BU
690-UNIT 3 –
MULTIPLE CHOICE
BASED ON CHAPTER 4
25 question-Answer all
FOR 50 POINTS
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1.
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The four tests of a resource’s competitive power are often
referred to as the:
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A.
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SCIR test, which asks if a resource is sustainable, competitive,
internalized, and reproducible.
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B.
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competitive advantage sustainable method test.
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C.
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reliability resources simulation.
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D.
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VRIN test, which asks if a resource is valuable, rare,
inimitable, and non-substitutable.
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E.
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organizational capability metric analysis.
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2.
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Which of the following is NOT pertinent in identifying a
company’s present strategy?
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A.
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The key functional strategies (R&D, supply chain
management, production, sales and marketing, HR, and finance) a company is employing
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B.
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Management’s planned, proactive moves to outcompete rivals
(via better product design, improved quality or service, wider product
lines, and so on)
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C.
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The company’s mission, strategic objectives, and financial
objectives
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D.
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Moves to respond and react to changing conditions in the
macro-environment and in industry and competitive conditions
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E.
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The strategic role of its collaborative partnerships and
strategic alliances with others
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3.
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Which of the following is NOT a reliable measure of how well a
company’s current strategy is working?
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A.
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Whether the company’s sales are growing faster, slower, or
about the same pace as the industry as a whole, thus resulting in a rising,
falling, or stable market share
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B.
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Whether it has a larger number of competitive assets than
competitive liabilities and whether it has a superior quality product
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C.
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The firm’s image and reputation with its customers
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D.
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Whether its profit margins are rising or falling and how large
its margins are relative to those of its rivals
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E.
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Evidence of improvement in internal processes such as defect
rate, order fulfillment, delivery times, days of inventory, and employee
productivity
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4.
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The BEST example of a company resource is:
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A.
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having higher earnings per share and a higher return on
shareholders’ equity investment than key rivals.
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B.
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being totally self-sufficient such that the company does not
have to rely in any way on key suppliers, partnerships with outsiders, or
strategic alliances.
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C.
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having proven technological expertise and an ability to churn
out new and improved products on a regular basis.
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D.
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having a larger number of competitive assets than competitive
liabilities.
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E.
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having more built-in key success factors than rivals.
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5.
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If a company doesn’t possess standalone resource strengths
capable of contributing to competitive advantage:
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A.
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all potential for competitive advantage is lost.
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B.
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it is unlikely to survive in the marketplace and should exit the
industry.
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C.
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it may have a bundle of resources that can be leveraged to
develop a distinctive competence.
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D.
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it is virtually blocked from using offensive strategies and
must rely on defensive strategies.
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E.
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its best strategic option is to revamp its value chain in
hopes of creating stronger competitive capabilities.
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6.
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Resource and capability analysis is achieved by:
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A.
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probing the caliber
of a firm’s competitive assets relative to those of rival firms.
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B.
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attaining price stability.
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C.
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analyzing only internal strengths and weaknesses through a
matrix comparison model.
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D.
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cost-benefit analysis of the company’s core product sales.
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E.
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performing resource-specific activities within the
organization to allocate available capital.
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7.
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The competitive power of a company resource strength or
competitive capability hinges on all of the following EXCEPT:
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A.
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how hard it is for competitors to copy.
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B.
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whether it is rare and something rivals lack.
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C.
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whether it is really competitively valuable and has the
potential to contribute to a competitive advantage.
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D.
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whether it is nonsubstitutable
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E.
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whether it available in plenty.
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8.
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A competitively valuable
resource or capability is a company’s:
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A.
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enabling foundation of its business model.
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B.
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equally valuable substitute resource providing a competitive
advantage.
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C.
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assessment of the availability of superior substitutes.
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D.
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unsurpassed worker productivity and product quality.
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E.
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unique piecework incentive system, providing a competitive
advantage.
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9.
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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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A.
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Is the resource rare and something rivals lack?
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B.
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Is the resource strength something that a company has
internally rather than in collaborative arrangements with outsiders?
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C.
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Is the resource strength easily trumped by the substitute
resources/capabilities of rivals?
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D.
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Is the resource strength hard to copy?
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E.
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Is the resource strength competitively valuable, having the
potential to contribute to a competitive advantage?
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10.
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Which of the following is NOT an example of a company’s dynamic
capability?
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A.
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A capacity to improve existing resources and capabilities
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B.
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Upgrades to R&D resources to drive product innovation
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C.
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A capacity to add new resources and capabilities to the
competitive asset portfolio
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D.
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An ability to replace degraded resources with acquired
capabilities
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E.
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An ability to keep antiquated resources by disregarding
innovative capabilities
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11.
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Identifying and assessing a company’s resource strengths and
weaknesses and its external opportunities and threats is called:
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B.
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a competitive asset/liability analysis.
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C.
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a competitive positioning analysis.
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D.
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a strategic resource assessment.
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E.
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a company resource mapping.
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12.
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A company’s strengths are important because they:
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A.
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pave the way for establishing a low-cost advantage over
rivals.
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B.
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represent the quality of its competitive assets that enhance
its competitiveness in the marketplace.
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C.
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provide extra muscle in helping lengthen the company’s value
chain.
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D.
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give it competitive protection against the industry’s driving
forces.
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E.
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provide extra organizational muscle in turning a core
competence into a key success factor.
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13.
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When a company has a proficiency in performing a strategically
and competitively important value
chain activity better than its rivals, it is said to have:
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C.
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a distinctive competence.
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D.
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a key value chain proficiency.
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E.
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a competitive advantage over rivals.
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14.
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A core competence:
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A.
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detracts from a company’s arsenal of competitive capabilities
and competitive assets and is not a resource strength considered to be
genuine.
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B.
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is typically results-based, residing in a company’s tangible
physical assets on the balance sheet.
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C.
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is often grounded in a single department’s set of knowledge
and expertise.
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D.
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is an activity that a firm performs proficiently that is also
central to its strategy and competitive success.
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E.
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is a proficiently performed external activity.
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15.
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When a company performs a particular competitively important
activity truly well in comparison to its rivals, it is said to have:
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C.
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a distinctive competence.
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16.
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Which of the following is NOT accurate as concerns a distinctive
competence?
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A.
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A distinctive competence is a competitively important activity
that a company performs better than its rivals.
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B.
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A distinctive competence is typically less restrictive for
rivals to copy than a core competence.
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C.
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A distinctive competence can be a basis for sustainable
competitive advantage.
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D.
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A distinctive competence qualifies as a superior internal
strength.
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E.
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A distinctive competence enables delivering stand-out value to
customers (in the form of lower prices, better product performance, or
superior service).
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17.
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The external market opportunities which are MOST relevant to a
company are the ones that:
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A.
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can increase market share.
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B.
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are reinforced by the overall business strategy and reflect
the business model.
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C.
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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.
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D.
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qualify to correct its internal weaknesses and resource
deficiencies.
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E.
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are relevant for defending against the external threats to its
well-being.
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18.
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Which of the following is NOT an example of an external threat
to a company’s future profitability?
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A.
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The lack of a distinctive competence
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B.
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New legislation that entails burdensome and costly government
regulations
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C.
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Slowdowns in market growth
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D.
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More intense competitive pressures
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E.
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The introduction of restrictive trade policies in countries
where the company does business
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19.
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External threats may pose various degrees of adversity upon the
company and can surface from many sources and examples, EXCEPT for:
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A.
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the advent of cheaper or better technologies.
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B.
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the entry of lower-cost foreign competitors and restrictive
foreign trade policies.
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C.
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new burdensome regulations.
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D.
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higher overall unit costs relative to those of key
competitors.
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E.
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rising prices on key inputs (such as energy costs).
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20.
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In doing SWOT analysis, which of the following is NOT an example
of a potential resource weakness or
competitive deficiency that a company may have?
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A.
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Less productive R&D efforts than rivals
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B.
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Having a single, unified functional strategy instead of
several distinct functional strategies
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C.
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Lack of a strong brand image and reputation (as compared to
rivals)
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D.
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Higher overall unit costs relative to rivals
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E.
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Too narrow a product line relative to rivals
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21.
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Which of the following is NOT something that can be gleaned from
a company’s SWOT?
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A.
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How to improve a company’s strategy by using company strengths
and capabilities as cornerstones for its strategy
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B.
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Which market opportunities are best suited to a company’s
strengths and capabilities
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C.
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Which resource weaknesses and deficiencies need to be
corrected so as to better enable the pursuit of important market
opportunities and to better defend against certain external threats
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D.
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How to turn a core competence into a distinctive competence
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E.
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Whether any of the company’s resource strengths can be used to
help lessen the impact of external threats
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22.
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Two analytical tools useful in determining whether a company’s
prices and costs are competitive are:
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A.
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SWOT analysis and key success factor analysis.
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B.
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SWOT analysis and benchmarking.
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C.
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value chain analysis and benchmarking.
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D.
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competitive position assessment and competitive strength
assessment.
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E.
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driving forces analysis and SWOT analysis.
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23.
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Activity-based costing is used to evaluate a company’s
cost-competitiveness and:
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A.
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determine whether the value chains of rival companies are
similar or different.
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B.
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benchmark the costs of primary value chain activities against
the costs of the support value chain activities.
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C.
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determine the costs of each primary and support activity
comprising a company’s value chain and thereby reveal the nature and makeup
of a company’s internal cost structure.
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D.
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determine the costs of each strategic action a company
initiates.
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E.
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analyze the costs of each primary activity.
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24.
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Costs and price differences among competing companies can have
origins in activities performed by:
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A.
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the company’s internally performed activities (its own value
chain) compared to the cost structure of the internally performed
activities of rival companies.
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B.
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value chains of the company’s suppliers.
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C.
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value chains of a company’s distributors and retail dealers
and forward channel allies.
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D.
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the company’s internally performed activities (its own value
chain), but also on costs in the value chain of its suppliers and
distribution channel allies.
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E.
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whether the company has a longer or shorter value chain than
its close rivals.
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25.
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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:
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A.
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competitive strength analysis.
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B.
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activity-based costing.
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C.
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resource cost mapping.
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