Policy and Strat Ch 4

Flashcard maker : Lily Taylor
Which of the following is not one of the five questions that comprise the task of evaluating a company’s
resources and competitive position?
What are the company’s most profitable geographic market segments
Which of the following is not a component of evaluating a company’s resources and competitive position?
Scanning the environment to determine a company’s best and most profitable customers
The spotlight in analyzing a company’s resources, internal circumstances, and competitiveness includes
such questions/concerns as
what are the company’s resource strengths and weaknesses and its external opportunities and threats.
Which of the following is not pertinent in identifying a company’s present strategy?
The company’s mission, strategic objectives, and financial objectives
One important indicator of how well a company’s present strategy is working is whether
the company is achieving its financial and strategic objectives and whether it is an above-average
industry performer
The best quantitative evidence of whether a company’s present strategy is working well is
the caliber of results the strategy is producing, specifically whether the company is achieving its financial
and strategic objectives and whether it is an above-average industry performer.
Which one of the following is not a reliable measure of how well a company’s current strategy is working?
Whether it has a larger number of competitive assets than competitive liabilities and whether it has a
superior quality product
Identifying and assessing a company’s resource strengths and weaknesses and its external opportunities and
threats is called
SWOT analysis.
SWOT analysis is a powerful tool for
B.sizing up a company’s resource capabilities and deficiencies, its market opportunities, and the external
threats to its future well-being.
SWOT analysis
provides a good overview of whether a company’s situation is fundamentally healthy or unhealthy
The payoff of doing a thorough SWOT analysis is
assisting strategy-makers in crafting a strategy that is well-matched to the company’s resources and
capabilities, its market opportunities, and the external threats to its future well-being.
A company resource strength can concern
All of these.
Which of the following most accurately reflect a company’s resource strengths
Its human, physical and/or organization assets; its skills and competitive capabilities; and achievements
or attributes that enhance the company’s ability to compete effectively
The best example of a company strength is
having proven technological expertise and ability to churn out new and improved products on a regular
basis.
Which of the following is not a good example of a company strength?
Having higher earnings per share and a higher stock price than key rivals
A company’s resource strengths are important because
they represent its competitive assets and are big determinants of its competitiveness and ability to
succeed in the marketplace
A company’s resource strengths
signal whether it has the wherewithal to be a strong competitor in the marketplace
When a company has real proficiency in performing a competitively important value chain activity, it is
said to have
a core competence
When a company is good at performing a particular internal activity, it is said to have
a company competence
The difference between a company competence and a core competence is that
company competence represents real proficiency in performing an internal activity whereas a core
competence is a competitively relevant activity which a firm performs better than other internal activities.
The difference between a core competence and a distinctive competence is that
.
a core competence is a competitively relevant activity which a firm performs especially well in
comparison to the other activities it performs, whereas a distinctive competence is a competitively relevant
activity which a firm performs especially well in comparison to other firms with which it competes.
A core competence
All of the above.
A core competence
gives a company competitive capability and is a genuine company strength and resource
When a company performs a particular competitively important activity truly well in comparison to its
competitors, it is said to have
a distinctive competence
Which of the following does not represent a potential core competence?
Having a wider product line than rivals
A distinctive competence
All of the above.
Which one of the following is inaccurate as concerns a distinctive competence?
A distinctive competence is typically less difficult for rivals to copy than a core competence
The competitive power of a company’s core competence or distinctive competence depends on
how hard it is to copy and how easily it can be trumped by substitute resource strengths and competitive
capabilities of rivals
The competitive power of a company resource strength or competitive capability hinges on
All of these
For a particular company resource/capability to have real competitive power and perhaps qualify as a basis
for competitive advantage, it should
be hard for competitors to copy, be rare and something rivals lack, be competitively valuable, and not be
easily trumped by substitute resource strengths possessed by rivals.
The competitive power of a company resource strength is not measured by which one of the following
tests?
Is the resource strength something that a company does internally rather than in collaborative
arrangements with outsiders?
If a company doesn’t possess stand alone resource strengths capable of contributing to competitive
advantage,
it may have a bundle of resources that can be leveraged to develop a distinctive competence.
A resource-based strategy
uses a company’s valuable and rare resource strengths and competitive capabilities to deliver value to
customers that rivals have difficulty matching.
A resource-based strategy
deliberately develops valuable competencies and capabilities that add to a company’s competitive power
in the marketplace
A company resource weakness or competitive deficiency
is something a company lacks or does poorly (in comparison to rivals) or a condition that puts it at a
disadvantage in the marketplace
A company’s resource weaknesses can relate to
All of these.
In doing SWOT analysis, which one of the following is not an example of a potential resource weakness or
competitive deficiency that a company may have?
Having a single, unified functional strategy instead of several distinct functional strategies
Sizing up a company’s overall resource strengths and weaknesses
essentially involves constructing a “strategic balance sheet” where the company’s resource strengths
represent competitive assets and its resource weaknesses represent competitive liabilities.
The external market opportunities which are most relevant to a company are the ones that
.
match up well with the firm’s financial resources and competitive capabilities, offer the best growth and
profitability, and present the most potential for competitive advantage.
The market opportunities most relevant to a particular company are those that
offer the best growth and profitability
Which of the following best describes the market opportunities that tend to be most relevant to a particular
company?
Those market opportunities that match up well with the firm’s financial resources and competitive
capabilities, offer the best growth and profitability, and present the most potential for competitive
advantage.
In doing SWOT analysis and trying to identify a company’s market opportunities, which of the following is
not an example of a potential market opportunity that a company may have?
Growing buyer preferences for substitutes for the industry’s product
Which of the following is not an example of an external threat to a company’s future profitability
The lack of a distinctive competence
Which of the following is not an example of an external threat to a company’s future profitability?
The lack of a well-known brand name with which to attract new customers and help retain existing
customers
One of the lessons of SWOT analysis is that a company’s strategy should
All of these.
Which one of the following is not part of conducting a SWOT analysis?
Benchmarking the company’s resource strengths and competitive capabilities against industry key
success factors
The two most important parts of SWOT analysis are
drawing conclusions from the SWOT listings about the company’s overall situation and translating
these into strategic actions to better match the company’s strategy to its resource strengths and market
opportunities, correct the important weaknesses, and defend against external threats.
The three steps of SWOT analysis are
identifying the company’s resource strengths and weaknesses and its opportunities and threats, drawing
conclusions about the company’s overall situation, and translating the conclusions into strategic actions to
improve the company’s strategy.
Which one of the following is not something that can be gleaned from identifying a company’s resource
strengths, resource weaknesses, market opportunities, and external threats?
How to turn a core competence into a distinctive competence
One of the most telling signs of whether a company’s market position is strong or precarious is
whether its prices and costs are competitive with those of key rivals.
Two analytical tools useful in determining whether a company’s prices and costs are competitive are
value chain analysis and benchmarking.
A company’s value chain identifies
the primary activities it performs in creating value for its customers and the related support activities.
A company’s value chain
consists of two broad categories of activities: the primary activities that create customer value and the
requisite support activities that facilitate and enhance the performance of the primary activities.
Identifying the primary and secondary activities that comprise a company’s value chain
is a first step in understanding a company’s cost structure (since each activity in the value chain gives
rise to costs).
Activity-based cost accounting is used to
determine the costs of each primary and support activity comprising a company’s value chain and thereby
reveal the nature and make-up of a company’s internal cost structure
The value chains of rival companies
can differ substantially, reflecting differences in the evolution of each company’s own particular business,
differences in strategy, and differences in the approaches being used to execute strategy.
The three main areas in the value chain where significant differences in the costs of competing firms can
occur include
the nature and make-up of their own internal operations, the activities performed by suppliers, and the
activities performed by wholesale distribution and retailing allies
Which one of the following provides the most accurate picture of whether a company is cost competitive
with its rivals?
The costs of a company’s internally performed activities, costs in the value chains of both the company’s
suppliers and forward channel allies, and how all these costs compare against the costs that make up the
value chain systems employed by rival firms
Determining whether a company’s prices and costs are competitive
All of these.
Activity-based cost accounting aims at
determining the costs of each activity comprising a company’s value chain by establishing expense
categories for specific value chain activities and assigning costs to the activity responsible for creating the
cost.
Activity-based costing
is an accounting system that assigns a company’s expenses to whichever activity in a company’s value
chain is responsible for creating the cost.
Benchmarking involves
comparing how different companies perform various value chain activities and then making crosscompany
comparisons of the costs of these activities.
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
benchmarking.
Which of the following is not one of the objectives of benchmarking?
To help construct a company value chain and identify which activities are primary and which are support
activities
The options for remedying an internal cost disadvantage include
All of these.
Which of the following is not a good option for trying to remedy high internal costs vis-à-vis rivals firms?
Implementing aggressive strategic resource mapping to permit across-the-board cost reduction
A company’s strategic options for remedying cost disadvantages in internally performed value chain
activities do not include
switching to activity-based costing.
The options for remedying a supplier-related cost disadvantage include
trying to negotiate more favorable prices with suppliers and switching to lower priced substitute inputs.
Which of the following is not an option for remedying a supplier-related cost disadvantage?
Persuade forward channel allies to implement best practices.
Which of the following is not an option for remedying a cost disadvantage associated with activities
performed by forward channel allies (wholesale distributors and retail dealers)?
Insisting on across-the-board cost cuts in all value chain activities—those performed by suppliers, those
performed in-house, and those performed by distributors-dealers
A company that does a first-rate job of managing its value chain activities relative to competitors
stands a good chance of achieving competitive advantage by performing its value chain activities either
more proficiently or at lower cost
Out-managing rivals in performing value chain activities
is one of the most dependable ways a company can build a competitive advantage over rivals.
For a company to translate its performance of value chain activities into competitive advantage, it must
develop core competencies and maybe a distinctive competence over rivals and that are instrumental in
helping it deliver attractive value to customers or else be more cost efficient in how it performs value
chain activities
To build a competitive advantage by out-managing rivals in performing value chain activities, a company
must
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 or else be more cost efficient in
how it performs value chain activities such that it has a low-cost advantage
The value of doing competitive strength assessment is to
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.
Doing a competitive strength assessment entails
ranking the company against major rivals on each of the important factors that determine market success
and ascertaining whether the company has a net competitive advantage or disadvantage versus major
rivals.
A weighted competitive strength assessment is generally analytically superior to an unweighted strength
assessment because
all of the various measures of competitive strength are not equally important.
A weighted competitive strength analysis is conceptually stronger than an unweighted analysis because
the different measures of competitive strength are unlikely to be equally important
In a weighted competitive strength assessment, the sum of the weights should add up to
1.0.
In a weighted competitive strength analysis, each strength measure is assigned a weight based on
its perceived importance in determining a company’s competitive success in the marketplace
Calculating competitive strength ratings for a company and its rivals using the industry’s most telling
measures of competitive strength or weakness
is a way of determining which competitor has the biggest overall competitive advantage in the
marketplace and which competitor is faced with the biggest overall competitive disadvantage.
Quantitative measures of a company’s competitive strength
provide useful indicators of how a company compares against key rivals, factor by factor and capability
by capability—thus indicating whether the company has a net overall competitive advantage or
disadvantage against each rival.
Which one of the following is an accurate interpretation of the scores that result from doing a competitive
strength assessment?
High scores signal a strong competitive position and possession of a competitive advantage over
companies with lower scores
Which one of the following is not something that can be learned from doing a competitive strength
assessment
B.Whether a company should correct its weaknesses by adopting best practices and revamping the makeup
of its value chain
Calculating competitive strength ratings for a company and comparing them against strength ratings for its
key competitors helps indicate
A. which weaknesses and vulnerabilities of competitors that the company might be able to attack
successfully.
Identifying the strategic issues a company faces and compiling a “worry list” of problems and roadblocks is
an important component of company situation analysis because
B.the “worry list” sets the management agenda for taking actions to improve the company’s performance
and business outlook.
Identifying the strategy-related issues and problems that company managers need to address and resolve
entails
All of the above.
Identifying the strategic issues and problems that merit front-burner managerial attention
All of the above.
Which of the following is not part of the task of identifying the strategic issues and problems that merit
front-burner managerial attention?
Assessing what challenges the company has to overcome in order to be financially and competitively
successful in the years ahead
Which of the following is not accurate as concerns the task of identifying the strategic issues and problems
that merit front-burner managerial attention?
Identifying the strategic issues and problems that the company faces is the first thing that company
managers need to do before starting to analyze the company’s internal and external environment

Get instant access to
all materials

Become a Member