Question 1

When a company is good at performing a particular internal activity,it is said to have

Accepted Answer

A)  a competitive advantage over rivals. 
B)  a competitive capability. 
C)  a distinctive competence. 
D)  a resource-based strategy. 
E)  a competence. 
A)  a competitive advantage over rivals. 
B)  a competitive capability. 
C)  a distinctive competence. 
D)  a resource-based strategy. 
E)  a competence.

Question 2

Accurately assessing the competitiveness of a company's cost structure and value proposition requires

Accepted Answer

A)  that managers understand an industry's entire value chain system. 
B)  that managers understand the detail of their own company's value chain. 
C)  that managers are involved in functional strategy development. 
D)  that managers understand the firm's profitability outlook. 
E)  All of these. 
A)  that managers understand an industry's entire value chain system. 
B)  that managers understand the detail of their own company's value chain. 
C)  that managers are involved in functional strategy development. 
D)  that managers understand the firm's profitability outlook. 
E)  All of these.

Question 3

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 that create value for customers and related support activities. 
C)  the series of steps it takes to get a product from a raw materials stage to a finished product. 
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 that create value for customers and related support activities. 
C)  the series of steps it takes to get a product from a raw materials stage to a finished product. 
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 4

SWOT analysis

Accepted Answer

A)  is a way to measure whether a company's value chain is longer or shorter than the chains of key rivals. 
B)  is a tool for benchmarking whether a firm's strategy is closely matched to industry key success factors. 
C)  reveals whether a company is competitively stronger than its closest rivals. 
D)  provides a good overview of a company's overall situation. 
E)  identifies the reasons a company's strategy is or is not working very well. 
A)  is a way to measure whether a company's value chain is longer or shorter than the chains of key rivals. 
B)  is a tool for benchmarking whether a firm's strategy is closely matched to industry key success factors. 
C)  reveals whether a company is competitively stronger than its closest rivals. 
D)  provides a good overview of a company's overall situation. 
E)  identifies the reasons a company's strategy is or is not working very well.

Question 5

Which of the following is not an example of an external threat to a company's future profitability?

Accepted Answer

A)  Likely entry of potent new competitors 
B)  The lack of a well-known brand name with which to attract new customers and help retain existing customers 
C)  Unfavorable shifts in buyer demographics and tastes 
D)  Costly new regulatory requirements 
E)  Increase in interest rates 
A)  Likely entry of potent new competitors 
B)  The lack of a well-known brand name with which to attract new customers and help retain existing customers 
C)  Unfavorable shifts in buyer demographics and tastes 
D)  Costly new regulatory requirements 
E)  Increase in interest rates

Question 6

A company's competitive strength scores

Accepted Answer

A)  pinpoint its strengths and weaknesses against rivals and point to offensive and defensive strategies capable of producing first-rate results. 
B)  determine whether a company has a cost-effective value chain. 
C)  learn if the company's market opportunities are better than those of its rival. 
D)  analyze whether a company is well positioned to gain market share and be the industry's profit leader. 
E)  determine whether a company's resource strengths are sufficient to allow it to earn bigger profits than rivals. 
A)  pinpoint its strengths and weaknesses against rivals and point to offensive and defensive strategies capable of producing first-rate results. 
B)  determine whether a company has a cost-effective value chain. 
C)  learn if the company's market opportunities are better than those of its rival. 
D)  analyze whether a company is well positioned to gain market share and be the industry's profit leader. 
E)  determine whether a company's resource strengths are sufficient to allow it to earn bigger profits than rivals.

Question 7

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 8

Identifying the strategic issues a company faces and compiling a "worry list" of problems and roadblocks is an important component of company situation analysis because

Accepted Answer

A)  without a precise fix on what problems/issues a company confronts,managers cannot know what the industry's key success factors are. 
B)  the "worry list" sets the management agenda for taking actions to improve the company's performance and business outlook. 
C)  without a precise fix on what problems/roadblocks a company confronts,managers are less clear about what value chain activities to benchmark. 
D)  the "worry list" helps company managers clarify their thinking about how best to modify the company's value chain. 
E)  these issues and obstacles must be cleared before management can focus clearly on what is the best strategy for the company to pursue. 
A)  without a precise fix on what problems/issues a company confronts,managers cannot know what the industry's key success factors are. 
B)  the "worry list" sets the management agenda for taking actions to improve the company's performance and business outlook. 
C)  without a precise fix on what problems/roadblocks a company confronts,managers are less clear about what value chain activities to benchmark. 
D)  the "worry list" helps company managers clarify their thinking about how best to modify the company's value chain. 
E)  these issues and obstacles must be cleared before management can focus clearly on what is the best strategy for the company to pursue.

Question 9

When a company performs a particular competitively important activity truly well in comparison to its competitors,it is said to have

Accepted Answer

A)  a competence. 
B)  a strategic resource. 
C)  a distinctive competence. 
D)  a core competence. 
E)  a resource-based strategy. 
A)  a competence. 
B)  a strategic resource. 
C)  a distinctive competence. 
D)  a core competence. 
E)  a resource-based strategy.

Question 10

Determining whether a company's prices and costs are competitive

Accepted Answer

A)  requires looking at the costs of a company's internally performed activities and the costs of its suppliers and forward channel allies (distributors/dealers). 
B)  requires performing pricing surveys on at least a quarterly basis. 
C)  involves developing close relationships with buyers to determine if the market is showing signs of increasing price sensitivity. 
D)  typically involves the use of activity-based cost accounting by the company's key retail customers. 
E)  All of these. 
A)  requires looking at the costs of a company's internally performed activities and the costs of its suppliers and forward channel allies (distributors/dealers). 
B)  requires performing pricing surveys on at least a quarterly basis. 
C)  involves developing close relationships with buyers to determine if the market is showing signs of increasing price sensitivity. 
D)  typically involves the use of activity-based cost accounting by the company's key retail customers. 
E)  All of these.

Question 11

The external market opportunities that 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 12

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)  can produce a competitive edge in the marketplace. 
D)  has the potential for being the cornerstone of 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)  can produce a competitive edge in the marketplace. 
D)  has the potential for being the cornerstone of a company's strategy. 
E)  All of these.

Question 13

A company that lacks a stand-alone resource that is competitively powerful may attempt to develop a competitive advantage through

Accepted Answer

A)  improved employee training programs,new marketing promotions,or technological enhancements to production processes. 
B)  the development of a new business strategy that draws upon existing resource strengths. 
C)  extensive strategic planning and resource identification sessions involving managers at all levels of the organization. 
D)  bundled resources that enable superior performance of cross-functional capabilities that can be leveraged to support its business model and strategy. 
E)  devising clever approaches to turning resource weaknesses into resource strengths. 
A)  improved employee training programs,new marketing promotions,or technological enhancements to production processes. 
B)  the development of a new business strategy that draws upon existing resource strengths. 
C)  extensive strategic planning and resource identification sessions involving managers at all levels of the organization. 
D)  bundled resources that enable superior performance of cross-functional capabilities that can be leveraged to support its business model and strategy. 
E)  devising clever approaches to turning resource weaknesses into resource strengths.

Question 14

Assume a firm is at a cost disadvantage with rivals because of higher distributor-dealer costs than rivals.Identify two strategic moves that it can make to restore cost parity.

Accepted Answer

One strategic move the firm can make to

Question 15

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 has potential for being the cornerstone of the 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 has potential for being the cornerstone of the company's strategy. 
E)  A distinctive competence gives a company competitively valuable capability that is unmatched by rivals.

Question 16

Identifying and appraising a company's resource strengths and weaknesses and its external opportunities and threats is called

Accepted Answer

A)  SWOT analysis. 
B)  competitive asset/liability analysis. 
C)  competitive positioning analysis. 
D)  strategic resource assessment. 
E)  company resource mapping. 
A)  SWOT analysis. 
B)  competitive asset/liability analysis. 
C)  competitive positioning analysis. 
D)  strategic resource assessment. 
E)  company resource mapping.

Question 17

The market opportunities most relevant to a particular company are those that

Accepted Answer

A)  offer the best growth and profitability. 
B)  provide a strong defense against threats to the company's profitability. 
C)  hold the most potential for product innovation. 
D)  provide avenues for taking market share away from close rivals. 
E)  hold the most potential to reduce costs. 
A)  offer the best growth and profitability. 
B)  provide a strong defense against threats to the company's profitability. 
C)  hold the most potential for product innovation. 
D)  provide avenues for taking market share away from close rivals. 
E)  hold the most potential to reduce costs.

Question 18

Briefly discuss the meaning and significance of each of the following terms:
a)SWOT analysis
b)Company value chain
c)Industry value chain
d)Weighted competitive strength assessment
e)Benchmarking

Accepted Answer

The answer of Briefly discuss the meaning and significance of...

Question 19

Which of the following is not a component of evaluating a company's competitive strength and cost structure?

Accepted Answer

A)  Evaluating how well the strategy is working 
B)  Scanning the environment to determine a company's best and most profitable customers 
C)  Assessing whether the company's costs and prices are competitive 
D)  Evaluating whether the company is competitively stronger or weaker than key rivals 
E)  Pinpointing what strategic issues and problems merit front-burner management attention 
A)  Evaluating how well the strategy is working 
B)  Scanning the environment to determine a company's best and most profitable customers 
C)  Assessing whether the company's costs and prices are competitive 
D)  Evaluating whether the company is competitively stronger or weaker than key rivals 
E)  Pinpointing what strategic issues and problems merit front-burner management attention

Question 20

A core competence

Accepted Answer

A)  makes a contribution to a company's success in the marketplace. 
B)  is typically knowledge-based,residing in a company's intellectual capital and not in its tangible physical assets on the balance sheet. 
C)  is often grounded in cross-department combinations of knowledge and expertise. 
D)  is a competitively relevant activity that a firm performs especially well in comparison to the other activities it performs. 
E)  All of these. 
A)  makes a contribution to a company's success in the marketplace. 
B)  is typically knowledge-based,residing in a company's intellectual capital and not in its tangible physical assets on the balance sheet. 
C)  is often grounded in cross-department combinations of knowledge and expertise. 
D)  is a competitively relevant activity that a firm performs especially well in comparison to the other activities it performs. 
E)  All of these.

When a company is good at performing a particular internal activity,it is said to have

Accurately assessing the competitiveness of a company's cost structure and value proposition requires

A company's value chain identifies

SWOT analysis

Which of the following is not an example of an external threat to a company's future profitability?

A company's competitive strength scores

A company resource weakness or competitive deficiency

Identifying the strategic issues a company faces and compiling a "worry list" of problems and roadblocks is an important component of company situation analysis because

When a company performs a particular competitively important activity truly well in comparison to its competitors,it is said to have

Determining whether a company's prices and costs are competitive

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

A distinctive competence

A company that lacks a stand-alone resource that is competitively powerful may attempt to develop a competitive advantage through

Assume a firm is at a cost disadvantage with rivals because of higher distributor-dealer costs than rivals.Identify two strategic moves that it can make to restore cost parity.

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

Identifying and appraising a company's resource strengths and weaknesses and its external opportunities and threats is called

The market opportunities most relevant to a particular company are those that

Briefly discuss the meaning and significance of each of the following terms: a)SWOT analysis b)Company value chain c)Industry value chain d)Weighted competitive strength assessment e)Benchmarking

Which of the following is not a component of evaluating a company's competitive strength and cost structure?

A core competence

Strategy, Business Models, and Competitive Advantage

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

Evaluating a Companys External Environment

The Five Generic Competitive Strategies

Strengthening a Companys Competitive Position: Strategic Moves, Timing, and Scope of Operations

Strategies for Competing in International Markets

Corporate Strategy: Diversification and the Multibusiness Company

Ethics, Corporate Social Responsibility, Environmental Sustainability, and Strategy

Superior Strategy Execution-Another Path to Competitive Advantage

Filters

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

When a company is good at performing a particular internal activity,it is said to have

Accurately assessing the competitiveness of a company's cost structure and value proposition requires

A company's value chain identifies

SWOT analysis

Which of the following is not an example of an external threat to a company's future profitability?

A company's competitive strength scores

A company resource weakness or competitive deficiency

Identifying the strategic issues a company faces and compiling a "worry list" of problems and roadblocks is an important component of company situation analysis because

When a company performs a particular competitively important activity truly well in comparison to its competitors,it is said to have

Determining whether a company's prices and costs are competitive

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

A distinctive competence

A company that lacks a stand-alone resource that is competitively powerful may attempt to develop a competitive advantage through

Assume a firm is at a cost disadvantage with rivals because of higher distributor-dealer costs than rivals.Identify two strategic moves that it can make to restore cost parity.

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

Identifying and appraising a company's resource strengths and weaknesses and its external opportunities and threats is called

The market opportunities most relevant to a particular company are those that

Briefly discuss the meaning and significance of each of the following terms: a)SWOT analysis b)Company value chain c)Industry value chain d)Weighted competitive strength assessment e)Benchmarking

Which of the following is not a component of evaluating a company's competitive strength and cost structure?

A core competence

Strategy, Business Models, and Competitive Advantage

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

Evaluating a Companys External Environment

The Five Generic Competitive Strategies

Strengthening a Companys Competitive Position: Strategic Moves, Timing, and Scope of Operations

Strategies for Competing in International Markets

Corporate Strategy: Diversification and the Multibusiness Company

Ethics, Corporate Social Responsibility, Environmental Sustainability, and Strategy

Superior Strategy Execution-Another Path to Competitive Advantage

Filters