Question 1

A distinctive competence represents competitively superior resource strength. True or false? Explain your answer.

Accepted Answer

A) True 
 B)False

Question 2

The difference between a resource and a capability is

Accepted Answer

A)  a resource is a productive input or competitive asset, whereas a capability is the capacity of the firm to perform some internal activity competently. 
B)  a resource is a reserve supply or back-up supply function, whereas a capability is the ability to manage the resource function. 
C)  a resource is a mechanism used for carrying out some responsibility, whereas a capability possesses the ability to monitor the resource. 
D)  a resource represents the firm's fixed assets, whereas a capability defines whether the firm is competent to perform some function with these assets. 
E)  a resource represents the firm's human assets, whereas a capability defines the skills and knowledge of these human resources. 
A)  a resource is a productive input or competitive asset, whereas a capability is the capacity of the firm to perform some internal activity competently. 
B)  a resource is a reserve supply or back-up supply function, whereas a capability is the ability to manage the resource function. 
C)  a resource is a mechanism used for carrying out some responsibility, whereas a capability possesses the ability to monitor the resource. 
D)  a resource represents the firm's fixed assets, whereas a capability defines whether the firm is competent to perform some function with these assets. 
E)  a resource represents the firm's human assets, whereas a capability defines the skills and knowledge of these human resources.

Question 3

Obtaining cost information is a primary difficulty associated with benchmarking. The following are typical sources for collecting information, EXCEPT

Accepted Answer

A)  from published reports, industry research firms, and trade groups. 
B)  from talking to knowledgeable industry leaders. 
C)  from field trips to the facilities of competitors or non-competing firms. 
D)  from independent firms and consulting firms to gather best practices and comparative cost data without identifying competing firms. 
E)  from the classified government documents. 
A)  from published reports, industry research firms, and trade groups. 
B)  from talking to knowledgeable industry leaders. 
C)  from field trips to the facilities of competitors or non-competing firms. 
D)  from independent firms and consulting firms to gather best practices and comparative cost data without identifying competing firms. 
E)  from the classified government documents.

Question 4

Which of the following is NOT something that can be gleaned from a company's SWOT?

Accepted Answer

A)  how to improve a company's strategy by using company strengths and capabilities as cornerstones for its strategy 
B)  which market opportunities are best suited to a company's strengths and capabilities 
C)  which 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 to turn a core competence into a distinctive competence 
E)  whether any of the company's resource strengths can be used to help lessen the impact of external threats 
A)  how to improve a company's strategy by using company strengths and capabilities as cornerstones for its strategy 
B)  which market opportunities are best suited to a company's strengths and capabilities 
C)  which 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 to turn a core competence into a distinctive competence 
E)  whether any of the company's resource strengths can be used to help lessen the impact of external threats

Question 5

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 6

The two approaches that can make the process of uncovering and identifying a firm's capabilities more systematic are

Accepted Answer

A)  resources assessment and the functional approach. 
B)  strengths valuations and weaknesses estimations. 
C)  sustainability resource allocation and resource bundling. 
D)  cross-functional analysis and collaborative resource methodology. 
E)  financial statement analysis and management support analysis. 
A)  resources assessment and the functional approach. 
B)  strengths valuations and weaknesses estimations. 
C)  sustainability resource allocation and resource bundling. 
D)  cross-functional analysis and collaborative resource methodology. 
E)  financial statement analysis and management support analysis.

Question 7

Why is it important for company managers to develop a "worry list" of strategic issues and problems that they need to address and resolve? What should they consider to develop this list?

Accepted Answer

Compiling a "worry list" of problems cre

Question 8

Assume a firm is at a cost disadvantage with rivals because of higher supplier-related costs than key rivals. Identify three strategic moves that it can make to restore cost parity.

Accepted Answer

Supplier-related cost disadvantages can

Question 9

A competitively valuable resource or capability is a company's

Accepted Answer

A)  enabling foundation of its business model. 
B)  equally valuable substitute resource providing a competitive advantage. 
C)  assessment of the availability of superior substitutes. 
D)  unsurpassed worker productivity and product quality. 
E)  unique piecework incentive system, providing a competitive advantage. 
A)  enabling foundation of its business model. 
B)  equally valuable substitute resource providing a competitive advantage. 
C)  assessment of the availability of superior substitutes. 
D)  unsurpassed worker productivity and product quality. 
E)  unique piecework incentive system, providing a competitive advantage.

Question 10

Draw a typical company value chain and briefly explain why the proficiency with which a firm performs the activities comprising its value chain matters.

Accepted Answer

A representative company value chain has

Question 11

The value of doing competitive strength assessment is to

Accepted Answer

A)  determine how competitively powerful the company's core competencies are. 
B)  learn if the company's market opportunities are better than those of its rivals. 
C)  learn whether a company has a distinctive competence. 
D)  learn how the company ranks relative to rivals on each of the important factors that determine market success and ascertain whether the company has a net competitive advantage or disadvantage vis-à-vis key rivals. 
E)  determine whether a company's resource strengths are sufficient to allow it to earn bigger profits than rivals. 
A)  determine how competitively powerful the company's core competencies are. 
B)  learn if the company's market opportunities are better than those of its rivals. 
C)  learn whether a company has a distinctive competence. 
D)  learn how the company ranks relative to rivals on each of the important factors that determine market success and ascertain whether the company has a net competitive advantage or disadvantage vis-à-vis key rivals. 
E)  determine whether a company's resource strengths are sufficient to allow it to earn bigger profits than rivals.

Question 12

Resource and capability analysis is achieved by

Accepted Answer

A)  probing the caliber of a firm's competitive assets relative to those of rival firms. 
B)  attaining price stability. 
C)  analyzing only internal strengths and weaknesses through a matrix comparison model. 
D)  cost-benefit analysis of the company's core product sales. 
E)  performing resource-specific activities within the organization to allocate available capital. 
A)  probing the caliber of a firm's competitive assets relative to those of rival firms. 
B)  attaining price stability. 
C)  analyzing only internal strengths and weaknesses through a matrix comparison model. 
D)  cost-benefit analysis of the company's core product sales. 
E)  performing resource-specific activities within the organization to allocate available capital.

Question 13

Identify at least three indicators of whether a company's present strategy is working well.

Accepted Answer

The three best indicators of how well a

Question 14

In a weighted competitive strength analysis, each strength measure is assigned a weight based on

Accepted Answer

A)  its percentage share of total industry revenues. 
B)  its percentage share of total industry losses. 
C)  its perceived importance in determining a company's competitive success in the marketplace. 
D)  its percentage share of total industry profits. 
E)  what it takes to provide better analytical balance between the companies with high ratings and the companies with low ratings and thus get the sum of the weights to add up to 1.0. 
A)  its percentage share of total industry revenues. 
B)  its percentage share of total industry losses. 
C)  its perceived importance in determining a company's competitive success in the marketplace. 
D)  its percentage share of total industry profits. 
E)  what it takes to provide better analytical balance between the companies with high ratings and the companies with low ratings and thus get the sum of the weights to add up to 1.0.

Question 15

A core competence

Accepted Answer

A)  is a more competitively valuable strength than a competence because of the key role the activities play in the company's strategy. 
B)  typically has competitive value, the amount of which is reflected in the physical and tangible assets on a company's balance sheet. 
C)  usually is grounded in the technological expertise of a particular department or work group. 
D)  is more difficult for rivals to copy than a distinctive competence. 
E)  refers to a company's lowest-cost and most efficiently executed value-chain activity. 
A)  is a more competitively valuable strength than a competence because of the key role the activities play in the company's strategy. 
B)  typically has competitive value, the amount of which is reflected in the physical and tangible assets on a company's balance sheet. 
C)  usually is grounded in the technological expertise of a particular department or work group. 
D)  is more difficult for rivals to copy than a distinctive competence. 
E)  refers to a company's lowest-cost and most efficiently executed value-chain activity.

Question 16

A linked and closely integrated set of competitive assets centered around one or more cross-functional capabilities is termed

Accepted Answer

A)  organizational assets. 
B)  a resource bundle. 
C)  a resource capability. 
D)  functional method compilation. 
E)  an integrated asset advantage. 
A)  organizational assets. 
B)  a resource bundle. 
C)  a resource capability. 
D)  functional method compilation. 
E)  an integrated asset advantage.

Question 17

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 18

Resource and capability analysis is designed to

Accepted Answer

A)  ascertain the internal marketplace of non-distinct divisions of the company. 
B)  ascertain which of a company's resources and capabilities are competitively valuable. 
C)  stimulate demand for a product. 
D)  ascertain to what extent a competitor can sustain a competitive advantage. 
E)  stimulate economic growth for companies within the industry. 
A)  ascertain the internal marketplace of non-distinct divisions of the company. 
B)  ascertain which of a company's resources and capabilities are competitively valuable. 
C)  stimulate demand for a product. 
D)  ascertain to what extent a competitor can sustain a competitive advantage. 
E)  stimulate economic growth for companies within the industry.

Question 19

A powerful tool for sizing up the company's competitive assets and determining whether they can provide the foundation necessary for competitive success in the marketplace is termed

Accepted Answer

A)  VRIN tests. 
B)  SWOT analysis. 
C)  competitive strength analysis. 
D)  financial and asset management analysis. 
E)  value chain analysis. 
A)  VRIN tests. 
B)  SWOT analysis. 
C)  competitive strength analysis. 
D)  financial and asset management analysis. 
E)  value chain analysis.

Question 20

A capability of the firm is NOT considered to be

Accepted Answer

A)  the capacity of a firm to competently perform some internal activity. 
B)  referred to as a competence. 
C)  developed and enabled through the deployment of a company's resources or some combination of its resources. 
D)  a competitively valuable resource. 
E)  related to the level of resources available. 
A)  the capacity of a firm to competently perform some internal activity. 
B)  referred to as a competence. 
C)  developed and enabled through the deployment of a company's resources or some combination of its resources. 
D)  a competitively valuable resource. 
E)  related to the level of resources available.

A distinctive competence represents competitively superior resource strength. True or false? Explain your answer.

The difference between a resource and a capability is

Obtaining cost information is a primary difficulty associated with benchmarking. The following are typical sources for collecting information, EXCEPT

Which of the following is NOT something that can be gleaned from a company's SWOT?

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

The two approaches that can make the process of uncovering and identifying a firm's capabilities more systematic are

Why is it important for company managers to develop a "worry list" of strategic issues and problems that they need to address and resolve? What should they consider to develop this list?

Assume a firm is at a cost disadvantage with rivals because of higher supplier-related costs than key rivals. Identify three strategic moves that it can make to restore cost parity.

A competitively valuable resource or capability is a company's

Draw a typical company value chain and briefly explain why the proficiency with which a firm performs the activities comprising its value chain matters.

The value of doing competitive strength assessment is to

Resource and capability analysis is achieved by

Identify at least three indicators of whether a company's present strategy is working well.

In a weighted competitive strength analysis, each strength measure is assigned a weight based on

A core competence

A linked and closely integrated set of competitive assets centered around one or more cross-functional capabilities is termed

The BEST example of a company resource is

Resource and capability analysis is designed to

A powerful tool for sizing up the company's competitive assets and determining whether they can provide the foundation necessary for competitive success in the marketplace is termed

A capability of the firm is NOT considered to be

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

A distinctive competence represents competitively superior resource strength. True or false? Explain your answer.

The difference between a resource and a capability is

Obtaining cost information is a primary difficulty associated with benchmarking. The following are typical sources for collecting information, EXCEPT

Which of the following is NOT something that can be gleaned from a company's SWOT?

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

The two approaches that can make the process of uncovering and identifying a firm's capabilities more systematic are

Why is it important for company managers to develop a "worry list" of strategic issues and problems that they need to address and resolve? What should they consider to develop this list?

Assume a firm is at a cost disadvantage with rivals because of higher supplier-related costs than key rivals. Identify three strategic moves that it can make to restore cost parity.

A competitively valuable resource or capability is a company's

Draw a typical company value chain and briefly explain why the proficiency with which a firm performs the activities comprising its value chain matters.

The value of doing competitive strength assessment is to

Resource and capability analysis is achieved by

Identify at least three indicators of whether a company's present strategy is working well.

In a weighted competitive strength analysis, each strength measure is assigned a weight based on

A core competence

A linked and closely integrated set of competitive assets centered around one or more cross-functional capabilities is termed

The BEST example of a company resource is

Resource and capability analysis is designed to

A powerful tool for sizing up the company's competitive assets and determining whether they can provide the foundation necessary for competitive success in the marketplace is termed

A capability of the firm is NOT considered to be

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