Question 1

Intel's invention of the microprocessor in the early 1970s, Cisco's development of the router for routing data over the Internet in the mid-1980s, and Apple's development of the iPod, iPhone, and iPad in the 2000s can be referred to as which type of innovation?

Accepted Answer

A)  Process 
B)  Product 
C)  Customer 
D)  Resource 
E)  Value-chain

Question 2

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

Accepted Answer

A)  Research and development 
B)  Marketing and sales 
C)  Logistics 
D)  Production 
E)  Customer service

Question 3

Give one example of a firm that has achieved a distinctive competency in efficiency, quality, innovation, and responsiveness to customers and describe that competency.

Accepted Answer

The answer of Give one example of a firm that...

Question 4

Customer response time is the time it takes for:

Accepted Answer

A)  value to be placed on a company's products by customers. 
B)  development of a new process for producing products and delivering them to customers. 
C)  given inputs to be converted into an output. 
D)  development of products that have superior attributes to existing products. 
E)  a good to be delivered or a service to be performed.

Question 5

Identify and describe the four building blocks of competitive advantage. Provide an example of each using a real company situation.

Accepted Answer

The answer of Identify and describe the four building blocks...

Question 6

The building blocks of competitive advantage are superior efficiency, quality, innovation and customer responsiveness.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is NOT true of capital productivity?

Accepted Answer

A)  Changing the way a firm handles inventory to reduce capital expenditures can increase capital productivity. 
B)  It is an important measure of efficiency. 
C)  Higher capital productivity is achieved by eliminating unproductive assets or activities from a firm's capital. 
D)  It is measured by looking at a product's price. 
E)  It is the output produced by a dollar of capital invested in the business.

Question 8

Anna bakes cookies for $10 per batch, she charges customers $15 to a batch, and customers perceive that the cookies are worth $25 per batch. Anna's profit margin is:

Accepted Answer

A)  $5. 
B)  $7.50. 
C)  $10. 
D)  $15. 
E)  $25.

Question 9

What implications can be drawn about the idea that advanced factors of production usually make up the unique strengths of an organization?

Accepted Answer

The answer of What implications can be drawn about the...

Question 10

Although several different measures of profitability exist, many authorities in the measurement of profitability argue that which of the following is the best measurement because "it focuses on the true operating performance of the company"?

Accepted Answer

A)  Return on invested capital 
B)  Net profit margin 
C)  Return on equity 
D)  Capital turnover 
E)  Return on sales

Question 11

Which of the following is an important attribute for a product from a quality-as-reliability perspective?

Accepted Answer

A)  Styling 
B)  Aesthetic appeal 
C)  Wait time at the point of sale 
D)  Features 
E)  Performance

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

Kodak possesses the leading imaging technology. This technology has allowed the company to differentiate its products from those offered by rivals. Imaging technology is Kodak's:

Accepted Answer

A)  distinctive competence. 
B)  profit. 
C)  support activity. 
D)  value chain. 
E)  organizational architecture.

Question 14

The concept of efficiency as a building block of competitive advantage applies to:

Accepted Answer

A)  all products produced by a firm. 
B)  only those products that consumers believe to be high quality. 
C)  only those products of a firm popular among a large customer base. 
D)  custom-made products only. 
E)  only those products that have been redesigned.

Question 15

Creating consumer value and differentiating product offerings is a result of the pursuit of efficiency, quality, innovation, and customer responsiveness through the completion of value-chain activities.

Accepted Answer

A) True 
 B)False

Question 16

When conducting an internal analysis, a manager must do all of the following EXCEPT:

Accepted Answer

A)  look at the way in which forces in the macroenvironment affect industry structure and influence opportunities and threats. 
B)  understand the role of rare, valuable, and hard-to-imitate resources in the establishment of competitive advantage. 
C)  appreciate how rare, valuable, and hard-to-imitate resources lead to superior efficiency, innovation, quality, and customer responsiveness. 
D)  analyze the sources of their company's competitive advantage to identify what drives the profitability of their enterprise. 
E)  analyze the sources of their company's competitive advantage to identify where opportunities for improvement might be.

Question 17

Which of the following are primarily the digital systems for managing inventory, tracking sales, pricing products, selling products, and dealing with customer service inquiries?

Accepted Answer

A)  Information systems 
B)  Logistics 
C)  Corporate infrastructure 
D)  Marketing and sales 
E)  Materials management

Question 18

The more firm-specific and difficult to imitate a resource is, the more likely a company holding that resource is said to have a distinctive competency.

Accepted Answer

A) True 
 B)False

Question 19

Mikayla, a cost accountant, is responsible for gathering and monitoring data used for controlling the organization's costs. In which value-chain activity does Mikayla work?

Accepted Answer

A)  Research and development 
B)  Human resources 
C)  Materials management 
D)  Marketing and sales 
E)  Company infrastructure

Question 20

The simplest measure of efficiency is the:

Accepted Answer

A)  amount of money the company budgets for work in the short term. 
B)  ratio of revenues divided by invested capital. 
C)  net profit expressed as a percentage of sales. 
D)  total costs of producing products. 
E)  quantity of inputs required to produce a given output.

Exam 3: Internal Analysis: Resources and Competitive Advantage

Intel's invention of the microprocessor in the early 1970s, Cisco's development of the router for routing data over the Internet in the mid-1980s, and Apple's development of the iPod, iPhone, and iPad in the 2000s can be referred to as which type of innovation?

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

Give one example of a firm that has achieved a distinctive competency in efficiency, quality, innovation, and responsiveness to customers and describe that competency.

Customer response time is the time it takes for:

Identify and describe the four building blocks of competitive advantage. Provide an example of each using a real company situation.

The building blocks of competitive advantage are superior efficiency, quality, innovation and customer responsiveness.

Which of the following is NOT true of capital productivity?

Anna bakes cookies for $10 per batch, she charges customers $15 to a batch, and customers perceive that the cookies are worth $25 per batch. Anna's profit margin is:

What implications can be drawn about the idea that advanced factors of production usually make up the unique strengths of an organization?

Although several different measures of profitability exist, many authorities in the measurement of profitability argue that which of the following is the best measurement because "it focuses on the true operating performance of the company"?

Which of the following is an important attribute for a product from a quality-as-reliability perspective?

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

Kodak possesses the leading imaging technology. This technology has allowed the company to differentiate its products from those offered by rivals. Imaging technology is Kodak's:

The concept of efficiency as a building block of competitive advantage applies to:

Creating consumer value and differentiating product offerings is a result of the pursuit of efficiency, quality, innovation, and customer responsiveness through the completion of value-chain activities.

When conducting an internal analysis, a manager must do all of the following EXCEPT:

Which of the following are primarily the digital systems for managing inventory, tracking sales, pricing products, selling products, and dealing with customer service inquiries?

The more firm-specific and difficult to imitate a resource is, the more likely a company holding that resource is said to have a distinctive competency.

Mikayla, a cost accountant, is responsible for gathering and monitoring data used for controlling the organization's costs. In which value-chain activity does Mikayla work?

The simplest measure of efficiency is the: