Question 1

Which of the following is NOT an option for remedying a supplier-related cost disadvantage?

Accepted Answer

A)  Integrate backward into the business of high-cost suppliers in an effort to reduce the costs of the items being purchased. 
B)  Negotiate more favorable prices with suppliers. 
C)  Collaborate closely with suppliers to identify mutual cost-saving opportunities. 
D)  Switch to lower-priced substitute inputs. 
E)  Persuade forward channel allies to implement best practices. 
A)  Integrate backward into the business of high-cost suppliers in an effort to reduce the costs of the items being purchased. 
B)  Negotiate more favorable prices with suppliers. 
C)  Collaborate closely with suppliers to identify mutual cost-saving opportunities. 
D)  Switch to lower-priced substitute inputs. 
E)  Persuade forward channel allies to implement best practices.

Question 2

In doing SWOT analysis and trying to identify a company's market opportunities,which of the following is NOT an example of a potential market opportunity that a company may have?

Accepted Answer

A)  Serving additional customer groups or market segments 
B)  Growing buyer preferences for substitutes for the industry's product 
C)  Acquiring rival firms or companies with attractive technological expertise or capabilities 
D)  Expanding into new geographic markets 
E)  Openings to win market share away from rivals 
A)  Serving additional customer groups or market segments 
B)  Growing buyer preferences for substitutes for the industry's product 
C)  Acquiring rival firms or companies with attractive technological expertise or capabilities 
D)  Expanding into new geographic markets 
E)  Openings to win market share away from rivals

Question 3

When an activity becomes something a company has learned to perform proficiently and capably,the company is said to have:

Accepted Answer

A)  a competence. 
B)  a competitive advantage over rivals. 
C)  a key value chain proficiency. 
D)  a distinctive capability. 
E)  a resource advantage. 
A)  a competence. 
B)  a competitive advantage over rivals. 
C)  a key value chain proficiency. 
D)  a distinctive capability. 
E)  a resource advantage.

Question 4

Which of the following is NOT one of the objectives of benchmarking?

Accepted Answer

A)  To identify the best practices in performing various value chain activities 
B)  To learn how best practice companies achieve lower costs or better results in performing benchmarked activities 
C)  To help construct a company value chain and identify which activities are primary and which are support activities 
D)  To develop cross-company comparisons of the costs of performing specific value chain activities 
E)  To take actions to improve a company's cost competitiveness when benchmarking reveals that its costs and results of performing an activity are not as good as what other companies have achieved 
A)  To identify the best practices in performing various value chain activities 
B)  To learn how best practice companies achieve lower costs or better results in performing benchmarked activities 
C)  To help construct a company value chain and identify which activities are primary and which are support activities 
D)  To develop cross-company comparisons of the costs of performing specific value chain activities 
E)  To take actions to improve a company's cost competitiveness when benchmarking reveals that its costs and results of performing an activity are not as good as what other companies have achieved

Question 5

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 6

Competitive strength can be determined by assigning measures based on perceived importance because:

Accepted Answer

A)  it provides a more accurate assessment of the strength of competitive forces. 
B)  it eliminates the bias introduced for those firms having large market shares. 
C)  the different measures of competitive strength are unlikely to be equally important. 
D)  the results provide a more reliable measure of what competitive moves rivals are likely to make next. 
E)  weighting each company's overall competitive strength by the size of its market share produces a more accurate measure of its true competitive strength. 
A)  it provides a more accurate assessment of the strength of competitive forces. 
B)  it eliminates the bias introduced for those firms having large market shares. 
C)  the different measures of competitive strength are unlikely to be equally important. 
D)  the results provide a more reliable measure of what competitive moves rivals are likely to make next. 
E)  weighting each company's overall competitive strength by the size of its market share produces a more accurate measure of its true competitive strength.

Question 7

Which of the following is NOT an option for remedying a cost disadvantage associated with activities performed by forward channel allies (wholesale distributors and retail dealers)?

Accepted Answer

A)  Changing to a more economical distribution strategy such as putting more emphasis on cheaper distribution channels (perhaps direct sales via the Internet) or perhaps integrating forward into company-owned retail outlets 
B)  Enhancing differentiation through activities such as cooperative advertising at the forward end of the value chain 
C)  Pressuring distributors/dealers and other forward-channel allies to reduce their costs and markups 
D)  Insisting on across-the-board cost cuts in all value chain activities-those performed by suppliers, those performed in-house, and those performed by distributors/dealers 
E)  Collaborating with forward channel allies to identify win-win opportunities to reduce costs 
A)  Changing to a more economical distribution strategy such as putting more emphasis on cheaper distribution channels (perhaps direct sales via the Internet) or perhaps integrating forward into company-owned retail outlets 
B)  Enhancing differentiation through activities such as cooperative advertising at the forward end of the value chain 
C)  Pressuring distributors/dealers and other forward-channel allies to reduce their costs and markups 
D)  Insisting on across-the-board cost cuts in all value chain activities-those performed by suppliers, those performed in-house, and those performed by distributors/dealers 
E)  Collaborating with forward channel allies to identify win-win opportunities to reduce costs

Question 8

When a company has a proficiency in performing a strategically and competitively important value chain activity better than its rivals,it is said to have:

Accepted Answer

A)  a company competence. 
B)  a core competence. 
C)  a distinctive competence. 
D)  a key value chain proficiency. 
E)  a competitive advantage over rivals. 
A)  a company competence. 
B)  a core competence. 
C)  a distinctive competence. 
D)  a key value chain proficiency. 
E)  a competitive advantage over rivals.

Question 9

The best indicator of how well a company's strategy is working is whether the company:

Accepted Answer

A)  is achieving its stated financial objectives, its financial performance equates to the industry average, and market share gains reflect short-term preferences for capacity maximization. 
B)  is attentive to its poor execution in functional areas, business goals are stretch, and the value proposition has a product focus. 
C)  is geared to initiatives designed to build market share and to promote corporate responsibility. 
D)  is achieving its stated financial and strategic objectives, its financial performance is better than the industry average, and it is gaining customers and increasing its market share. 
E)  is geared to initiatives to promote corporate social responsibility. 
A)  is achieving its stated financial objectives, its financial performance equates to the industry average, and market share gains reflect short-term preferences for capacity maximization. 
B)  is attentive to its poor execution in functional areas, business goals are stretch, and the value proposition has a product focus. 
C)  is geared to initiatives designed to build market share and to promote corporate responsibility. 
D)  is achieving its stated financial and strategic objectives, its financial performance is better than the industry average, and it is gaining customers and increasing its market share. 
E)  is geared to initiatives to promote corporate social responsibility.

Question 10

A company's resource weaknesses can relate to all of the following EXCEPT:

Accepted Answer

A)  inferior or unproven skills, expertise, or intellectual capital in competitively important parts of the business. 
B)  something that it lacks or does poorly in comparison to rivals. 
C)  deficiencies in competitively important physical, organizational, or intangible assets. 
D)  missing or competitively inferior capabilities in key areas. 
E)  rare resources and capabilities. 
A)  inferior or unproven skills, expertise, or intellectual capital in competitively important parts of the business. 
B)  something that it lacks or does poorly in comparison to rivals. 
C)  deficiencies in competitively important physical, organizational, or intangible assets. 
D)  missing or competitively inferior capabilities in key areas. 
E)  rare resources and capabilities.

Question 11

The company with the highest rating on a given measure has an implied competitive edge on that specific measure,with the size of its edge:

Accepted Answer

A)  providing the company with an overall net competitive score that is reduced by the weighted measure. 
B)  signaling a weak position and competitive disadvantage. 
C)  reflecting the difference between its weighted rating and rivals' weighted ratings. 
D)  reflecting an area of potential improvement in order to achieve a sustainable competitive advantage. 
E)  requiring reevaluation of the weighted measure. 
A)  providing the company with an overall net competitive score that is reduced by the weighted measure. 
B)  signaling a weak position and competitive disadvantage. 
C)  reflecting the difference between its weighted rating and rivals' weighted ratings. 
D)  reflecting an area of potential improvement in order to achieve a sustainable competitive advantage. 
E)  requiring reevaluation of the weighted measure.

Question 12

Why do a company's core competencies matter in crafting strategy?

Accepted Answer

A core competence is a proficiently perf

Question 13

For a company to translate its performance of value chain activities into competitive advantage,it must:

Accepted Answer

A)  undertake ongoing and persistent efforts to be cost-efficient and develop differentiation advantages. 
B)  have more core competencies than rivals. 
C)  have at least three distinctive competencies. 
D)  have competencies that allow it to produce the highest-quality product in the industry. 
E)  have more competitive assets than competitive liabilities. 
A)  undertake ongoing and persistent efforts to be cost-efficient and develop differentiation advantages. 
B)  have more core competencies than rivals. 
C)  have at least three distinctive competencies. 
D)  have competencies that allow it to produce the highest-quality product in the industry. 
E)  have more competitive assets than competitive liabilities.

Question 14

How are a company's organizational capabilities developed and enabled?

Accepted Answer

A)  By strengthening the traditions that company executives are committed to maintaining 
B)  Through deployment of a company's resources or some combination of its resources 
C)  By talking openly about the problems of the present company and determining how new behaviors will improve performance 
D)  By shifting from decentralized to centralized decision-making 
E)  By urging company personnel to search outside the company for work practices and operating approaches that may be an improvement over what the company is presently doing 
A)  By strengthening the traditions that company executives are committed to maintaining 
B)  Through deployment of a company's resources or some combination of its resources 
C)  By talking openly about the problems of the present company and determining how new behaviors will improve performance 
D)  By shifting from decentralized to centralized decision-making 
E)  By urging company personnel to search outside the company for work practices and operating approaches that may be an improvement over what the company is presently doing

Question 15

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 16

A sustainable competitive advantage is gained:

Accepted Answer

A)  when a company has durable competitive assets that are central to its strategy and superior to those of rival firms. 
B)  when a company has sufficient resources to expedite its strategy. 
C)  when a company realizes its inherent weaknesses are transformable to advantages. 
D)  when a company can stand out relative to rivals because of resource utilization. 
E)  when a company has resources in well-populated geographical locations 
A)  when a company has durable competitive assets that are central to its strategy and superior to those of rival firms. 
B)  when a company has sufficient resources to expedite its strategy. 
C)  when a company realizes its inherent weaknesses are transformable to advantages. 
D)  when a company can stand out relative to rivals because of resource utilization. 
E)  when a company has resources in well-populated geographical locations

Question 17

The competitive power of a company's resource strength is NOT measured by which one of the following tests?

Accepted Answer

A)  Is the resource rare and something rivals lack? 
B)  Is the resource strength something that a company has internally rather than in collaborative arrangements with outsiders? 
C)  Is the resource strength easily trumped by the substitute resources/capabilities of rivals? 
D)  Is the resource strength hard to copy? 
E)  Is the resource strength competitively valuable, having the potential to contribute to a competitive advantage? 
A)  Is the resource rare and something rivals lack? 
B)  Is the resource strength something that a company has internally rather than in collaborative arrangements with outsiders? 
C)  Is the resource strength easily trumped by the substitute resources/capabilities of rivals? 
D)  Is the resource strength hard to copy? 
E)  Is the resource strength competitively valuable, having the potential to contribute to a competitive advantage?

Question 18

In a weighted competitive strength assessment,the sum of importance weights should add up to:

Accepted Answer

A)  100%. 
B)  1.00. 
C)  10. 
D)  100. 
E)  1000. 
A)  100%. 
B)  1.00. 
C)  10. 
D)  100. 
E)  1000.

Question 19

Calculating competitive strength ratings for a company and comparing them against strength ratings for its key competitors helps indicate:

Accepted Answer

A)  which weaknesses and vulnerabilities of competitors the company might be able to attack successfully. 
B)  which competitors are in profitable strategic groups and which competitors are in unprofitable strategic groups. 
C)  which competitors are employing offensive strategies and which competitors are employing defensive strategies. 
D)  which competitors are likely to make money and which are likely to lose money in the years ahead. 
E)  what the industry's key success factors are. 
A)  which weaknesses and vulnerabilities of competitors the company might be able to attack successfully. 
B)  which competitors are in profitable strategic groups and which competitors are in unprofitable strategic groups. 
C)  which competitors are employing offensive strategies and which competitors are employing defensive strategies. 
D)  which competitors are likely to make money and which are likely to lose money in the years ahead. 
E)  what the industry's key success factors are.

Question 20

A dynamic capability is the:

Accepted Answer

A)  ongoing capacity to modify existing resources and capabilities to create new ones. 
B)  improvement evaluation process for eliminating waste in the firm. 
C)  functional and operating resources management process. 
D)  ongoing capability to understand and establish a commitment to resource alignment. 
E)  improvement evaluation process for repurposing waste in the firm. 
A)  ongoing capacity to modify existing resources and capabilities to create new ones. 
B)  improvement evaluation process for eliminating waste in the firm. 
C)  functional and operating resources management process. 
D)  ongoing capability to understand and establish a commitment to resource alignment. 
E)  improvement evaluation process for repurposing waste in the firm.

Which of the following is NOT an option for remedying a supplier-related cost disadvantage?

In doing SWOT analysis and trying to identify a company's market opportunities,which of the following is NOT an example of a potential market opportunity that a company may have?

When an activity becomes something a company has learned to perform proficiently and capably,the company is said to have:

Which of the following is NOT one of the objectives of benchmarking?

Resource and capability analysis is achieved by:

Competitive strength can be determined by assigning measures based on perceived importance because:

Which of the following is NOT an option for remedying a cost disadvantage associated with activities performed by forward channel allies (wholesale distributors and retail dealers)?

When a company has a proficiency in performing a strategically and competitively important value chain activity better than its rivals,it is said to have:

The best indicator of how well a company's strategy is working is whether the company:

A company's resource weaknesses can relate to all of the following EXCEPT:

The company with the highest rating on a given measure has an implied competitive edge on that specific measure,with the size of its edge:

Why do a company's core competencies matter in crafting strategy?

For a company to translate its performance of value chain activities into competitive advantage,it must:

How are a company's organizational capabilities developed and enabled?

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

A sustainable competitive advantage is gained:

The competitive power of a company's resource strength is NOT measured by which one of the following tests?

In a weighted competitive strength assessment,the sum of importance weights should add up to:

Calculating competitive strength ratings for a company and comparing them against strength ratings for its key competitors helps indicate:

A dynamic capability is the:

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 is NOT an option for remedying a supplier-related cost disadvantage?

In doing SWOT analysis and trying to identify a company's market opportunities,which of the following is NOT an example of a potential market opportunity that a company may have?

When an activity becomes something a company has learned to perform proficiently and capably,the company is said to have:

Which of the following is NOT one of the objectives of benchmarking?

Resource and capability analysis is achieved by:

Competitive strength can be determined by assigning measures based on perceived importance because:

Which of the following is NOT an option for remedying a cost disadvantage associated with activities performed by forward channel allies (wholesale distributors and retail dealers)?

When a company has a proficiency in performing a strategically and competitively important value chain activity better than its rivals,it is said to have:

The best indicator of how well a company's strategy is working is whether the company:

A company's resource weaknesses can relate to all of the following EXCEPT:

The company with the highest rating on a given measure has an implied competitive edge on that specific measure,with the size of its edge:

Why do a company's core competencies matter in crafting strategy?

For a company to translate its performance of value chain activities into competitive advantage,it must:

How are a company's organizational capabilities developed and enabled?

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

A sustainable competitive advantage is gained:

The competitive power of a company's resource strength is NOT measured by which one of the following tests?

In a weighted competitive strength assessment,the sum of importance weights should add up to:

Calculating competitive strength ratings for a company and comparing them against strength ratings for its key competitors helps indicate:

A dynamic capability is the:

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