Question 1

The value of doing competitive strength assessment is to:

Accepted Answer

A)   determine how competitively powerful the company's core competencies are.
B)   learn if the company's market opportunities are better than those of its rivals.
C)   learn whether a company has a distinctive competence.
D)   learn how the company ranks relative to rivals on each of the important factors that determine market success and ascertain whether the company has a net competitive advantage or disadvantage vis-à-vis key rivals.
E)   determine whether a company's resource strengths are sufficient to allow it to earn bigger profits than rivals.

Question 2

Two analytical tools useful in determining whether a company's prices and costs are competitive are:

Accepted Answer

A)   SWOT analysis and key success factor analysis.
B)   SWOT analysis and benchmarking.
C)   value chain analysis and benchmarking.
D)   competitive position assessment and competitive strength assessment.
E)   driving forces analysis and SWOT analysis.

Question 3

Which of the following is NOT a good option for trying to remedy high internal costs vis-à-vis rivals' firms?

Accepted Answer

A)   Finding ways to detour around activities or items where costs are high
B)   Redesigning the product or some of its components to permit more economical manufacture or assembly
C)   Implementing aggressive strategic resource mapping to permit across-the-board cost reduction
D)   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 Eastern Europe) where they can be performed more cheaply

Question 4

A competitively valuable resource or capability is a company's:

Accepted Answer

A)   enabling foundation of its business model.
B)   equally valuable substitute resource providing a competitive advantage.
C)   assessment of the availability of superior substitutes.
D)   unsurpassed worker productivity and product quality.
E)   unique piecework incentive system,providing a competitive advantage.

Question 5

Which of the following does NOT represent a potential core competence?

Accepted Answer

A)   Skills in manufacturing a high-quality product at a low cost
B)   Know-how in creating and operating systems for cost-efficient supply chain management
C)   The capability to fill customer orders accurately and swiftly
D)   Having a sprawling factory
E)   The capability to speed new or next-generation products to the marketplace

Question 6

The road to competitive advantage begins with management's efforts to:

Accepted Answer

A)   build organizational expertise in performing certain competitively important value chain activities.
B)   understand the value chain activities providing opportunity for growth.
C)   build value-creating activities all along the value chain.
D)   ensure superiority over rivals in performing even unimportant tasks and activities extremely well.
E)   maintain the existing chain of activities to lower costs.

Question 7

Tangible resources do not include:

Accepted Answer

A)   physical resources.
B)   financial resources.
C)   human assets.
D)   technological assets.
E)   organizational resources.

Question 8

The four tests of a resource's competitive power are often referred to as the:

Accepted Answer

A)   SCIR test,which asks if a resource is sustainable,competitive,internalized,and reproducible.
B)   competitive advantage sustainable method test.
C)   reliability resources simulation.
D)   VRIN test,which asks if a resource is valuable,rare,inimitable,and non-substitutable.
E)   organizational capability metric analysis.

Question 9

A company's strategic options for remedying cost disadvantages in internally performed value chain activities do NOT include:

Accepted Answer

A)   revamping its value chain to eliminate or bypass some cost-producing activities (particularly low value-added activities) .
B)   implementing the use of best practices,particularly for high-cost activities.
C)   investing in productivity-enhancing,cost-saving technological improvements.
D)   switching to activity-based costing.
E)   outsourcing the performance of high-cost activities to vendors that can perform them more cheaply.

Question 10

A dynamic capability is the:

Accepted Answer

A)   ongoing capacity to modify existing resources and capabilities to create new ones.
B)   improvement evaluation process for eliminating waste in the firm.
C)   functional and operating resources management process.
D)   ongoing capability to understand and establish a commitment to resource alignment.
E)   improvement evaluation process for repurposing waste in the firm.

Question 11

Which of the following is NOT one of the objectives of benchmarking?

Accepted Answer

A)   To identify the best practices in performing various value chain activities
B)   To learn how best practice companies achieve lower costs or better results in performing benchmarked activities
C)   To help construct a company value chain and identify which activities are primary and which are support activities
D)   To develop cross-company comparisons of the costs of performing specific value chain activities
E)   To take actions to improve a company's cost competitiveness when benchmarking reveals that its costs and results of performing an activity are not as good as what other companies have achieved

Question 12

Which of the following is NOT an example of a threat to a company's future profitability and well-being?

Accepted Answer

A)   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)   Shifts in buyer needs and tastes away from the industry's product
D)   Costly new regulatory requirements
E)   Growing bargaining power on the part of the company's major customers and major suppliers

Question 13

The competitive power of a company's resource strength is NOT measured by which one of the following tests?

Accepted Answer

A)   Is the resource rare and something rivals lack?
B)   Is the resource strength something that a company has internally rather than in collaborative arrangements with outsiders?
C)   Is the resource strength easily trumped by the substitute resources/capabilities of rivals?
D)   Is the resource strength hard to copy?
E)   Is the resource strength competitively valuable,having the potential to contribute to a competitive advantage?

Question 14

While listening or categorizing company resources,what matters is that:

Accepted Answer

A)   all tangible resources are categorized correctly.
B)   important resources are reported against strategically subjective activities.
C)   resources are prioritized in terms of value propositions.
D)   strategically placed resources are manageable.
E)   all the different types of resources are included in the inventory.

Question 15

To build a competitive advantage by out-managing rivals in performing value chain activities,a company must:

Accepted Answer

A)   position itself in the industry's more favorably situated strategic group.
B)   develop resource strengths that will enable it to pursue the industry's most attractive opportunities.
C)   develop core competencies and maybe a distinctive competence that rivals don't have or can't quite match and that are instrumental in helping it deliver attractive value to customers.
D)   outsource all of its value chain activities to world-class vendors and suppliers.
E)   eliminate its resource weaknesses.

Question 16

Resource and capability analysis is achieved by:

Accepted Answer

A)   probing the caliber of a firm's competitive assets relative to those of rival firms.
B)   attaining price stability.
C)   analyzing only internal strengths and weaknesses through a matrix comparison model.
D)   cost-benefit analysis of the company's core product sales.
E)   performing resource-specific activities within the organization to allocate available capital.

Question 17

The external market opportunities which are MOST relevant to a company are the ones that:

Accepted Answer

A)   can increase market share.
B)   are reinforced by the overall business strategy and reflect the business model.
C)   match up well with the firm's competitive assets,offer the best prospects for growth and profitability,and present the most potential for competitive advantage.
D)   qualify to correct its internal weaknesses and resource deficiencies.
E)   are relevant for defending against the external threats to its well-being.

Question 18

Which of the following is NOT an example of a company's dynamic capability?

Accepted Answer

A)   A capacity to improve existing resources and capabilities
B)   Upgrades to R&D resources to drive product innovation
C)   A capacity to add new resources and capabilities to the competitive asset portfolio
D)   An ability to replace degraded resources with acquired capabilities
E)   An ability to keep antiquated resources by disregarding innovative capabilities

Question 19

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?

Accepted Answer

A)   Resource and capability analysis
B)   SWOT
C)   Value chain analysis
D)   Best practice concept
E)   Competitive strength analysis

Question 20

A company's strengths are important because they:

Accepted Answer

A)   pave the way for establishing a low-cost advantage over rivals.
B)   represent the quality of its competitive assets that enhance its competitiveness in the marketplace.
C)   provide extra muscle in helping lengthen the company's value chain.
D)   give it competitive protection against the industry's driving forces.
E)   provide extra organizational muscle in turning a core competence into a key success factor.

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

The road to competitive advantage begins with management's efforts to:

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Resource and capability analysis is achieved by:

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A competitively valuable resource or capability is a company's:

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Which of the following is NOT an example of a company's dynamic capability?

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Which of the following does NOT represent a potential core competence?

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While listening or categorizing company resources,what matters is that:

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A company's strengths are important because they:

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A company's strategic options for remedying cost disadvantages in internally performed value chain activities do NOT include:

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Two analytical tools useful in determining whether a company's prices and costs are competitive are:

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Tangible resources do not include:

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Which of the following is NOT an example of a threat to a company's future profitability and well-being?

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The competitive power of a company's resource strength is NOT measured by which one of the following tests?

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The external market opportunities which are MOST relevant to a company are the ones that:

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The four tests of a resource's competitive power are often referred to as the:

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Which of the following is NOT one of the objectives of benchmarking?

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Which of the following is NOT a good option for trying to remedy high internal costs vis-à-vis rivals' firms?

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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?

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A dynamic capability is the:

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The value of doing competitive strength assessment is to:

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To build a competitive advantage by out-managing rivals in performing value chain activities,a company must:

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