Question 1

Value-chain analysis can only be applied to manufacturing operations.

Accepted Answer

A) True 
 B)False

Question 2

A variety of firm resources include interpersonal relations among managers in the firm, its culture, and its reputation with its suppliers and customers. Such competitive advantages are based upon

Accepted Answer

A) path dependency. 
B) social complexity. 
C) physical uniqueness. 
D) tangible resources. 
A) path dependency. 
B) social complexity. 
C) physical uniqueness. 
D) tangible resources.

Question 3

Toyota, the giant automaker, paid a heavy price for its ___________ emphasis on cost control. The resulting problems with quality and the negative publicity led to severe financial losses and an erosion of its reputation in many markets.

Accepted Answer

A) minimal 
B) superficial 
C) low-budget 
D) excessive 
A) minimal 
B) superficial 
C) low-budget 
D) excessive

Question 4

Company reputation with customers, suppliers and other stakeholders is an intangible resource.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following lists consists of support activities?

Accepted Answer

A) human resource management, technology development, customer service, and procurement 
B) human resource management, customer service, marketing and sales, and operations 
C) customer service, information systems, technology development, and procurement 
D) human resource management, technology development, procurement, and general administration 
A) human resource management, technology development, customer service, and procurement 
B) human resource management, customer service, marketing and sales, and operations 
C) customer service, information systems, technology development, and procurement 
D) human resource management, technology development, procurement, and general administration

Question 6

__________ are the competencies or skills that a firm employs to transform inputs into outputs.

Accepted Answer

A) Tangible resources 
B) Reputational resources 
C) Organizational capabilities 
D) Intangible resources 
A) Tangible resources 
B) Reputational resources 
C) Organizational capabilities 
D) Intangible resources

Question 7

The profit margin ratio is used to measure long-term solvency.

Accepted Answer

A) True 
 B)False

Question 8

The strengths and capabilities of a firm are enough to enable it to achieve a competitive advantage in the marketplace.

Accepted Answer

A) True 
 B)False

Question 9

Some leading edge companies are applying the prosumer concept. Here, firms team up with their suppliers and alliance partners to satisfy their customer needs.

Accepted Answer

A) True 
 B)False

Question 10

Raymond Ozzie, the software designer who was critical in the development of Lotus Notes, was able to dictate the terms under which IBM acquired Lotus. This illustrates that he had ______ bargaining power based on the ________ cost required by the firm to replace him.

Accepted Answer

A) low; low 
B) low; high 
C) high; low 
D) high; high 
A) low; low 
B) low; high 
C) high; low 
D) high; high

Question 11

The internal business perspective of the balanced scorecard answers which of the following questions?

Accepted Answer

A) How do customers see us? 
B) What must we excel at? 
C) How do we look to shareholders? 
D) Can we continue to improve and create value? 
A) How do customers see us? 
B) What must we excel at? 
C) How do we look to shareholders? 
D) Can we continue to improve and create value?

Question 12

Path dependency has no impact on the inimitability of resources.

Accepted Answer

A) True 
 B)False

Question 13

A resource is valuable and rare but neither difficult to imitate nor without substitutes. This should enable the firm to attain

Accepted Answer

A) no competitive advantage. 
B) a temporary competitive advantage. 
C) competitive parity. 
D) a sustainable competitive advantage. 
A) no competitive advantage. 
B) a temporary competitive advantage. 
C) competitive parity. 
D) a sustainable competitive advantage.

Question 14

Inventory turnover is a measure of asset utilization.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following examples demonstrates how successful organizations manage their primary activities?

Accepted Answer

A) Motorola has revised its compensation system to reward employees who learn a variety of skills. 
B) Wal-Mart implemented a sophisticated information system that resulted in reduced inventory carrying costs and shortened customer response times. 
C) National Steel improved its efficiency by reducing the number of job classifications. 
D) Hewlett Packard has cut lead time from five days to one by employing JIT inventory management. 
A) Motorola has revised its compensation system to reward employees who learn a variety of skills. 
B) Wal-Mart implemented a sophisticated information system that resulted in reduced inventory carrying costs and shortened customer response times. 
C) National Steel improved its efficiency by reducing the number of job classifications. 
D) Hewlett Packard has cut lead time from five days to one by employing JIT inventory management.

Question 16

Intangible resources are typically embedded in ________ routines and practices that have evolved and accumulated over time.

Accepted Answer

A) rare 
B) standard 
C) unique 
D) obvious 
A) rare 
B) standard 
C) unique 
D) obvious

Question 17

A strength of the balanced scorecard is that it is very easy to implement and that there is little need for executive sponsorship.

Accepted Answer

A) True 
 B)False

Question 18

From the innovation and learning perspective, survival is dependent upon managers making _________ changes to existing products and services as well as introduce entirely new products with expanded capabilities.

Accepted Answer

A) few 
B) no 
C) frequent 
D) rare 
A) few 
B) no 
C) frequent 
D) rare

Question 19

Crowdsourcing has many benefits, including the example in which McDonalds set up a Twitter campaign to promote positive word of mouth which became a platform for people looking to bash the chain.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is not a factor that helps to explain the extent to which employees and managers will be able to obtain a proportionately high level of the profits that they generate?

Accepted Answer

A) Employees have high bargaining power. 
B) The cost of employee replacement is high. 
C) The cost of exit is high for an employee. 
D) Managers have low bargaining power. 
A) Employees have high bargaining power. 
B) The cost of employee replacement is high. 
C) The cost of exit is high for an employee. 
D) Managers have low bargaining power.

Value-chain analysis can only be applied to manufacturing operations.

A variety of firm resources include interpersonal relations among managers in the firm, its culture, and its reputation with its suppliers and customers. Such competitive advantages are based upon

Toyota, the giant automaker, paid a heavy price for its ___________ emphasis on cost control. The resulting problems with quality and the negative publicity led to severe financial losses and an erosion of its reputation in many markets.

Company reputation with customers, suppliers and other stakeholders is an intangible resource.

Which of the following lists consists of support activities?

__________ are the competencies or skills that a firm employs to transform inputs into outputs.

The profit margin ratio is used to measure long-term solvency.

The strengths and capabilities of a firm are enough to enable it to achieve a competitive advantage in the marketplace.

Some leading edge companies are applying the prosumer concept. Here, firms team up with their suppliers and alliance partners to satisfy their customer needs.

Raymond Ozzie, the software designer who was critical in the development of Lotus Notes, was able to dictate the terms under which IBM acquired Lotus. This illustrates that he had bargaining power based on the __ cost required by the firm to replace him.

The internal business perspective of the balanced scorecard answers which of the following questions?

Path dependency has no impact on the inimitability of resources.

A resource is valuable and rare but neither difficult to imitate nor without substitutes. This should enable the firm to attain

Inventory turnover is a measure of asset utilization.

Which of the following examples demonstrates how successful organizations manage their primary activities?

Intangible resources are typically embedded in ________ routines and practices that have evolved and accumulated over time.

A strength of the balanced scorecard is that it is very easy to implement and that there is little need for executive sponsorship.

From the innovation and learning perspective, survival is dependent upon managers making _________ changes to existing products and services as well as introduce entirely new products with expanded capabilities.

Crowdsourcing has many benefits, including the example in which McDonalds set up a Twitter campaign to promote positive word of mouth which became a platform for people looking to bash the chain.

Which of the following is not a factor that helps to explain the extent to which employees and managers will be able to obtain a proportionately high level of the profits that they generate?

Strategic Management: Creating Competitive Advantages

Analyzing the External Environment of the Firm: Creating Competitive Advantages

Recognizing a Firms Intellectual Assets: Moving Beyond a Firms Tangible Resources

Business-Level Strategy: Creating and Sustaining Competitive Advantages

Corporate-Level Strategy: Creating Value Through Diversification

International Strategy: Creating Value in Global Markets

Entrepreneurial Strategy and Competitive Dynamics

Strategic Control and Corporate Governance

Creating Effective Organizational Designs

Strategic Leadership: Creating a Learning Organization and an Ethical Organization

Managing Innovation and Fostering Corporate Entrepreneurship

Filters

Exam 3: Assessing the Internal Environment of the Firm

Value-chain analysis can only be applied to manufacturing operations.

A variety of firm resources include interpersonal relations among managers in the firm, its culture, and its reputation with its suppliers and customers. Such competitive advantages are based upon

Toyota, the giant automaker, paid a heavy price for its ___________ emphasis on cost control. The resulting problems with quality and the negative publicity led to severe financial losses and an erosion of its reputation in many markets.

Company reputation with customers, suppliers and other stakeholders is an intangible resource.

Which of the following lists consists of support activities?

__________ are the competencies or skills that a firm employs to transform inputs into outputs.

The profit margin ratio is used to measure long-term solvency.

The strengths and capabilities of a firm are enough to enable it to achieve a competitive advantage in the marketplace.

Some leading edge companies are applying the prosumer concept. Here, firms team up with their suppliers and alliance partners to satisfy their customer needs.

Raymond Ozzie, the software designer who was critical in the development of Lotus Notes, was able to dictate the terms under which IBM acquired Lotus. This illustrates that he had ______ bargaining power based on the ________ cost required by the firm to replace him.

The internal business perspective of the balanced scorecard answers which of the following questions?

Path dependency has no impact on the inimitability of resources.

A resource is valuable and rare but neither difficult to imitate nor without substitutes. This should enable the firm to attain

Inventory turnover is a measure of asset utilization.

Which of the following examples demonstrates how successful organizations manage their primary activities?

Intangible resources are typically embedded in ________ routines and practices that have evolved and accumulated over time.

A strength of the balanced scorecard is that it is very easy to implement and that there is little need for executive sponsorship.

From the innovation and learning perspective, survival is dependent upon managers making _________ changes to existing products and services as well as introduce entirely new products with expanded capabilities.

Crowdsourcing has many benefits, including the example in which McDonalds set up a Twitter campaign to promote positive word of mouth which became a platform for people looking to bash the chain.

Which of the following is not a factor that helps to explain the extent to which employees and managers will be able to obtain a proportionately high level of the profits that they generate?

Strategic Management: Creating Competitive Advantages

Analyzing the External Environment of the Firm: Creating Competitive Advantages

Recognizing a Firms Intellectual Assets: Moving Beyond a Firms Tangible Resources

Business-Level Strategy: Creating and Sustaining Competitive Advantages

Corporate-Level Strategy: Creating Value Through Diversification

International Strategy: Creating Value in Global Markets

Entrepreneurial Strategy and Competitive Dynamics

Strategic Control and Corporate Governance

Creating Effective Organizational Designs

Strategic Leadership: Creating a Learning Organization and an Ethical Organization

Managing Innovation and Fostering Corporate Entrepreneurship

Filters

Raymond Ozzie, the software designer who was critical in the development of Lotus Notes, was able to dictate the terms under which IBM acquired Lotus. This illustrates that he had bargaining power based on the __ cost required by the firm to replace him.