy?

Accepted Answer

A)  the key functional strategies (R&D, supply chain management, production, sales and marketing, HR, and finance) a company is employing 
B)  management's planned, proactive moves to outcompete rivals (via better product design, improved quality or service, wider product lines, and so on) 
C)  the company's mission, strategic objectives, and financial objectives 
D)  moves to respond and react to changing conditions in the macro-environment and in industry and competitive conditions 
E)  the strategic role of its collaborative partnerships and strategic alliances with others 
A)  the key functional strategies (R&D, supply chain management, production, sales and marketing, HR, and finance) a company is employing 
B)  management's planned, proactive moves to outcompete rivals (via better product design, improved quality or service, wider product lines, and so on) 
C)  the company's mission, strategic objectives, and financial objectives 
D)  moves to respond and react to changing conditions in the macro-environment and in industry and competitive conditions 
E)  the strategic role of its collaborative partnerships and strategic alliances with others

Question 13

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 14

Which of the following is NOT an example of a company's dynamic capability?

Accepted Answer

A)  a capacity to improve existing resources and capabilities 
B)  upgrades to R&D resources to drive product innovation 
C)  a capacity to add new resources and capabilities to the competitive asset portfolio 
D)  an ability to replace degraded resources with acquired capabilities 
E)  an ability to keep antiquated resources by disregarding innovative capabilities 
A)  a capacity to improve existing resources and capabilities 
B)  upgrades to R&D resources to drive product innovation 
C)  a capacity to add new resources and capabilities to the competitive asset portfolio 
D)  an ability to replace degraded resources with acquired capabilities 
E)  an ability to keep antiquated resources by disregarding innovative capabilities

Question 15

The options for remedying a supplier-related cost disadvantage include

Accepted Answer

A)  pressuring suppliers for more favorable prices, switching to lower-priced substitute inputs, and collaborating closely to identify mutual cost-saving opportunities. 
B)  instituting forward vertical integration. 
C)  shifting into the production of substitute products. 
D)  shifting from a low-cost leadership strategy to a differentiation or focus strategy. 
E)  cutting selling prices and trying to win a bigger market share. 
A)  pressuring suppliers for more favorable prices, switching to lower-priced substitute inputs, and collaborating closely to identify mutual cost-saving opportunities. 
B)  instituting forward vertical integration. 
C)  shifting into the production of substitute products. 
D)  shifting from a low-cost leadership strategy to a differentiation or focus strategy. 
E)  cutting selling prices and trying to win a bigger market share.

Question 16

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 17

Understanding where the company is competitive requires

Accepted Answer

A)  determining whether a company has a cost-effective value chain. 
B)  developing quantitative strength ratings for the company and key rivals on each industry key success factor and each pivotal resource, capability, and value chain activity. 
C)  identifying a company's core competencies and distinctive competencies (if any). 
D)  analyzing whether a company is well positioned to gain market share and be the industry's profit leader. 
E)  developing quantitative measures of a company's chances for future profitability. 
A)  determining whether a company has a cost-effective value chain. 
B)  developing quantitative strength ratings for the company and key rivals on each industry key success factor and each pivotal resource, capability, and value chain activity. 
C)  identifying a company's core competencies and distinctive competencies (if any). 
D)  analyzing whether a company is well positioned to gain market share and be the industry's profit leader. 
E)  developing quantitative measures of a company's chances for future profitability.

Question 18

Assigning a weight to each measure of competitive strength assessment is generally analytically superior because

Accepted Answer

A)  a weighted ranking identifies which competitive advantages are most powerful. 
B)  an unweighted ranking doesn't discriminate between companies with high and low market shares. 
C)  it singles out which competitor has the most competitively potent core competencies. 
D)  weighting each company's overall competitive strength by its percentage share of total industry profits produces a more accurate measure of its true competitive strength. 
E)  all of the various measures of competitive strength are not equally important. 
A)  a weighted ranking identifies which competitive advantages are most powerful. 
B)  an unweighted ranking doesn't discriminate between companies with high and low market shares. 
C)  it singles out which competitor has the most competitively potent core competencies. 
D)  weighting each company's overall competitive strength by its percentage share of total industry profits produces a more accurate measure of its true competitive strength. 
E)  all of the various measures of competitive strength are not equally important.

Question 19

Which of the following is NOT accurate as concerns a distinctive competence?

Accepted Answer

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

Question 20

The most difficult part of benchmarking is

Accepted Answer

A)  the decision of whether to do it at all. 
B)  how to obtain access to information regarding rivals' practices and costs. 
C)  when to initiate the process. 
D)  what information to utilize in the analysis process. 
E)  when to stop the process and move forward with strategy. 
A)  the decision of whether to do it at all. 
B)  how to obtain access to information regarding rivals' practices and costs. 
C)  when to initiate the process. 
D)  what information to utilize in the analysis process. 
E)  when to stop the process and move forward with strategy.

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

A company's value-creating activities can offer a competitive advantage in one of two ways

Calculating competitive strength ratings for a company and its rivals using the industry's most telling measures of competitive strength or weakness

Key "functional" strategies of a company include all of the following EXCEPT

Which of the following does NOT represent a potential core competence?

The competitive power of a company resource strength or competitive capability hinges on all of the following EXCEPT

External threats may pose various degrees of adversity upon the company and can surface from many sources and examples, EXCEPT for

A company lacking stand-alone resource strength should focus on bundling several resource strengths into a core competence. True or false? Explain and support your answer.

Assume a firm is at a cost disadvantage with rivals because its internal costs are higher than rivals. Identify three strategic moves that it can make to restore cost parity.

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

One important indicator of how well a company's present strategy is working is whether

Which of the following is NOT pertinent in identifying a company's present strategy?

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

Which of the following is NOT an example of a company's dynamic capability?

The options for remedying a supplier-related cost disadvantage include

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

Understanding where the company is competitive requires

Assigning a weight to each measure of competitive strength assessment is generally analytically superior because

Which of the following is NOT accurate as concerns a distinctive competence?

The most difficult part of benchmarking is

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

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Exam 4: Evaluating a Companys Resources and Competitive Position

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

A company's value-creating activities can offer a competitive advantage in one of two ways

Calculating competitive strength ratings for a company and its rivals using the industry's most telling measures of competitive strength or weakness

Key "functional" strategies of a company include all of the following EXCEPT

Which of the following does NOT represent a potential core competence?

The competitive power of a company resource strength or competitive capability hinges on all of the following EXCEPT

External threats may pose various degrees of adversity upon the company and can surface from many sources and examples, EXCEPT for

A company lacking stand-alone resource strength should focus on bundling several resource strengths into a core competence. True or false? Explain and support your answer.

Assume a firm is at a cost disadvantage with rivals because its internal costs are higher than rivals. Identify three strategic moves that it can make to restore cost parity.

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

One important indicator of how well a company's present strategy is working is whether

Which of the following is NOT pertinent in identifying a company's present strategy?

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

Which of the following is NOT an example of a company's dynamic capability?

The options for remedying a supplier-related cost disadvantage include

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

Understanding where the company is competitive requires

Assigning a weight to each measure of competitive strength assessment is generally analytically superior because

Which of the following is NOT accurate as concerns a distinctive competence?

The most difficult part of benchmarking is

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