Question 1

Which of the following is a support activity?

Accepted Answer

A)   inbound logistics
B)   customer service
C)   technology development
D)   operationsE) A) and B)
F) All of the above

Question 2

Human resource management consists of activities involved in the recruiting, hiring, training, development, and compensation of all types of personnel. It supports

Accepted Answer

A)   only individual primary activities.
B)   mostly support activities but does have some impact on primary activities.
C)   only individual support activities.
D)   both individual primary and support activities and the entire value chain.E) B) and D)
F) A) and B)

Question 3

Discuss the four criteria that the resources of a firm must possess to maintain a sustainable advantage. Give an example of one of these criteria.

Accepted Answer

For a resource to provide a firm with th...

Question 4

In contrast to ________ interactions, which allow the firm to gain insights on the needs of a particular customer, ________ offers the opportunity to leverage the wisdom of a larger crowd.

Accepted Answer

A)   consumer; sourcing
B)   prosumer; outsourcing
C)   prosumer; crowdsourcing
D)   marketing; crowdsourcingE) A) and B)
F) All of the above

Question 5

A firm's financial position should not be analyzed in isolation. Important reference points are needed. Discuss how historical comparisons, comparisons with industry norms, and comparisons with key competitors can be used to make financial analysis more meaningful.

Accepted Answer

The financial position of a firm should ...

Question 6

The best measure of company ability to meet imminent financial obligations is known as the

Accepted Answer

A)   debt ratio.
B)   profit margin.
C)   total asset turnover.
D)   current ratio.E) B) and C)
F) All of the above

Question 7

Financial analysis provides an accurate way to assess the relative strengths of firms and can be used as a complete guide to study companies.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following lists consists of support activities?

Accepted Answer

A)   human resource management, technology development, customer service, and procurement
B)   human resource management, customer service, marketing and sales, and operations
C)   customer service, information systems, technology development, and procurement
D)   human resource management, technology development, procurement, and general administrationE) A) and B)
F) A) and D)

Question 9

Which of the following is a profitability ratio?

Accepted Answer

A)   current ratio
B)   total debt ratio
C)   total asset turnover
D)   return on equityE) B) and C)
F) A) and D)

Question 10

For a resource to provide a firm with the potential for a sustainable competitive advantage, it must have four attributes. Which of the following is not one of these attributes?

Accepted Answer

A)   rare
B)   valuable
C)   easy for competitors to substitute
D)   difficult for competitors to imitateE) None of the above
F) A) and D)

Question 11

When Nordstrom, the Seattle-based department store chain, aids customers with after-sales support, it exemplifies which primary value-chain activity?

Accepted Answer

A)   operations
B)   outbound logistics
C)   inbound logistics
D)   serviceE) A) and B)
F) A) and C)

Question 12

In making the decision to enter the pharmaceutical industry, a company would not need to consider which of the following?

Accepted Answer

A)   historical comparisons
B)   comparisons with industry norms
C)   comparisons with key competitors
D)   comparisons with non-competitorsE) None of the above
F) A) and D)

Question 13

Chipolte is a fast-food, Mexican cuisine restaurant that bases its value-creating activities on streamlined operations. Discuss this value-chain primary activity and how Chipolte usesitto its advantage. Refer to Strategy Spotlight 3.1 for details.

Accepted Answer

Chipolte achieves remarkable increases i...

Question 14

If managers do not recognize from the beginning that the balanced scorecard is not a ________ and fail to commit to it long term, the organization will be disappointed.

Accepted Answer

A)   panacea
B)   quick fix
C)   marketing ploy
D)   cheap solutionE) C) and D)
F) A) and B)

Question 15

General administration is sometimes viewed as only ________, but it can be a powerful source of competitive advantage.

Accepted Answer

A)   income
B)   value
C)   overhead
D)   unimportantE) None of the above
F) A) and B)

Question 16

A competitive advantage based on inimitability can be sustained for at least some time, if it has the following characteristics:

Accepted Answer

A)   psychographic uniqueness, path dependency, causal ambiguity, and substitutability.
B)   physical uniqueness, path dependency, causal ambiguity, and social complexity.
C)   rarity, path dependency, causal ambiguity, and social substitutability.
D)   geographic uniqueness, cause dependency, social ambiguity, and path complexity.E) B) and C)
F) All of the above

Question 17

________ are the competencies or skills that a firm employs to transform inputs into outputs.

Accepted Answer

A)   Tangible resources
B)   Reputational resources
C)   Organizational capabilities
D)   Intangible resourcesE) C) and D)
F) All of the above

Question 18

________ ratios reflect whether a firm is efficiently using its resources,

Accepted Answer

A)   Turnover
B)   Leverage
C)   Liquidity.
D)   ProfitabilityE) A) and B)
F) A) and C)

Question 19

Which of the following would be most difficult to assess?

Accepted Answer

A)   the liquidity position of a firm
B)   market share growth
C)   the legitimacy and reputation of a firm
D)   the efficiency with which a firm utilizes its assetsE) A) and B)
F) B) and C)

Question 20

Which of the following is not a factor that helps to explain the extent to which employees and managers will be able to obtain a proportionately high level of the profits that they generate?

Accepted Answer

A)   Employees have high bargaining power.
B)   The cost of employee replacement is high.
C)   The cost of exit is high for an employee.
D)   Managers have low bargaining power.E) All of the above
F) A) and B)

Exam 3: Assessing the Internal Environment of the Firm

For a resource to provide a firm with the potential for a sustainable competitive advantage, it must have four attributes. Which of the following is not one of these attributes?

Correct AnswerverifiedShow Answer

________ are the competencies or skills that a firm employs to transform inputs into outputs.

Correct AnswerverifiedShow Answer

Financial analysis provides an accurate way to assess the relative strengths of firms and can be used as a complete guide to study companies.

Correct AnswerverifiedShow Answer

The best measure of company ability to meet imminent financial obligations is known as the

Correct AnswerverifiedShow Answer

Which of the following would be most difficult to assess?

Correct AnswerverifiedShow Answer

Discuss the four criteria that the resources of a firm must possess to maintain a sustainable advantage. Give an example of one of these criteria.

Correct AnswerverifiedFor a resource to provide a firm with th...View AnswerShow Answer

Which of the following is a profitability ratio?

Correct AnswerverifiedShow Answer

Chipolte is a fast-food, Mexican cuisine restaurant that bases its value-creating activities on streamlined operations. Discuss this value-chain primary activity and how Chipolte usesitto its advantage. Refer to Strategy Spotlight 3.1 for details.

Correct AnswerverifiedChipolte achieves remarkable increases i...View AnswerShow Answer

General administration is sometimes viewed as only ________, but it can be a powerful source of competitive advantage.

Correct AnswerverifiedShow Answer

Human resource management consists of activities involved in the recruiting, hiring, training, development, and compensation of all types of personnel. It supports

Correct AnswerverifiedShow Answer

________ ratios reflect whether a firm is efficiently using its resources,

Correct AnswerverifiedShow Answer

A competitive advantage based on inimitability can be sustained for at least some time, if it has the following characteristics:

Correct AnswerverifiedShow Answer

In contrast to ________ interactions, which allow the firm to gain insights on the needs of a particular customer, ________ offers the opportunity to leverage the wisdom of a larger crowd.

Correct AnswerverifiedShow Answer

If managers do not recognize from the beginning that the balanced scorecard is not a ________ and fail to commit to it long term, the organization will be disappointed.

Correct AnswerverifiedShow Answer

Which of the following lists consists of support activities?

Correct AnswerverifiedShow Answer

When Nordstrom, the Seattle-based department store chain, aids customers with after-sales support, it exemplifies which primary value-chain activity?

Correct AnswerverifiedShow Answer

In making the decision to enter the pharmaceutical industry, a company would not need to consider which of the following?

Correct AnswerverifiedShow Answer

Which of the following is a support activity?

Correct AnswerverifiedShow Answer

Which of the following is not a factor that helps to explain the extent to which employees and managers will be able to obtain a proportionately high level of the profits that they generate?

Correct AnswerverifiedShow Answer

A firm's financial position should not be analyzed in isolation. Important reference points are needed. Discuss how historical comparisons, comparisons with industry norms, and comparisons with key competitors can be used to make financial analysis more meaningful.

Correct AnswerverifiedThe financial position of a firm should ...View AnswerShow Answer

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For a resource to provide a firm with th...
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Chipolte achieves remarkable increases i...
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In contrast to interactions, which allow the firm to gain insights on the needs of a particular customer, offers the opportunity to leverage the wisdom of a larger crowd.

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The financial position of a firm should ...
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