Transcript
Chapter 04 - Evaluating a Company's Resources and Competitive
Chapter 04 Evaluating a Company's Resources and Competitive Multiple Choice Questions
The Key Key Questions Questions in Analyzing Analyzing a Companies Companies Resourc Resources es and Competitive Competitive osition
!" (p. 95) #hich o$ the $ollo%ing is not one o$ the &ve uestions that comprise the tas( o$ evaluating a company's resources and competitive position) A. #hat are the company's most pro&ta*le geographic mar(et segments) +" ,o% +" ,o% %ell is the company's present strategy %or(ing) C" Are C" Are the company's prices and costs competitive) " .s " .s the company competitively stronger or %ea(er than (ey rivals) E" #hat E" #hat strategic issues and pro*lems merit $ront-*urner management attention)
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/" (p. 95) #hich o$ the $ollo%ing is not a component o$ evaluating a company's resources and competitive position) A" Evaluating A" Evaluating ho% %ell the present strategy is %or(ing B. canning the environment to determine a company's *est and most pro&ta*le customers C" Assessing C" Assessing %hether the company's costs and prices are competitive " Evaluating " Evaluating %hether the company is competitively stronger or %ea(er than (ey rivals E" inpointing E" inpointing %hat strategic issues and pro*lems merit $ront-*urner management attention
AACSB: 3 Difculty: Easy Taxonomy: Knowl!"
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Chapter 04 - Evaluating a Company's Resources and Competitive
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Chapter 04 - Evaluating a Company's Resources and Competitive
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Chapter 04 - Evaluating a Company's Resources and Competitive
1" (p. 95) The spotlight in analyzing a company's resources2 internal circumstances and competitiveness includes such uestions3concerns as A" #hether A" #hether the company's present strategy is *etter than the strategies o$ its closest rivals *ased on such per$ormance measures as earnings per share2 RE2 dividend payout ratio and average annual increase in the common stoc( price +" #hether +" #hether the company's (ey success $actors are more dominant than the (ey success $actors o$ close rivals C" #hether C" #hether the company has the industry's most e5cient and e6ective value chain D. #hat are the company's resource strengths and %ea(nesses and its e7ternal opportunities and threats E" #hat E" #hat ne% acuisitions the company %ould *e %ell advised to ma(e in order to strengthen its &nancial per$ormance and overall *alance sheet position
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Question !8 ,o% #ell .s the Company's resent trategy #or(ing)
4" (p. 9#) #hich o$ the $ollo%ing is not pertinent in identi$ying a company's present strategy) A" The A" The (ey $unctional strategies 9R:2 supply chain management2 production2 sales and mar(eting2 ,R and &nance; a company is employing +"
" (p. 9#) ne important indicator o$ ho% %ell a company's present strategy is %or(ing is %hether A" .t has more core competencies than close rivals +" .ts strategy is *uilt around at least t%o o$ the industry's (ey success $actors C. The company is achieving its &nancial and strategic o*=ectives and %hether it is an a*ove-average industry per$ormer " .t is customarily a &rst-mover in introducing ne% or improved products 9a good sign; or a late-mover 9a *ad sign; E" .t is su*=ect to %ea(er competitive $orces and pressures than close rivals 9a good sign; or stronger competitive $orces and pressures 9a *ad sign;
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?" (p. 9#) The *est uantitative evidence o$ %hether a company's present strategy is %or(ing %ell is A" #hether the company has more competitive assets than it does competitive lia*ilities +" #hether the company is in the industry's *est strategic group C. The cali*er o$ results the strategy is producing2 speci&cally %hether the company is achieving its &nancial and strategic o*=ectives and %hether it is an a*ove-average industry per$ormer " #hether the company has a shorter value chain than close rivals E" #hether the company is in the @ortune >00
AACSB: 3 Difculty: $!ium Taxonomy: Comp%&nsion
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Chapter 04 - Evaluating a Company's Resources and Competitive
" (p. 9# ' 9) #hich one o$ the $ollo%ing is not a relia*le measure o$ ho% %ell a company's current strategy is %or(ing) A" #hether the company's sales are gro%ing $aster2 slo%er or a*out the same pace as the industry as a %hole2 thus resulting in a rising2 $alling or sta*le mar(et share B. #hether it has a larger num*er o$ competitive assets than competitive lia*ilities and %hether it has a superior uality product C" The &rm's image and reputation %ith its customers " #hether its pro&t margins are rising or $alling and ho% large its margins are relative to those o$ its rivals E" ,o% %ell the &rm stac(s up against rivals on technology2 product innovation2 customer service2 product per$ormance and uality2 price2 delivery time2 speed in getting ne%ly developed products to mar(et2 *rand image and other relevant $actors on %hich *uyers *ase their choice o$ %hich *rand to purchase
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Question /8 #hat Are the Company's Resource trengths and #ea(nesses and .ts E7ternal pportunities and Threats)
B" (p. 9) .denti$ying and assessing a company's resource strengths and %ea(nesses and its e7ternal opportunities and threats is called A. #T analysis +" Competitive asset3lia*ility analysis C" Competitive positioning analysis " trategic resource assessment E" Company resource mapping
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Chapter 04 - Evaluating a Company's Resources and Competitive
" (p. 9) #T analysis is a po%er$ul tool $or A" Dauging %hether a company has a cost competitive value chain B. izing up a company's resource capa*ilities and de&ciencies2 its mar(et opportunities and the e7ternal threats to its $uture %ell-*eing C" Evaluating %hether a company is in the most appropriate strategic group " etermining a company's competitive strength vis--vis close rivals E" .denti$ying the mar(et segments in %hich a company is strongly positioned and %ea(ly positioned
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!0" (p. 9) #T analysis A" .s a %ay to measure %hether a company's value chain is longer or shorter than the chains o$ (ey rivals +" .s a tool $or *enchmar(ing %hether a &rm's strategy is closely matched to industry (ey success $actors C" Reveals %hether a company is competitively stronger than its closest rivals D. rovides a good overvie% o$ %hether a company's situation is $undamentally healthy or unhealthy E" .denti&es the reasons %hy a company's strategy is or is not %or(ing very %ell
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Chapter 04 - Evaluating a Company's Resources and Competitive
!!" (p. 9) The payo6 o$ doing a thorough #T analysis is A" .denti$ying A" .denti$ying %hether the company's value chain is cost e6ective vis--vis the value chains o$ rivals +" ,elping +" ,elping strategy-ma(ers *enchmar( the company's resource strengths against industry (ey success $actors C" Ena*ling C" Ena*ling a company to assess its overall competitive position relative to its (ey rivals " Revealing " Revealing %hether a company's mar(et share2 measures o$ pro&ta*ility and sales compare $avora*ly or un$avora*ly vis--vis (ey competitors E. Assisting strategy-ma(ers in cra$ting a strategy that is %ell-matched to the company's resources and capa*ilities2 its mar(et opportunities and the e7ternal threats to its $uture %ell-*eing
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!/" (p. *+) #hich one o$ the $ollo%ing is not part o$ conducting a #T analysis) A" .denti$ying A" .denti$ying a company's resource strengths and competitive capa*ilities B. +enchmar(ing the company's resource strengths and competitive capa*ilities against industry (ey success $actors C" .denti$ying C" .denti$ying a company's mar(et opportunities " ra%ing " ra%ing conclusions a*out the company's overall *usiness situationF %hat is attractive and %hat is unattractive a*out the company's circumstances and %here on the scale $rom Galarmingly %ea(G to Ge7ceptionally strongG does its situation ran() E" Translating E" Translating the results o$ the analysis into actions $or improving the company's strategy and mar(et position
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Chapter 04 - Evaluating a Company's Resources and Competitive
!1" (p. *) The t%o most important parts o$ #T analysis are A" inpointing A" inpointing the company's competitive assets and pinpointing its competitive lia*ilities +" .denti$ying +" .denti$ying the company's resource strengths and identi$ying the company's *est mar(et opportunities C" .denti$ying C" .denti$ying the e7ternal threats to a company's $uture pro&ta*ility and pinpointing ho% many mar(et opportunities it has D. ra%ing conclusions $rom the #T listings a*out the company's overall situation and translating these conclusions into strategic actions to *etter match the company's strategy to its resource strengths and mar(et opportunities2 correct the important %ea(nesses and de$end against e7ternal threats E" " (p. 99 ' **) A company resource strength can concern A" A s(ill2 specialized e7pertise or competitively important capa*ility +" Halua*le human assets and intellectual capital C" An achievement or attri*ute that puts the company in a position o$ mar(et advantage " Competitively valua*le alliances or cooperative ventures E. All o$ these
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!?" (p. 99 ' **) #hich o$ the $ollo%ing most accurately reIect a company's resource strengths) A. .ts human2 physical and3or organization assetsJ its s(ills and competitive capa*ilitiesJ achievements or attri*utes that enhance the company's a*ility to compete e6ectivelyJ and %hether it is engaged in competitively valua*le alliances or cooperative ventures +" The sizes o$ its unit sales2 revenues and mar(et share vis--vis those o$ (ey rivals C" The sizes o$ its pro&t margins and return on investment vis--vis those o$ (ey rivals " #hether it has more primary activities in its value chain than close rivals and a *etter overall value chain than these rivals E" #hether it has more core competencies than close rivals
AACSB: 3 Difculty: $!ium Taxonomy: Comp%&nsion
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Chapter 04 - Evaluating a Company's Resources and Competitive
!" (p. **) A company's resource strengths are important *ecause A" They pave the %ay $or esta*lishing a lo%-cost advantage over rivals B. They represent its competitive assets and are *ig determinants o$ its competitiveness and a*ility to succeed in the mar(etplace C" They provide e7tra muscle in helping lengthen the company's value chain " They give it competitive protection against the industry's driving $orces E" They provide e7tra organizational muscle in turning a core competence into a (ey success $actor
AACSB: 3 Difculty: $!ium Taxonomy: Comp%&nsion
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Chapter 04 - Evaluating a Company's Resources and Competitive
!B" (p. **) A company's resource strengths A" Represent its core competencies +" Are the most important parts o$ the company's value chain C. ignal %hether it has the %here%ithal to *e a strong competitor in the mar(etplace or %hether its capa*ilities and competitive strengths are modest2 thus relegating it to a trailing position in the industry " Dive it e7cellent a*ility to insulate itsel$ against the impact o$ the industry's driving $orces E" Com*ine to give it a distinctive competence
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!" (p. 99 ' **) The *est e7ample o$ a company strength is A" ,aving higher earnings per share and a higher return on shareholders' euity investment than (ey rivals +" +eing totally sel$-su5cient such that the company does not have to rely in any %ay on (ey suppliers2 partnerships %ith outsiders or strategic alliances C. ,aving proven technological e7pertise and a*ility to churn out ne% and improved products on a regular *asis " ,aving a larger num*er o$ competitive assets than competitive lia*ilities E" ,aving more *uilt-in (ey success $actors than rivals
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Chapter 04 - Evaluating a Company's Resources and Competitive
/0" (p. 99 ' **) #hich o$ the $ollo%ing is not a good e7ample o$ a company strength) A"
Chapter 04 - Evaluating a Company's Resources and Competitive
/1" (p. *) The di6erence *et%een a company competence and a core competence is that A" A company competence re$ers to a company's *est-e7ecuted $unctional strategy and a core competence re$ers to a company's *est-e7ecuted *usiness strategy +" A company competence re$ers to a company's strongest resource %hereas a core competence re$ers to a company's lo%est-cost and most e5ciently per$ormed value chain activity C" A company competence is a competitively relevant activity %hich a &rm per$orms especially %ell relative to other internal activities2 %hereas a core competence is an activity that a company has learned to per$orm pro&ciently D. A company competence represents real pro&ciency in per$orming an internal activity %hereas a core competence is a competitively relevant activity %hich a &rm per$orms *etter than other internal activities E" A core competence usually resides in a company's technology and physical assets 9state-o$-the-art plants and euipment2 attractive real estate locations2 modern distri*ution $acilities and so on; %hereas a company competence usually resides in a company's human assets and intellectual capital
AACSB: 3 Difculty: $!ium Taxonomy: Comp%&nsion
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Chapter 04 - Evaluating a Company's Resources and Competitive
/4" (p. *) The di6erence *et%een a core competence and a distinctive competence is that A" A distinctive competence re$ers to a company's strongest resource or competitive capa*ility and a core competence re$ers to a company's lo%est-cost and most e5ciently e7ecuted value-chain activity +" A core competence usually resides in a company's *ase o$ intellectual capital %hereas a distinctive competence stems $rom the superiority o$ a company's physical and tangi*le assets C. A core competence is a competitively relevant activity %hich a &rm per$orms especially %ell in comparison to the other activities it per$orms2 %hereas a distinctive competence is a competitively relevant activity %hich a &rm per$orms especially %ell in comparison to other &rms %ith %hich it competes " A core competence represents a resource strength %hereas a distinctive competence is achieved *y having more resource strengths than rival companies E" A core competence usually resides in a company's technology and physical assets 9strong R: capa*ilities2 specialized technological e7pertise2 state-o$-the-art plants and euipment2 attractive real estate locations2 modern distri*ution $acilities and so on; %hereas a distinctive competence usually resides in a company's (no%-ho%2 e7pertise and intellectual capital
AACSB: 3 Difculty: $!ium Taxonomy: Comp%&nsion
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Chapter 04 - Evaluating a Company's Resources and Competitive
/>" (p. *) A core competence A" Adds to a company's arsenal o$ competitive capa*ilities and competitive assets and is a genuine resource strength +" .s typically (no%ledge-*ased2 residing in a company's intellectual capital and not in its tangi*le physical assets on the *alance sheet C" .s o$ten grounded in cross-department com*inations o$ (no%ledge and e7pertise " .s a competitively relevant activity %hich a &rm per$orms especially %ell in comparison to the other activities it per$orms E. All o$ the a*ove
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/?" (p. *) A core competence A. Dives a company competitive capa*ility and is a genuine company strength and resource +" Typically has competitive value2 the amount o$ %hich is reIected in the physical and tangi*le assets on a company's *alance sheet C" sually is grounded in the technological e7pertise o$ a particular department or %or( group " .s more di5cult $or rivals to copy than a distinctive competence E" Re$ers to a company's lo%est-cost and most e5ciently e7ecuted valuechain activity
AACSB: 3 Difculty: $!ium Taxonomy: Comp%&nsion
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Chapter 04 - Evaluating a Company's Resources and Competitive
/" (p. *) #hen a company per$orms a particular competitively important activity truly %ell in comparison to its competitors2 it is said to have A" A company competence +" A strategic resource C. A distinctive competence " A core competence E" A (ey success $actor
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Chapter 04 - Evaluating a Company's Resources and Competitive
/B" (p. *) #hich o$ the $ollo%ing does not represent a potential core competence) A" (ills in manu$acturing a high-uality product at a lo% cost +" Kno%-ho% in creating and operating systems $or cost-e5cient supply chain management C" The capa*ility to &ll customer orders accurately and s%i$tly D. ,aving a %ider product line than rivals E" The capa*ility to speed ne% or ne7t-generation products to the mar(etplace
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/" (p. * ' *) A distinctive competence A" .s a competitively important activity that a company per$orms *etter than its competitors +" Dives a company competitively valua*le capa*ility that is unmatched *y rivals C" .s a *asis $or sustaina*le competitive advantage " Can underpin and add real punch to a company's strategy E. All o$ the a*ove
AACSB: 3 Difculty: Easy Taxonomy: Comp%&nsion
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Chapter 04 - Evaluating a Company's Resources and Competitive
10" (p. * ' *) #hich one o$ the $ollo%ing is inaccurate as concerns a distinctive competence) A" A distinctive competence is a competitively important activity that a company per$orms *etter than its competitors B. A distinctive competence is typically less di5cult $or rivals to copy than a core competence C" A distinctive competence can *e a *asis $or sustaina*le competitive advantage " A distinctive competence can underpin and add real punch to a company's strategy E" A distinctive competence gives a company competitively valua*le capa*ility that is unmatched *y rivals
AACSB: 3 Difculty: Easy Taxonomy: Comp%&nsion
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Chapter 04 - Evaluating a Company's Resources and Competitive
1!" (p. * ' *3) The competitive po%er o$ a company's core competence or distinctive competence depends on A" #hether it helps di6erentiate a company's product o6ering $rom the product o6erings o$ rival &rms B. ,o% hard it is to copy and ho% easily it can *e trumped *y the di6erent resource strengths and competitive capa*ilities o$ rivals C" #hether customers are a%are o$ the competence and vie% the competence positively enough to *oost the company's *rand name reputation " #hether the competence is one o$ the industry's (ey success $actors E" #hether the competence is technology-*ased or *ased on superior mar(eting (no%-ho%
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1/" (p. * ' *3) The competitive po%er o$ a company resource strength or competitive capa*ility hinges on A" ,o% hard it is $or competitors to copy +" #hether it is dura*le and has staying po%er 9in the sense o$ not losing its value uic(ly *ecause o$ ne% developments; C" #hether it is really competitively superior to the essentially euivalent type o$ resource3capa*ility o$ rivals " ,o% easily it can *e trumped *y the di6erent resources3capa*ilities o$ rivals E. All o$ these
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Chapter 04 - Evaluating a Company's Resources and Competitive
11" (p. * ' *3) @or a particular company resource3capa*ility to have real competitive po%er and perhaps uali$y as a *asis $or competitive advantage2 it should A. +e hard $or competitors to copy2 *e dura*le and long-lasting and not *e easily trumped *y the di6erent resources3capa*ilities o$ rivals +" +e something that a company does internally rather than in colla*orative arrangements %ith outsiders C" +e patenta*le " +e an industry (ey success $actor and occupy a prime position in the company's value chain E" ,ave the potential $or lo%ering the &rm's unit costs
AACSB: 3 Difculty: Easy Taxonomy: Comp%&nsion
14" (p. * ' *3) The competitive po%er o$ a company resource strength is not measured *y %hich one o$ the $ollo%ing tests) A" .s the resource strength dura*leFdoes it have staying po%er) B. .s the resource strength something that a company does internally rather than in colla*orative arrangements %ith outsiders) C" .s the resource strength easily trumped *y the di6erent resources3capa*ilities o$ rivals) " .s the resource strength hard to copy) E" .s the resource strength really competitively superior)
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Chapter 04 - Evaluating a Company's Resources and Competitive
1>" (p. */) .$ a company doesn't possess a distinctive competence2 A" All potential $or competitive advantage is lost +" .t is unli(ely to survive in the mar(etplace and should e7it the industry C. .t can still marshal competitive po%er in the mar(etplace via a collection o$ adeuate-to-good resource strengths " .t is virtually *loc(aded $rom using o6ensive strategies and must rely on de$ensive strategies E" .ts *est strategic option is to revamp its value chain in hopes o$ creating stronger competitive capa*ilities
AACSB: 3 Difculty: $!ium Taxonomy: Comp%&nsion
.denti$ying Company Resource #ea(nesses and Competitive e&ciencies
1?" (p. */) A company resource %ea(ness or competitive de&ciency A" Represents a pro*lem that needs to *e turned into a strength *ecause %ea(nesses prevent a &rm $rom *eing a %inner in the mar(etplace +" Causes the company to $all into a lo%er strategic group than it other%ise could compete in C" revents a company $rom having a distinctive competence " sually stems $rom having a missing lin( or lin(s in the industry value chain E. .s something a company lac(s or does poorly 9in comparison to rivals; or a condition that puts it at a disadvantage in the mar(etplace
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Chapter 04 - Evaluating a Company's Resources and Competitive
1" (p. */) A company's resource %ea(nesses can relate to A" .n$erior or unproven s(ills2 e7pertise or intellectual capital in competitively important parts o$ the *usiness +" omething that it lac(s or does poorly 9in comparison to rivals; C" e&ciencies in competitively important physical2 organizational or intangi*le assets "
Chapter 04 - Evaluating a Company's Resources and Competitive
1" (p. */) izing up a company's overall resource strengths and %ea(nesses A. Essentially involves constructing a Gstrategic *alance sheetG %here the company's resource strengths represent competitive assets and its resource %ea(nesses represent competitive lia*ilities +" .s called *enchmar(ing C" .s called competitive strength assessment " .s $ocused suarely on ascertaining %hether the company has more3less resource strengths than %ea(nesses E" .s called company resource mapping
AACSB: 3 Difculty: $!ium Taxonomy: Comp%&nsion
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Chapter 04 - Evaluating a Company's Resources and Competitive
.denti$ying a Company's " (p. *5) #hich o$ the $ollo%ing is not an e7ample o$ an e7ternal threat to a company's $uture pro&ta*ility) A" Li(ely entry o$ potent ne% competitors B. The lac( o$ a %ell-(no%n *rand name %ith %hich to attract ne% customers and help retain e7isting customers C" hi$ts in *uyer needs and tastes a%ay $rom the industry's product " Costly ne% regulatory reuirements E" Dro%ing *argaining po%er on the part o$ the company's ma=or customers and ma=or suppliers
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#hat o the #T Listings Reveal)
4?" (p. *+) ne o$ the lessons o$ #T analysis is that a company's strategy should A" +e grounded in its resource strengths and capa*ilities +" +e aimed at those mar(et opportunities that o6er the *est potential $or *oth pro&ta*le gro%th and competitive advantage C" ee( to de$end against threats to the company's $uture pro&ta*ility " Denerally not place heavy demands on areas %here company resources are %ea( or unproven E. All o$ these
AACSB: 3 Difculty: Easy Taxonomy: Comp%&nsion
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Chapter 04 - Evaluating a Company's Resources and Competitive
4" (p. *+) #hich one o$ the $ollo%ing is not something that can *e gleaned $rom identi$ying a company's resource strengths2 resource %ea(nesses2 mar(et opportunities and e7ternal threats) A" ,o% to improve a company's strategy *y using company strengths and capa*ilities as cornerstones $or its strategy +" #hich mar(et opportunities are *est suited to a company's strengths and capa*ilities C" #hich resource %ea(nesses and de&ciencies need to *e corrected so as to *etter ena*le the pursuit o$ important mar(et opportunities and to *etter de$end against certain e7ternal threats D. ,o% to turn a core competence into a distinctive competence E" #hether any o$ the company's resource strengths can *e used to help lessen the impact o$ e7ternal threats
AACSB: 3 Difculty: Easy Taxonomy: Comp%&nsion
Question 18 Are the Company's rices and Costs Competitive)
4B" (p. *9) ne o$ the most telling signs o$ %hether a company's mar(et position is strong or precarious is A" #hether its product is strongly or %ea(ly di6erentiated $rom rivals B. #hether its prices and costs are competitive %ith those o$ (ey rivals C" #hether it has a lo%er stoc( price than (ey rivals " The opinions o$ *uyers regarding %hich seller has the *est product uality and customer service E" #hether it is in a *igger or smaller strategic group than its closest rivals
AACSB: 3 Difculty: $!ium Taxonomy: Comp%&nsion
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Chapter 04 - Evaluating a Company's Resources and Competitive
4" (p. *) T%o analytical tools use$ul in determining %hether a company's prices and costs are competitive are A" #T analysis and (ey success $actor analysis +" #T analysis and *enchmar(ing C. Halue chain analysis and *enchmar(ing " Competitive position assessment and competitive strength assessment E" riving $orces analysis and #T analysis
AACSB: 3 Difculty: Easy Taxonomy: Comp%&nsion
The Concept o$ a Company Halue Chain
>0" (p. *) A company's value chain identi&es A" The steps it goes through to convert its net income into value $or shareholders B. The primary activities it per$orms in creating value $or its customers and the related support activities C" The series o$ steps it ta(es to get a product $rom the ra% materials stage into the hands o$ end-users " The activities it per$orms in trans$orming its competencies into distinctive competencies E" The competencies and competitive capa*ilities that underpin its e6orts to create value $or customers and shareholders
AACSB: 3 Difculty: $!ium Taxonomy: Knowl!"
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Chapter 04 - Evaluating a Company's Resources and Competitive
>!" (p. *) A company's value chain A" Consists o$ the primary activities that it per$orms in see(ing to deliver value to shareholders in the $orm o$ higher dividends and a higher stoc( price +" epicts the internally per$ormed activities associated %ith creating and enhancing the company's competitive assets C. Consists o$ t%o *road categories o$ activities8 the primary activities that create customer value and the reuisite support activities that $acilitate and enhance the per$ormance o$ the primary activities " Concerns the *asic process the company goes through in per$orming R: and developing ne% products E" Consists o$ the series o$ steps a company goes through to develop a ne% product2 get it produced and into the mar(etplace and then start collecting revenues and earning a pro&t
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>/" (p. ) .denti$ying the primary and secondary activities that comprise a company's value chain A" .ndicates %hether a company's resource strengths %ill ultimately translate into greater value $or shareholders 9in particular2 higher dividends and a higher stoc( price; +" Reveals %hether a company's resource strengths are %ell-matched to the industry's (ey success $actors C. .s a &rst step in understanding a company's cost structure 9since each activity in the value chain gives rise to costs;J assigning costs to each o$ the primary and secondary activities is called activity-*ased cost accounting " .s called *enchmar(ing E" .s called resource value analysis
AACSB: 3 Difculty: $!ium Taxonomy: Comp%&nsion
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Chapter 04 - Evaluating a Company's Resources and Competitive
>1" (p. ) Activity-*ased cost accounting is used to A" etermine %hether the value chains o$ rival companies are similar or di6erent +" +enchmar( the costs o$ primary value chain activities against the costs o$ the support value chain activities C. etermine the costs o$ each primary and support activity comprising a company's value chain and there*y reveal the nature and ma(e-up o$ a company's internal cost structure " etermine the costs o$ each strategic action a company initiates E" Mone o$ the a*ove accurately descri*es %hat activity-*ased costing is a*out
AACSB: 3 Difculty: $!ium Taxonomy: Comp%&nsion
#hy the Halue Chains o$ Rival Companies $ten i6er
>4" (p. ) The value chains o$ rival companies A" Tend to *e essentially the sameFany di6erences are typically minor B. Can di6er su*stantially2 reIecting di6erences in the evolution o$ each company's o%n particular *usiness2 di6erences in internal operations2 di6erences in strategy and di6erences in the approaches *eing used to e7ecute strategy C" Are $airly similar or $airly di6erent2 depending on ho% many activities are per$ormed internally and ho% many are outsourced " Can *e either $airly similar or $airly di6erent2 depending on the e7tent to %hich each company's primary and support activities are comprised o$ &7ed cost activities and varia*le cost activities E" Are $airly similar e7cept %hen rival companies have uite di6erent product designs
AACSB: 3 Difculty: ,a%! Taxonomy: Comp%&nsion
4-14
Chapter 04 - Evaluating a Company's Resources and Competitive
>>" (p. ' 3) The three main areas in the value chain %here signi&cant di6erences in the costs o$ competing &rms can occur include A" Age o$ plants and euipment2 num*er o$ employees and advertising costs +" perating-level activities2 $unctional area activities and line o$ *usiness activities C. The nature and ma(e-up o$ their o%n internal operations2 the activities per$ormed *y suppliers and the activities per$ormed *y %holesale distri*ution and retailing allies " ,uman resource activities 9particularly la*or costs;2 vertical integration activities and strategic partnership activities E" Haria*le cost activities2 &7ed cost activities and administrative activities
AACSB: 3 Difculty: ,a%! Taxonomy: Comp%&nsion
The Halue Chain ystem $or an Entire .ndustry
>?" (p. 3 ' /) #hich one o$ the $ollo%ing provides the most accurate picture o$ %hether a company is cost competitive %ith its rivals) A" ,o% the costs o$ the company's internally per$ormed activities 9its o%n value chain; compare against the costs o$ the internally-per$ormed activities o$ rival companies +" Costs in the value chains o$ the company's suppliers C" Costs in the value chains o$ a company's distri*utors and retail dealers $or%ard channel allies D. The costs o$ a company's internally per$ormed activities2 costs in the value chains o$ *oth the company's suppliers and $or%ard channel allies and ho% all these costs compare against the costs that ma(e up the value chain systems employed *y rival &rms E" #hether the company has a longer or shorter value chain than its close rivals
AACSB: 3 Difculty: $!ium Taxonomy: Comp%&nsion
4-1>
Chapter 04 - Evaluating a Company's Resources and Competitive
>" (p. 3) etermining %hether a company's prices and costs are competitive A" Reuires loo(ing at the costs o$ a company's competitively relevant suppliers and $or%ard channel allies 9distri*utors3dealers; +" Reuires considering the costs o$ a company's internally per$ormed activities C" .nvolves the use o$ *enchmar(ing the costs in a company's value chain system 9the costs o$ its suppliers2 its internally per$ormed activities2 the costs o$ its distri*utors3dealers; against the costs o$ the value chain systems employed *y rival &rms " Typically involves the use o$ activity-*ased cost accounting E. All o$ these
AACSB: 3 Difculty: Easy Taxonomy: Comp%&nsion
sing Activity-+ased Cost Accounting to B" (p. /) Activity-*ased cost accounting aims at A" " (p. /) Activity-*ased costing A. .s an accounting system that assigns a company's e7penses to %hichever activity in a company's value chain is responsi*le $or creating the cost +" .nvolves using *enchmar(ing techniues to develop cost estimates $or the value chain activities o$ each ma=or rival C" .s a po%er$ul tool $or identi$ying the di6erent pieces o$ a company's value chain and classi$ying them as primary activities and support activities " .nvolves determining %hich value chain activities represent varia*le costs and %hich represent &7ed costs E" .s a tool $or identi$ying the activities that cause a company's product to *e strongly di6erentiated $rom the products o$ rivals
AACSB: 3 Difculty: $!ium Taxonomy: Knowl!"
+enchmar(ing8 A Tool $or Assessing #hether a Company's Halue Chain Costs Are in Line
4-1
Chapter 04 - Evaluating a Company's Resources and Competitive
?0" (p. #) +enchmar(ing involves A. Comparing ho% di6erent companies per$orm various value chain activities and then ma(ing cross-company comparisons o$ the costs o$ these activities +" Chec(ing %hether a company has achieved more o$ its &nancial and strategic o*=ectives over the past &ve years relative to the other &rms it is in direct competition %ith C" tudying %hether a company's resource strengths are more3less po%er$ul than the resource strengths o$ rival companies " tudying ho% a company's competitive capa*ilities stac( up against the competitive capa*ilities o$ selected companies (no%n to have %orld class competitive capa*ilities E" Comparing the *est practices in one industry against the *est practices in another industry
AACSB: 3 Difculty: $!ium Taxonomy: Knowl!"
4-1B
Chapter 04 - Evaluating a Company's Resources and Competitive
?!" (p. #) #hich o$ the $ollo%ing is not one o$ the o*=ectives o$ *enchmar(ing) A" To identi$y the *est practices in per$orming various value chain activities +" To learn ho% *est practice companies achieve lo%er costs or *etter results in per$orming *enchmar(ed activities C. To help construct a company value chain and identi$y %hich activities are primary and %hich are support activities " To develop cross-company comparisons o$ the costs o$ per$orming speci&c value chain activities E" To ta(e actions to improve a company's cost competitiveness %hen *enchmar(ing reveals that its costs and results o$ per$orming an activity are not as good as %hat other companies have achieved
AACSB: 3 Difculty: $!ium Taxonomy: Comp%&nsion
?/" (p. #) A much-used and potent managerial tool $or determining %hether a company per$orms particular $unctions or activities in a manner that represents Gthe *est practiceG %hen *oth cost and e6ectiveness are ta(en into account is A" Competitive strength analysis +" Activity-*ased costing C" Resource cost mapping " #T analysis E. +enchmar(ing
AACSB: 3 Difculty: Easy Taxonomy: Knowl!"
trategic ptions $or Remedying a Cost isadvantage
4-1
Chapter 04 - Evaluating a Company's Resources and Competitive
?1" (p. 9) The options $or remedying an internal cost disadvantage include A" .nvesting in productivity-enhancing2 cost-saving technological improvements +" Redesigning the product or some o$ its components to $acilitate speedier and more economical manu$acture or assem*ly C" .mplementing the use o$ *est practices2 particularly $or high-cost activities " Eliminating some cost-producing activities $rom the value chain2 especially lo% value-added activities E. All o$ these
AACSB: 3 Difculty: $!ium Taxonomy: Comp%&nsion
?4" (p. 9) #hich o$ the $ollo%ing is not a good option $or trying to remedy high internal costs vis--vis rivals &rms) A" .nvesting in productivity-enhancing2 cost-saving technological improvements +" Redesigning the product or some o$ its components to permit more economical manu$acture or assem*ly C. .mplementing aggressive strategic resource mapping to permit acrossthe-*oard cost reduction " utsourcing high-cost activities to vendors or contractors %ho can per$orm them more economically E" Relocating high-cost activities 9li(e manu$acturing; to geographic areas 9li(e China or Latin America or Eastern Europe; %here they can *e per$ormed more cheaply
AACSB: 3 Difculty: $!ium Taxonomy: Comp%&nsion
4-40
Chapter 04 - Evaluating a Company's Resources and Competitive
?>" (p. 9) A company's strategic options $or remedying cost disadvantages in internally per$ormed value chain activities do not include A" Revamping its value chain to eliminate or *ypass some cost-producing activities 9particularly lo% value-added activities; +" .mplementing the use o$ *est practices2 particularly $or high-cost activities C" .nvesting in productivity-enhancing2 cost-saving technological improvements D. %itching to activity-*ased costing E" utsourcing the per$ormance o$ high-cost activities to vendors that can per$orm them more cheaply
AACSB: 3 Difculty: $!ium Taxonomy: Comp%&nsion
??" (p. 9) The options $or remedying a supplier-related cost disadvantage include A. Trying to negotiate more $avora*le prices %ith suppliers and s%itching to lo%er priced su*stitute inputs +" @or%ard vertical integration C" hi$ting into the production o$ su*stitute products " hi$ting $rom a lo%-cost leadership strategy to a di6erentiation or $ocus strategy E" Cutting selling prices and trying to %in a *igger mar(et share
AACSB: 3 Difculty: Easy Taxonomy: Comp%&nsion
4-4!
Chapter 04 - Evaluating a Company's Resources and Competitive
?" (p. 9) #hich o$ the $ollo%ing is not an option $or remedying a supplierrelated cost disadvantage) A" .ntegrate *ac(%ard into the *usiness o$ high-cost suppliers in an e6ort to reduce the costs o$ the items *eing purchased +" Megotiate more $avora*le prices %ith suppliers C" Colla*orate closely %ith suppliers to identi$y mutual cost-saving opportunities " %itch to lo%er priced su*stitute inputs E. ersuade $or%ard channel allies to implement *est practices
AACSB: 3 Difculty: Easy Taxonomy: Comp%&nsion
4-4/
Chapter 04 - Evaluating a Company's Resources and Competitive
?B" (p. 9 ' *) #hich o$ the $ollo%ing is not an option $or remedying a cost disadvantage associated %ith activities per$ormed *y $or%ard channel allies 9%holesale distri*utors and retail dealers;) A" hi$ting to a more economical distri*ution strategy such as putting more emphasis on cheaper distri*ution channels 9perhaps direct sales via the .nternet; or perhaps integrating $or%ard into company-o%ned retail outlets +" Trying to ma(e up the di6erence *y cutting costs earlier in the value chain C" ressuring distri*utors-dealers and other $or%ard channel allies to reduce their costs and mar(ups so as to ma(e the &nal price to *uyers more competitive %ith the prices o$ rivals D. .nsisting on across-the-*oard cost cuts in all value chain activitiesF those per$ormed *y suppliers2 those per$ormed in-house and those per$ormed *y distri*utors-dealers E" #or(ing closely %ith $or%ard channel allies to identi$y %in-%in opportunities to reduce costs
AACSB: 3 Difculty: Easy Taxonomy: Comp%&nsion
Translating ro&cient er$ormance o$ Halue Chain Activities into Competitive Advantage
4-41
Chapter 04 - Evaluating a Company's Resources and Competitive
?" (p. *) A company that does a &rst-rate =o* o$ managing its value chain activities relative to competitors A" .s li(ely to have more distinctive competencies than rivals B. tands a good chance o$ achieving competitive advantage *y per$orming its value chain activities either more pro&ciently or at lo%er cost C" .s almost certainly going to have a longer and more pro&ta*le value chain " sually has strong pro&ciencies in activity-*ased costing and *enchmar(ing E" sually has the $e%est primary activities and the lo%est costs in the industry
AACSB: 3 Difculty: $!ium Taxonomy: Comp%&nsion
4-44
Chapter 04 - Evaluating a Company's Resources and Competitive
0" (p. *) ut-managing rivals in per$orming value chain activities A. .s one o$ the most dependa*le %ays a company can *uild a competitive advantage over rivals +" Allo%s a company to avoid the impact o$ the &ve competitive $orces C" .s one o$ the *est %ays $or a company to avoid *eing impacted *y the industry's driving $orces " Allo%s a company to move into a higher strategic group E" ,elps neutralize e7ternal threats to a company's $uture *usiness prospects
AACSB: 3 Difculty: $!ium Taxonomy: Comp%&nsion
!" (p. *) @or a company to translate its per$ormance o$ value chain activities into competitive advantage2 it must A. evelop core competencies and may*e a distinctive competence that rivals don't have or can't uite match and that are instrumental in helping it deliver attractive value to customers or else *e more cost e5cient in ho% it per$orms value chain activities such that it has a lo%-cost advantage +" ,ave more core competencies than rivals C" ,ave at least three distinctive competencies " ,ave competencies that allo% it to produce the highest uality product in the industry E" ,ave more competitive assets than competitive lia*ilities
AACSB: 3 Difculty: $!ium Taxonomy: Comp%&nsion
4-4>
Chapter 04 - Evaluating a Company's Resources and Competitive
/" (p. *) To *uild a competitive advantage *y out-managing rivals in per$orming value chain activities2 a company must A" osition itsel$ in the industry's more $avora*ly situated strategic group +" evelop resources strengths that %ill ena*le it to pursue the industry's most attractive opportunities C. evelop core competencies and may*e a distinctive competence that rivals don't have or can't uite match and that are instrumental in helping it deliver attractive value to customers or else *e more cost e5cient in ho% it per$orms value chain activities such that it has a lo%-cost advantage " utsource most all o$ its value chain activities to %orld-class vendors and suppliers E" Eliminate its resource %ea(nesses
AACSB: 3 Difculty: $!ium Taxonomy: Comp%&nsion
Question 48 .s the Company Competitively tronger or #ea(er than Key Rivals)
1" (p. ) The value o$ doing competitive strength assessment is to A" etermine ho% competitively po%er$ul the company's core competencies are +" Learn i$ the company's mar(et opportunities are *etter than those o$ its rivals C" Learn %hether a company has a distinctive competence D. Learn ho% the company ran(s relative to rivals on each o$ the important $actors that determine mar(et success and ascertain %hether the company has a net competitive advantage or disadvantage vis--vis (ey rivals E" etermine %hether a company's resource strengths are su5cient to allo% it to earn *igger pro&ts than rivals
AACSB: 3 Difculty: $!ium Taxonomy: Comp%&nsion
4-4?
Chapter 04 - Evaluating a Company's Resources and Competitive
4" (p. ) oing a competitive strength assessment entails A" etermining %hether a company has a cost-e6ective value chain B. Ran(ing the company against ma=or rivals on each o$ the important $actors that determine mar(et success and ascertaining %hether the company has a net competitive advantage or disadvantage versus ma=or rivals C" .denti$ying a company's core competencies and distinctive competencies 9i$ any; " Analyzing %hether a company is %ell positioned to gain mar(et share and *e the industry's pro&t leader E" eveloping uantitative measures o$ a company's chances $or $uture pro&ta*ility
AACSB: 3 Difculty: $!ium Taxonomy: Knowl!"
>" (p. /) A %eighted competitive strength assessment is generally analytically superior to an un%eighted strength assessment *ecause A" A %eighted ran(ing identi&es %hich competitive advantages are most po%er$ul +" An un%eighted ran(ing doesn't discriminate *et%een companies %ith high and lo% mar(et shares C" .t singles out %hich competitor has the most competitively potent core competencies " #eighting each company's overall competitive strength *y its percentage share o$ total industry pro&ts produces a more accurate measure o$ its true competitive strength E. All o$ the various measures o$ competitive strength are not eually important
AACSB: 3 Difculty: $!ium Taxonomy: Comp%&nsion
4-4
Chapter 04 - Evaluating a Company's Resources and Competitive
?" (p. /) A %eighted competitive strength analysis is conceptually stronger than an un%eighted analysis *ecause A" .t provides a more accurate assessment o$ the strength o$ competitive $orces +" .t eliminates the *ias introduced $or those &rms having large mar(et shares C. The di6erent measures o$ competitive strength are unli(ely to *e eually important " The results provide a more relia*le measure o$ %hat competitive moves rivals are li(ely to ma(e ne7t E" #eighting each company's overall competitive strength *y the size o$ its mar(et share produces a more accurate measure o$ its true competitive strength
AACSB: 3 Difculty: $!ium Taxonomy: Comp%&nsion
" (p. /) .n a %eighted competitive strength assessment2 the sum o$ the %eights should add up to A" !00N B. !"0 C" !0 " !00 E" Mone o$ the a*ove
AACSB: 3 Difculty: $!ium Taxonomy: Comp%&nsion
4-4B
Chapter 04 - Evaluating a Company's Resources and Competitive
B" (p. /) .n a %eighted competitive strength analysis2 each strength measure is assigned a %eight *ased on A" .ts percentage share o$ total industry revenues +" The importance o$ each competitive strength measure in *uilding a sustaina*le competitive advantage C. .ts perceived importance in determining a company's competitive success in the mar(etplace " .ts percentage share o$ total industry pro&ts E" #hat it ta(es to provide *etter analytical *alance *et%een the companies %ith high ratings and the companies %ith lo% ratings and thus get the sum o$ the %eights to add up to !"0
AACSB: 3 Difculty: $!ium Taxonomy: Comp%&nsion
4-4
Chapter 04 - Evaluating a Company's Resources and Competitive
" (p. /) Calculating competitive strength ratings $or a company and its rivals using the industry's most telling measures o$ competitive strength or %ea(ness A. .s a %ay o$ determining %hich competitor has the *iggest overall competitive advantage in the mar(etplace and %hich competitor is $aced %ith the *iggest overall competitive disadvantage +" .s the most relia*le indicator o$ %hich industry mem*er has the highest overall product uality C" .s a po%er$ul %ay o$ revealing %hich competitors are in the *est and %orst strategic groups " .s the most relia*le indicator o$ %hich industry mem*er has the lo%est overall costs and is the lo%-cost leader E" inpoints %hich industry rivals are most insulated $rom the industry's driving $orces
AACSB: 3 Difculty: $!ium Taxonomy: Comp%&nsion
B0" (p. /) Quantitative measures o$ a company's competitive strength A" ignal %hich competitor has the most distinctive competencies and %hich competitor has the $e%est B. rovide use$ul indicators o$ ho% a company compares against (ey rivals2 $actor *y $actor and capa*ility *y capa*ilityFthus indicating %hether the company has a net overall competitive advantage or disadvantage against each rival C" Reveal %hich competitors are in the *est and %orst strategic groups " ho% %hich industry rival has the *est overall mar(et opportunities and %hich competitor has the poorest mar(et opportunities E" inpoint %hich industry rival is su*=ect to the least amount o$ competitive pressures $rom the &ve competitive $orces
AACSB: 3 Difculty: $!ium Taxonomy: Comp%&nsion
4->0
Chapter 04 - Evaluating a Company's Resources and Competitive
B!" (p. /) #hich one o$ the $ollo%ing is an accurate interpretation o$ the scores that result $rom doing a competitive strength assessment) A. ,igh scores signal a strong competitive position and possession o$ a competitive advantage over companies %ith lo%er scores +" ,igh scores indicate that a company is a po%er-user o$ *est practices %hile lo% scores signal minimal or ine6ective adoption o$ *est practices C" The company %ith the lo%est score has the lo%est-cost value chain " The company %ith the lo%est score has the strongest net competitive advantage over its rivals E" ,igh scores indicate %hich rivals are most vulnera*le to competitive attac(
AACSB: 3 Difculty: $!ium Taxonomy: Comp%&nsion
B/" (p. / ' 5) #hich one o$ the $ollo%ing is not something that can *e learned $rom doing a competitive strength assessment) A" The $actors on %hich a company is competitively strongest and %ea(est vis--vis (ey rivals B. #hether a company should correct its %ea(nesses *y adopting *est practices and revamping the ma(eup o$ its value chain C" #hich o$ the rated companies is competitively strongest and %hat size competitive advantage it en=oys " #hether a company has a net competitive advantage or a net competitive disadvantage relative to (ey rivals 9%ith the size o$ the advantage3disadvantage *eing indicated *y the di6erences among the companies' competitive strength scores; E" #hich rival company is competitively %ea(est and the areas %here it is most vulnera*le to competitive attac(
AACSB: 3 Difculty: $!ium Taxonomy: Comp%&nsion
4->!
Chapter 04 - Evaluating a Company's Resources and Competitive
B1" (p. / ' 5) Calculating competitive strength ratings $or a company and comparing them against strength ratings $or its (ey competitors helps indicate A. #hich %ea(nesses and vulnera*ilities o$ competitors that the company might *e a*le to attac( success$ully +" #hich competitors are in pro&ta*le strategic groups and %hich competitors are in unpro&ta*le strategic groups C" #hich competitors are employing o6ensive strategies and %hich competitors are employing de$ensive strategies " #hich competitors are li(ely to ma(e money and %hich are li(ely to lose money in the years ahead E" #hat the industry's (ey success $actors are
AACSB: 3 Difculty: $!ium Taxonomy: Comp%&nsion
Question >8 #hat trategic .ssues and ro*lems /
Chapter 04 - Evaluating a Company's Resources and Competitive
4->1
Chapter 04 - Evaluating a Company's Resources and Competitive
B>" (p. 5 ' #) .denti$ying the strategy-related issues and pro*lems that company managers need to address and resolve entails A" ra%ing on %hat %as learned $rom having analyzed the company's industry and competitive environment +" ra%ing on the evaluations o$ the company's o%n resources2 internal circumstances and competitiveness C" Loc(ing in on %hat challenges3o*stacles3road*loc(s the company has to overcome in order to *e &nancially and competitively success$ul in the years ahead " eveloping a G%orry listG o$ Gho% to2G G%hether to"2G and G%hat to do a*out""G E. All o$ the a*ove
AACSB: 3 Difculty: Easy Taxonomy: Comp%&nsion
B?" (p. 5 ' #) .denti$ying the strategic issues and pro*lems that merit $ront*urner managerial attention A" .s accomplished in part *y using the results o$ analyzing the company's e7ternal environment to help come up %ith a G%orry listG o$ Gho% to2G G%hether to"2G and G%hat to do a*out""G +" ,elps set management's agenda $or ta(ing actions to improve the company's per$ormance and *usiness outloo( C" .s done in part *y evaluating the company's o%n internal situationFits resources and competitive positionFto help come up %ith a G%orry listG o$ Gho% to2G G%hether to"2G and G%hat to do a*out""G " .s done in part as a *asis $or dra%ing conclusions a*out %hether to stic( %ith company's present strategy or to modi$y it E. All o$ the a*ove
AACSB: 3 Difculty: Easy Taxonomy: Comp%&nsion
4->4
Chapter 04 - Evaluating a Company's Resources and Competitive
B" (p. 5 ' #) #hich o$ the $ollo%ing is not part o$ the tas( o$ identi$ying the strategic issues and pro*lems that merit $ront-*urner managerial attention) A" Analyzing the company's e7ternal environment +" Evaluating the company's o%n resources and competitive position C" urveying a company's *oard mem*ers2 managers2 select employees and (ey investors regarding %hat strategic issues they thin( the company $aces " eveloping a G%orry listG o$ Gho% to2G G%hether to"2G and G%hat to do a*out""G E. Assessing %hat challenges the company has to overcome in order to *e &nancially and competitively success$ul in the years ahead
AACSB: 3 Difculty: Easy Taxonomy: Comp%&nsion
BB" (p. 5 ' #) #hich o$ the $ollo%ing is not accurate as concerns the tas( o$ identi$ying the strategic issues and pro*lems that merit $ront-*urner managerial attention) A" .t entails dra%ing upon the results and conclusions $rom analyzing the company's e7ternal environment +" .t entails dra%ing on the results and conclusions $rom evaluating the company's o%n resources and competitive position C" .t entails developing a G%orry listG o$ Gho% to2G G%hether to"2G and G%hat to do a*out""G D. .denti$ying the strategic issues and pro*lems that the company $aces is the &rst thing that company managers need to do *e$ore starting to analyze the company's internal and e7ternal environment E" eveloping a list o$ %hat issues and pro*lems that managements needs to address 9and to resolve; should al%ays precede deciding upon a strategy and %hat actions to ta(e to improve the company's position and prospects
AACSB: 3 Difculty: Easy Taxonomy: Comp%&nsion
4->>
Chapter 04 - Evaluating a Company's Resources and Competitive
Short Ans!er Questions
B" (p. 95) .denti$y the &ve uestions that $orm the $rame%or( o$ evaluating a company's resources and competitive position"
AACSB: 3 Difculty: $!ium Taxonomy: Knowl!"
0" (p. 90*00*030/0* 1 *0#0/) +rieIy discuss the meaning and signi&cance o$ each o$ the $ollo%ing terms8 a"; #T analysis *"; Core competence c"; trategic cost analysis d"; Company value chain e"; .ndustry value chain $"; A %eighted competitive strength assessment g"; istinctive competence h"; +enchmar(ing i"; Activity-*ased costing
AACSB: 3 Difculty: ,a%! Taxonomy: Knowl!"
!" (p. 9# ' 9) .denti$y at least > indicators o$ %hether a company's present strategy is %or(ing %ell"
AACSB: 3 Difculty: $!ium Taxonomy: Knowl!"
4->?
Chapter 04 - Evaluating a Company's Resources and Competitive
/" (p. *+) #hat are the three steps o$ conducting a #T analysis)
AACSB: 3 Difculty: $!ium Taxonomy: Knowl!"
4->
Chapter 04 - Evaluating a Company's Resources and Competitive
1" (p. * ' *9) .n conducting a #T analysis2 is it enough to simply compile lists o$ the company's strengths2 %ea(nesses2 opportunities and threats) #hy or %hy not)
AACSB: 3 Difculty: $!ium Taxonomy: Comp%&nsion
4" (p. ** ' *) E7plain the di6erence *et%een a company competence2 a core competence and a distinctive competence"
AACSB: 3 Difculty: $!ium Taxonomy: Comp%&nsion
>" (p. *) #hy do a company's core competencies matter in cra$ting strategy)
AACSB: 3 Difculty: $!ium Taxonomy: Comp%&nsion
?" (p. * ' *) A distinctive competence represents a competitively superior resource strength" True or $alse) E7plain your ans%er"
AACSB: 3 Difculty: $!ium Taxonomy: Comp%&nsion
" (p. *) A core competence represents a *asis $or competitive advantage" True or $alse) E7plain your ans%er"
AACSB: 3 Difculty: $!ium Taxonomy: Comp%&nsion
4->B
Chapter 04 - Evaluating a Company's Resources and Competitive
4->
Chapter 04 - Evaluating a Company's Resources and Competitive
B" (p. * ' *) A distinctive competence represents a *asis $or competitive advantage" True or $alse) E7plain your ans%er"
AACSB: 3 Difculty: $!ium Taxonomy: Comp%&nsion
" (p. * ' ) ra% a typical company value chain and *rieIy e7plain %hy the pro&ciency %ith %hich a &rm per$orms the activities comprising its value chain matters"
AACSB: 3 Difculty: ,a%! Taxonomy: Comp%&nsion
!00" (p. 9) Assume a &rm is at a cost disadvantage %ith rivals *ecause its internal costs are higher than rivals" .denti$y &ve strategic moves that it can ma(e to restore cost parity"
AACSB: 3 Difculty: ,a%! Taxonomy: Comp%&nsion
!0!" (p. 9 ' *) Assume a &rm is at a cost disadvantage %ith rivals *ecause o$ higher distri*utor-dealer costs than rivals" .denti$y three strategic moves that it can ma(e to restore cost parity"
AACSB: 3 Difculty: ,a%! Taxonomy: Comp%&nsion
4-?0
Chapter 04 - Evaluating a Company's Resources and Competitive
!0/" (p. 9) Assume a &rm is at a cost disadvantage %ith rivals *ecause o$ higher supplier-related costs than (ey rivals" .denti$y three strategic moves that it can ma(e to restore cost parity"
AACSB: 3 Difculty: ,a%! Taxonomy: Comp%&nsion
4-?!
Chapter 04 - Evaluating a Company's Resources and Competitive
!01" (p. /) E7plain %hy a %eighted competitive strength assessment is conceptually superior to an un%eighted one"
AACSB: 3 Difculty: $!ium Taxonomy: Comp%&nsion
!04" (p. #) #hat is *enchmar(ing and %hy is it a strategically important analytical tool)
AACSB: 3 Difculty: $!ium Taxonomy: Knowl!"
!0>" (p. #) #hat is meant *y the term G*est practices)G #hy does it matter %hether a company utilizes G*est practicesG in per$orming the activities comprising its value chain)
AACSB: 3 Difculty: $!ium Taxonomy: Knowl!"
!0?" (p. *9 ' *) The a*ility o$ a company to per$orm value chain activities more pro&ciently or more cheaply than rivals is a potential source o$ competitive advantage" True or $alse) E7plain and de$end your ans%er"
AACSB: 3 Difculty: $!ium Taxonomy: Comp%&nsion
4-?/
Chapter 04 - Evaluating a Company's Resources and Competitive
!0" (p. *9 ' *) #hy does it matter %hether a company is a*le to per$orm value chain activities more pro&ciently or more cheaply than rivals) E7plain and support your ans%er"
AACSB: 3 Difculty: $!ium Taxonomy: Comp%&nsion
4-?1
