Question 1

Industry dynamism refers to:

Accepted Answer

A) the gradual erosion of a company's customer base over time. 
B) shifts in product profitability. 
C) a rapidly changing industry envirornnent. 
D) increasing per-unit costs. 
E) a company's difficulty in changing its strategies and structure.

Question 2

The Icarus paradox suggests that:

Accepted Answer

A) companies should stick to a narrowly defined line of products. 
B) better-than-average profitability is an elusive goal. 
C) companies may become myopic and lose sight of market realities. 
D) companies often pursue too many strategies at once. 
E) companies should change strategies before strategies need changing.

Question 3

Customer response time is:

Accepted Answer

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

Question 4

Which of the following is true of the impact of high product quality on competitive advantage?

Accepted Answer

A) It decreases the utility of the products. 
B) It lowers unit costs of the products. 
C) It adversely affects employee productivity. 
D) It limits the company's ability to differentiate its products. 
E) It increases the need for after sales services.

Question 5

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
Innovations.

Accepted Answer

A) process 
B) product 
C) customer 
D) sector 
E) absorptive

Question 6

Analyze the relationships among distinctive competitive advantage, distinctive competencies, resources, and capabilities.

Accepted Answer

The answer of Analyze the relationships among distinctive competitive advantage,...

Question 7

The ratio of net profit to invested capital is known as:

Accepted Answer

A) return on invested capital. 
B) return on sales. 
C) capital turnover. 
D) cost of goods sold. 
E) sales, general, and administrative expenses.

Question 8

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

Accepted Answer

A) Research and development 
B) Marketing and sales 
C) Human resources 
D) Production 
E) Service and support

Question 9

Explain how tangible and intangible resources and capabilities can lead to distinctive competencies.Give specific examples.

Accepted Answer

The answer of Explain how tangible and intangible resources and...

Question 10

Cost accountants are responsible for gathering and monitoring data used for controlling the organization's costs.In which value chain activity do cost accountants work?

Accepted Answer

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

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) Level of after-sale service 
D) Features 
E) Performance

Question 12

IBMs investment in mainframe computers, that proved disadvantageous when the market shifted to smaller personal computers, is an example of a prior strategic commitment.

Accepted Answer

A) True 
 B)False

Question 13

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 14

Which primary activity in the value chain is concerned with the design of products and production processes?

Accepted Answer

A) Research and development 
B) Marketing and sales 
C) Materials management 
D) Production 
E) Company infrastmcture

Question 15

At Adam's bicycle repair shop, the primary value chain activity of production occurs each time a customer's bicycle is repaired.

Accepted Answer

A) True 
 B)False

Question 16

One of the most widely used measures of financial performance is:

Accepted Answer

A) return on invested capital. 
B) net profit margin. 
C) share value. 
D) net sales. 
E) productivity.

Question 17

Which of the following is not true regarding a company's distinctive competencies?

Accepted Answer

A) They represent the unique strengths of the company. 
B) They refer to company strengths that competitors cannot easily match or imitate. 
C) They form the bedrock of a company's strategy. 
D) They can be based in any of the value creation functions of the company. 
E) They are shared by many firms in an industry.

Question 18

Evaluate and comment on this statement: "No competitive advantage lasts forever."

Accepted Answer

The answer of Evaluate and comment on this statement: "No...

Question 19

consists of the electronic systems for managing inventory, tracking sales, pricing products, selling products, and dealing with customer service inquiries.

Accepted Answer

A) Information systems 
B) Logistics 
C) Barriers to imitation 
D) Benchmark 
E) Materials management

Question 20

Efficiency is:

Accepted Answer

A) defmed as the time it takes to produce a product. 
B) the quantity of inputs required to produce an output. 
C) independent of customers' perception of a product's value. 
D) measured by looking at a product's price. 
E) lower when the output is high-quality.

Exam 3: Internal Analysis: Distinctive Competencies, Competitive Advantage, and Profitability