Question 1

Employee productivity is a common measure of efficiency.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

Ray, a toymaker, knits a stuffed unicorn for Belle.Which function of the value chain is illustrated in this scenario?

Accepted Answer

A) Marketing 
B) Distribution 
C) Research 
D) Production 
E) Sales 
A) Marketing 
B) Distribution 
C) Research 
D) Production 
E) Sales

Question 4

Resources:

Accepted Answer

A) are only the tangible assets available to a company. 
B) can be both tangible and intangible. 
C) are harder for a company to copy than capabilities are. 
D) do not include patents, copyrights, and trademarks. 
E) are considered valuable only if they increase a company's costs. 
A) are only the tangible assets available to a company. 
B) can be both tangible and intangible. 
C) are harder for a company to copy than capabilities are. 
D) do not include patents, copyrights, and trademarks. 
E) are considered valuable only if they increase a company's costs.

Question 5

Kim's Apparel was a very popular clothing store.It made huge profits during the first two years of its establishment. However, the company failed to keep up with the changing needs of the customers and eventually had to be closed down.Which of the following concepts does the scenario illustrate?

Accepted Answer

A) Cycle time 
B) Customer defection 
C) Icarus paradox 
D) Distinctive competency 
E) Diseconomies of scale 
A) Cycle time 
B) Customer defection 
C) Icarus paradox 
D) Distinctive competency 
E) Diseconomies of scale

Question 6

Benchmarking can be defmed as the practice of:

Accepted Answer

A) monitoring activities related to the design, creation, and delivery of a product, its marketing, and its support and after-sales service. 
B) developing products that are new to the world or have superior attributes to existing products in the market. 
C) measuring the time that it takes for a good to be delivered or a service to be performed. 
D) measuring a company against the products, practices, and services of some of its most efficient global competitors. 
E) analyzing the financial position of a company and creating the income statements and the balance sheets. 
A) monitoring activities related to the design, creation, and delivery of a product, its marketing, and its support and after-sales service. 
B) developing products that are new to the world or have superior attributes to existing products in the market. 
C) measuring the time that it takes for a good to be delivered or a service to be performed. 
D) measuring a company against the products, practices, and services of some of its most efficient global competitors. 
E) analyzing the financial position of a company and creating the income statements and the balance sheets.

Question 7

Benchmarking is a practice in which a company's performance is compared against that of competitors and the historic performance of the company itself.

Accepted Answer

A) True 
 B)False

Question 8

If a company's profitability is higher than the industry average, it has a competitive advantage.

Accepted Answer

A) True 
 B)False

Question 9

The price a company charges for a good or service is typically more than the utility placed on that good or service by the customer.

Accepted Answer

A) True 
 B)False

Question 10

Innovation refers to the act of:

Accepted Answer

A) seeking patent protection for new products. 
B) creating new products and processes. 
C) measuring time taken for a service to be provided. 
D) measuring the output produced by an employee. 
E) identifying and satisfying the needs of a customer. 
A) seeking patent protection for new products. 
B) creating new products and processes. 
C) measuring time taken for a service to be provided. 
D) measuring the output produced by an employee. 
E) identifying and satisfying the needs of a customer.

Question 11

Unfortunately, quality-as-excellence and quality-as-reliability are concepts that apply to goods but not services.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

The primary activities of the value chain include the design, creation, and delivery of the product, the product's marketing, and its support and after-sales service.

Accepted Answer

A) True 
 B)False

Question 14

Competitive advantage is based on:

Accepted Answer

A) distinctive competencies. 
B) the Icarus paradox. 
C) higher cost structure. 
D) prior strategic commitments. 
E) barriers to change in a company. 
A) distinctive competencies. 
B) the Icarus paradox. 
C) higher cost structure. 
D) prior strategic commitments. 
E) barriers to change in a company.

Question 15

Absorptive capacity refers to the ability of an enterprise to identify, value, assimilate, and use new knowledge.

Accepted Answer

A) True 
 B)False

Question 16

The Icarus paradox suggests that those factors that led to a company's success will continue in the future because the competitors cannot imitate them.

Accepted Answer

A) True 
 B)False

Question 17

Patents typically provide the greatest barrier to imitation.

Accepted Answer

A) True 
 B)False

Question 18

A company's competitive advantage will not endure for long when that competitive advantage can be:

Accepted Answer

A) quickly or easily duplicated by other companies. 
B) protected by patents. 
C) protected by significant barriers to imitation. 
D) shared with other companies in the industry. 
E) shielded by copyrights. 
A) quickly or easily duplicated by other companies. 
B) protected by patents. 
C) protected by significant barriers to imitation. 
D) shared with other companies in the industry. 
E) shielded by copyrights.

Question 19

Dale's methods of fitting horseshoes save time and money for his employer at the local ranch.However, when Dale suggests that everyone use his method, his boss, Cedric, says, "No.That's not the way we've always done it around here." Cedric's resistance to change illustrates:

Accepted Answer

A) organizational inertia. 
B) prior strategic commitments. 
C) barriers to mobility. 
D) lack of distinctive competencies. 
E) the Icarus paradox. 
A) organizational inertia. 
B) prior strategic commitments. 
C) barriers to mobility. 
D) lack of distinctive competencies. 
E) the Icarus paradox.

Question 20

A company's profitability depends on the value customers place on the company's products

Accepted Answer

A) True 
 B)False

Employee productivity is a common measure of efficiency.

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

Ray, a toymaker, knits a stuffed unicorn for Belle.Which function of the value chain is illustrated in this scenario?

Resources:

Kim's Apparel was a very popular clothing store.It made huge profits during the first two years of its establishment. However, the company failed to keep up with the changing needs of the customers and eventually had to be closed down.Which of the following concepts does the scenario illustrate?

Benchmarking can be defmed as the practice of:

Benchmarking is a practice in which a company's performance is compared against that of competitors and the historic performance of the company itself.

If a company's profitability is higher than the industry average, it has a competitive advantage.

The price a company charges for a good or service is typically more than the utility placed on that good or service by the customer.

Innovation refers to the act of:

Unfortunately, quality-as-excellence and quality-as-reliability are concepts that apply to goods but not services.

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

The primary activities of the value chain include the design, creation, and delivery of the product, the product's marketing, and its support and after-sales service.

Competitive advantage is based on:

Absorptive capacity refers to the ability of an enterprise to identify, value, assimilate, and use new knowledge.

The Icarus paradox suggests that those factors that led to a company's success will continue in the future because the competitors cannot imitate them.

Patents typically provide the greatest barrier to imitation.

A company's competitive advantage will not endure for long when that competitive advantage can be:

Dale's methods of fitting horseshoes save time and money for his employer at the local ranch.However, when Dale suggests that everyone use his method, his boss, Cedric, says, "No.That's not the way we've always done it around here." Cedric's resistance to change illustrates:

A company's profitability depends on the value customers place on the company's products

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

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

Employee productivity is a common measure of efficiency.

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

Ray, a toymaker, knits a stuffed unicorn for Belle.Which function of the value chain is illustrated in this scenario?

Resources:

Kim's Apparel was a very popular clothing store.It made huge profits during the first two years of its establishment. However, the company failed to keep up with the changing needs of the customers and eventually had to be closed down.Which of the following concepts does the scenario illustrate?

Benchmarking can be defmed as the practice of:

Benchmarking is a practice in which a company's performance is compared against that of competitors and the historic performance of the company itself.

If a company's profitability is higher than the industry average, it has a competitive advantage.

The price a company charges for a good or service is typically more than the utility placed on that good or service by the customer.

Innovation refers to the act of:

Unfortunately, quality-as-excellence and quality-as-reliability are concepts that apply to goods but not services.

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

The primary activities of the value chain include the design, creation, and delivery of the product, the product's marketing, and its support and after-sales service.

Competitive advantage is based on:

Absorptive capacity refers to the ability of an enterprise to identify, value, assimilate, and use new knowledge.

The Icarus paradox suggests that those factors that led to a company's success will continue in the future because the competitors cannot imitate them.

Patents typically provide the greatest barrier to imitation.

A company's competitive advantage will not endure for long when that competitive advantage can be:

Dale's methods of fitting horseshoes save time and money for his employer at the local ranch.However, when Dale suggests that everyone use his method, his boss, Cedric, says, "No.That's not the way we've always done it around here." Cedric's resistance to change illustrates:

A company's profitability depends on the value customers place on the company's products

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

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