Question 1

When a company has become proficient in modifying,upgrading,or deepening the company's resources and capabilities in response to its changing environment and market opportunities,it is called

Accepted Answer

A)  a dynamic capability. 
B)  a core competence. 
C)  a distinct competence. 
D)  a strategic assessment. 
E)  None of these choices are correct.

Question 2

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.

Question 3

Assume a firm is not cost competitive with rivals because of higher supplier-related costs.Identify three strategic moves that it can make to restore cost parity.

Accepted Answer

The answer of Assume a firm is not cost competitive...

Question 4

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 5

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 choices are correct.

Question 6

In conducting a SWOT analysis,is it enough to simply compile lists of the company's strengths,weaknesses,opportunities,and threats? Why or why not?

Accepted Answer

The answer of In conducting a SWOT analysis,is it enough...

Question 7

Benchmarking involves

Accepted Answer

A)  comparing how different companies perform various value chain activities and then making cross-company comparisons of the costs of these activities. 
B)  checking whether a company has achieved more of its financial and strategic objectives over the past five years relative to the other firms it is in direct competition with. 
C)  studying whether a company's resource strengths are more or less powerful than the resource strengths of rival companies. 
D)  tracking the profit margin along with the value-creating activities. 
E)  comparing the best practices in one industry against the best practices in another industry.

Question 8

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.

Question 9

The two most important parts of SWOT analysis are

Accepted Answer

A)  pinpointing the company's competitive assets and pinpointing its competitive liabilities. 
B)  identifying the company's resource strengths and identifying the company's best market opportunities. 
C)  identifying the external threats to a company's future profitability and pinpointing how many market opportunities it has. 
D)  drawing conclusions from the SWOT listings about the company's overall situation and translating these conclusions into strategic actions to better match the company's strategy to its resource strengths and market opportunities,correct the important weaknesses,and defend against external threats. 
E)  making accurate lists of the company's strengths,weaknesses,opportunities,and threats,and then using these lists as a basis for ascertaining how well the company's strategy is working.

Question 10

The difference between a resource and a capability is that

Accepted Answer

A)  a resource refers to a company's best-executed functional strategy,and a capability refers to a company's best-executed business strategy. 
B)  a resource refers to a company's most strategically important asset,whereas a capability refers to the basis of a company's competitive advantage over rivals. 
C)  a resource is a competitively relevant internal activity that a firm performs especially well relative to other internal activities,whereas a capability is a competitively important activity performed by key strategic allies. 
D)  a resource represents a competitive asset that is owned or controlled by the company,whereas a capability is a competently performed internal activity that is developed through the deployment of the company's resources. 
E)  a resource usually resides in a company's technology and physical assets (state-of-the-art plants and equipment,attractive real estate locations,and so on),whereas a capability usually resides in a company's human capital,information capital,or organizational capital.

Question 11

Which one of the following is not a tangible resource?

Accepted Answer

A)  human assets and intellectual capital 
B)  brand,image,and reputation 
C)  relationships 
D)  company culture 
E)  All of these choices are correct.

Question 12

Describe some ways that a company can improve (1) its supplier-related value chain activities and (2) activities of its forward channel allies.

Accepted Answer

The answer of Describe some ways that a company can...

Question 13

A company's resources are competitive assets that are owned or controlled by the company and include

Accepted Answer

A)  financial resources such as a company's credit rating and borrowing capacity. 
B)  tangible resources such as plants,distribution centers,and manufacturing equipment. 
C)  intangible assets such as brand recognition and buyer loyalty. 
D)  intangible assets such as having a results-oriented culture. 
E)  All of these choices are correct.

Question 14

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.

Question 15

Identify the five questions that form the framework of evaluating a company's resources and competitive position.
The five questions are provided in Feedback.

Accepted Answer

The answer of Identify the five questions that form the...

Question 16

Identifying the primary and secondary activities that comprise a company's value chain

Accepted Answer

A)  indicates whether a company's resource strengths will ultimately translate into greater value for shareholders. 
B)  reveals whether a company's resource strengths are well-matched to the industry's key success factors. 
C)  is the first step in understanding a company's cost structure (since each activity in the value chain gives rise to costs). 
D)  is called benchmarking. 
E)  is called resource value analysis.

Question 17

Assume a firm is at a cost disadvantage with rivals because its internal costs are higher than those of rivals.Identify several strategic moves that it can make to restore cost parity.

Accepted Answer

The answer of Assume a firm is at a cost...

Question 18

A capability of the firm is not considered to be

Accepted Answer

A)  the capacity of a firm to competently perform some internal activity. 
B)  referred to as a competence. 
C)  developed and enabled through the deployment of a company's resources or some combination of its resources. 
D)  a competitively valuable resource. 
E)  related to the level of resources available.

Question 19

Identify five indicators of whether a company's present strategy is working well.

Accepted Answer

The answer of Identify five indicators of whether a company's...

Question 20

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

Accepted Answer

The answer of What benefits might management expect to gain...

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

When a company has become proficient in modifying,upgrading,or deepening the company's resources and capabilities in response to its changing environment and market opportunities,it is called

A resource-based strategy

Assume a firm is not cost competitive with rivals because of higher supplier-related costs.Identify three strategic moves that it can make to restore cost parity.

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

Determining whether a company's prices and costs are competitive

In conducting a SWOT analysis,is it enough to simply compile lists of the company's strengths,weaknesses,opportunities,and threats? Why or why not?

Benchmarking involves

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

The two most important parts of SWOT analysis are

The difference between a resource and a capability is that

Which one of the following is not a tangible resource?

Describe some ways that a company can improve (1) its supplier-related value chain activities and (2) activities of its forward channel allies.

A company's resources are competitive assets that are owned or controlled by the company and include

A resource-based strategy

Identify the five questions that form the framework of evaluating a company's resources and competitive position. The five questions are provided in Feedback.

Identifying the primary and secondary activities that comprise a company's value chain

Assume a firm is at a cost disadvantage with rivals because its internal costs are higher than those of rivals.Identify several strategic moves that it can make to restore cost parity.

A capability of the firm is not considered to be

Identify five indicators of whether a company's present strategy is working well.

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