Question 1

Which of the following is not an option for improving supplier-related value chain activities?

Accepted Answer

A)  Integrate backward into the business of high-cost suppliers in an effort to reduce the costs of the items being purchased.
B)  Negotiate more favorable prices with suppliers.
C)  Collaborate closely with suppliers to identify mutual cost-saving opportunities.
D)  Switch to lower-priced substitute inputs.
E)  Persuade forward channel allies to implement best practices.F) A) and D)
G) C) and D)

Question 2

A company's competitive strength scores

Accepted Answer

A)  pinpoint its strengths and weaknesses against rivals and point to offensive and defensive strategies capable of producing first-rate results.
B)  determine whether a company has a cost-effective value chain.
C)  determine if the company's market opportunities are better than those of its rival.
D)  analyze whether a company is well positioned to gain market share and be the industry's profit leader.
E)  determine whether a company's resource strengths are sufficient to allow it to earn bigger profits than rivals.F) A) and D)
G) A) and C)

Question 3

Which of the following is not one of the five questions that comprise the task of evaluating a company's competitive strength and cost structure?

Accepted Answer

A)  How well is the company's strategy working?
B)  What are the company's competitively important resources and capabilities?
C)  Are the company's cost structure and customer value proposition competitive?
D)  What are the company's most and least profitable geographic segments?
E)  What strategic issues and problems merit front-burner managerial attention?F) C) and E)
G) All of the above

Question 4

A company resource weakness or competitive deficiency

Accepted Answer

A)  represents a problem that needs to be turned into a strength because weaknesses prevent a firm from being a winner in the marketplace.
B)  causes the company to fall into a lower strategic group than it otherwise could compete in.
C)  prevents a company from having a distinctive competence.
D)  usually stems from having a missing link or links in the industry value chain.
E)  is something a company lacks or does poorly (in comparison to rivals) or a condition that puts it at a disadvantage in the marketplace.F) B) and C)
G) A) and E)

Question 5

Identify and explain something that cannot be learned from doing a competitive strength assessment.

Accepted Answer

Competitive strength scores provide usef...

Question 6

Assume a firm is at a cost disadvantage with its rivals because of higher distributor-dealer costs than its rivals.Identify two strategic moves that it can make to restore cost parity.

Accepted Answer

There are three main ways to combat a co...

Question 7

The common types of valuable resources and competitive capabilities that management should consider when crafting a strategy do not include

Accepted Answer

A)  a skill,specialized expertise,or competitively important capability.
B)  valuable physical and intangible assets.
C)  valuable human assets and intellectual capital.
D)  valuable organizational assets and competitively valuable alliances.
E)  market share,profit growth,and increases in stock price.F) None of the above
G) A) and E)

Question 8

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

Accepted Answer

Supplier-related cost disadvantages can ...

Question 9

A first-rate SWOT analysis

Accepted Answer

A)  is a way to measure whether a company's value chain is longer or shorter than the chains of key rivals.
B)  is a tool for benchmarking whether a firm's strategy is closely matched to industry key success factors.
C)  reveals whether a company is competitively stronger than its closest rivals.
D)  provides a good basis for crafting a strategy.
E)  identifies the reasons a company's strategy is or is not working very well.F) A) and B)
G) D) and E)

Question 10

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

Accepted Answer

Supplier-related cost disadvantages can ...

Question 11

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

All of these analytical techniques are m...

Question 12

Explain the benefits of preparing a competitive strength assessment.

Accepted Answer

A company's competitive strength scores ...

Question 13

________ is identifying and appraising a company's resource strengths and weaknesses and its external opportunities and threats.

Accepted Answer

A)  SWOT analysis
B)  Competitive asset/liability analysis
C)  Competitive positioning analysis
D)  Strategic resource assessment
E)  Company resource mappingF) A) and B)
G) A) and C)

Question 14

Which of the following is not an example of an external threat to a company's future profitability?

Accepted Answer

A)  Lack of a distinctive competence
B)  Potential of a hostile takeover
C)  Adverse changes in foreign exchange rates
D)  Unfavorable demographic shifts
E)  Introduction of restrictive trade policies in countries where the company does businessF) C) and E)
G) B) and C)

Question 15

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.F) None of the above
G) A) and E)

Question 16

The options for remedying a cost disadvantage associated with activities performed by forward channel allies include

Accepted Answer

A)  switching to lower-priced substitutes.
B)  pressuring forward channel allies to reduce their costs and markups.
C)  shifting into the production of substitute products.
D)  shifting from a differentiation strategy to a best-cost strategy or focus strategy.
E)  implementing a benchmarking program and adopting best practices.F) A) and D)
G) A) and E)

Question 17

For a particular company resource to have meaningful competitive power and perhaps qualify as a basis for competitive advantage,it should

Accepted Answer

A)  be competitively important,hard for competitors to copy or imitate,rare and something rivals lack,and not be easily trumped by the substitute resources/capabilities of rivals.
B)  be something that a company does internally rather than in collaborative arrangements with outsiders.
C)  be patentable.
D)  be rooted in the company's organizational capital,information capital,or human capital.
E)  have the potential for lowering the firm's unit costs.F) A) and B)
G) B) and D)

Question 18

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

Accepted Answer

The eight indicators of how well a compa...

Question 19

One of the most telling signs of whether a company's market position is strong or precarious is

Accepted Answer

A)  whether its product is strongly or weakly differentiated from rivals.
B)  whether its prices and costs are competitive with those of key rivals.
C)  whether it has a lower stock price than key rivals.
D)  the opinions of buyers regarding which seller has the best product quality and customer service.
E)  whether it is in a bigger or smaller strategic group than its closest rivals.F) A) and B)
G) All of the above

Question 20

Which of the following best describes the market opportunities that tend to be most relevant to a particular company?

Accepted Answer

A)  Those that provide avenues for taking market share away from close rivals and enhance a company's image as a leader in product innovation and product quality
B)  Those that offer the company a chance to raise entry barriers
C)  Those that help promote greater diversification of revenues and profits
D)  Those that match up well with the firm's financial resources and competitive capabilities,offer the best growth and profitability,and present the most potential for competitive advantage
E)  Those that help correct a company's biggest weaknesses and competitive deficienciesF) All of the above
G) None of the above

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

The common types of valuable resources and competitive capabilities that management should consider when crafting a strategy do not include

Correct AnswerverifiedShow Answer

Assume a firm is at a cost disadvantage with its rivals because of higher distributor-dealer costs than its rivals.Identify two strategic moves that it can make to restore cost parity.

Correct AnswerverifiedThere are three main ways to combat a co...View AnswerShow Answer

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

Correct AnswerverifiedThe eight indicators of how well a compa...View AnswerShow Answer

Which of the following is not one of the five questions that comprise the task of evaluating a company's competitive strength and cost structure?

Correct AnswerverifiedShow Answer

Identify and explain something that cannot be learned from doing a competitive strength assessment.

Correct AnswerverifiedCompetitive strength scores provide usef...View AnswerShow Answer

Explain the benefits of preparing a competitive strength assessment.

Correct AnswerverifiedA company's competitive strength scores ...View AnswerShow Answer

________ is identifying and appraising a company's resource strengths and weaknesses and its external opportunities and threats.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedSupplier-related cost disadvantages can ...View AnswerShow Answer

For a particular company resource to have meaningful competitive power and perhaps qualify as a basis for competitive advantage,it should

Correct AnswerverifiedShow Answer

A capability of the firm is not considered to be

Correct AnswerverifiedShow Answer

A company resource weakness or competitive deficiency

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedSupplier-related cost disadvantages can ...View AnswerShow Answer

Which of the following is not an example of an external threat to a company's future profitability?

Correct AnswerverifiedShow Answer

The options for remedying a cost disadvantage associated with activities performed by forward channel allies include

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A company's competitive strength scores

Correct AnswerverifiedShow Answer

Which of the following best describes the market opportunities that tend to be most relevant to a particular company?

Correct AnswerverifiedShow Answer

Which of the following is not an option for improving supplier-related value chain activities?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedAll of these analytical techniques are m...View AnswerShow Answer

One of the most telling signs of whether a company's market position is strong or precarious is

Correct AnswerverifiedShow Answer

A first-rate SWOT analysis

Correct AnswerverifiedShow Answer

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There are three main ways to combat a co...
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Correct Answer
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The eight indicators of how well a compa...
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Correct Answer
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Competitive strength scores provide usef...
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A company's competitive strength scores ...
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Correct Answer
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Supplier-related cost disadvantages can ...
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Supplier-related cost disadvantages can ...
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All of these analytical techniques are m...
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Correct Answer
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