ch04Student: ___________________________________________________________________________ 1. Which of the following is NOT one of the six questions that comprise the task of evaluating a company's resources and competitive position? A. What are the company's most profitable geographic market segments? B. How well is the company's present strategy working? C. Are the company's cost structure and customer value proposition competitive? D. Is the company competitively stronger or weaker than key rivals? E. What strategic issues and problems merit front-burner managerial attention? 2. Which of the following is NOT a component of evaluating a company's resources and competitive position? A. Evaluating how well the present strategy is working B. Scanning the environment to determine a company's best and most profitable customers C. Assessing whether the company's cost structure and customer value proposition are competitive D. Evaluating whether the company is competitively stronger or weaker than key rivals E. Evaluating if the company is able to seize market opportunities and overcome external threats to its future well-being 3. Which of the following is not an analytical tool for revealing a company's competitiveness and for helping to match the strategy to the company's own particular circumstances? A. Resource and capability analysis B. SWOT analysis C. Value chain analysis D. Bench-pressing analysis E. Competitive strength analysis 4. The best indicator of how well a company's strategy is working is whether the company: Ais achieving its stated financial objectives, its financial performance equates to the industry average, and . market share gains reflect short-term preferences for capacity maximization. B. is attentive to its poor execution in functional areas, business goals are stretch, and the value proposition has a product focus. C. is geared to initiatives designed to build market share and to promote corporate responsibility. Dis achieving its stated financial and strategic objectives, its financial performance is better than the . industry average, and it is gaining customers and increasing market share. E. All of these. 5. One important indicator of how well a company's present strategy is working is whether: A. it has more core competencies than close rivals. B. its strategy is built around at least two of the industry's key success factors. C. the company is achieving its financial and strategic objectives and whether it is an above-average industry performer. D. it is customarily a first-mover in introducing new or improved products (a good sign) or a late-mover (a bad sign). E it is subject to weaker competitive forces and pressures than close rivals (a good sign) or stronger . competitive forces and pressures (a bad sign). 6. The business strategy is made up of key "functional" strategies except: A. R&D, technology, and product design strategies. B. Production and information technology and supply chain management strategies. C. Human resource and finance strategies. D. Sales, marketing, and distribution strategies. E. Alliance and partnerships as well as merger and acquisition growth strategies. 7. Sluggish performance results relative to rivals are a reliable warning sign that the company has either a weak strategy or poor strategy execution or both. The best way to identify a well-conceived, wellexecuted strategy is to determine whether the company is experiencing: A. a strengthening of its image and reputation among shareholders. B a desirable growth rate in new customer acquisition and favorable customer retention efforts for . establishing a strong customer experience. C movement in its operating profit margin, satisfactory returns on investable liquid assets, and . elimination of credit access restrictions. D. positive trends with the relevant cultural factors related to buyer's choices and product modifications. E. All of these. 8. A company's resources and capabilities represent: A. the firm's net working capital and related determinants for measuring operating performance and capabilities. B the firm's competitive assets, which are considered big determinants of its competitiveness and ability . to succeed in the marketplace. C. whether the firm has the industry's most efficient value chain. D. management's source of funding of new strategic initiatives. E. All of these. 9. A powerful tool for sizing up the company's competitive assets and determining whether they can provide the foundation necessary for competitive success in the marketplace is termed: A. Resource and capability analysis B. SWOT C. Competitive analysis D. Financial and asset management analysis E. Value chain analysis 10. A productive input or competitive asset that is owned or controlled by a company is termed a: A. resource, which is the source of everything enjoyed by the firm. B. resource, and there are different types of resources at the firm's disposal that vary not only in kind but in quality as well. C. resource, which is common to the firm's strategy of facilitating and replicating what they do best. D. resource, and it can be tangible or intangible or both and provide substantial benefits to the firm's asset growth. E. All of these. 11. The difference between a resource and a capability is: A a resource is a productive input or competitive asset, while a capability is the capacity of the firm to . perform some internal activity competently. B. a resource is a reserve supply or back-up supply function, whereas a capability is the ability to manage the resource function. C a resource is a mechanism used for carrying out some responsibility, while a capability possesses the . qualities needed to do a particular thing. D. a resource is the firm's fixed assets, while a capability defines whether the firm is competent to perform some function. E. All of these. 12. A useful way to identify a company's resources is to view them as: A. divided into two main categories, tangible and intangible. B every productive input or competitive asset except human assets and intellectual capital, which are . considered capabilities or competencies. C. physical resources, such as the company's brand, image, and reputation assets. D. an inventory or a collection of the firm's strengths, weaknesses, opportunities, and threats. E. All of these. 13. The main reason that listing or categorizing company resources matters is: A. to ensure all resources are categorized correctly. B. that the important resources are reported against strategically subjective activities. C. that the resources are prioritized in terms of value propositions. D. that the strategically placed resources are manageable. E. that all the different types of resources are included. 14. Tangible resources do not include: A. physical resources. B. financial resources. C. human assets. D. technological assets. E. organizational assets. 15. Tangible resources include: A human assets and intellectual capital, which can include the talent of the work force and the creativity . and innovativeness of certain personnel. B reputational assets, which can include the company's reputation for quality, service, and reliability as . well as their reputation for fair dealings with suppliers. C. relationships with alliances that provide access to technologies, specialized know-how, or geographic markets. D. technological assets such as patents, copyrights, and trade secrets. E. None of these. 16. There are two approaches that can make the process of uncovering and identifying a firm's capabilities more systematic. They include: A. resources assessment and the functional approach. B. strengths valuations and weaknesses estimations. C. sustainability resource allocation methods and a resource bundling approach. D. cross-functional analysis and collaborative resource methodology. E. financial statement analysis and management support analysis. 17. Organizational capabilities are virtually always: A knowledge-based, residing in people and in the company's intellectual capital, or in organizational . processes and systems, which embody tacit knowledge. B. more complex than resources and are exercised only through key personnel. C. require constant evaluation to ensure cooperative support from management. D. are easier and less challenging to categorize than resources because there are fewer to be concerned about. E. reflective of the industry's driving forces. 18. A linked and closely integrated set of competitive assets centered around one or more cross-functional capabilities and closely integrated competitive assets is termed: A. organizational assets. B. a resource bundle. C. a resource capability. D. functional method compilation. E. integrated asset advantage. 19. A sustainable competitive advantage is gained: A. when a company has durable competitive assets that are central to its strategy and superior to those of rival firms. B. when a company has sufficient resources to expedite its strategy. C. when a company realizes its inherent weaknesses are transformable to advantages. D. when a company can stand out relative to rivals because of resource utilization. E. All of these. the VRIN test. B. 21. 22. D. its strategy is built around at least two of the industry's key success factors. it is customarily a first-mover in introducing new or improved products (a good sign) or a late -mover (a bad sign). E. . and non-substitutable. the competitive advantage sustainable method test. specifically whether the company is achieving its . what are the company's resource strengths and weaknesses and its external opportunities and threats. performance and overall balance sheet position. dividend payout ratio. quality or service. The best quantitative evidence of whether a company's present strategy is working well is: A. C. C. . and so on) C. E. supply chain management. internalized. which asks if a resource is valuable. E it is subject to weaker competitive forces and pressures than close rivals (a good sign) or stronger . The spotlight in analyzing a company's resources. The strategic role of its collaborative partnerships and strategic alliances with others 23. competitive. whether the company is in the industry's best strategic group. which asks if a resource is sustainable. and average annual increase in the common stock price. D. 24. inimitable. improved . the company is achieving its financial and strategic objectives and whether it is an above-average industry performer. One important indicator of how well a company's present strategy is working is whether: A. whether the company is in the Fortune 500. sales and marketing. D. E what new acquisitions the company would be well advised to make in order to strengthen its financial . and finance) a company is employing B Management's planned. it has more core competencies than close rivals. and financial objectives D. the SCIR test. ROE. D. internal circumstances. rare.20. C. whether the company has more competitive assets than it does competitive liabilities. whether the company has a shorter value chain than close rivals. B. performance measures as earnings per share. wider product lines. Moves to respond and react to changing conditions in the macro-environment and in industry and competitive conditions E. whether the company has the industry's most efficient and effective value chain. The company's mission. and reproducible. and competitiveness includes such questions/concerns as: Awhether the company's present strategy is better than the strategies of its closest rivals based on such . proactive moves to outcompete rivals (via better product design. Which of the following is NOT pertinent in identifying a company's present strategy? A The key functional strategies (R&D. HR. B. The four tests of a resource's competitive power are often referred to as: A. B. strategic objectives. Cthe caliber of results the strategy is producing. the organizational capability metric analysis. financial and strategic objectives and whether it is an above-average industry performer. whether the company's key success factors are more dominant than the key success factors of close rivals. competitive forces and pressures (a bad sign). production. the reliability resources simulation. A company's brand B. C. By strengthening the traditions that company executives are committed to maintaining B. D. How are a company's organizational capabilities developed and enabled? A. A company's resource and capability analysis: A. specialized expertise. and market share vis-à-vis those of key rivals C. Which of the following does NOT represent a company resource? A. Which one of the following is NOT a reliable measure of how well a company's current strategy is working? A Whether the company's sales are growing faster. or competitively important capability. The sizes of its profit margins and return on investment vis-à-vis those of key rivals D. A company's brand B.25. physical and/or organization assets. speed in getting newly developed products to market. slower. E. and its . 30. or about the same pace as the industry as a . a skill. give it an excellent ability to insulate itself against the impact of the industry's driving forces. its skills and competitive capabilities. All of these. an achievement or attribute that puts the company in a position of market advantage. product innovation. A productive input that is controlled by the firm 29. Marketing and brand management D. By talking openly about the problems of the present company and determining how new behaviors will improve performance D. A productive input that is owned or controlled by the firm C. approaches that may be an improvement over what the company is presently doing 28. Which of the following most accurately reflect a company's resource strengths? AIts human. revenues. or stable market share B. Which of the following is a clear representation of a company's capability? A. Whether it has more core competencies than close rivals 31. signal whether it has the wherewithal to be a strong competitor in the marketplace. B. product . The firm's image and reputation with its customers D. By shifting from decentralized to centralized decision-making E By urging company personnel to search outside the company for work practices and operating . Whether its profit margins are rising or falling and how large its margins are relative to those of its rivals EHow well the firm stacks up against rivals on technology. whole. Whether it has more primary activities in its value chain than close rivals and a better overall value chain than these rivals E. valuable human assets and intellectual capital. E. represent its core competencies. quality. B. competitively valuable alliances or cooperative ventures. achievements or attributes that enhance the company's ability to compete effectively B. The sizes of its unit sales. customer service. A productive input that is owned by the firm C. All of these. combine to give it a distinctive competence. C. Through deployment of a company's resources or some combination of its resources C. R&D teams E. An alliance or collaboration with another firm E. Whether it has a larger number of competitive assets than competitive liabilities and whether it has a superior quality product C. price. and other relevant factors on which buyers base their choice of which brand to purchase 26. are the most important parts of the company's value chain. D. falling. The capacity of a firm to perform some activity D. 27. thus resulting in a rising. A company's resources can include: A. . Which of the following is NOT a good example of a company's resources? A. ascertain which of a company's resources and capabilities are competitively valuable. D. D.32. Whether a resource or capability can support a competitive advantage is determined by which two components of the four tests of competitive power analysis? A. having a larger number of competitive assets than competitive liabilities. cost underestimation and benefit overestimation. Whether the resource or capability can be trumped and/or is hard to copy D. Whether the resource or capability is hard to copy and/or can be trumped by different types of resources and capabilities . 38. ascertain the internal market place of non-distinct divisions of the company. partnerships with outsiders. D. its best strategic option is to revamp its value chain in hopes of creating stronger competitive capabilities. 37. having proven technological expertise and an ability to churn out new and improved products on a regular basis. it is virtually blocked from using offensive strategies and must rely on defensive strategies. Whether the resource or capability is competitively valuable and/or there are good substitutes available for the resource E. B being totally self-sufficient such that the company does not have to rely in any way on key suppliers. B. stimulate economic growth for companies within the industry. C. B. A well-known brand name and enjoying the confidence of customers E. resource deployment strategic plan. Having higher earnings per share and a higher stock price than key rivals D. C. A lower-cost value chain than rivals 34. competitive advantage over other companies. cash flow feasibility analysis. it may have a bundle of resources that can be leveraged to develop a distinctive competence. 35. long-term derivative strategy. stimulate demand for a product. 33. having higher earnings per share and a higher return on shareholders' equity investment than key rivals. E. it is unlikely to survive in the marketplace and should exit the industry. Fruitful partnerships or alliances with suppliers that reduce costs and/or enhance product quality and performance C. all potential for competitive advantage is lost. achieving price stability. 36. E. If a company doesn't possess standalone resource strengths capable of contributing to competitive advantage: A. A company that has competitive assets that are central to its company strategy and superior to those of rival firms creates a: A. B. probing the caliber of a firm's competitive assets relative to those of rival firms. B. cost-benefit analysis of the company's core product sales. ascertain to what extent a competitor can sustain a competitive advantage. More intellectual capital and better e-commerce capabilities than rivals B. D. Whether the resource or capability is competitively valuable and/or is something that rivals lack B. Resource and capability analysis is designed to: A. having more built-in key success factors than rivals. performing resource-specific activities within the organization to allocate available capital. E. C. . The BEST example of a company resource is: A. C. C. or strategic alliances. analyzing only internal strengths and weaknesses through a matrix comparison model. D. Resource and capability analysis is achieved by: A. Whether the resource or capability is rare and/or is hard to copy C. E. E. be an industry key success factor and occupy a prime position in the company's value chain. E. sustain complex manufacturing systems as a strategic recall. E. unsurpassed worker productivity and product quality. C. The competitive power of a company's resource strength is NOT measured by which one of the following tests? A. D. be something that a company does internally rather than in collaborative arrangements with outsiders. sustain its competitiveness and help drive improvements in its performance. it should: A be hard to copy. have the potential for lowering the firm's unit costs. 41. whether it is rare and something rivals lack. Is the resource strength something that a company does internally rather than in collaborative arrangements with outsiders? C. unique piecework incentive system. Whether the resource or capability is competitively valuable and/or there are good substitutes available for the resource E. What two factors inhibit the ability of rivals to imitate a firm's most valuable resources and capabilities? A. be competitively valuable. All of these. enabling foundation of its business model. be rare and something rivals lack. E. Social complexity and causal ambiguity E. B. 44. Social simplicity and causal uncertainty 42. be patentable. and not be easily trumped .39. Whether the resource or capability is hard to copy and/or can be trumped by different types of resources and capabilities 40. A competitively valuable resource or capability is a company's: A. sustain benefits of high market share as an interest in growth strategies. how easily it can be trumped by the substitute resources/capabilities of rivals. Is the resource strength easily trumped by the substitute resources/capabilities of rivals? D. 43. providing a competitive advantage. B. Collective complexity and causal ambiguity D. assessment of the availability of superior substitutes. Whether the resource or capability is competitively valuable and/or is something that rivals lack B. Social ambiguity and causal uncertainty B. The competitive power of a company resource strength or competitive capability hinges on: A. Whether the resource or capability is rare and/or is hard to copy C. Whether the resource or capability is easy to copy D. whether it is really competitively valuable and has the potential to contribute to a competitive advantage. assist the strategic planning team in overall direction. Is the resource rare and something rivals lack? B. Is the resource strength competitively valuable. For a particular company resource/capability to have real competitive power and perhaps qualify as a basis for competitive advantage. E. equally valuable substitute resource providing a competitive advantage. D. transform knowledge into a management style supporting competition in a globally diverse world. by substitute resource strengths possessed by rivals. Is the resource strength hard to copy? E. D. B. Which two tests of a resource's competitive power determine whether a company's competitive advantage can be sustained in the face of active competition? A. C. how hard it is for competitors to copy. A company requires a dynamically evolving portfolio of resources and capabilities to: A. Social simplicity and causal complexity C. . D. having the potential to contribute to a competitive advantage? 45. B. C. C. gauging whether a company has a cost-competitive value chain. E. A dynamic capability: A. D. a company resource mapping. A company's strengths are important because: A. C. For a company to have competitively potent resources and capabilities. a competence. D. When an activity becomes something a company has learned to perform proficiently and capably. its market opportunities. D. E. All of these. C. A capacity to add new resources and capabilities to the competitive asset portfolio D. a core competence. B. When a company has a proficiency in performing a strategically and competitively important value chain activity better than its rivals. fully support company efforts to attract customers. is the functional and operating resources management process. identifying the market segments in which a company is strongly positioned and weakly positioned. All of these. evaluating whether a company is in the most appropriate strategic group. they give it competitive protection against the industry's driving forces. is the ongoing capacity to modify existing resources and capabilities to create new ones. 50. they provide extra muscle in helping lengthen the company's value chain. D. B. E. . . a resource advantage. determining a company's competitive strength vis-à-vis close rivals. 47. Which of the following is NOT an example of a company's dynamic capability? A. D. a key value chain proficiency. B. it is said to have: A. Upgrades to R&D resources to drive product innovation C. 53. B. a competitive asset/liability analysis. a competitive advantage over rivals. E. and the external threats to its future well-being. they provide extra organizational muscle in turning a core competence into a key success factor. An ability to replace degraded resources with acquired capabilities E. they must: A. 52. strengths and deficiencies. C. a strategic resource assessment. An ability to keep antiquated resources by disregarding innovative capabilities 48. SWOT analysis is a simple but powerful tool for: A. Identifying and assessing a company's resource strengths and weaknesses and its external opportunities and threats is called: A. B sizing up a company's resources and capabilities. 49. B. C. is the improvement evaluation process for eliminating waste in the firm. be in sync with changes in the company's own strategy. 51. it is said to have: A. E. a competitive positioning analysis. they pave the way for establishing a low-cost advantage over rivals. C. combat competitors' newly launched offensives to win bigger sales and market shares. C. a key value chain proficiency. they represent the quality of its competitive assets that enhance its competitiveness in the marketplace. E. a SWOT analysis.46. a distinctive capability. B. A capacity to improve existing resources and capabilities B. a competitive advantage over rivals. D. be in sync with its efforts to achieve a resource-based competitive advantage. is the ongoing capability to understand and establish rival commitment to resource alignment. E. C. a company competence. a distinctive competence D. typically has competitive value. expertise. . competence refers to a company's lowest-cost and most efficiently executed value-chain activity. while a core . C. a distinctive competence. whereas a distinctive . whereas a core . 56. usually is grounded in the technological expertise of a particular department or work group. competence is a competitively and strategically relevant activity. All of these. The difference between a company competence and a core competence is that: A a company competence refers to a company's best-executed functional strategy. is more difficult for rivals to copy than a distinctive competence. a competitive capability. When a company is good at performing a particular internal activity. 57. whereas a distinctive competence is a competitively relevant activity a firm performs well compared to other rival firms. refers to a company's lowest-cost and most efficiently executed value-chain activity. company's lowest-cost and most efficiently performed value chain activity. Ea core competence usually resides in a company's technology and physical assets. B. to other internal activities. the amount of which is reflected in the physical and tangible assets on a company's balance sheet. is often grounded in a single department's set of knowledge and expertise. a distinctive competence. When a company performs a particular competitively important activity truly well in comparison to its rivals. D a company competence represents real proficiency in performing an internal activity. whereas a core competence refers to a . while a core . E. D a core competence represents a resource strength. residing in a company's tangible physical assets on the balance sheet. E.54. 59. A core competence: A. Ba core competence usually resides in a company's base of intellectual capital. D. is typically results-based. whereas a company . having more resource strengths than rival companies. B. competence usually resides in a company's know-how. whereas a distinctive competence is achieved by . C. it is said to have: A. D. whereas a distinctive . a core competence. competence refers to a company's best-executed business strategy. compared to its other activities. B. competence stems from the superiority of a company's physical and tangible assets. 58. C. a competitive advantage over rivals. B. Ea core competence usually resides in a company's technology and physical assets. competence usually resides in a company's human assets and intellectual capital. resource strength considered to be genuine. it is said to have: A. a company competence. a key success factor. Ba company competence refers to a company's strongest resource. D. a company competence. is an activity that a firm performs proficiently that is also central to its strategy and competitive success. a strategic resource. D. Ca company competence is a competitively relevant activity that a firm performs especially well relative . E. The difference between a core competence and a distinctive competence is that: Aa distinctive competence refers to a company's strongest resource or competitive capability.is a more competitively valuable strength than a competence because of the key role the activities play in the company's strategy. Ca core competence is a competitively and strategically relevant activity that a firm performs well . E. A core competence: A retracts from a company's arsenal of competitive capabilities and competitive assets and is not a . C. and intellectual capital. 55. a core competence. whereas a core competence is an activity that a company has learned to perform proficiently. usually stems from having a missing link or links in the industry value chain. or superior service). All of these. D. 64. C. gives a company a competitively valuable capability that is unmatched by rivals. whether the competence is one of the industry's key success factors. A distinctive competence: A. The capability to speed new or next-generation products to the marketplace 61. A distinctive competence qualifies as a superior internal strength. A company's resource weaknesses can relate to: A. inferior or unproven skills. A distinctive competence can be a basis for sustainable competitive advantage. A company resource weakness or competitive deficiency: A represents a problem that needs to be turned into a strength because weaknesses prevent a firm from . how hard it is to copy and how easily it can be trumped by substitute resource strengths and competitive capabilities of rivals. Which one of the following is inaccurate as concerns a distinctive competence? A. is a basis for sustainable competitive advantage. causes the company to fall into a lower strategic group than it otherwise could compete in. Having a wider product line than rivals E. something that it lacks or does poorly in comparison to rivals. . The competitive power of a company's core competence or distinctive competence depends on: A. better product performance. deficiencies in competitively important physical. B. is a competitively important activity that a company performs better than its rivals. D. B. expertise. E. whether the competence is technology-based or based on superior marketing know-how. E A distinctive competence enables delivering stand-out value to customers (in the form of lower prices. D. B. whether it helps differentiate a company's product offering from the product offerings of rival firms. D. is focused squarely on ascertaining whether the company has more/less resource strengths than weaknesses. C. B. 62. 63. is called benchmarking. Skills in manufacturing a high-quality product at a low cost B. All of these. the company's brand-name reputation. E. are shortcomings that constitute competitive liabilities. 65. E. prevents a company from having a distinctive competence. being a winner in the marketplace. Know-how in creating and operating systems for cost-efficient supply chain management C. B. A distinctive competence is typically less restrictive for rivals to copy than a core competence. is called company resource mapping. is called competitive strength assessment. Which of the following does NOT represent a potential core competence? A. C whether customers are aware of the competence and view the competence positively enough to boost . D. Sizing up a company's complement of resource strengths and weaknesses: A is akin to constructing a "strategic balance sheet" where strengths represent competitive assets and . D. organizational. qualifies as a superior internal strength. E. The capability to fill customer orders accurately and swiftly D. weaknesses represent competitive liabilities. missing or competitively inferior capabilities in key areas. B. C.60. C. or intangible assets. C. A distinctive competence is a competitively important activity that a company performs better than its rivals. or intellectual capital in competitively important parts of the business. E. . 66. 71. B. The 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. B. Which of the following BEST describes the market opportunities that tend to be most relevant to a particular company? AThose market opportunities that provide avenues for taking market share away from close rivals and . offer the best prospect . Which of the following is NOT an example of an external threat to a company's future profitability? A. The lack of a distinctive competence B. Which of the following is NOT an example of a threat to a company's future profitability and well-being? A. D. provide avenues for taking market share away from close rivals. All of these. and present the most potential for competitive advantage. rising prices on key inputs (such as energy costs). C match up well with the firm's competitive assets. are reinforced by the overall business strategy and where the business model is appropriate. provide a strong defense against threats to the company's profitability. Slowdowns in market growth D. and present the most potential for competitive advantage E. B. D. can increase market share. E. Costly new regulatory requirements E. the surfacing of cheaper or better technologies. . staying alert with diligent market reconnaissance and preparing internally to capitalize . Those market opportunities that help promote greater diversification of revenues and profits DThose market opportunities that match up well with the firm's competitive assets. for growth and profitability. More intense competitive pressures E. enhance a company's image as a leader in product innovation and product quality B. Those market opportunities that offer the company a chance to raise entry barriers C. the market winners in the past. are relevant for defending against the external threats to its well-being. E. demographic shifts that can curtail product innovation. The introduction of restrictive trade policies in countries where the company does business 72. EXCEPT for: A. 68. Those market opportunities that help correct a company's biggest weaknesses and competitive deficiencies 70. hold the most potential to reduce costs. . B. the entry of lower-cost foreign competitors and restrictive foreign trade policies. The external market opportunities which are MOST relevant to a company are the ones that: A. External threats may pose various degrees of adversity upon the company and can surface from many sources and examples. E. The market opportunities most relevant to a particular company are those that: A. E.67. C. Shifts in buyer needs and tastes away from the industry's product D. on potential opportunities. 69. D. embrace the most potential for product innovation. C. New legislation that entails burdensome and costly government regulations C. offer the best prospects for growth and profitability. D. adopting every opportunity for understanding that not all opportunities will be successful and rewarded commensurately. first movers willing to accept business risk. because they have a proven record and are the best competitively. Companies that seize opportunities in the marketplace are usually those that have been: A actively waiting. new burdensome regulations. C. qualify to correct its internal weaknesses and resource deficiencies. offer the best prospects for growth and profitability. Growing bargaining power on the part of the company's major customers and major suppliers 73. measures of profitability. enabling a company to assess its overall competitive position relative to its key rivals. relevant. C. identifying the resource strengths and resource weaknesses. E. The payoff of doing a thorough SWOT analysis is: A. E. capabilities.74. identifying whether the company's value chain is cost-effective vis-à-vis the value chains of rivals. the compatibility of the pending threats to the company's competitive assets. B understanding the relationship between the strengths. E. D. its market opportunities. and threats and . and timely the threats are to the company. All of these. None of these. SWOT analysis: A. C drawing conclusions from the SWOT listings about the company's overall situation and translating . All of these. The key questions stemming from the SWOT listings that can reveal relevant substance about the company's overall situation are as follows. they represent what the company considers relevant despite the prevailing opportunities. E. they form the foundation of the firm's position in the marketplace. provides a measure of the relative strength of resources in the company's value chain in relation to rivals positioning. and represent the best use of company resources. unfavorably vis-à-vis key competitors. D. cost-effective. the degree of vulnerability the company has to the threat. except for: A. 76. opportunities. Eassisting strategy-makers in crafting a strategy that is well-matched to the company's resources and . B. 75. these conclusions into strategic actions. helping strategy-makers benchmark the company's resource strengths against industry key success factors. and the external threats to its future well-being. how serious. reveals whether a company is competitively stronger than its closest rivals. customers and competing successfully against rivals. C. it is important that the company address the two most important parts of a SWOT analysis. 77. identifies the reasons why a company's strategy is or is not working very well. 79. In order to gain value from the SWOT analysis. 78. provides a good overview and conclusions about the company's overall situation. Does the company have threats that are overpowering the firm's competitive assets? D. clarifying the firm's current position and ensuring the SWOT listings are complete. B. .establishing a game plan to capitalize on the company's strengths and leverage the weaknesses in light of the available opportunities. C. whether offensive moves are feasible. D. establishing criteria for remedying the company's shortfalls. is a tool for benchmarking whether a firm's strategy is closely matched to industry key success factors. B. Does the company have attractive market opportunities that are well suited to its strengths? C. How much attention a company should devote to defending against external threats hinges on primarily on: A. they can overpower the impact of important external threats. C. D revealing whether a company's market share. which are: A. weaknesses. B. D. and sales compare favorably or . A company's internal strengths should always serve as the basis of strategy because: A placing heavy reliance on the company's best competitive assets is the soundest route to attracting . Are the company's activities and dynamic capabilities adequate for capitalizing on the opportunities? E. Are the company's internal strengths and competitive assets sufficiently strong to enable it to compete successfully? B. weaknesses. C. Lack of a strong brand image and reputation (as compared to rivals) D. to correct the important weaknesses. Less productive R&D efforts than rivals B. D. Two important parts of SWOT analysis are: A. unattractive about the company's circumstances E. overcome important weaknesses. In doing SWOT analysis. capitalize on market opportunities. Too narrow a product line relative to rivals 81. E. Ddrawing conclusions from the SWOT listings about the company's overall situation and translating . concentrate on making the SWOT's four lists relevant for strategic discussion and planning. Emaking accurate lists of the company's strengths. and then using . which of the following is NOT an example of a potential market opportunity that a company may have? A. Higher overall unit costs relative to rivals E. . Having a single. and to defend against external threats. Acquiring rival firms or companies with attractive technological expertise or capabilities D. these into strategic actions to better match the company's strategy to its resource strengths and market opportunities. defend against external threats. which one of the following is NOT an example of a potential resource weakness or competitive deficiency that a company may have? A. be aimed at opportunities that offer the best potential for improved profitability. 83. Identifying a company's market opportunities D Drawing conclusions about the company's overall business situation—what is attractive and what is . opportunities. Growing buyer preferences for substitutes for the industry's product C. B. Identifying a company's resource strengths and competitive assets B. and . be designed to place heavy demands on areas where the company has proven competencies to meet the threats head-on. unified functional strategy instead of several distinct functional strategies C. Openings to win market share away from rivals 82. Expanding into new geographic markets E. Which one of the following is NOT part of conducting a SWOT analysis? A. and threats. B. these lists as a basis for ascertaining how well the company's strategy is working.80. Serving additional customer groups or market segments B. seek aggressively to defend against those threats to the company's immediate profitability. pinpointing the company's competitive assets and pinpointing its competitive liabilities. The primary lesson stemming from a SWOT analysis is that a company's strategy should: A leverage resource strengths. Benchmarking the company's resource strengths and competitive capabilities against industry key success factors C. Translating the results of the analysis into actions for improving the company's strategy and market position 84. In doing SWOT analysis and trying to identify a company's market opportunities. C. identifying the company's resource strengths and identifying the company's best market opportunities. identifying the external threats to a company's future profitability and pinpointing how many market opportunities it has. E. E. the company's management is recognized as being strategic thinkers. and determining the company's potential for establishing a competitive advantage over rivals. One of the most telling signs of whether a company's market position is strong or precarious is: A. whether its product is strongly or weakly differentiated from rivals. B.85. Which one of the following is NOT something that can be gleaned from a company's SWOT? A. competitively vulnerable the company becomes. the company has well-known profit levels. D. Which market opportunities are best suited to a company's strengths and capabilities CWhich resource weaknesses and deficiencies need to be corrected so as to better enable the pursuit of . whether its prices and costs are competitive with those of key rivals. E. and evaluating the seriousness of the threats to the company's future profitability. How to improve a company's strategy by using company strengths and capabilities as cornerstones for its strategy B. the opinions of buyers regarding which seller has the best product quality and customer service. . B. The higher a company's costs are above those of close rivals. Whether any of the company's resource strengths can be used to help lessen the impact of external threats 87. correcting the company's important resource . the company's stock price is the highest. value chain analysis and benchmarking. opportunities and the external threats it faces. B pinpointing the company's competitive assets. C. C. Ebenchmarking the company's strengths and weaknesses against those of key rivals. the company has less financial risk than rivals. B. pinpointing its competitive deficiencies. important market opportunities and to better defend against certain external threats D. identifying its market . E. D. C. important cost-tracking becomes. drawing . competitive position assessment and competitive strength assessment. its value proposition remains attractive. 90. D. whether it enjoys a competitive advantage. whether the company has good market opportunities. determining . conclusions about the company's overall situation. 89. All of these. Cdetermining whether the company has more competitive assets than competitive liabilities. Two analytical tools useful in determining whether a company's prices and costs are competitive are: A. 86. driving forces analysis and SWOT analysis. whether it has a lower stock price than key rivals. D. The steps of SWOT analysis are: Aidentifying the company's resource strengths and weaknesses and its opportunities and threats. and identifying the company's best market opportunities. weaknesses. the company can offer a greater amount of customer value profitability relative to close rivals. B. Dmatching the company's strategy to its resource strengths. and translating the conclusions into strategic actions to improve the company's strategy. 88. whether it is in a bigger or smaller strategic group than its closest rivals. A company is less competitively vulnerable when: A. SWOT analysis and key success factor analysis. How to turn a core competence into a distinctive competence E. C. the more: A. SWOT analysis and benchmarking. a net profit margin analysis becomes vital. and determining . the series of steps it takes to get a product from the raw materials stage into the hands of end users. 96. B. get it produced and . tend to be essentially the same—any differences are typically minor. compare cost structure efficiency with the operating effectiveness of rivals to determine the strategy content of rival firms. E. and support activities are comprised of fixed-cost activities and variable cost activities. D. are fairly similar except when rival companies have quite different product designs. the primary activities and related support activities it performs in creating customer value. Econsists of the series of steps a company goes through to develop a new product. concerns the basic process the company goes through in performing R&D and developing new products. Cconsists of two broad categories of activities: the primary activities that create customer value and the . the competencies and competitive capabilities that underpin its efforts to create value for customers and shareholders. depicts the internally performed activities associated with creating and enhancing the company's competitive assets. reveals whether a company's resource strengths are well-matched to the industry's key success factors. depending on how many activities are performed internally and how many are outsourced. 94. E. D. relative to its competitors. D. A company's value chain identifies: A. depending on the extent to which each company's primary . D. is called resource value analysis. is called benchmarking. The value chains of rival companies: A. With its focus on value-creating activities. the steps it goes through to convert its net income into value for shareholders. C. to its customers. 93. business. C. Identifying the primary activities and support activities that comprise a company's value chain: A. the value chain: A. E. and then start collecting revenues and earning a profit. 95. E. preserves cost structure advantages. eliminate unproductive and obsolete functionality in the firm's operating strategy. C. is the first step in understanding a company's internal cost structure since each activity in the value chain gives rise to costs. the activities it performs in transforming its competencies into distinctive competencies. segregate the company's operations into different types of functions. distributed into the marketplace. Bcan differ substantially. is an ideal tool for examining how a company delivers on its customer value proposition. B facilitate a comparison activity-by-activity of how effectively and efficiently a company delivers value . indicates whether a company's resource strengths will ultimately translate into greater value for shareholders. B. are fairly similar or fairly different. Dcan be either fairly similar or fairly different. B. and differences in the approaches being used to execute strategy. reflecting differences in the evolution of each company's own particular . D. All of these. B. C. provides identification of customer differentiation shortfalls. differences in strategy. requisite support activities that facilitate and enhance the performance of the primary activities. . E. is a recognized method for classifying the relevant support activities that are relevant to operations tasks. A company's value chain consists of two broad categories of activities: A consists of the primary activities that it performs in seeking to deliver value to shareholders in the form . is crucial in understanding cost disadvantages and economies of scale and scope shortfalls.91. 92. C. The primary purpose of value chain analysis is to: A. of higher dividends and a higher stock price. All of these apply. their costs and margins are part of the price the ultimate consumer pays. B. E. and advertising costs. E. 102. but also on costs in the value chain .The value chains of company distribution channel partners are relevant because: A. D the company's internally performed activities (its own value chain). E. E. C the nature and makeup of their own internal operations. D. dividing all company expenses into two categories: activities whose costs are variable and activities whose costs are fixed. D. 101. The three main areas in the value chain where significant differences in the costs of competing firms can occur include: A. C. categories for specific value chain activities and assigning costs to the activity responsible for creating the cost. and the .Activity-based costing: A is an accounting system that assigns a company's expenses to whichever activity in a company's value . the activities they perform affect sales volumes and customer satisfaction. determine whether the value chains of rival companies are similar or different. vertical integration activities. whether the company has a longer or shorter value chain than its close rivals. value chains of a company's distributors and retail dealers and forward channel allies. Activity-based cost accounting aims at: A. and line of business activities. D. age of plants and equipment. None of these. D. they perform primary and support activities that are related to the entire value chain system. C determine the costs of each primary and support activity comprising a company's value chain and . 99. E. involves determining which value chain activities represent variable costs and which represent fixed costs. functional area activities. C is a powerful tool for identifying the different pieces of a company's value chain and classifying them . variable cost activities. benchmark the costs of primary value chain activities against the costs of the support value chain activities. and administrative activities. 100. they have a competitive interest in promoting higher sales volumes and customer satisfaction. thereby reveal the nature and makeup of a company's internal cost structure. Activity-based costing is used to evaluate a company's cost-competitiveness and: A. determining the costs of each strategic action a company initiates. involves using benchmarking techniques to develop cost estimates for the value chain activities of each major rival. of its suppliers and distribution channel allies. 98. . None of these. and strategic partnership activities. activities performed by wholesale distribution and retailing allies. B. internally performed activities of rival companies. E. is a tool for identifying the activities that cause a company's product to be strongly differentiated from the products of rivals. the activities performed by suppliers. fixed cost activities. chain is responsible for creating the cost.Costs and price differences among competing companies can have origins in activities performed by: A the company's internally performed activities (its own value chain) compared to the cost structure of the . B. B. operating-level activities. number of employees. B. Cdetermining the costs of each activity comprising a company's value chain by establishing expense . value chains of the company's suppliers. human resource activities (particularly labor costs). as primary activities and support activities. making cross-company comparisons of the costs of each value chain activity. D. C. B. determine the costs of each strategic action a company initiates.97. E. B. C. its . Improvements to internal processes 108.103. B. benchmarking.Benchmarking involves: Acomparing how different companies perform various value chain activities and then making cross.Benchmarking provides a company with which of the following? A. D. Verification of total cost ownership E. . company comparisons of the costs and effectiveness of these activities. C. To help construct a company value chain and identify which activities are primary and which are support activities D. To identify the best practices in performing various value chain activities B. E.A much-used and potent managerial tool for determining whether a company performs particular functions or activities in a manner that represents "the best practice" when both cost and effectiveness are taken into account is: A. what information to utilize in the analysis process. C.Which of the following is NOT one of the objectives of benchmarking? A. when to initiate the process. comparing the best practices in one industry against the best practices in another industry. activity-based costing. the decision of whether to do it at all. selected companies known to have world-class competitive capabilities. studying whether a company's resource strengths are more/less powerful than the resource strengths of rival companies. the costs of its distributors/dealers) against the costs of the value chain systems employed by rival firms. resource cost mapping. E. when to stop the process and move forward with strategy. which typically demands: A. To develop cross-company comparisons of the costs of performing specific value chain activities ETo take actions to improve a company's cost competitiveness when benchmarking reveals that its costs . Hard evidence of cost competitiveness B. All of these. To learn how best practice companies achieve lower costs or better results in performing benchmarked activities C. competitive strength analysis. five years relative to the other firms it is in direct competition with. internally performed activities. D. 106. Dstudying how a company's competitive capabilities stack up against the competitive capabilities of . SWOT analysis.Determining whether a company's overall prices and costs are competitive requires an entire value chain analysis. B. D. B checking whether a company has achieved more of its financial and strategic objectives over the past . Cthe use of benchmarking the costs in a company's value chain system (the costs of its suppliers. and results of performing an activity are not as good as what other companies have achieved 107.The most difficult part of benchmarking is: A. A company strategy D. looking at the costs of a company's competitively relevant suppliers and forward channel allies (distributors/dealers). the use of activity-based cost accounting. 104. how to gain access to information regarding rivals' practices and costs. Proof of resource availability C. 105. considering the costs of a company's internally performed activities. E. redesigning the product or some of its components to facilitate speedier and more economical manufacture or assembly. Outsourcing high-cost activities to vendors or contractors who can perform them more economically E Relocating high-cost activities (like manufacturing) to geographic areas (like China or Latin America or . C. implement the use of best practices for quality improvement. implementing the use of best practices throughout the company.Which of the following is NOT a good option for trying to remedy high internal costs vis-à-vis rivals' firms? A. D. eliminating some cost-producing activities altogether by revamping the value chain. firms must adopt certain approaches except: A. E.A company's strategic options for remedying cost disadvantages in internally performed value chain activities do not include: A. D from independent firms and consulting firms to gather best practices and comparative cost data without . the suppliers' part. Finding ways to detour around activities or items where costs are high B. particularly for high-cost activities. 111. industry research firms. C. except: A. investing in productivity-enhancing. outsourcing the performance of high-cost activities to vendors that can perform them more cheaply. B. E. Redesigning the product or some of its components to permit more economical manufacture or assembly C. adopt best practices for marketing. The following are typical sources for collecting information. adopt outsourcing capabilities to add value to the high-cost activities . None of these. A company's comparative disadvantages schedule identified with benchmarking practices D. All of these. from published reports. C. B.Obtaining cost information is a primary difficulty associated with benchmarking. investing in best practices. identifying competing firms. from talking to knowledgeable industry leaders. E. 114. cost-saving technological improvements. cost-saving technological improvements.To improve the effectiveness of its value proposition and enhance differentiation. especially high-value activities important to the customer B. brand management. and trade groups. B. investing in productivity-enhancing. particularly for high-cost activities. All of these. 110. reallocate resources to activities that address buyers' most important purchase criteria D. Implementing aggressive strategic resource mapping to permit across-the-board cost reduction D.Which of the following areas within a company's total value chain system can managers use to improve efficiency and effectiveness? A A company's own internal activity segments. portion of the value chain system B. and the forward (distribution) channel .109. revamping its value chain to eliminate or bypass some cost-producing activities (particularly low value-added activities). switching to activity-based costing. D. implementing the use of best practices. A company's reinforced activities identified as efficiency measures for improved effectiveness C. and enhancing customer perceptions E. E. from field trips to the facilities of competitors or non-competing firms. 112. Eastern Europe) where they can be performed more cheaply 113.An option for NOT remedying an internal cost disadvantage includes: A. adopt best practices and technologies that spur innovation C. E. B. instituting forward vertical integration. Pressure distributors/dealers and other forward-channel allies to reduce their costs and markups D Insisting on across-the-board cost cuts in all value chain activities—those performed by suppliers. shifting from a low-cost leadership strategy to a differentiation or focus strategy. and those performed by distributors/dealers E. stands a good chance of profiting from its competitive advantage.A company's value-creating activities can offer a competitive advantage in one of two ways: A. is almost certainly going to have a longer and more profitable value chain. E. 117. D. shifting into the production of substitute products. D. D. collaborating closely to identify mutual cost-saving opportunities.The options for remedying a supplier-related cost disadvantage include: A pressuring suppliers for more favorable prices. is likely to have more distinctive competencies than rivals. performed in-house. Switch to lower-priced substitute inputs. C. . 116. usually has strong proficiencies in activity-based costing and benchmarking. D.The means to enhance differentiation through activities at the forward end of the value chain system include: A. is one of the best ways for a company to avoid being impacted by the industry's driving forces.Which of the following is NOT an option for remedying a cost disadvantage associated with activities performed by forward channel allies (wholesale distributors and retail dealers)? AChange to a more economical distribution strategy such as putting more emphasis on cheaper . Creating and enforcing standards for downstream activities D. Engaging in cooperative advertising and promotions B Creating exclusive arrangements with downstream sellers or other mechanisms that increase their . B. Enhance differentiation through activities such as cooperative advertising) at the forward end of the value chain C. B. incentives for enhanced-delivery customer value C. Persuade forward channel allies to implement best practices. contribute greater efficiency and lower costs and provide a basis for differentiation. Integrate backward into the business of high-cost suppliers in an effort to reduce the costs of the items being purchased.115. contribute expense savings and enhance product exclusivity. usually has the fewest primary activities and the lowest costs in the industry. Negotiate more favorable prices with suppliers. switching to lower-priced substitute inputs. E. reduce cost disadvantages and market price anomalies. cutting selling prices and trying to win a bigger market share. C. C. Enhancing cost-reducing activities with defensive functionality designed to create incentives 119. and . 121. those . Collaborate with forward channel allies to identify win-win opportunities to reduce costs 118. Collaborate closely with suppliers to identify mutual cost-saving opportunities.Value chain analysis and benchmarking in comparison to that of rivals: A. allows a company to drive the impact of the five competitive forces. B. D. C. distribution channels (perhaps direct sales via the Internet) or perhaps integrating forward into company-owned retail outlets B. allows a company to move into a higher strategic group. is one of the most useful ways a company can uncover and strengthen competitive advantages. B.A company that does a first-rate job of managing its value chain activities relative to competitors: A. E.Which of the following is NOT an option for remedying a supplier-related cost disadvantage? A. helps neutralize external threats to a company's future business prospects. Assisting in training channel partners in business practices E. E. contribute customer experience value and conserve operating functionality. 120. contribute to competitive assets and continue distinctive competencies. C. B. C. 127. D. for analyzing a company's most efficiently executed value-chain activity. E.To build a competitive advantage by out-managing rivals in performing value chain activities. undertake ongoing and persistent efforts to be cost-efficient and develop differentiation advantages. B.The road to competitive advantage begins with management's efforts: A. have at least three distinctive competencies. success and ascertain whether the company has a net competitive advantage or disadvantage vis-à-vis key rivals. it must: A. based on a standalone resource strength such as technological expertise. objectively after they are employed. Cdevelop core competencies and maybe a distinctive competence that rivals don't have or can't quite . have more core competencies than rivals.The value of doing competitive strength assessment is to: A. 123.122. D. C. B for identifying a company's superior resources and capabilities.for identifying industry key success factors that can provide a company with a core competence that rivals cannot effectively imitate.Resource analysis is a tool: A. B. learn whether a company has a distinctive competence. determine whether a company's resource strengths are sufficient to allow it to earn bigger profits than rivals. concentrating on minimizing the costs associated with the design of a product or service. E.When companies engage in value-creating activities. develop resource strengths that will enable it to pursue the industry's most attractive opportunities. 125. they do so by: A. a company must: A. to build value-creating activities all along the value chain. C. D. 126. to give superiority over rivals in performing tasks and activities extremely well. C. based on cross-department combinations of intellectual capital and expertise. C. have more competitive assets than competitive liabilities. E. D. to understand the value chain activities providing opportunity for growth. match and that are instrumental in helping it deliver attractive value to customers or else be more costefficient in how it performs value chain activities such that it has a low-cost advantage. concentrating on efficient performance of the company's primary value chain activities. E. Dlearn how the company ranks relative to rivals on each of the important factors that determine market . outsource all of its value chain activities to world-class vendors and suppliers. determine how competitively powerful the company's core competencies are. B. have competencies that allow it to produce the highest-quality product in the industry. B. drawing on specific company resources and capabilities that underlie and enable the activity. eliminate its resource weaknesses. focusing on exploiting a company's best-executed operating strategy.For a company to translate its performance of value chain activities into competitive advantage. 124. position itself in the industry's more favorably situated strategic group. and such value can only be assessed . focusing on working with forward-channel allies to develop capabilities to outmatch the capabilities of rivals. E. D. E. learn if the company's market opportunities are better than those of its rivals. All of these. . to build organizational expertise in performing certain competitively important value chain activities. stronger overall competitiveness versus rivals. B. companies with low ratings and thus get the sum of the weights to add up to 1.In a weighted competitive strength assessment. the sum of the weights should add up to: A. E. None of these. a weighted ranking identifies which competitive advantages are most powerful. E. it eliminates the bias introduced for those firms having large market shares.Competitive strength can be determined by assigning measures based on perceived importance because: A. capability. 1. D. D weighting each company's overall competitive strength by its percentage share of total industry profits . is the most reliable indicator of which industry member has the lowest overall costs and is the low-cost leader. 129.128. marketplace and which competitor is faced with the lowest overall competitive disadvantage. all of the various measures of competitive strength are not equally important.Understanding where the company is competitive requires: A. the importance of each competitive strength measure in building a sustainable competitive advantage. developing quantitative measures of a company's chances for future profitability. D. the results provide a more reliable measure of what competitive moves rivals are likely to make next. None of these. its percentage share of total industry profits.Assigning a weight to each measure of competitive strength assessment is generally analytically superior because: A. D. C. 131. it provides a more accurate assessment of the strength of competitive forces. B developing quantitative strength ratings for the company and key rivals on each industry key success . C. its percentage share of total industry revenues. weaker overall competitiveness versus rivals. the possession of a competitive advantage. D. E.0 C. the different measures of competitive strength are unlikely to be equally important. E weighting each company's overall competitive strength by the size of its market share produces a more . analyzing whether a company is well positioned to gain market share and be the industry's profit leader. B. 132. B. C. B. identifying a company's core competencies and distinctive competencies (if any). 130. D. is the most reliable indicator of which industry member has the highest overall product quality. greater implied net competitive advantage B.In a weighted competitive strength analysis. . pinpoints which industry rivals are most insulated from the industry's driving forces. E what it takes to provide better analytical balance between the companies with high ratings and the . D. 100%. E.0. B. and value chain activity. 133. C. its perceived importance in determining a company's competitive success in the marketplace. factor and each pivotal resource. is a powerful way of revealing which competitors are in the best and worst strategic groups. E. C.A higher company's overall weighted strength rating does not signal: A. each strength measure is assigned a weight based on: A. an unweighted ranking doesn't discriminate between companies with high and low market shares. 100. determining whether a company has a cost-effective value chain.Calculating competitive strength ratings for a company and its rivals using the industry's most telling measures of competitive strength or weakness: Ais a way of determining which competitor has the highest overall competitive advantage in the . produces a more accurate measure of its true competitive strength. it singles out which competitor has the most competitively potent core competencies. 10. 134. C. accurate measure of its true competitive strength. reflecting an area of potential improvement in order to achieve a sustainable competitive advantage. while low scores signal minimal . which competitors are in profitable strategic groups and which competitors are in unprofitable strategic groups.Which one of the following is NOT something that can be learned from doing a competitive strength assessment? A. E. what the industry's key success factors are.135. E. D. C. E. Which of the rated companies is competitively strongest and what size competitive advantage it enjoys DWhether a company has a net competitive advantage or a net competitive disadvantage relative to . Bprovide useful indicators of how a company compares against key rivals. D. reflecting the difference between its weighted rating and rivals' weighted ratings. High scores indicate which rivals are most vulnerable to competitive attack. 137. The company with the lowest score has the lowest-cost value chain. C. . pinpoint which industry rival is subject to the least amount of competitive pressures from the five competitive forces. Whether a company should correct its weaknesses by adopting best practices and revamping the makeup of its value chain C.Quantitative measures of a company's competitive strength: A. D. reveal which competitors are in the best and worst strategic groups. 139. by capability—thus indicating whether the company has a net overall competitive advantage or disadvantage against each rival. The factors on which a company is competitively strongest and weakest vis-à-vis key rivals B.Which one of the following is an accurate interpretation of the scores that result from doing a competitive strength assessment? A. B High scores indicate that a company is a power-user of best practices. with the size of its edge: A. D.The company with the highest rating on a given measure has an implied competitive edge on that specific measure. or ineffective adoption of best practices. key rivals (with the size of the advantage/disadvantage being indicated by the differences among the companies' competitive strength scores) E. which weaknesses and vulnerabilities of competitors the company might be able to attack successfully.High scores signal a strong competitive position and possession of a competitive advantage over companies with lower scores. providing the company with an overall net competitive score that is reduced by the weighted measure. The company with the lowest score has the strongest net competitive advantage over its rivals. B. Which rival company is competitively weakest and the areas where it is most vulnerable to competitive attack 138. C. signaling a weak position and competitive disadvantage.Calculating competitive strength ratings for a company and comparing them against strength ratings for its key competitors helps indicate: A. requiring reevaluation of the weighted measure. C. which competitors are likely to make money and which are likely to lose money in the years ahead.show which industry rival has the best overall market opportunities and which competitor has the poorest market opportunities. E. signal which competitor has the most distinctive competencies and which competitor has the fewest. which competitors are employing offensive strategies and which competitors are employing defensive strategies. factor by factor and capability . B. 136. D. select employees. D. Developing a "worry list" of "how to…. B. the "worry list" helps company managers clarify their thinking about how best to modify the company's value chain. drawing on the results of both industry analysis and the evaluations of the company's own competitiveness. C without a precise fix on what problems/roadblocks a company confronts. and key investors regarding what ." and "what to do about…" E. C locking in on what challenges/obstacles/roadblocks the company has to overcome in order to be . B point directly to the kinds of offensive/defensive actions it can use to exploit its competitive strengths . Analyzing the company's external environment B. suggest receptivity for astute companies to drive their operating practices if the strength scores are very low. E.A company's competitive strength scores pinpoint its strengths and weaknesses against rivals and: A. 141. point directly to the company to use its weaknesses as offensive moves to challenge rivals' weaknesses. position—to help come up with a "worry list" of "how to….Identifying the strategy-related issues and problems that company managers need to address and resolve for the company to be more financially and competitively successful entails all of the following EXCEPT: A. is done solely as a basis for drawing conclusions about whether to stick with a company's present strategy or to modify it. point directly to accepting the competitive strength scores on face value. drawing on the evaluations of the company's own resources. industry's key success factors are. strategic issues they think the company faces D. E. helps set management's agenda for taking actions to improve the company's performance and business outlook. D. managers are less clear about . financially and competitively successful in the years ahead. is accomplished solely by analyzing the company's internal working environment. suggest the company use its strengths to exploit its own competitive liabilities. strategy for the company to pursue. managers. and competitiveness. Assessing what challenges the company must overcome to be financially and competitively successful in the years ahead . internal circumstances.Identifying the strategic issues and problems that merit front-burner managerial attention: A. 144. and reduce its competitive liabilities." and "what to do about…" D." "whether to…." "whether to…. Evaluating the company's own resources and competitive position C Surveying a company's board members. 142. E these issues and obstacles must be cleared before management can focus clearly on what is the best ." and "what to do about…" E developing a competitive strength assessment that details the strategic moves and countermoves . C. developing a "worry list" of "how to…. necessary for ensuring the company's financial future.140. 143. what value chain activities to benchmark." "whether to…. B.Which of the following is NOT part of the task of identifying the strategic issues and problems that merit front-burner managerial attention? A.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: A without a precise fix on what problems/issues a company confronts. managers cannot know what the . Cis done solely by evaluating the company's own internal situation—its resources and competitive . the "worry list" sets the management agenda for taking actions to improve the company's performance and business outlook. None of these. B. Briefly discuss the meaning and significance of each of the following terms. It entails developing a "worry list" of "how to…. industry value chain d.Identify and explain the six questions to consider in evaluating a company's ability to compete successfully against market rivals. C. 146. B. . company value chain c. EDeveloping a list of issues and problems that management need to address (and to resolve) should . activity-based costing e. benchmarking 149. capability. 148.Identify at least three indicators of whether a company's present strategy is working well. and a distinctive competence. SWOT analysis b.Which of the following is NOT accurate as concerns the task of identifying the strategic issues and problems that merit front-burner managerial attention? A. always precede deciding upon a strategy and what actions to take to improve the company's position and prospects. It entails drawing on the results and conclusions from evaluating the company's own resources and competitive position. a core competence. competence. a." and "what to do about…" DIdentifying the strategic issues and problems that the company faces is the first thing that company . 147. It entails drawing upon the results and conclusions from analyzing the company's external environment." "whether to….Explain the difference between a company activity.145. managers need to do before starting to analyze the company's internal and external environment. What test determines the power of a resource's competitive strength? . 151.150. 152.A distinctive competence represents competitively superior resource strength.What are the four tests that should be used to measure the competitive power of a company's resource strengths? 155. True or false? Explain your answer. True or false? Explain your answer. True or false? Explain your answer.A distinctive competence represents a basis for competitive advantage.Why do a company's core competencies matter in crafting strategy? 154. 153.A core competence represents a basis for competitive advantage. . 157. weaknesses. opportunities. True or false? Explain and support your answer.Instead of trying to match the resource strengths of rivals.156.A company lacking stand-alone resource strength should focus on bundling several resource strengths into a core competence.What are the three parameters of conducting a SWOT analysis? 160. True or false? Explain and defend your answer.The ability of a company to perform value chain activities more proficiently or more cheaply than rivals is a potential source of competitive advantage.In conducting a SWOT analysis. what option(s) should a company consider to enhance its competitive power in the marketplace? 158.Draw a typical company value chain and briefly explain why the proficiency with which a firm performs the activities comprising its value chain matters. is it enough to simply compile lists of the company's strengths. and threats? Why or why not? 159. 161. What is meant by the term "best practices"? Why does it matter whether a company utilizes "best practices" in performing the activities comprising its value chain? 165.Why does it matter whether a company is able to perform value chain activities more proficiently or more cheaply than rivals? Explain and support your answer. 166. 163.162.Assume a firm is at a cost disadvantage with rivals because of higher supplier-related costs than key rivals. 167.Assume a firm is at a cost disadvantage with rivals because its internal costs are higher than rivals.What is benchmarking and why is it a strategically important analytical tool? 164. Identify three strategic moves that it can make to restore cost parity. Identify three strategic moves that it can make to restore cost parity.Assume a firm is at a cost disadvantage with rivals because of higher distributor/dealer costs than rivals. . Identify five strategic moves that it can make to restore cost parity. Explain why a weighted competitive strength assessment is important. 169.Explain why a good strategy must contain ways to deal with all the strategic issues and obstacles that stand in the way of the company's financial and competitive success. 170. True or false? Explain and defend your answer. .168.Why is it important for company managers to develop a "worry list" of strategic issues and problems that they need to address and resolve? What should they consider to develop this list? 171.In determining the various strategic issues that a company needs to address. managers need to consider BOTH the results of its analysis of the company's external environment and the results of its evaluation of the company's resources and competitive position. E 14. A . C 15. E 7. B 3. D 21. B 8. D 16. A 2. B 28. A 12. C 29. C 24. C 30. A 31. C 33. B 19. A 10. B 36. B 9. C 23. B 26. C 25. B 11. D 4. D 5. C 34. C 27.ch04 Key 1. D 22. E 32. C 35. A 18. A 13. A 20. A 17. C 6. E 40. A 43. C 57. A 39. A 49. E 62. B 51. C 68. A 72. D 70. D 42. C 54. A 69. C 46. D . C 60. B 73. B 52. A 53. A 67. E 66. E 41. E 65. A 44. D 71. E 55. D 58. B 45. E 47. B 64. E 48.37. B 63. D 61. A 59. C 38. A 50. D 74. D 56. C 96. A 105. E 104. C 76. B 109. A 94. E 90. D 87. C 107. B 84. C 93. C 100. C 98. B 82. A 108. B 89. A 78. A 83. E 110. E 112. D 79. B 95. A 111. A 86. C . E 106. A 101. E 103. B 81. B 97.75. D 77. B 92. D 85. E 80. C 99. D 102. A 88. C 91. 113. D 146. C 124. E 143. 148. B 129. A 137. . A 122. A 135. B 144. 149. B 125. D 118. C 133. B 141. C 134. D 114. B 138. D 126. 150. C 145. D 139. E 130. A 127. D 128. A 116. C 131. B 142. A 121. E 115. B 132. B 136. B 120. 147. A 140. E 119. E 117. A 123. 161. 155. 162. 165. 169. 153. 159. 160. 168. 167. 154. 156. 170. 157. 171. . 152.151. 166. 158. 163. 164. Learning Objective: 0446 03 Discover how to assess the companys strengths and weaknesses in light of market opportunities and external threats. Learning Objective: 0424 05 Understand how a comprehensive evaluation of a companys competitive situation can assist managers in making critical decisio ns about their next strategic moves. 13 Learning Objective: 0441 02 Understand why a companys resources and capabilities are central to its strategic approach and how to evaluate their potential f or giving the company a competitive edge over rivals.ch04 Summary Category # of Questions AACSB: Analytic 169 AACSB: Reflective Thinking 2 Blooms: Apply 3 Blooms: Remember 52 Blooms: Understand 116 Difficulty: 1 Easy 53 Difficulty: 2 Medium 109 Difficulty: 3 Hard 9 Learning Objective: 04-01 Learn how to assess how well a companys strategy is working. Learning Objective: 0449 04 Grasp how a companys value chain activities can affect the companys cost structure and customer value proposition. Thompson .Chapter 04 171 Topic: Question 1: How Well Is the Companys Present Strategy Working? 13 Topic: Question 2: What Are the Companys Competitively Important Resources and Capabilities? 27 Topic: Question 2: What Are the companys Competitively Important Resources? 14 Topic: Question 3: Is the Company Able to Seize Market Opportunities and Nullify External Threats? 44 Topic: Question 4: Are the Companys Cost Structure and Customer Value Proposition Competitive? 49 Topic: Question 5: Is the Company Competitively Stronger or Weaker than Key Rivals? 17 Topic: Question 6: What Strategic Issues and Problems Merit Front-Burner Managerial Attention? 7 Topic: SWOT Analysis 2 .