Question 1

Walmart pursues a low cost operator policy.

Accepted Answer

A) True 
 B)False

Question 2

Ted is an accountant at ABC Company.He is calculating the total revenues minus total costs before tax.Ted is calculating the

Accepted Answer

A)  net profit. 
B)  capital turnover. 
C)  cost of goods sold. 
D)  return on sales. 
E)  invested capital. 
A)  net profit. 
B)  capital turnover. 
C)  cost of goods sold. 
D)  return on sales. 
E)  invested capital.

Question 3

Using the value chain model,which of the following primary activities is performed first,as inputs are transformed into outputs?

Accepted Answer

A)  Research and development 
B)  Marketing and sales 
C)  Human resources 
D)  Production 
E)  After-sales service and support 
A)  Research and development 
B)  Marketing and sales 
C)  Human resources 
D)  Production 
E)  After-sales service and support

Question 4

Kim's T-shirt factory was expert at providing unique and high-quality but costly shirts.Even though the designs were very nice and the amount of detail increased over time,the high price meant that few customers bought shirts from her and her factory went bankrupt.Kim's factory failed due to

Accepted Answer

A)  inertia. 
B)  prior strategic commitments. 
C)  the Icarus paradox. 
D)  lack of distinctive competencies. 
E)  lack of capabilities. 
A)  inertia. 
B)  prior strategic commitments. 
C)  the Icarus paradox. 
D)  lack of distinctive competencies. 
E)  lack of capabilities.

Question 5

Competitive advantage is based on

Accepted Answer

A)  distinctive competencies. 
B)  economic forces external to a company. 
C)  lack of government regulations controlling a firm's ability to make rapid adjustments in response to its changing environment. 
D)  all of these choices 
E)  none of these choices. 
A)  distinctive competencies. 
B)  economic forces external to a company. 
C)  lack of government regulations controlling a firm's ability to make rapid adjustments in response to its changing environment. 
D)  all of these choices 
E)  none of these choices.

Question 6

Donna can make a chair for about $100,she charges customers $150 to buy the chair,and customers perceive that the chair is worth $225.In this case,the consumer surplus is

Accepted Answer

A)  $50. 
B)  $75. 
C)  $125. 
D)  $150. 
E)  $225. 
A)  $50. 
B)  $75. 
C)  $125. 
D)  $150. 
E)  $225.

Question 7

Capabilities refer to a company's

Accepted Answer

A)  tangible resources. 
B)  intangible resources. 
C)  skills at coordinating its resources and putting them to productive use. 
D)  strategy as expressed in the firm's business model. 
E)  policies. 
A)  tangible resources. 
B)  intangible resources. 
C)  skills at coordinating its resources and putting them to productive use. 
D)  strategy as expressed in the firm's business model. 
E)  policies.

Question 8

Toyota's lean production system is the basis of its competitive advantage.

Accepted Answer

A) True 
 B)False

Question 9

When a company has differentiated products,they have less pricing options.

Accepted Answer

A) True 
 B)False

Question 10

Nene works in a factory where she picks crab meat from crabs.She is paid per day based upon the number of pounds of crab meat that she picks.Nene's daily number of pounds of crab meat can be referred to as her productivity.

Accepted Answer

A) True 
 B)False

Question 11

At the most basic level,a business is simply a device for

Accepted Answer

A)  transforming inputs into outputs. 
B)  transporting products from one location to another. 
C)  converting outputs into inputs. 
D)  transferring title to goods from one party to another. 
E)  conserving outputs. 
A)  transforming inputs into outputs. 
B)  transporting products from one location to another. 
C)  converting outputs into inputs. 
D)  transferring title to goods from one party to another. 
E)  conserving outputs.

Question 12

Innovation refers to the act of

Accepted Answer

A)  seeking patent protection for new products. 
B)  creating new products and processes. 
C)  repackaging current products to make them more appealing to consumers. 
D)  all of the above. 
E)  none of the above. 
A)  seeking patent protection for new products. 
B)  creating new products and processes. 
C)  repackaging current products to make them more appealing to consumers. 
D)  all of the above. 
E)  none of the above.

Question 13

Give one example of a firm that has achieved a distinctive competency in efficiency and describe that competency.Then do the same for a firm with a distinctive competency in quality,innovation,and responsiveness to customers.

Accepted Answer

Walmart is able to buy its products in h

Question 14

A value chain is a sequence of activities for transforming inputs into outputs that are valued by customers.

Accepted Answer

A) True 
 B)False

Question 15

The Icarus paradox suggests that

Accepted Answer

A)  companies should stick to a narrowly defined line of products. 
B)  better-than-average profitability is an elusive goal. 
C)  companies may become so dazzled by their early success that they believe more of the same kind of effort will assure future success. 
D)  companies often pursue too many strategies at once. 
E)  companies should change strategies before strategies need changing. 
A)  companies should stick to a narrowly defined line of products. 
B)  better-than-average profitability is an elusive goal. 
C)  companies may become so dazzled by their early success that they believe more of the same kind of effort will assure future success. 
D)  companies often pursue too many strategies at once. 
E)  companies should change strategies before strategies need changing.

Question 16

Taken together,factors such as existing strategic commitments and low absorptive capacity limit the ability of established competitors to imitate the competitive advantage of a rival.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following support activities in the value chain refers to the companywide context within which all the other value creation activities take place?

Accepted Answer

A)  Human resources 
B)  Information systems 
C)  Company infrastructure 
D)  Materials management 
E)  Operations 
A)  Human resources 
B)  Information systems 
C)  Company infrastructure 
D)  Materials management 
E)  Operations

Question 18

____ can help an organization overcome inertia.

Accepted Answer

A)  Power struggles 
B)  Capabilities 
C)  Prior strategic commitments 
D)  A crisis 
E)  The Icarus paradox 
A)  Power struggles 
B)  Capabilities 
C)  Prior strategic commitments 
D)  A crisis 
E)  The Icarus paradox

Question 19

The more utility a company creates for its customers,the more flexibility it has in determining prices.

Accepted Answer

A) True 
 B)False

Question 20

Strong leadership from top management is

Accepted Answer

A)  a support activity. 
B)  needed to attain economies of scale. 
C)  needed to build brand loyalty. 
D)  part of the human resources value chain activity. 
E)  a primary activity in the value chain. 
A)  a support activity. 
B)  needed to attain economies of scale. 
C)  needed to build brand loyalty. 
D)  part of the human resources value chain activity. 
E)  a primary activity in the value chain.

Walmart pursues a low cost operator policy.

Ted is an accountant at ABC Company.He is calculating the total revenues minus total costs before tax.Ted is calculating the

Using the value chain model,which of the following primary activities is performed first,as inputs are transformed into outputs?

Kim's T-shirt factory was expert at providing unique and high-quality but costly shirts.Even though the designs were very nice and the amount of detail increased over time,the high price meant that few customers bought shirts from her and her factory went bankrupt.Kim's factory failed due to

Competitive advantage is based on

Donna can make a chair for about $100,she charges customers $150 to buy the chair,and customers perceive that the chair is worth $225.In this case,the consumer surplus is

Capabilities refer to a company's

Toyota's lean production system is the basis of its competitive advantage.

When a company has differentiated products,they have less pricing options.

Nene works in a factory where she picks crab meat from crabs.She is paid per day based upon the number of pounds of crab meat that she picks.Nene's daily number of pounds of crab meat can be referred to as her productivity.

At the most basic level,a business is simply a device for

Innovation refers to the act of

Give one example of a firm that has achieved a distinctive competency in efficiency and describe that competency.Then do the same for a firm with a distinctive competency in quality,innovation,and responsiveness to customers.

A value chain is a sequence of activities for transforming inputs into outputs that are valued by customers.

The Icarus paradox suggests that

Taken together,factors such as existing strategic commitments and low absorptive capacity limit the ability of established competitors to imitate the competitive advantage of a rival.

Which of the following support activities in the value chain refers to the companywide context within which all the other value creation activities take place?

____ can help an organization overcome inertia.

The more utility a company creates for its customers,the more flexibility it has in determining prices.

Strong leadership from top management is

Strategic Leadership: Managing the Strategy-Making Process for Competitive Advantage

External Analysis: The Identification of Opportunities and Threats

Building Competitive Advantage Through Functional-Level Strategy

Building Competitive Advantage Through Business-Level Strategy

Business-Level Strategy and the Industry Environment

Strategy and Technology

Strategy in the Global Environment

Corporate-Level Strategy: Horizontal Integration, Vertical Integration, and Strategic Outsourcing

Corporate-Level Strategy: Related and Unrelated Diversification

Corporate Performance, Governance, and Business Ethics

Implementing Strategy in Companies That Compete in a Single Industry

Implementing Strategy in Companies That Compete Across Industries and Countries

Filters

Exam 3: Internal Analysis: Distinctive Competencies, Competitive Advantage, and Profitability

Walmart pursues a low cost operator policy.

Ted is an accountant at ABC Company.He is calculating the total revenues minus total costs before tax.Ted is calculating the

Using the value chain model,which of the following primary activities is performed first,as inputs are transformed into outputs?

Kim's T-shirt factory was expert at providing unique and high-quality but costly shirts.Even though the designs were very nice and the amount of detail increased over time,the high price meant that few customers bought shirts from her and her factory went bankrupt.Kim's factory failed due to

Competitive advantage is based on

Donna can make a chair for about $100,she charges customers $150 to buy the chair,and customers perceive that the chair is worth $225.In this case,the consumer surplus is

Capabilities refer to a company's

Toyota's lean production system is the basis of its competitive advantage.

When a company has differentiated products,they have less pricing options.

Nene works in a factory where she picks crab meat from crabs.She is paid per day based upon the number of pounds of crab meat that she picks.Nene's daily number of pounds of crab meat can be referred to as her productivity.

At the most basic level,a business is simply a device for

Innovation refers to the act of

Give one example of a firm that has achieved a distinctive competency in efficiency and describe that competency.Then do the same for a firm with a distinctive competency in quality,innovation,and responsiveness to customers.

A value chain is a sequence of activities for transforming inputs into outputs that are valued by customers.

The Icarus paradox suggests that

Taken together,factors such as existing strategic commitments and low absorptive capacity limit the ability of established competitors to imitate the competitive advantage of a rival.

Which of the following support activities in the value chain refers to the companywide context within which all the other value creation activities take place?

____ can help an organization overcome inertia.

The more utility a company creates for its customers,the more flexibility it has in determining prices.

Strong leadership from top management is

Strategic Leadership: Managing the Strategy-Making Process for Competitive Advantage

External Analysis: The Identification of Opportunities and Threats

Building Competitive Advantage Through Functional-Level Strategy

Building Competitive Advantage Through Business-Level Strategy

Business-Level Strategy and the Industry Environment

Strategy and Technology

Strategy in the Global Environment

Corporate-Level Strategy: Horizontal Integration, Vertical Integration, and Strategic Outsourcing

Corporate-Level Strategy: Related and Unrelated Diversification

Corporate Performance, Governance, and Business Ethics

Implementing Strategy in Companies That Compete in a Single Industry

Implementing Strategy in Companies That Compete Across Industries and Countries

Filters