Question 1

Value-creating activities

Accepted Answer

A)  focuses on exploiting a company's best-executed operating strategy. 
B)  is based upon efficient performance of the company's primary value chain activities. 
C)  concentrates on minimizing the costs associated with the design of a product or service. 
D)  deliberately develop valuable competencies and capabilities that add to a company's competitive power in the marketplace. 
E)  focuses on working with forward channel allies to develop capabilities to outmatch the capabilities of rivals. 
A)  focuses on exploiting a company's best-executed operating strategy. 
B)  is based upon efficient performance of the company's primary value chain activities. 
C)  concentrates on minimizing the costs associated with the design of a product or service. 
D)  deliberately develop valuable competencies and capabilities that add to a company's competitive power in the marketplace. 
E)  focuses on working with forward channel allies to develop capabilities to outmatch the capabilities of rivals.

Question 2

Which one of the following is inaccurate as concerns a distinctive competence?

Accepted Answer

A)  A distinctive competence is a competitively important activity that a company performs better than its competitors. 
B)  A distinctive competence is typically less difficult for rivals to copy than a core competence. 
C)  A distinctive competence can be a basis for sustainable competitive advantage. 
D)  A distinctive competence can underpin and add real punch to a company's strategy. 
E)  A distinctive competence gives a company competitively valuable capability that is unmatched by rivals. 
A)  A distinctive competence is a competitively important activity that a company performs better than its competitors. 
B)  A distinctive competence is typically less difficult for rivals to copy than a core competence. 
C)  A distinctive competence can be a basis for sustainable competitive advantage. 
D)  A distinctive competence can underpin and add real punch to a company's strategy. 
E)  A distinctive competence gives a company competitively valuable capability that is unmatched by rivals.

Question 3

Which two tests of a resource's competitive power determine whether a company's competitive advantage can be sustained in the face of active competition?

Accepted Answer

A)  Whether the resource or capability is competitively valuable and/or is something that rivals lack. 
B)  Whether the resource or capability is rare and/or is hard to copy. 
C)  Whether the resource or capability is easy to copy. 
D)  Whether the resource or capability is competitively valuable and/or are there good substitutes available for the resource. 
E)  Whether the resource or capability is hard to copy and/or can be trumped by different types of resources and capabilities. 
A)  Whether the resource or capability is competitively valuable and/or is something that rivals lack. 
B)  Whether the resource or capability is rare and/or is hard to copy. 
C)  Whether the resource or capability is easy to copy. 
D)  Whether the resource or capability is competitively valuable and/or are there good substitutes available for the resource. 
E)  Whether the resource or capability is hard to copy and/or can be trumped by different types of resources and capabilities.

Question 4

Whether a resource or capability can support a competitive advantage is determined by which two tests?

Accepted Answer

A)  Whether the resource or capability is competitively valuable and/or is something that rivals lack. 
B)  Whether the resource or capability is rare and/or is hard to copy. 
C)  Whether the resource or capability can be trumped and/or is hard to copy. 
D)  Whether the resource or capability is competitively valuable and/or are there good substitutes available for the resource. 
E)  Whether the resource or capability is hard to copy and/or can be trumped by different types of resources and capabilities. 
A)  Whether the resource or capability is competitively valuable and/or is something that rivals lack. 
B)  Whether the resource or capability is rare and/or is hard to copy. 
C)  Whether the resource or capability can be trumped and/or is hard to copy. 
D)  Whether the resource or capability is competitively valuable and/or are there good substitutes available for the resource. 
E)  Whether the resource or capability is hard to copy and/or can be trumped by different types of resources and capabilities.

Question 5

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 6

A company that does a first-rate job of managing its value chain activities relative to competitors

Accepted Answer

A)  is likely to have more distinctive competencies than rivals. 
B)  stands a good chance of achieving competitive advantage by performing its value chain activities either more proficiently or at lower cost. 
C)  is almost certainly going to have a longer and more profitable value chain. 
D)  usually has strong proficiencies in activity-based costing and benchmarking. 
E)  usually has the fewest primary activities and the lowest costs in the industry. 
A)  is likely to have more distinctive competencies than rivals. 
B)  stands a good chance of achieving competitive advantage by performing its value chain activities either more proficiently or at lower cost. 
C)  is almost certainly going to have a longer and more profitable value chain. 
D)  usually has strong proficiencies in activity-based costing and benchmarking. 
E)  usually has the fewest primary activities and the lowest costs in the industry.

Question 7

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 8

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 answer of Assume a firm is at a cost...

Question 9

A company's resource weaknesses can relate to

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)  All of these. 
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)  All of these.

Question 10

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)  achieving 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)  achieving 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 11

The two most important parts of SWOT analysis are

Accepted Answer

A)  pinpointing the company's competitive assets and pinpointing its competitive liabilities. 
B)  identifying the company's resource strengths and identifying the company's best market opportunities. 
C)  identifying the external threats to a company's future profitability and pinpointing how many market opportunities it has. 
D)  drawing conclusions from the SWOT listings about the company's overall situation and translating these into strategic actions to better match the company's strategy to its resource strengths and market opportunities, to correct the important weaknesses, and to defend against external threats. 
E)  making accurate lists of the company's strengths, weaknesses, opportunities, and threats and then using these lists as a basis for ascertaining how well the company's strategy is working. 
A)  pinpointing the company's competitive assets and pinpointing its competitive liabilities. 
B)  identifying the company's resource strengths and identifying the company's best market opportunities. 
C)  identifying the external threats to a company's future profitability and pinpointing how many market opportunities it has. 
D)  drawing conclusions from the SWOT listings about the company's overall situation and translating these into strategic actions to better match the company's strategy to its resource strengths and market opportunities, to correct the important weaknesses, and to defend against external threats. 
E)  making accurate lists of the company's strengths, weaknesses, opportunities, and threats and then using these lists as a basis for ascertaining how well the company's strategy is working.

Question 12

Which one of the following is not something that can be gleaned from identifying a company's resource strengths,resource weaknesses,market opportunities,and external threats?

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 13

The difference between a core competence and a distinctive competence is that

Accepted Answer

A)  a distinctive competence refers to a company's strongest resource or competitive capability and a core competence refers to a company's lowest-cost and most efficiently executed value-chain activity. 
B)  a core competence usually resides in a company's base of intellectual capital whereas a distinctive competence stems from the superiority of a company's physical and tangible assets. 
C)  a core competence is a competitively relevant activity which a firm performs especially well in comparison to the other activities it performs, whereas a distinctive competence is a competitively relevant activity which a firm performs especially well in comparison to other firms with which it competes. 
D)  a core competence represents a resource strength whereas a distinctive competence is achieved by having more resource strengths than rival companies. 
E)  a core competence usually resides in a company's technology and physical assets whereas a distinctive competence usually resides in a company's know-how, expertise, and intellectual capital. 
A)  a distinctive competence refers to a company's strongest resource or competitive capability and a core competence refers to a company's lowest-cost and most efficiently executed value-chain activity. 
B)  a core competence usually resides in a company's base of intellectual capital whereas a distinctive competence stems from the superiority of a company's physical and tangible assets. 
C)  a core competence is a competitively relevant activity which a firm performs especially well in comparison to the other activities it performs, whereas a distinctive competence is a competitively relevant activity which a firm performs especially well in comparison to other firms with which it competes. 
D)  a core competence represents a resource strength whereas a distinctive competence is achieved by having more resource strengths than rival companies. 
E)  a core competence usually resides in a company's technology and physical assets whereas a distinctive competence usually resides in a company's know-how, expertise, and intellectual capital.

Question 14

What is benchmarking and why is it a strategically important analytical tool?

Accepted Answer

Benchmarking is a systematic process of

Question 15

The three steps of SWOT analysis are

Accepted Answer

A)  identifying the company's resource strengths and weaknesses and its opportunities and threats, drawing conclusions about the company's overall situation, and translating the conclusions into strategic actions to improve the company's strategy. 
B)  pinpointing the company's competitive assets, pinpointing its competitive deficiencies, and determining whether it enjoys a competitive advantage. 
C)  determining whether the company has more competitive assets than competitive liabilities, determining whether the company has good market opportunities, and evaluating the seriousness of the threats to the company's future profitability. 
D)  matching the company's strategy to its resource strengths, correcting the company's important resource weaknesses, and identifying the company's best market opportunities. 
E)  benchmarking the company's strengths and weaknesses against those of key rivals, identifying its market opportunities and the external threats it faces, and determining the company's potential for establishing a competitive advantage over rivals. 
A)  identifying the company's resource strengths and weaknesses and its opportunities and threats, drawing conclusions about the company's overall situation, and translating the conclusions into strategic actions to improve the company's strategy. 
B)  pinpointing the company's competitive assets, pinpointing its competitive deficiencies, and determining whether it enjoys a competitive advantage. 
C)  determining whether the company has more competitive assets than competitive liabilities, determining whether the company has good market opportunities, and evaluating the seriousness of the threats to the company's future profitability. 
D)  matching the company's strategy to its resource strengths, correcting the company's important resource weaknesses, and identifying the company's best market opportunities. 
E)  benchmarking the company's strengths and weaknesses against those of key rivals, identifying its market opportunities and the external threats it faces, and determining the company's potential for establishing a competitive advantage over rivals.

Question 16

Why does it matter whether a company is able to perform value chain activities more proficiently or more cheaply than rivals? Explain and support your answer.

Accepted Answer

It matters whether a company is able to

Question 17

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 make-up 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 make-up 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 18

SWOT analysis is a powerful tool for

Accepted Answer

A)  gauging whether a company has a cost competitive value chain. 
B)  sizing up a company's resource capabilities and deficiencies, its market opportunities, and the external threats to its future well-being. 
C)  evaluating whether a company is in the most appropriate strategic group. 
D)  determining a company's competitive strength vis-à-vis close rivals. 
E)  identifying the market segments in which a company is strongly positioned and weakly positioned. 
A)  gauging whether a company has a cost competitive value chain. 
B)  sizing up a company's resource capabilities and deficiencies, its market opportunities, and the external threats to its future well-being. 
C)  evaluating whether a company is in the most appropriate strategic group. 
D)  determining a company's competitive strength vis-à-vis close rivals. 
E)  identifying the market segments in which a company is strongly positioned and weakly positioned.

Question 19

Instead of trying to match the resource strengths of rivals,what option(s)should a company consider to enhance its competitive power in the marketplace?

Accepted Answer

Instead of attempting to match the resou

Question 20

What are the four tests that should be used to measure the competitive power of a company's resource strengths?

Accepted Answer

The answer of What are the four tests that should...

Value-creating activities

Which one of the following is inaccurate as concerns a distinctive competence?

Which two tests of a resource's competitive power determine whether a company's competitive advantage can be sustained in the face of active competition?

Whether a resource or capability can support a competitive advantage is determined by which two tests?

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

A company that does a first-rate job of managing its value chain activities relative to competitors

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

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.

A company's resource weaknesses can relate to

Resource and capability analysis is achieved by

The two most important parts of SWOT analysis are

Which one of the following is not something that can be gleaned from identifying a company's resource strengths,resource weaknesses,market opportunities,and external threats?

The difference between a core competence and a distinctive competence is that

What is benchmarking and why is it a strategically important analytical tool?

The three steps of SWOT analysis are

Why does it matter whether a company is able to perform value chain activities more proficiently or more cheaply than rivals? Explain and support your answer.

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

SWOT analysis is a powerful tool for

Instead of trying to match the resource strengths of rivals,what option(s)should a company consider to enhance its competitive power in the marketplace?

What are the four tests that should be used to measure the competitive power of a company's resource strengths?

What Is Strategy and Why Is It Important

Charting a Companys Direction: Vision and Mission, Objectives, and Strategy

Evaluating a Companys External Environment

The Five Generic Competitive Strategies: Which One to Employ

Strengthening a Companys Competitive Position: Strategic Moves, timing, and Scope of Operation

Strategies for Competing in International Markets

Corporate Strategy: Diversification and the Multibusiness Company

Ethics, Corporate Social Responsibility, Environmental Sustainability, and Strategy

Building an Organization Capable of Good Strategy Execution: People, Capabilities, and Structure

Managing Internal Operations: Actions That Promote Good Strategy Execution

Corporate Culture and Leadership: Keys to Good Strategy Execution

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

Value-creating activities

Which one of the following is inaccurate as concerns a distinctive competence?

Which two tests of a resource's competitive power determine whether a company's competitive advantage can be sustained in the face of active competition?

Whether a resource or capability can support a competitive advantage is determined by which two tests?

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

A company that does a first-rate job of managing its value chain activities relative to competitors

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

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.

A company's resource weaknesses can relate to

Resource and capability analysis is achieved by

The two most important parts of SWOT analysis are

Which one of the following is not something that can be gleaned from identifying a company's resource strengths,resource weaknesses,market opportunities,and external threats?

The difference between a core competence and a distinctive competence is that

What is benchmarking and why is it a strategically important analytical tool?

The three steps of SWOT analysis are

Why does it matter whether a company is able to perform value chain activities more proficiently or more cheaply than rivals? Explain and support your answer.

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

SWOT analysis is a powerful tool for

Instead of trying to match the resource strengths of rivals,what option(s)should a company consider to enhance its competitive power in the marketplace?

What are the four tests that should be used to measure the competitive power of a company's resource strengths?

What Is Strategy and Why Is It Important

Charting a Companys Direction: Vision and Mission, Objectives, and Strategy

Evaluating a Companys External Environment

The Five Generic Competitive Strategies: Which One to Employ

Strengthening a Companys Competitive Position: Strategic Moves, timing, and Scope of Operation

Strategies for Competing in International Markets

Corporate Strategy: Diversification and the Multibusiness Company

Ethics, Corporate Social Responsibility, Environmental Sustainability, and Strategy

Building an Organization Capable of Good Strategy Execution: People, Capabilities, and Structure

Managing Internal Operations: Actions That Promote Good Strategy Execution

Corporate Culture and Leadership: Keys to Good Strategy Execution

Filters