Question 1

What are the remedies for an internal cost disadvantage?

Accepted Answer

Ways to reduce costs of internally perfo

Question 2

Identify the five questions that form the framework of evaluating a company's resources and competitive position.

Accepted Answer

The five questions comprising the task o

Question 3

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 4

Which of the following is not a market opportunity most relevant to a particular company?

Accepted Answer

A) Likely entry of potent new competitors 
B) Acquiring rival firms or companies with technological know-how to enter new lines of business 
C) Expanding the company's product line to meet new customer needs 
D) Expanding into new geographic markets 
E) Falling trade barriers in attractive foreign markets 
A) Likely entry of potent new competitors 
B) Acquiring rival firms or companies with technological know-how to enter new lines of business 
C) Expanding the company's product line to meet new customer needs 
D) Expanding into new geographic markets 
E) Falling trade barriers in attractive foreign markets

Question 5

Organizational capabilities are virtually always

Accepted Answer

A) more complex than resources and are exercised only through key personnel. 
B) requiring constant evaluation to ensure cooperative support from management. 
C) easier and less challenging to categorize than resources because there are fewer to be concerned about. 
D) knowledge-based. 
E) reflective of the industry's driving forces. 
A) more complex than resources and are exercised only through key personnel. 
B) requiring constant evaluation to ensure cooperative support from management. 
C) easier and less challenging to categorize than resources because there are fewer to be concerned about. 
D) knowledge-based. 
E) reflective of the industry's driving forces.

Question 6

Why is it important for company managers to develop a "worry list" of strategic issues and problems that they need to address and to resolve? What should they consider to develop this list?

Accepted Answer

Compiling a "worry list" of problems and

Question 7

What benefits might management expect to gain from benchmarking the "best practices" of those in other industries?

Accepted Answer

Benchmarking is a potent tool for learni

Question 8

Two analytical tools useful in determining whether a company's prices and costs are competitive are

Accepted Answer

A) SWOT analysis and key success factor analysis. 
B) SWOT analysis and benchmarking. 
C) value chain analysis and benchmarking. 
D) competitive position assessment and competitive strength assessment. 
E) driving forces analysis and SWOT analysis. 
A) SWOT analysis and key success factor analysis. 
B) SWOT analysis and benchmarking. 
C) value chain analysis and benchmarking. 
D) competitive position assessment and competitive strength assessment. 
E) driving forces analysis and SWOT analysis.

Question 9

A resource-based strategy

Accepted Answer

A) focuses on exploiting a company's best-executed operating strategy. 
B) is based upon efficient performance of the company's primary value chain activities. 
C) concentrates on minimizing the costs associated with the design of a product or service. 
D) attempts to exploit resources in a manner that offers value to customers in ways rivals are unable to match. 
E) focuses on working with forward channel allies to develop capabilities to outmatch the capabilities of rivals. 
A) focuses on exploiting a company's best-executed operating strategy. 
B) is based upon efficient performance of the company's primary value chain activities. 
C) concentrates on minimizing the costs associated with the design of a product or service. 
D) attempts to exploit resources in a manner that offers value to customers in ways rivals are unable to match. 
E) focuses on working with forward channel allies to develop capabilities to outmatch the capabilities of rivals.

Question 10

Which one of the following is not something that can be learned from doing a competitive strength assessment?

Accepted Answer

A) Factors on which a company is competitively strongest and weakest vis-à-vis key rivals 
B) Whether a company should correct its weaknesses by adopting best practices and/or revamping the makeup of its value chain 
C) Which of the rated companies is competitively strongest and what size competitive advantage it enjoys 
D) Whether a company has a net competitive advantage or a net competitive disadvantage relative to key rivals (with the size of the advantage/disadvantage being indicated by the differences among the companies' competitive strength scores) 
E) Which rival company is competitively weakest and the areas where it is most vulnerable to competitive attack 
A) Factors on which a company is competitively strongest and weakest vis-à-vis key rivals 
B) Whether a company should correct its weaknesses by adopting best practices and/or revamping the makeup of its value chain 
C) Which of the rated companies is competitively strongest and what size competitive advantage it enjoys 
D) Whether a company has a net competitive advantage or a net competitive disadvantage relative to key rivals (with the size of the advantage/disadvantage being indicated by the differences among the companies' competitive strength scores) 
E) Which rival company is competitively weakest and the areas where it is most vulnerable to competitive attack

Question 11

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 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 into the marketplace,and then start collecting revenues and earning a profit.

Question 12

Which of the following is not a good option for trying to remedy high internal costs vis-à-vis rival firms?

Accepted Answer

A) Investing in productivity-enhancing,cost-saving technological improvements 
B) Redesigning the product or some of its components to permit more economical manufacture or assembly 
C) Implementing aggressive strategic resource mapping to permit across-the-board cost reduction 
D) Outsourcing high-cost activities to vendors or contractors who can perform them more economically 
E) Relocating high-cost activities (such as manufacturing)to geographic areas (such as China or Latin America or Eastern Europe)where they can be performed more cheaply 
A) Investing in productivity-enhancing,cost-saving technological improvements 
B) Redesigning the product or some of its components to permit more economical manufacture or assembly 
C) Implementing aggressive strategic resource mapping to permit across-the-board cost reduction 
D) Outsourcing high-cost activities to vendors or contractors who can perform them more economically 
E) Relocating high-cost activities (such as manufacturing)to geographic areas (such as China or Latin America or Eastern Europe)where they can be performed more cheaply

Question 13

A resource-based strategy

Accepted Answer

A) is often based on cross-department combinations of intellectual capital and expertise. 
B) uses a company's valuable and rare resources and competitive capabilities to deliver value to customers that rivals have difficulty matching. 
C) is typically based on a stand-alone resource strength such as technological expertise. 
D) refers to a company's most efficiently executed value-chain activity. 
E) uses industry key success factors to provide a company with a core competence that rivals cannot effectively imitate. 
A) is often based on cross-department combinations of intellectual capital and expertise. 
B) uses a company's valuable and rare resources and competitive capabilities to deliver value to customers that rivals have difficulty matching. 
C) is typically based on a stand-alone resource strength such as technological expertise. 
D) refers to a company's most efficiently executed value-chain activity. 
E) uses industry key success factors to provide a company with a core competence that rivals cannot effectively imitate.

Question 14

A company's strategic options for internally performed value chain activities do not include

Accepted Answer

A) revamping its value chain to eliminate or bypass some cost-producing activities (particularly low value-added activities). 
B) implementing the use of best practices,particularly for high-cost activities. 
C) investing in productivity-enhancing,cost-saving technological improvements. 
D) switching to activity-based costing. 
E) outsourcing the performance of high-cost activities to vendors that can perform them more cheaply. 
A) revamping its value chain to eliminate or bypass some cost-producing activities (particularly low value-added activities). 
B) implementing the use of best practices,particularly for high-cost activities. 
C) investing in productivity-enhancing,cost-saving technological improvements. 
D) switching to activity-based costing. 
E) outsourcing the performance of high-cost activities to vendors that can perform them more cheaply.

Question 15

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) that financial measures such as return on equity and return on assets are in excess of the company's hurdle rates. 
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) that financial measures such as return on equity and return on assets are in excess of the company's hurdle rates.

Question 16

Activity-based costing

Accepted Answer

A) is a tool for identifying the activities that cause a company's product to be strongly differentiated from the products of rivals. 
B) is far superior to SWOT analysis for analyzing a firm's internal situation. 
C) involves developing a "worry list" of problems and issues for managerial strategy making. 
D) 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. 
E) involves determining which value chain activities represent variable costs and which represent fixed costs. 
A) is a tool for identifying the activities that cause a company's product to be strongly differentiated from the products of rivals. 
B) is far superior to SWOT analysis for analyzing a firm's internal situation. 
C) involves developing a "worry list" of problems and issues for managerial strategy making. 
D) 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. 
E) involves determining which value chain activities represent variable costs and which represent fixed costs.

Question 17

A company's resources and capabilities represent

Accepted Answer

A) the firm's net working capital and related determinants for measuring operating performance and capabilities. 
B) positive trends with relevant cultural factors related to buyers' choices and product modifications. 
C) management's source of funding for new strategic initiatives. 
D) whether or not the firm has the industry's most efficient value chain. 
E) the firm's competitive assets that determine its competitiveness and ability to succeed in the marketplace. 
A) the firm's net working capital and related determinants for measuring operating performance and capabilities. 
B) positive trends with relevant cultural factors related to buyers' choices and product modifications. 
C) management's source of funding for new strategic initiatives. 
D) whether or not the firm has the industry's most efficient value chain. 
E) the firm's competitive assets that determine its competitiveness and ability to succeed in the marketplace.

Question 18

Costs and price differences among competing companies can have origins in activities performed by

Accepted Answer

A) whether the company has a longer or shorter value chain than its close rivals. 
B) value chains of the company's suppliers. 
C) developing a "worry list" of problems and issues for managerial strategy making. 
D) the company's internally performed activities (its own value chain),but also on costs in the value chain of its suppliers and distribution channel allies. 
E) value chains of a company's distributors and retail dealers and forward channel allies. 
A) whether the company has a longer or shorter value chain than its close rivals. 
B) value chains of the company's suppliers. 
C) developing a "worry list" of problems and issues for managerial strategy making. 
D) the company's internally performed activities (its own value chain),but also on costs in the value chain of its suppliers and distribution channel allies. 
E) value chains of a company's distributors and retail dealers and forward channel allies.

Question 19

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

Accepted Answer

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

Question 20

Which of the following is not an option for remedying a forward channel-related cost disadvantage?

Accepted Answer

A) Negotiate more favorable prices with suppliers. 
B) Integrate forward into company-owned retail outlets. 
C) Collaborate closely with forward channel allies to identify mutual cost-saving opportunities. 
D) Change to a more economical distribution strategy. 
E) Pressure dealer-distributors to reduce their costs and markups. 
A) Negotiate more favorable prices with suppliers. 
B) Integrate forward into company-owned retail outlets. 
C) Collaborate closely with forward channel allies to identify mutual cost-saving opportunities. 
D) Change to a more economical distribution strategy. 
E) Pressure dealer-distributors to reduce their costs and markups.

What are the remedies for an internal cost disadvantage?

Identify the five questions that form the framework of evaluating a company's resources and competitive position.

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

Which of the following is not a market opportunity most relevant to a particular company?

Organizational capabilities are virtually always

Why is it important for company managers to develop a "worry list" of strategic issues and problems that they need to address and to resolve? What should they consider to develop this list?

What benefits might management expect to gain from benchmarking the "best practices" of those in other industries?

Two analytical tools useful in determining whether a company's prices and costs are competitive are

A resource-based strategy

Which one of the following is not something that can be learned from doing a competitive strength assessment?

A company's value chain

Which of the following is not a good option for trying to remedy high internal costs vis-à-vis rival firms?

A resource-based strategy

A company's strategic options for internally performed value chain activities do not include

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

Activity-based costing

A company's resources and capabilities represent

Costs and price differences among competing companies can have origins in activities performed by

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

Which of the following is not an option for remedying a forward channel-related cost disadvantage?

Strategy,business Models,and Competitive Advantage

Strategy Formulation,execution,and Governance

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 Executionanother Path to Competitive Advantage

Filters

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

What are the remedies for an internal cost disadvantage?

Identify the five questions that form the framework of evaluating a company's resources and competitive position.

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

Which of the following is not a market opportunity most relevant to a particular company?

Organizational capabilities are virtually always

Why is it important for company managers to develop a "worry list" of strategic issues and problems that they need to address and to resolve? What should they consider to develop this list?

What benefits might management expect to gain from benchmarking the "best practices" of those in other industries?

Two analytical tools useful in determining whether a company's prices and costs are competitive are

A resource-based strategy

Which one of the following is not something that can be learned from doing a competitive strength assessment?

A company's value chain

Which of the following is not a good option for trying to remedy high internal costs vis-à-vis rival firms?

A resource-based strategy

A company's strategic options for internally performed value chain activities do not include

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

Activity-based costing

A company's resources and capabilities represent

Costs and price differences among competing companies can have origins in activities performed by

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

Which of the following is not an option for remedying a forward channel-related cost disadvantage?

Strategy,business Models,and Competitive Advantage

Strategy Formulation,execution,and Governance

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 Executionanother Path to Competitive Advantage

Filters