Question 1

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 2

The four tests of a resource's competitive power are often referred to as the:

Accepted Answer

A)  SCIR test, which asks if a resource is sustainable, competitive, internalized, and reproducible. 
B)  competitive advantage sustainable method test. 
C)  reliability resources simulation. 
D)  VRIN test, which asks if a resource is valuable, rare, inimitable, and non-substitutable. 
E)  organizational capability metric analysis. 
A)  SCIR test, which asks if a resource is sustainable, competitive, internalized, and reproducible. 
B)  competitive advantage sustainable method test. 
C)  reliability resources simulation. 
D)  VRIN test, which asks if a resource is valuable, rare, inimitable, and non-substitutable. 
E)  organizational capability metric analysis.

Question 3

If a company doesn't possess standalone resource strengths capable of contributing to competitive advantage:

Accepted Answer

A)  all potential for competitive advantage is lost. 
B)  it is unlikely to survive in the marketplace and should exit the industry. 
C)  it may have a bundle of resources that can be leveraged to develop a distinctive competence. 
D)  it is virtually blocked from using offensive strategies and must rely on defensive strategies. 
E)  its best strategic option is to revamp its value chain in hopes of creating stronger competitive capabilities. 
A)  all potential for competitive advantage is lost. 
B)  it is unlikely to survive in the marketplace and should exit the industry. 
C)  it may have a bundle of resources that can be leveraged to develop a distinctive competence. 
D)  it is virtually blocked from using offensive strategies and must rely on defensive strategies. 
E)  its best strategic option is to revamp its value chain in hopes of creating stronger competitive capabilities.

Question 4

Two analytical tools useful in determining whether a company's prices and costs are competitive are:

Accepted Answer

A)  SWOT analysis and key success factor analysis. 
B)  SWOT analysis and benchmarking. 
C)  value chain analysis and benchmarking. 
D)  competitive position assessment and competitive strength assessment. 
E)  driving forces analysis and SWOT analysis. 
A)  SWOT analysis and key success factor analysis. 
B)  SWOT analysis and benchmarking. 
C)  value chain analysis and benchmarking. 
D)  competitive position assessment and competitive strength assessment. 
E)  driving forces analysis and SWOT analysis.

Question 5

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 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

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 8

The means to enhance differentiation through activities at the forward end of the value chain system do NOT include:

Accepted Answer

A)  engaging in cooperative advertising and promotions. 
B)  creating exclusive arrangements with downstream sellers or other mechanisms that increase their incentives for enhanced-delivery customer value. 
C)  creating and enforcing standards for downstream activities. 
D)  assisting in training channel partners in business practices. 
E)  enhancing cost-reducing activities with defensive functionality designed to create incentives. 
A)  engaging in cooperative advertising and promotions. 
B)  creating exclusive arrangements with downstream sellers or other mechanisms that increase their incentives for enhanced-delivery customer value. 
C)  creating and enforcing standards for downstream activities. 
D)  assisting in training channel partners in business practices. 
E)  enhancing cost-reducing activities with defensive functionality designed to create incentives.

Question 9

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 10

The most difficult part of benchmarking is:

Accepted Answer

A)  the decision of whether to do it at all. 
B)  how to gain 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 gain 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.

Question 11

When companies engage in value-creating activities,they do so by:

Accepted Answer

A)  focusing on exploiting a company's best-executed operating strategy. 
B)  concentrating on efficient performance of the company's primary value chain activities. 
C)  concentrating on minimizing the costs associated with the design of a product or service. 
D)  drawing on specific company resources and capabilities that underlie and enable the activity. 
E)  focusing on working with forward-channel allies to develop capabilities to outmatch the capabilities of rivals. 
A)  focusing on exploiting a company's best-executed operating strategy. 
B)  concentrating on efficient performance of the company's primary value chain activities. 
C)  concentrating on minimizing the costs associated with the design of a product or service. 
D)  drawing on specific company resources and capabilities that underlie and enable the activity. 
E)  focusing on working with forward-channel allies to develop capabilities to outmatch the capabilities of rivals.

Question 12

A company's strengths are important because they:

Accepted Answer

A)  pave the way for establishing a low-cost advantage over rivals. 
B)  represent the quality of its competitive assets that enhance its competitiveness in the marketplace. 
C)  provide extra muscle in helping lengthen the company's value chain. 
D)  give it competitive protection against the industry's driving forces. 
E)  provide extra organizational muscle in turning a core competence into a key success factor. 
A)  pave the way for establishing a low-cost advantage over rivals. 
B)  represent the quality of its competitive assets that enhance its competitiveness in the marketplace. 
C)  provide extra muscle in helping lengthen the company's value chain. 
D)  give it competitive protection against the industry's driving forces. 
E)  provide extra organizational muscle in turning a core competence into a key success factor.

Question 13

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

Accepted Answer

A)  Analyzing the company's external environment 
B)  Evaluating the company's own resources and competitive position 
C)  Surveying a company's board members, managers, select employees, and key investors regarding what strategic issues they think the company faces 
D)  Developing a "worry list" of "how to…," "whether to…," and "what to do about…" 
E)  Assessing what challenges the company must overcome to be financially and competitively successful in the years ahead 
A)  Analyzing the company's external environment 
B)  Evaluating the company's own resources and competitive position 
C)  Surveying a company's board members, managers, select employees, and key investors regarding what strategic issues they think the company faces 
D)  Developing a "worry list" of "how to…," "whether to…," and "what to do about…" 
E)  Assessing what challenges the company must overcome to be financially and competitively successful in the years ahead

Question 14

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 15

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 16

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 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

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 19

Which of the following is NOT one of the six questions that comprise the task of evaluating a company's resources and competitive position?

Accepted Answer

A)  What are the company's most profitable geographic market segments? 
B)  How well is the company's present strategy working? 
C)  How do a company's value chain activities impact its cost structure and customer value proposition? 
D)  Is the company competitively stronger or weaker than key rivals? 
E)  What strategic issues and problems merit front-burner managerial attention? 
A)  What are the company's most profitable geographic market segments? 
B)  How well is the company's present strategy working? 
C)  How do a company's value chain activities impact its cost structure and customer value proposition? 
D)  Is the company competitively stronger or weaker than key rivals? 
E)  What strategic issues and problems merit front-burner managerial attention?

Question 20

A company's strategic options for remedying cost disadvantages in internally performed value chain activities do NOT include:

Accepted Answer

A)  revamping its value chain to eliminate or bypass some cost-producing activities (particularly low value-added activities). 
B)  implementing the use of best practices, particularly for high-cost activities. 
C)  investing in productivity-enhancing, cost-saving technological improvements. 
D)  switching to activity-based costing. 
E)  outsourcing the performance of high-cost activities to vendors that can perform them more cheaply. 
A)  revamping its value chain to eliminate or bypass some cost-producing activities (particularly low value-added activities). 
B)  implementing the use of best practices, particularly for high-cost activities. 
C)  investing in productivity-enhancing, cost-saving technological improvements. 
D)  switching to activity-based costing. 
E)  outsourcing the performance of high-cost activities to vendors that can perform them more cheaply.

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

The four tests of a resource's competitive power are often referred to as the:

If a company doesn't possess standalone resource strengths capable of contributing to competitive advantage:

Two analytical tools useful in determining whether a company's prices and costs are competitive are:

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

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

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

The means to enhance differentiation through activities at the forward end of the value chain system do NOT include:

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

The most difficult part of benchmarking is:

When companies engage in value-creating activities,they do so by:

A company's strengths are important because they:

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

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

Resource and capability analysis is designed to:

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 BEST example of a company resource is:

The difference between a resource and a capability is:

Which of the following is NOT one of the six questions that comprise the task of evaluating a company's resources and competitive position?

A company's strategic options for remedying cost disadvantages in internally performed value chain activities do NOT include:

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

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

The four tests of a resource's competitive power are often referred to as the:

If a company doesn't possess standalone resource strengths capable of contributing to competitive advantage:

Two analytical tools useful in determining whether a company's prices and costs are competitive are:

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

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

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

The means to enhance differentiation through activities at the forward end of the value chain system do NOT include:

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

The most difficult part of benchmarking is:

When companies engage in value-creating activities,they do so by:

A company's strengths are important because they:

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

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

Resource and capability analysis is designed to:

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 BEST example of a company resource is:

The difference between a resource and a capability is:

Which of the following is NOT one of the six questions that comprise the task of evaluating a company's resources and competitive position?

A company's strategic options for remedying cost disadvantages in internally performed value chain activities do NOT include:

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