Question 1

A company's resources and capabilities represent:

Accepted Answer

A)  the firm's net working capital and related determinants for measuring operating performance and capabilities. 
B)  the firm's competitive assets, which are considered determinants of its competitiveness and ability to succeed in the marketplace. 
C)  whether the firm has the industry's most efficient value chain. 
D)  the management's source of funding of new strategic initiatives. 
E)  positive trends with relevant cultural factors related to buyers' choices and product modifications 
A)  the firm's net working capital and related determinants for measuring operating performance and capabilities. 
B)  the firm's competitive assets, which are considered determinants of its competitiveness and ability to succeed in the marketplace. 
C)  whether the firm has the industry's most efficient value chain. 
D)  the management's source of funding of new strategic initiatives. 
E)  positive trends with relevant cultural factors related to buyers' choices and product modifications B

Question 2

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). C

Question 3

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. A

Question 4

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 5

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 6

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.

Question 7

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 8

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 9

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 10

Assume a firm is at a cost disadvantage with rivals because of higher distributor/dealer costs than rivals.Identify three strategic moves that it can make to restore cost parity.

Accepted Answer

The three moves to achieve better cost c

Question 11

What is meant by the term "best practices"? Why does it matter whether a company utilizes "best practices" in performing the activities comprising its value chain?

Accepted Answer

A best practice is a method of performin

Question 12

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 13

In doing SWOT analysis,which of the following is NOT an example of a potential resource weakness or competitive deficiency that a company may have?

Accepted Answer

A)  Less productive R&D efforts than rivals 
B)  Having a single, unified functional strategy instead of several distinct functional strategies 
C)  Lack of a strong brand image and reputation (as compared to rivals) 
D)  Higher overall unit costs relative to rivals 
E)  Too narrow a product line relative to rivals 
A)  Less productive R&D efforts than rivals 
B)  Having a single, unified functional strategy instead of several distinct functional strategies 
C)  Lack of a strong brand image and reputation (as compared to rivals) 
D)  Higher overall unit costs relative to rivals 
E)  Too narrow a product line relative to rivals

Question 14

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 15

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 16

Which of the following is NOT accurate as concerns the task of identifying the strategic issues and problems that merit front-burner managerial attention?

Accepted Answer

A)  It entails drawing upon the results and conclusions from analyzing the company's external environment. 
B)  It entails drawing on the results and conclusions from evaluating the company's own resources and competitive position. 
C)  It entails developing a "worry list" of "how to…," "whether to…," and "what to do about…" 
D)  Identifying the strategic issues and problems that the company faces is the first thing that company managers need to do before starting to analyze the company's internal and external environment. 
E)  Developing a list of issues and problems that management need to address (and to resolve) should always precede deciding upon a strategy and what actions to take to improve the company's position and prospects. 
A)  It entails drawing upon the results and conclusions from analyzing the company's external environment. 
B)  It entails drawing on the results and conclusions from evaluating the company's own resources and competitive position. 
C)  It entails developing a "worry list" of "how to…," "whether to…," and "what to do about…" 
D)  Identifying the strategic issues and problems that the company faces is the first thing that company managers need to do before starting to analyze the company's internal and external environment. 
E)  Developing a list of issues and problems that management need to address (and to resolve) should always precede deciding upon a strategy and what actions to take to improve the company's position and prospects.

Question 17

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 18

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 19

The market opportunities most relevant to a particular company are those that:

Accepted Answer

A)  offer the best prospects for growth and profitability. 
B)  provide a strong defense against threats to the company's profitability. 
C)  embrace the most potential for product innovation. 
D)  provide avenues for taking market share away from close rivals. 
E)  hold the most potential to reduce costs. 
A)  offer the best prospects for growth and profitability. 
B)  provide a strong defense against threats to the company's profitability. 
C)  embrace the most potential for product innovation. 
D)  provide avenues for taking market share away from close rivals. 
E)  hold the most potential to reduce costs.

Question 20

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.

A company's resources and capabilities represent:

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

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

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?

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

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

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

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

The value of doing competitive strength assessment is to:

Assume a firm is at a cost disadvantage with rivals because of higher distributor/dealer costs than rivals.Identify three strategic moves that it can make to restore cost parity.

What is meant by the term "best practices"? Why does it matter whether a company utilizes "best practices" in performing the activities comprising its value chain?

Activity-based costing:

In doing SWOT analysis,which of the following is NOT an example of a potential resource weakness or competitive deficiency that a company may have?

Quantitative measures of a company's competitive strength:

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

Which of the following is NOT accurate as concerns the task of identifying the strategic issues and problems that merit front-burner managerial attention?

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

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

The market opportunities most relevant to a particular company are those that:

A core competence:

What Is Strategy and Why Is It Important

Charting a Companys Direction: Its Vision, Mission, Objectives, Andstrategy

Evaluating a Companys External Environment

The Five Generic Competitive Strategies

Strengthening a Companys Competitive Position

Strategies for Competing in International Markets

Corporate Strategy

Ethics, Corporate Social Responsibility, Environmental-Sustainability, and Strategy

Building an Organization Capable of Good Strategy Execution

Managing Internal Operations

Corporate Culture and Leadership

Filters

Exam 4: Evaluating a Companys Resources, Capabilities,and Competitiveness

A company's resources and capabilities represent:

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

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

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?

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

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

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

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

The value of doing competitive strength assessment is to:

Assume a firm is at a cost disadvantage with rivals because of higher distributor/dealer costs than rivals.Identify three strategic moves that it can make to restore cost parity.

What is meant by the term "best practices"? Why does it matter whether a company utilizes "best practices" in performing the activities comprising its value chain?

Activity-based costing:

In doing SWOT analysis,which of the following is NOT an example of a potential resource weakness or competitive deficiency that a company may have?

Quantitative measures of a company's competitive strength:

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

Which of the following is NOT accurate as concerns the task of identifying the strategic issues and problems that merit front-burner managerial attention?

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

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

The market opportunities most relevant to a particular company are those that:

A core competence:

What Is Strategy and Why Is It Important

Charting a Companys Direction: Its Vision, Mission, Objectives, Andstrategy

Evaluating a Companys External Environment

The Five Generic Competitive Strategies

Strengthening a Companys Competitive Position

Strategies for Competing in International Markets

Corporate Strategy

Ethics, Corporate Social Responsibility, Environmental-Sustainability, and Strategy

Building an Organization Capable of Good Strategy Execution

Managing Internal Operations

Corporate Culture and Leadership

Filters