Question 1

Which of the following does not represents a company resource?

Accepted Answer

A)  a company's brand. 
B)  a productive input that is owned by the firm. 
C)  marketing and brand management. 
D)  R&D teams. 
E)  a productive input that is controlled by the firm. 
A)  a company's brand. 
B)  a productive input that is owned by the firm. 
C)  marketing and brand management. 
D)  R&D teams. 
E)  a productive input that is controlled by the firm.

Question 2

A company's value chain

Accepted Answer

A)  consists of the primary activities that it performs in seeking to deliver value to shareholders in the form of higher dividends and a higher stock price. 
B)  depicts the internally performed activities associated with creating and enhancing the company's competitive assets. 
C)  consists of two broad categories of activities: the primary activities that create customer value and the requisite support activities that facilitate and enhance the performance of the primary activities. 
D)  concerns the basic process the company goes through in performing R&D and developing new products. 
E)  consists of the series of steps a company goes through to develop a new product, get it produced and distributed into the marketplace, and then start collecting revenues and earning a profit. 
A)  consists of the primary activities that it performs in seeking to deliver value to shareholders in the form of higher dividends and a higher stock price. 
B)  depicts the internally performed activities associated with creating and enhancing the company's competitive assets. 
C)  consists of two broad categories of activities: the primary activities that create customer value and the requisite support activities that facilitate and enhance the performance of the primary activities. 
D)  concerns the basic process the company goes through in performing R&D and developing new products. 
E)  consists of the series of steps a company goes through to develop a new product, get it produced and distributed into the marketplace, and then start collecting revenues and earning a profit.

Question 3

Activity-based costing is used to

Accepted Answer

A)  determine whether the value chains of rival companies are similar or different. 
B)  benchmark the costs of primary value chain activities against the costs of the support value chain activities. 
C)  determine the costs of each primary and support activity comprising a company's value chain and thereby reveal the nature and make-up of a company's internal cost structure. 
D)  determine the costs of each strategic action a company initiates. 
E)  None of these accurately describes what activity-based costing is about. 
A)  determine whether the value chains of rival companies are similar or different. 
B)  benchmark the costs of primary value chain activities against the costs of the support value chain activities. 
C)  determine the costs of each primary and support activity comprising a company's value chain and thereby reveal the nature and make-up of a company's internal cost structure. 
D)  determine the costs of each strategic action a company initiates. 
E)  None of these accurately describes what activity-based costing is about.

Question 4

The best quantitative evidence of whether a company's present strategy is working well is

Accepted Answer

A)  whether the company has more competitive assets than it does competitive liabilities. 
B)  whether the company is in the industry's best strategic group. 
C)  the caliber of results the strategy is producing, specifically whether the company is achieving its financial and strategic objectives and whether it is an above-average industry performer. 
D)  whether the company has a shorter value chain than close rivals. 
E)  whether the company is in the Fortune 500. 
A)  whether the company has more competitive assets than it does competitive liabilities. 
B)  whether the company is in the industry's best strategic group. 
C)  the caliber of results the strategy is producing, specifically whether the company is achieving its financial and strategic objectives and whether it is an above-average industry performer. 
D)  whether the company has a shorter value chain than close rivals. 
E)  whether the company is in the Fortune 500.

Question 5

Which of the following is not an example of a company's dynamic capability?

Accepted Answer

A)  capacity to improve existing resources and capabilities. 
B)  upgrades to R&D resources to drive product innovation. 
C)  capacity to add new resources and capabilities to the competitive asset portfolio. 
D)  ability to replace degraded resources with acquired capabilities. 
E)  All of these. 
A)  capacity to improve existing resources and capabilities. 
B)  upgrades to R&D resources to drive product innovation. 
C)  capacity to add new resources and capabilities to the competitive asset portfolio. 
D)  ability to replace degraded resources with acquired capabilities. 
E)  All of these.

Question 6

Calculating competitive strength ratings for a company and its rivals using the industry's most telling measures of competitive strength or weakness

Accepted Answer

A)  is a way of determining which competitor has the biggest overall competitive advantage in the marketplace and which competitor is faced with the biggest overall competitive disadvantage. 
B)  is the most reliable indicator of which industry member has the highest overall product quality. 
C)  is a powerful way of revealing which competitors are in the best and worst strategic groups. 
D)  is the most reliable indicator of which industry member has the lowest overall costs and is the low-cost leader. 
E)  pinpoints which industry rivals are most insulated from the industry's driving forces. 
A)  is a way of determining which competitor has the biggest overall competitive advantage in the marketplace and which competitor is faced with the biggest overall competitive disadvantage. 
B)  is the most reliable indicator of which industry member has the highest overall product quality. 
C)  is a powerful way of revealing which competitors are in the best and worst strategic groups. 
D)  is the most reliable indicator of which industry member has the lowest overall costs and is the low-cost leader. 
E)  pinpoints which industry rivals are most insulated from the industry's driving forces.

Question 7

The external market opportunities which are most relevant to a company are the ones that

Accepted Answer

A)  increase market share. 
B)  reinforce its overall business strategy. 
C)  match up well with the firm's financial resources and competitive capabilities, offer the best growth and profitability, and present the most potential for competitive advantage. 
D)  correct its internal weaknesses and resource deficiencies. 
E)  help defend against the external threats to its well-being. 
A)  increase market share. 
B)  reinforce its overall business strategy. 
C)  match up well with the firm's financial resources and competitive capabilities, offer the best growth and profitability, and present the most potential for competitive advantage. 
D)  correct its internal weaknesses and resource deficiencies. 
E)  help defend against the external threats to its well-being.

Question 8

Explain the difference between a company competence,a core competence,and a distinctive competence.

Accepted Answer

A company competence refers to the overa

Question 9

Which of the following best describes the market opportunities that tend to be most relevant to a particular company?

Accepted Answer

A)  Those market opportunities that provide avenues for taking market share away from close rivals and enhance a company's image as a leader in product innovation and product quality. 
B)  Those market opportunities that offer the company a chance to raise entry barriers. 
C)  Those market opportunities that help promote greater diversification of revenues and profits. 
D)  Those market opportunities that match up well with the firm's financial resources and competitive capabilities, offer the best growth and profitability, and present the most potential for competitive advantage. 
E)  Those market opportunities that help correct a company's biggest weaknesses and competitive deficiencies. 
A)  Those market opportunities that provide avenues for taking market share away from close rivals and enhance a company's image as a leader in product innovation and product quality. 
B)  Those market opportunities that offer the company a chance to raise entry barriers. 
C)  Those market opportunities that help promote greater diversification of revenues and profits. 
D)  Those market opportunities that match up well with the firm's financial resources and competitive capabilities, offer the best growth and profitability, and present the most potential for competitive advantage. 
E)  Those market opportunities that help correct a company's biggest weaknesses and competitive deficiencies.

Question 10

A company's resource and capability analysis

Accepted Answer

A)  represent its core competencies. 
B)  are the most important parts of the company's value chain. 
C)  signal whether it has the wherewithal to be a strong competitor in the marketplace. 
D)  give it excellent ability to insulate itself against the impact of the industry's driving forces. 
E)  combine to give it a distinctive competence. 
A)  represent its core competencies. 
B)  are the most important parts of the company's value chain. 
C)  signal whether it has the wherewithal to be a strong competitor in the marketplace. 
D)  give it excellent ability to insulate itself against the impact of the industry's driving forces. 
E)  combine to give it a distinctive competence.

Question 11

Which of the following is not pertinent in identifying a company's present strategy?

Accepted Answer

A)  The key functional strategies (R&D, supply chain management, production, sales and marketing, HR, and finance) a company is employing 
B)  Management's planned, proactive moves to outcompete rivals (via better product design, improved quality or service, wider product lines, and so on) 
C)  The company's mission, strategic objectives, and financial objectives 
D)  Moves to respond and react to changing conditions in the macro-environment and in industry and competitive conditions 
E)  The strategic role of its collaborative partnerships and strategic alliances with others 
A)  The key functional strategies (R&D, supply chain management, production, sales and marketing, HR, and finance) a company is employing 
B)  Management's planned, proactive moves to outcompete rivals (via better product design, improved quality or service, wider product lines, and so on) 
C)  The company's mission, strategic objectives, and financial objectives 
D)  Moves to respond and react to changing conditions in the macro-environment and in industry and competitive conditions 
E)  The strategic role of its collaborative partnerships and strategic alliances with others

Question 12

Which one of the following is not part of conducting a SWOT analysis?

Accepted Answer

A)  Identifying a company's resource strengths and competitive capabilities 
B)  Benchmarking the company's resource strengths and competitive capabilities against industry key success factors 
C)  Identifying a company's market opportunities 
D)  Drawing conclusions about the company's overall business situation-what is attractive and what is unattractive about the company's circumstances? 
E)  Translating the results of the analysis into actions for improving the company's strategy and market position 
A)  Identifying a company's resource strengths and competitive capabilities 
B)  Benchmarking the company's resource strengths and competitive capabilities against industry key success factors 
C)  Identifying a company's market opportunities 
D)  Drawing conclusions about the company's overall business situation-what is attractive and what is unattractive about the company's circumstances? 
E)  Translating the results of the analysis into actions for improving the company's strategy and market position

Question 13

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 14

A distinctive competence represents a basis for competitive advantage. Explain your answer.

Accepted Answer

A) True 
 B)False

Question 15

The options for remedying a supplier-related cost disadvantage include

Accepted Answer

A)  trying to negotiate more favorable prices with suppliers and switching to lower priced substitute inputs. 
B)  forward vertical integration. 
C)  shifting into the production of substitute products. 
D)  shifting from a low-cost leadership strategy to a differentiation or focus strategy. 
E)  cutting selling prices and trying to win a bigger market share. 
A)  trying to negotiate more favorable prices with suppliers and switching to lower priced substitute inputs. 
B)  forward vertical integration. 
C)  shifting into the production of substitute products. 
D)  shifting from a low-cost leadership strategy to a differentiation or focus strategy. 
E)  cutting selling prices and trying to win a bigger market share.

Question 16

A company's value chain identifies

Accepted Answer

A)  the steps it goes through to convert its net income into value for shareholders. 
B)  the primary activities it performs in creating value for its customers and the related support activities. 
C)  the series of steps it takes to get a product from the raw materials stage into the hands of end-users. 
D)  the activities it performs in transforming its competencies into distinctive competencies. 
E)  the competencies and competitive capabilities that underpin its efforts to create value for customers and shareholders. 
A)  the steps it goes through to convert its net income into value for shareholders. 
B)  the primary activities it performs in creating value for its customers and the related support activities. 
C)  the series of steps it takes to get a product from the raw materials stage into the hands of end-users. 
D)  the activities it performs in transforming its competencies into distinctive competencies. 
E)  the competencies and competitive capabilities that underpin its efforts to create value for customers and shareholders.

Question 17

Assume a firm is at a cost disadvantage with rivals because its internal costs are higher than rivals.Identify five strategic moves that it can make to restore cost parity.

Accepted Answer

1. Invest in technology and automation:

Question 18

A much-used and potent managerial tool for determining whether a company performs particular functions or activities in a manner that represents "the best practice" when both cost and effectiveness are taken into account is

Accepted Answer

A)  competitive strength analysis. 
B)  activity-based costing. 
C)  resource cost mapping. 
D)  SWOT analysis. 
E)  benchmarking. 
A)  competitive strength analysis. 
B)  activity-based costing. 
C)  resource cost mapping. 
D)  SWOT analysis. 
E)  benchmarking.

Question 19

A company resource weakness or competitive deficiency

Accepted Answer

A)  represents a problem that needs to be turned into a strength because weaknesses prevent a firm from being a winner in the marketplace. 
B)  causes the company to fall into a lower strategic group than it otherwise could compete in. 
C)  prevents a company from having a distinctive competence. 
D)  usually stems from having a missing link or links in the industry value chain. 
E)  is something a company lacks or does poorly (in comparison to rivals) or a condition that puts it at a disadvantage in the marketplace. 
A)  represents a problem that needs to be turned into a strength because weaknesses prevent a firm from being a winner in the marketplace. 
B)  causes the company to fall into a lower strategic group than it otherwise could compete in. 
C)  prevents a company from having a distinctive competence. 
D)  usually stems from having a missing link or links in the industry value chain. 
E)  is something a company lacks or does poorly (in comparison to rivals) or a condition that puts it at a disadvantage in the marketplace.

Question 20

A distinctive competence

Accepted Answer

A)  is a competitively important activity that a company performs better than its competitors. 
B)  gives a company competitively valuable capability that is unmatched by rivals. 
C)  is a basis for sustainable competitive advantage. 
D)  can underpin and add real punch to a company's strategy. 
E)  All of these. 
A)  is a competitively important activity that a company performs better than its competitors. 
B)  gives a company competitively valuable capability that is unmatched by rivals. 
C)  is a basis for sustainable competitive advantage. 
D)  can underpin and add real punch to a company's strategy. 
E)  All of these.

Which of the following does not represents a company resource?

A company's value chain

Activity-based costing is used to

The best quantitative evidence of whether a company's present strategy is working well is

Which of the following is not an example of a company's dynamic capability?

Calculating competitive strength ratings for a company and its rivals using the industry's most telling measures of competitive strength or weakness

The external market opportunities which are most relevant to a company are the ones that

Explain the difference between a company competence,a core competence,and a distinctive competence.

Which of the following best describes the market opportunities that tend to be most relevant to a particular company?

A company's resource and capability analysis

Which of the following is not pertinent in identifying a company's present strategy?

Which one of the following is not part of conducting a SWOT analysis?

Activity-based costing

A distinctive competence represents a basis for competitive advantage. Explain your answer.

The options for remedying a supplier-related cost disadvantage include

A company's value chain identifies

Assume a firm is at a cost disadvantage with rivals because its internal costs are higher than rivals.Identify five strategic moves that it can make to restore cost parity.

A much-used and potent managerial tool for determining whether a company performs particular functions or activities in a manner that represents "the best practice" when both cost and effectiveness are taken into account is

A company resource weakness or competitive deficiency

A distinctive competence

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

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

Which of the following does not represents a company resource?

A company's value chain

Activity-based costing is used to

The best quantitative evidence of whether a company's present strategy is working well is

Which of the following is not an example of a company's dynamic capability?

Calculating competitive strength ratings for a company and its rivals using the industry's most telling measures of competitive strength or weakness

The external market opportunities which are most relevant to a company are the ones that

Explain the difference between a company competence,a core competence,and a distinctive competence.

Which of the following best describes the market opportunities that tend to be most relevant to a particular company?

A company's resource and capability analysis

Which of the following is not pertinent in identifying a company's present strategy?

Which one of the following is not part of conducting a SWOT analysis?

Activity-based costing

A distinctive competence represents a basis for competitive advantage. Explain your answer.

The options for remedying a supplier-related cost disadvantage include

A company's value chain identifies

Assume a firm is at a cost disadvantage with rivals because its internal costs are higher than rivals.Identify five strategic moves that it can make to restore cost parity.

A much-used and potent managerial tool for determining whether a company performs particular functions or activities in a manner that represents "the best practice" when both cost and effectiveness are taken into account is

A company resource weakness or competitive deficiency

A distinctive competence

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