Question 1

Define value chain analysis. Discuss the two types of activities in a firm's value chain.

Accepted Answer

Value chain analysis is a systematic way...

Question 2

Which of the following is an example of a weakness in an organization's SWOT analysis?

Accepted Answer

A)   Competitors with highly skilled employees
B)   Money spent on machineries with updated technology
C)   Overdependence on a particular supplier for core materials
D)   The increasing number of competitorsE) B) and D)
F) A) and B)

Question 3

A cosmetics company owns a patent for a particular kind of shampoo, which is a bestseller in the market. It enables the firm to extract a high level of discretion over product pricing. The patent for the shampoo is an example of a firm's _____ resource.

Accepted Answer

A)   tangible
B)   human
C)   natural
D)   intangibleE) B) and D)
F) A) and D)

Question 4

Which of the following statements is true about Porter's 5-Forces Model?

Accepted Answer

A)   The level of threat of entry from competition is generally the same across all industries.
B)   Every industry and market is different in terms of who maintains the power in the buyer-supplier relationship.
C)   The buyer or customer has no power to force down prices in an industry.
D)   Not all companies face the threat of substitutes.E) A) and D)
F) All of the above

Question 5

The 5-Forces Model is one of the most important tools for evaluating the attractiveness of industries.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is one of the generic strategies through which a manager can create a firm's competitive advantage?

Accepted Answer

A)   Global strategy
B)   Market-entry strategy
C)   Transnational strategy
D)   Differentiation strategyE) A) and B)
F) A) and C) D

Question 7

Outline the features of SWOT analysis.

Accepted Answer

One tool that has been useful in helping...

Question 8

Which of the following statements best describes competitive advantage?

Accepted Answer

A)   It refers to the pressure a supplier or buyer can exert on a company.
B)   It is the advantage that occurs when a firm offers products to all customers at higher prices.
C)   It derives from a firm's ability to create value for its customers that exceeds the cost of producing the product or service.
D)   It is the capability to identify and react to changes in the external environment and to mobilize internal resources to deal with those changes.E) B) and C)
F) A) and D) C

Question 9

Which of the following barriers to entry occurs when a buyer's willingness to pay for a product increases as the number of other buyers for the industry's product increases?

Accepted Answer

A)   Supply-side economies of scale
B)   Restrictive government policy
C)   Demand-side benefits of scale
D)   Customer switching costsE) All of the above
F) B) and C)

Question 10

A buyer industry will tend to have less power relative to the supplier industry when the buyer purchases in very large volumes.

Accepted Answer

A) True 
 B)False

Question 11

In conducting its SWOT analysis, a baseball team notes that most of its players are among the best in the world and that its coach was a distinguished major-league player. To which part of the SWOT analysis is this information pertinent?

Accepted Answer

A)   Strengths
B)   Weaknesses
C)   Opportunities
D)   ThreatsE) B) and C)
F) A) and D)

Question 12

Which of the following refers to the cost savings achieved when the large volume of a product manufactured by a firm enables it to reduce per-unit cost?

Accepted Answer

A)   Economies of scale
B)   Return on equity
C)   Demand-side benefits scale
D)   Tangible resourcesE) None of the above
F) B) and C)

Question 13

What are the tangible and intangible resources of an organization? Give examples.

Accepted Answer

A firm's tangible resources tend to be m...

Question 14

Inside Patagonia, Inc., there is a culture that encourages innovation and risk taking. Employees are encouraged to experiment with products and fabrics to produce better designs. In addition, Patagonia encourages employees to leave work early to surf or rock-climb. Patagonia is likely using a

Accepted Answer

A)   differentiation strategy.
B)   cost leadership strategy.
C)   low-cost focus strategy.
D)   stuck in the middle strategy.E) C) and D)
F) B) and D)

Question 15

Which of the following is one of the fundamental questions a manager must answer in developing a business-level strategy?

Accepted Answer

A)   Who do we serve?
B)   Who are our competitors?
C)   What are our objectives?
D)   Where should we do business?E) All of the above
F) B) and D)

Question 16

Many people in large cities are starting to use Uber to find rides. The taxi industry in these cities is facing

Accepted Answer

A)   the bargaining power of suppliers.
B)   the bargaining power of customers.
C)   rivalry among existing competitors.
D)   the threat of substitutes.E) B) and C)
F) None of the above D

Question 17

Sara, a manager at DEM Company, is examining all of the activities the firm performs and determining how they interact to form a source of competitive advantage. Sara is using

Accepted Answer

A)   Porter's 5-Forces Model.
B)   SWOT analysis.
C)   SWAT analysis.
D)   value chain analysis.E) A) and B)
F) A) and C)

Question 18

Primary activities of a firm's value chain refers to

Accepted Answer

A)   the activities completed to improve a firm's product and the processes used to manufacture it.
B)   the activities involved with recruiting, hiring, training, developing, and compensating all personnel.
C)   the activities such as general management, planning, finance, accounting, legal support, and governmental relations.
D)   the activities involved in the physical creation of a product and its sale and transfer to the buyer.E) C) and D)
F) A) and D)

Question 19

First-mover advantage occurs when a firm is first to offer desirable products or services that secure customer loyalty.

Accepted Answer

A) True 
 B)False

Question 20

Gary, a manager at ABC Company, is evaluating the firm's internal strengths and weaknesses as well as the opportunities and threats that are evident in the firm's external environment. Gary is using

Accepted Answer

A)   Porter's 5-Forces Model.
B)   SWOT analysis.
C)   SWAT analysis.
D)   value chain analysis.E) B) and C)
F) A) and C)

Exam 5: Business-Level Strategy

Define value chain analysis. Discuss the two types of activities in a firm's value chain.

Correct AnswerverifiedValue chain analysis is a systematic way...View AnswerShow Answer

Which of the following is an example of a weakness in an organization's SWOT analysis?

Correct AnswerverifiedShow Answer

A cosmetics company owns a patent for a particular kind of shampoo, which is a bestseller in the market. It enables the firm to extract a high level of discretion over product pricing. The patent for the shampoo is an example of a firm's _____ resource.

Correct AnswerverifiedShow Answer

Which of the following statements is true about Porter's 5-Forces Model?

Correct AnswerverifiedShow Answer

The 5-Forces Model is one of the most important tools for evaluating the attractiveness of industries.

Correct AnswerverifiedShow Answer

Which of the following is one of the generic strategies through which a manager can create a firm's competitive advantage?

Correct AnswerverifiedD

Outline the features of SWOT analysis.

Correct AnswerverifiedOne tool that has been useful in helping...View AnswerShow Answer

Which of the following statements best describes competitive advantage?

Correct AnswerverifiedC

Which of the following barriers to entry occurs when a buyer's willingness to pay for a product increases as the number of other buyers for the industry's product increases?

Correct AnswerverifiedShow Answer

A buyer industry will tend to have less power relative to the supplier industry when the buyer purchases in very large volumes.

Correct AnswerverifiedShow Answer

In conducting its SWOT analysis, a baseball team notes that most of its players are among the best in the world and that its coach was a distinguished major-league player. To which part of the SWOT analysis is this information pertinent?

Correct AnswerverifiedShow Answer

Which of the following refers to the cost savings achieved when the large volume of a product manufactured by a firm enables it to reduce per-unit cost?

Correct AnswerverifiedShow Answer

What are the tangible and intangible resources of an organization? Give examples.

Correct AnswerverifiedA firm's tangible resources tend to be m...View AnswerShow Answer

Inside Patagonia, Inc., there is a culture that encourages innovation and risk taking. Employees are encouraged to experiment with products and fabrics to produce better designs. In addition, Patagonia encourages employees to leave work early to surf or rock-climb. Patagonia is likely using a

Correct AnswerverifiedShow Answer

Which of the following is one of the fundamental questions a manager must answer in developing a business-level strategy?

Correct AnswerverifiedShow Answer

Many people in large cities are starting to use Uber to find rides. The taxi industry in these cities is facing

Correct AnswerverifiedD

Sara, a manager at DEM Company, is examining all of the activities the firm performs and determining how they interact to form a source of competitive advantage. Sara is using

Correct AnswerverifiedShow Answer

Primary activities of a firm's value chain refers to

Correct AnswerverifiedShow Answer

First-mover advantage occurs when a firm is first to offer desirable products or services that secure customer loyalty.

Correct AnswerverifiedShow Answer

Gary, a manager at ABC Company, is evaluating the firm's internal strengths and weaknesses as well as the opportunities and threats that are evident in the firm's external environment. Gary is using

Correct AnswerverifiedShow Answer

Correct Answer
verified
Value chain analysis is a systematic way...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
D

Correct Answer
verified
One tool that has been useful in helping...
View Answer

Correct Answer
verified
C

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A firm's tangible resources tend to be m...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
D

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified