Question 1

Explain why competitive advantages are temporary.

Accepted Answer

A competitive advantage is a feature of

Question 2

Which of the following decisions does a firm need to make as soon as it has identified the activities from the value chain that are bringing the highest added value to their customers?

Accepted Answer

A)  Target high value-adding activities to further enhance their value. 
B)  Target low value-adding activities to increase their value. 
C)  Perform some combination of the two. 
D)  All of these. 
A)  Target high value-adding activities to further enhance their value. 
B)  Target low value-adding activities to increase their value. 
C)  Perform some combination of the two. 
D)  All of these.

Question 3

Your boss,Kerry Miller,has asked you to analyze the soft drink industry using Porter's Five Forces Model.Which of the following represents buyer power in the soft drink industry?

Accepted Answer

A)  Pepsi requires stores that carry Pepsi products to commit to minimum orders of 1,000 cases. 
B)  Walmart negotiates a lower cost per bottle from Coke in exchange for premium shelf space in every Walmart store. 
C)  Zevia Natural Diet Soda begins selling directly over the Internet. 
D)  Vitamin water, fruit juice, and coffee. 
A)  Pepsi requires stores that carry Pepsi products to commit to minimum orders of 1,000 cases. 
B)  Walmart negotiates a lower cost per bottle from Coke in exchange for premium shelf space in every Walmart store. 
C)  Zevia Natural Diet Soda begins selling directly over the Internet. 
D)  Vitamin water, fruit juice, and coffee.

Question 4

Your boss,Tom Repicci,has asked you to analyze the airline industry using Porter's three generic strategies.Which of the following companies are using a focused strategy?

Accepted Answer

A)  Southwest, Horizon, Frontier, and JetBlue. 
B)  British Airways, Singapore Airlines, and Virgin Atlantic. 
C)  Sky Taxi, a rent-by-the-hour personal plane service. 
D)  All of these. 
A)  Southwest, Horizon, Frontier, and JetBlue. 
B)  British Airways, Singapore Airlines, and Virgin Atlantic. 
C)  Sky Taxi, a rent-by-the-hour personal plane service. 
D)  All of these.

Question 5

Your boss,Ty Jacob,has asked you to analyze the music industry using Porter's Five Forces Model.Which of the following represents buyer power in the music industry?

Accepted Answer

A)  Established record labels like EMI, Sony, and Universal. 
B)  Walmart, Target, and iTunes. 
C)  Independent record labels. 
D)  Game systems like Wii and social networks like Facebook. 
A)  Established record labels like EMI, Sony, and Universal. 
B)  Walmart, Target, and iTunes. 
C)  Independent record labels. 
D)  Game systems like Wii and social networks like Facebook.

Question 6

According to Porter's value chain analysis,which of the following provides customer support after the sale of goods and services?

Accepted Answer

A)  Inbound logistics. 
B)  Outbound logistics. 
C)  Operations. 
D)  Service. 
A)  Inbound logistics. 
B)  Outbound logistics. 
C)  Operations. 
D)  Service.

Question 7

When a company is the first to market with a competitive advantage,it gains a particular benefit known as competitive intelligence.

Accepted Answer

A) True 
 B)False

Question 8

When evaluating the value chain,all of the following are included in the primary value activities except:

Accepted Answer

A)  Inbound activities. 
B)  Operations. 
C)  Service. 
D)  MIS development. 
A)  Inbound activities. 
B)  Operations. 
C)  Service. 
D)  MIS development.

Question 9

Which of the following is similar to focused strategy versus broad strategy?

Accepted Answer

A)  Large market versus leadership. 
B)  Large market versus uniqueness. 
C)  Niche market versus large market. 
D)  Niche market versus generic. 
A)  Large market versus leadership. 
B)  Large market versus uniqueness. 
C)  Niche market versus large market. 
D)  Niche market versus generic.

Question 10

Supplier power is one of Porter's five forces,and it measures the suppliers' ability to influence the prices they charge for supplies (including materials,labor,and services).

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is a tool a manager can use to analyze competitive intelligence and identify competitive advantages?

Accepted Answer

A)  The three generic strategies 
B)  The threat of substitute buyer power 
C)  Differentiated costs 
D)  Supplier loyalty 
A)  The three generic strategies 
B)  The threat of substitute buyer power 
C)  Differentiated costs 
D)  Supplier loyalty

Question 12

What is a standardized set of activities that accomplishes a specific task?

Accepted Answer

A)  Business strategy. 
B)  Business outcome. 
C)  Business process. 
D)  Knowledge process. 
A)  Business strategy. 
B)  Business outcome. 
C)  Business process. 
D)  Knowledge process.

Question 13

Sandy Fiero works as the Chief Knowledge Officer for Bend Lumbar Company.She has been given the responsibility to create a product or service that will bring an added value to its customers to increase the company's revenue.Sandy determines that the best value she can add is by creating a service that offers free next-day shipping on any order over $50.Where in the value chain is Sandy adding value?

Accepted Answer

A)  The primary value activity outbound logistics. 
B)  The primary value activity inbound logistics. 
C)  The primary value activity marketing and sales. 
D)  The primary value activity operations. 
A)  The primary value activity outbound logistics. 
B)  The primary value activity inbound logistics. 
C)  The primary value activity marketing and sales. 
D)  The primary value activity operations.

Question 14

Competitive intelligence is the process of gathering information about the competitive environment,including _________.

Accepted Answer

A)  competitors' employees 
B)  competitors' differentiated processes 
C)  competitors' plans 
D)  All of these 
A)  competitors' employees 
B)  competitors' differentiated processes 
C)  competitors' plans 
D)  All of these

Question 15

Describe Porter's Five Forces Model and explain each of the five forces.

Accepted Answer

Porter's Five Forces Model analyzes the

Question 16

Buyer power is the ability of buyers to affect the price they must pay for an item.

Accepted Answer

A) True 
 B)False

Question 17

Two ways to reduce buyer power are through switching costs and loyalty programs.

Accepted Answer

A) True 
 B)False

Question 18

MIS can add value to both primary activities and support activities in the value chain.Which of the following is not an example of a company adding value by using MIS in a primary activity?

Accepted Answer

A)  Scottrade Corp. creating an online system for employees to track paychecks, benefits, the wellness-rewards program, and other employee benefit items. 
B)  A system for the sales and marketing departments to track specific sales targets and follow-up processes. 
C)  An easy electronic survey to be sent to the customer right after a service is completed. 
D)  Royal Crest Dairy placing their order and delivery system on an easily accessible Web portal so customers can track delivery status. 
A)  Scottrade Corp. creating an online system for employees to track paychecks, benefits, the wellness-rewards program, and other employee benefit items. 
B)  A system for the sales and marketing departments to track specific sales targets and follow-up processes. 
C)  An easy electronic survey to be sent to the customer right after a service is completed. 
D)  Royal Crest Dairy placing their order and delivery system on an easily accessible Web portal so customers can track delivery status.

Question 19

What is the support value activity that hires employees and provides them with training and compensation?

Accepted Answer

A)  Procurement. 
B)  Operations resource management. 
C)  Human resource management. 
D)  Firm infrastructure. 
A)  Procurement. 
B)  Operations resource management. 
C)  Human resource management. 
D)  Firm infrastructure.

Question 20

Porter identified three generic strategies that a business could follow after identifying a market it wanted to enter.Which of the following is not included as one of Porter's three generic strategies?

Accepted Answer

A)  Broad differentiation. 
B)  Supplier cost differentiation. 
C)  Focused strategy. 
D)  Broad cost leadership. 
A)  Broad differentiation. 
B)  Supplier cost differentiation. 
C)  Focused strategy. 
D)  Broad cost leadership.

Exam 2: Identifying Competitive Advantages

Explain why competitive advantages are temporary.

Which of the following decisions does a firm need to make as soon as it has identified the activities from the value chain that are bringing the highest added value to their customers?

Your boss,Kerry Miller,has asked you to analyze the soft drink industry using Porter's Five Forces Model.Which of the following represents buyer power in the soft drink industry?

Your boss,Tom Repicci,has asked you to analyze the airline industry using Porter's three generic strategies.Which of the following companies are using a focused strategy?

Your boss,Ty Jacob,has asked you to analyze the music industry using Porter's Five Forces Model.Which of the following represents buyer power in the music industry?

According to Porter's value chain analysis,which of the following provides customer support after the sale of goods and services?

When a company is the first to market with a competitive advantage,it gains a particular benefit known as competitive intelligence.

When evaluating the value chain,all of the following are included in the primary value activities except:

Which of the following is similar to focused strategy versus broad strategy?

Supplier power is one of Porter's five forces,and it measures the suppliers' ability to influence the prices they charge for supplies (including materials,labor,and services).

Which of the following is a tool a manager can use to analyze competitive intelligence and identify competitive advantages?

What is a standardized set of activities that accomplishes a specific task?

Competitive intelligence is the process of gathering information about the competitive environment,including _________.

Describe Porter's Five Forces Model and explain each of the five forces.

Buyer power is the ability of buyers to affect the price they must pay for an item.

Two ways to reduce buyer power are through switching costs and loyalty programs.

MIS can add value to both primary activities and support activities in the value chain.Which of the following is not an example of a company adding value by using MIS in a primary activity?

What is the support value activity that hires employees and provides them with training and compensation?

Porter identified three generic strategies that a business could follow after identifying a market it wanted to enter.Which of the following is not included as one of Porter's three generic strategies?

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Measuring the Success of Strategic Initiatives

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Valuing Organizational Information

Storing Organizational Information-Databases

Accessing Organizational Information-Data Warehouse

Enabling the Organization-Decision Making

Extending the Organization-Supply Chain Management

Building a Customer-Centric Organization-Customer Relationship Management

Integrating the Organization From End to End-Enterprise Resource Planning

Creating Innovative Organizations

Ebusiness

Creating Collaborative Partnerships

Integrating Wireless Technology in Business

Developing Software to Streamline Operations

Methodologies for Supporting Agile Organizations

Managing Organizational Projects

Developing a 21st-Century Organization

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Business Process

Hardware and Software Basics

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Networks and Telecommunications

Information Security

Ethics

Operations Management

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