Question 1

IBM's investment in mainframe computers is an example of a prior strategic commitment.

Accepted Answer

A) True 
 B)False  True

Question 2

Which of the following is not a way that companies can avoid failure?

Accepted Answer

A) Benchmarking 
B) Continuous learning 
C) Developing distinctive competencies 
D) Exploiting luck 
E) Investing in specialized assets 
A) Benchmarking 
B) Continuous learning 
C) Developing distinctive competencies 
D) Exploiting luck 
E) Investing in specialized assets E

Question 3

The Icarus paradox suggests that

Accepted Answer

A) companies should stick to a narrowly defined line of products. 
B) better-than-average profitability is an elusive goal. 
C) companies may become so dazzled by their early success that they believe more of the same kind of effort will assure future success. 
D) companies often pursue too many strategies at once. 
E) companies should change strategies before strategies need changing. 
A) companies should stick to a narrowly defined line of products. 
B) better-than-average profitability is an elusive goal. 
C) companies may become so dazzled by their early success that they believe more of the same kind of effort will assure future success. 
D) companies often pursue too many strategies at once. 
E) companies should change strategies before strategies need changing. C

Question 4

According to a number of scholars,what role does luck play in determining competitive success and failure?

Accepted Answer

A) No role at all 
B) A very small role 
C) It produces sustained excellence. 
D) A critical role 
E) None of these choices 
A) No role at all 
B) A very small role 
C) It produces sustained excellence. 
D) A critical role 
E) None of these choices

Question 5

Dale's horseshoeing methods save time and money for his employer,but when Dale suggests that everyone use his method,his boss says,"No.That's not the way we've always done it around here." Dale's employer is suffering from

Accepted Answer

A) organizational inertia. 
B) prior strategic commitments. 
C) barriers to mobility. 
D) lack of distinctive competencies. 
E) the Icarus paradox. 
A) organizational inertia. 
B) prior strategic commitments. 
C) barriers to mobility. 
D) lack of distinctive competencies. 
E) the Icarus paradox.

Question 6

One of the most widely used measures of financial performance is

Accepted Answer

A) return on invested capital. 
B) net profit margin. 
C) share value. 
D) net sales. 
E) productivity. 
A) return on invested capital. 
B) net profit margin. 
C) share value. 
D) net sales. 
E) productivity.

Question 7

Explain how tangible and intangible resources and capabilities can lead to distinctive competencies.Give specific examples.

Accepted Answer

A firm's unique resources and capabiliti

Question 8

Imitating a company's capabilities tends to be more difficult than imitating its tangible and intangible resources.

Accepted Answer

A) True 
 B)False

Question 9

A company's competitive advantage will not endure for long when that competitive advantage can be

Accepted Answer

A) quickly or easily duplicated by other companies. 
B) protected by patents. 
C) protected by significant barriers to imitation. 
D) shared with other companies in the industry. 
E) shielded by copyrights. 
A) quickly or easily duplicated by other companies. 
B) protected by patents. 
C) protected by significant barriers to imitation. 
D) shared with other companies in the industry. 
E) shielded by copyrights.

Question 10

When companies find it hard to change their strategies and structures to adapt to changing competitive conditions,they suffer from

Accepted Answer

A) inertia. 
B) prior strategic commitments. 
C) barriers to mobility. 
D) lack of resources. 
E) lack of capabilities. 
A) inertia. 
B) prior strategic commitments. 
C) barriers to mobility. 
D) lack of resources. 
E) lack of capabilities.

Question 11

Industry dynamism refers to

Accepted Answer

A) the gradual erosion of a company's customer base over time. 
B) shifts in product profitability. 
C) a rapidly changing industry environment. 
D) increasing per-unit costs. 
E) none of these choices. 
A) the gradual erosion of a company's customer base over time. 
B) shifts in product profitability. 
C) a rapidly changing industry environment. 
D) increasing per-unit costs. 
E) none of these choices.

Question 12

Which of the following factors does not determine the durability of a company's competitive advantage?

Accepted Answer

A) Barriers to imitation 
B) A company's prior strategic commitments 
C) Capability of competitors 
D) General level of dynamism in the industry 
E) The rate of product innovation in an industry 
A) Barriers to imitation 
B) A company's prior strategic commitments 
C) Capability of competitors 
D) General level of dynamism in the industry 
E) The rate of product innovation in an industry

Question 13

Using the value chain model,which of the following primary activities is performed first,as inputs are transformed into outputs?

Accepted Answer

A) Research and development 
B) Marketing and sales 
C) Human resources 
D) Production 
E) After-sales service and support 
A) Research and development 
B) Marketing and sales 
C) Human resources 
D) Production 
E) After-sales service and support

Question 14

Employee productivity is a common measure of efficiency.

Accepted Answer

A) True 
 B)False

Question 15

Quality as excellence and quality as reliability are concepts that applied to goods but not services.

Accepted Answer

A) True 
 B)False

Question 16

The term value chain refers to the idea that a company is

Accepted Answer

A) one of a series of companies that comprise an industry segment. 
B) the producer of a series of products that are linked together. 
C) a chain of activities for transforming inputs into outputs that customers value. 
D) one of a series of economic functions. 
E) all of the above. 
A) one of a series of companies that comprise an industry segment. 
B) the producer of a series of products that are linked together. 
C) a chain of activities for transforming inputs into outputs that customers value. 
D) one of a series of economic functions. 
E) all of the above.

Question 17

Strong leadership from top management is

Accepted Answer

A) a support activity. 
B) needed to attain economies of scale. 
C) needed to build brand loyalty. 
D) part of the human resources value chain activity. 
E) a primary activity in the value chain. 
A) a support activity. 
B) needed to attain economies of scale. 
C) needed to build brand loyalty. 
D) part of the human resources value chain activity. 
E) a primary activity in the value chain.

Question 18

The Icarus paradox suggests that those factors that led to a company's success may ultimately lead to their failure.

Accepted Answer

A) True 
 B)False

Question 19

Toyota's lean production system is the basis of its competitive advantage.

Accepted Answer

A) True 
 B)False

Question 20

Donna can make a chair for about $100,she charges customers $150 to buy the chair,and customers perceive that the chair is worth $225.Donna's profit margin is

Accepted Answer

A) $50. 
B) $75. 
C) $100. 
D) $150. 
E) $225. 
A) $50. 
B) $75. 
C) $100. 
D) $150. 
E) $225.

IBM's investment in mainframe computers is an example of a prior strategic commitment.

Which of the following is not a way that companies can avoid failure?

The Icarus paradox suggests that

According to a number of scholars,what role does luck play in determining competitive success and failure?

Dale's horseshoeing methods save time and money for his employer,but when Dale suggests that everyone use his method,his boss says,"No.That's not the way we've always done it around here." Dale's employer is suffering from

One of the most widely used measures of financial performance is

Explain how tangible and intangible resources and capabilities can lead to distinctive competencies.Give specific examples.

Imitating a company's capabilities tends to be more difficult than imitating its tangible and intangible resources.

A company's competitive advantage will not endure for long when that competitive advantage can be

When companies find it hard to change their strategies and structures to adapt to changing competitive conditions,they suffer from

Industry dynamism refers to

Which of the following factors does not determine the durability of a company's competitive advantage?

Using the value chain model,which of the following primary activities is performed first,as inputs are transformed into outputs?

Employee productivity is a common measure of efficiency.

Quality as excellence and quality as reliability are concepts that applied to goods but not services.

The term value chain refers to the idea that a company is

Strong leadership from top management is

The Icarus paradox suggests that those factors that led to a company's success may ultimately lead to their failure.

Toyota's lean production system is the basis of its competitive advantage.

Donna can make a chair for about $100,she charges customers $150 to buy the chair,and customers perceive that the chair is worth $225.Donna's profit margin is

Strategic Leadership: Managing the Strategy-Making Process for Competitive Advantage

External Analysis: The Identification of Opportunities and Threats

Building Competitive Advantage Through Functional-Level Strategy

Building Competitive Advantage Through Business-Level Strategy

Business-Level Strategy and the Industry Environment

Strategy and Technology

Strategy in the Global Environment

Corporate-Level Strategy: Horizontal Integration, Vertical Integration, and Strategic Outsourcing

Corporate-Level Strategy: Related and Unrelated Diversification

Corporate Performance, Governance, and Business Ethics

Implementing Strategy in Companies That Compete in a Single Industry

Implementing Strategy in Companies That Compete Across Industries and Countries

Filters

Exam 3: Internal Analysis: Distinctive Competencies, Competitive Advantage, and Profitability

IBM's investment in mainframe computers is an example of a prior strategic commitment.

Which of the following is not a way that companies can avoid failure?

The Icarus paradox suggests that

According to a number of scholars,what role does luck play in determining competitive success and failure?

Dale's horseshoeing methods save time and money for his employer,but when Dale suggests that everyone use his method,his boss says,"No.That's not the way we've always done it around here." Dale's employer is suffering from

One of the most widely used measures of financial performance is

Explain how tangible and intangible resources and capabilities can lead to distinctive competencies.Give specific examples.

Imitating a company's capabilities tends to be more difficult than imitating its tangible and intangible resources.

A company's competitive advantage will not endure for long when that competitive advantage can be

When companies find it hard to change their strategies and structures to adapt to changing competitive conditions,they suffer from

Industry dynamism refers to

Which of the following factors does not determine the durability of a company's competitive advantage?

Using the value chain model,which of the following primary activities is performed first,as inputs are transformed into outputs?

Employee productivity is a common measure of efficiency.

Quality as excellence and quality as reliability are concepts that applied to goods but not services.

The term value chain refers to the idea that a company is

Strong leadership from top management is

The Icarus paradox suggests that those factors that led to a company's success may ultimately lead to their failure.

Toyota's lean production system is the basis of its competitive advantage.

Donna can make a chair for about $100,she charges customers $150 to buy the chair,and customers perceive that the chair is worth $225.Donna's profit margin is

Strategic Leadership: Managing the Strategy-Making Process for Competitive Advantage

External Analysis: The Identification of Opportunities and Threats

Building Competitive Advantage Through Functional-Level Strategy

Building Competitive Advantage Through Business-Level Strategy

Business-Level Strategy and the Industry Environment

Strategy and Technology

Strategy in the Global Environment

Corporate-Level Strategy: Horizontal Integration, Vertical Integration, and Strategic Outsourcing

Corporate-Level Strategy: Related and Unrelated Diversification

Corporate Performance, Governance, and Business Ethics

Implementing Strategy in Companies That Compete in a Single Industry

Implementing Strategy in Companies That Compete Across Industries and Countries

Filters