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

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

Correct Answer

verified

Show Answer

A) How to improve a company's strategy by using company strengths and capabilities as cornerstones for its strategy
B) Which market opportunities are best suited to a company's strengths and capabilities
C) 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
D) How to turn a core competence into a distinctive competence
E) Whether any of the company's resource strengths can be used to help lessen the impact of external threats

Correct Answer

verified

Show Answer

A) suggest the company use its strengths to exploit its own competitive liabilities.
B) point directly to the kinds of offensive/defensive actions it can use to exploit its competitive strengths and reduce its competitive liabilities.
C) point directly to the company to use its weaknesses as offensive moves to challenge rivals' weaknesses.
D) suggest receptivity for astute companies to drive their operating practices if the strength scores are very low.
E) point directly to accepting the competitive strength scores on face value.

Correct Answer

verified

Show Answer

A) which weaknesses and vulnerabilities of competitors the company might be able to attack successfully.
B) which competitors are in profitable strategic groups and which competitors are in unprofitable strategic groups.
C) which competitors are employing offensive strategies and which competitors are employing defensive strategies.
D) which competitors are likely to make money and which are likely to lose money in the years ahead.
E) what the industry's key success factors are.

Correct Answer

verified

Show Answer

A) from published reports,industry research firms,and trade groups.
B) from talking to knowledgeable industry leaders.
C) from field trips to the facilities of competitors or non-competing firms.
D) from independent firms and consulting firms to gather best practices and comparative cost data without identifying competing firms.
E) from the classified government documents.

Correct Answer

verified

Show Answer

A) gauging whether a company has a cost-competitive value chain.
B) sizing up a company's resources and capabilities,strengths and deficiencies,its market opportunities,and the external threats to its future well-being.
C) evaluating whether a company is in the most appropriate strategic group.
D) determining a company's competitive strength vis-à-vis close rivals.
E) identifying the market segments in which a company is strongly positioned and weakly positioned.

Correct Answer

verified

Show Answer

A) determining whether a company has a cost-effective value chain.
B) developing quantitative strength ratings for the company and key rivals on each industry key success factor and each pivotal resource,capability,and value chain activity.
C) identifying a company's core competencies and distinctive competencies (if any) .
D) analyzing whether a company is well positioned to gain market share and be the industry's profit leader.
E) developing quantitative measures of a company's chances for future profitability.

Correct Answer

verified

Show Answer

A) Less productive R&D efforts than rivals
B) Having a single,unified functional strategy instead of several distinct functional strategies
C) Lack of a strong brand image and reputation (as compared to rivals)
D) Higher overall unit costs relative to rivals
E) Too narrow a product line relative to rivals

Correct Answer

verified

Show Answer

A) the firm's net working capital and related determinants for measuring operating performance and capabilities.
B) the firm's competitive assets,which are considered determinants of its competitiveness and ability to succeed in the marketplace.
C) whether the firm has the industry's most efficient value chain.
D) the management's source of funding of new strategic initiatives.
E) positive trends with relevant cultural factors related to buyers' choices and product modifications

Correct Answer

verified

Show Answer

Correct Answer

verified

A best practice is a method of performin...

View Answer

Show Answer

A) long-term derivative strategy.
B) cash flow feasibility analysis.
C) competitive advantage over other companies.
D) resource deployment strategic plan.
E) cost underestimation and benefit overestimation.

Correct Answer

verified

Show Answer

A) contribute to greater efficiency and lower costs and provide a basis for differentiation.
B) contribute expense savings and enhance product exclusivity.
C) reduce cost disadvantages and market price anomalies.
D) contribute customer experience value and conserve operating functionality.
E) contribute to competitive assets and discontinue distinctive competencies.

Correct Answer

verified

Show Answer

A) the decision of whether to do it at all.
B) how to gain access to information regarding rivals' practices and costs.
C) when to initiate the process.
D) what information to utilize in the analysis process.
E) when to stop the process and move forward with strategy.

Correct Answer

verified

Show Answer

A) a SWOT analysis.
B) a competitive asset/liability analysis.
C) a competitive positioning analysis.
D) a strategic resource assessment.
E) a company resource mapping.

Correct Answer

verified

Show Answer

A) a distinctive competence refers to a company's strongest resource or competitive capability,whereas a core competence refers to a company's lowest-cost and most efficiently executed value-chain activity.
B) a core competence usually resides in a company's base of intellectual capital,whereas a distinctive competence stems from the superiority of a company's physical and tangible assets.
C) a core competence is a competitively and strategically relevant activity that a firm performs well compared to its other activities,whereas a distinctive competence is a competitively relevant activity a firm performs well compared to other rival firms.
D) a core competence represents a resource strength,whereas a distinctive competence is achieved by having more resource strengths than rival companies.
E) a core competence usually resides in a company's technology and physical assets,whereas a distinctive competence usually resides in a company's know-how,expertise,and intellectual capital.

Correct Answer

verified

Show Answer

A) having higher earnings per share and a higher return on shareholders' equity investment than key rivals.
B) 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.
C) having proven technological expertise and an ability to churn out new and improved products on a regular basis.
D) having a larger number of competitive assets than competitive liabilities.
E) having more built-in key success factors than rivals.

Correct Answer

verified

Show Answer

A) ascertain the internal marketplace of non-distinct divisions of the company.
B) ascertain which of a company's resources and capabilities are competitively valuable.
C) stimulate demand for a product.
D) ascertain to what extent a competitor can sustain a competitive advantage.
E) stimulate economic growth for companies within the industry.

Correct Answer

verified

Show Answer

A) age of plants and equipment,number of employees,and advertising costs.
B) operating-level activities,functional area activities,and line of business activities.
C) the nature and makeup of their own internal operations,the activities performed by suppliers,and the activities performed by wholesale distribution and retailing allies.
D) human resource activities (particularly labor costs) ,vertical integration activities,and strategic partnership activities.
E) variable cost activities,fixed cost activities,and administrative activities.

Correct Answer

verified

Show Answer