Question 1

One of the basic building blocks of competitive advantage is:

Accepted Answer

A) quantity. 
B) logistics. 
C) variety. 
D) distribution. 
E) innovation.

Question 2

Tangible resources include experiential knowledge and technological know-how.

Accepted Answer

A) True 
 B)False

Question 3

Nene works in a factory where she picks crab meat from crabs.She is paid per day based upon the number of pounds of crab meat that she picks.Nene's daily number of pounds of crab meat can be referred to as her productivity.

Accepted Answer

A) True 
 B)False

Question 4

The more a resource is fmu-specific and difficult to imitate, the more likely a company holding that resource is said to have a distinctive competency.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following support activities in the value chain refers to the transmission of physical materials from procurement through production and into distribution?

Accepted Answer

A) Human resources 
B) Information systems 
C) Research and Development 
D) Logistics 
E) Operations

Question 6

Competitive advantage typically leads to:

Accepted Answer

A) a defective business model. 
B) average profitability within an industry. 
C) superior profitability. 
D) the Icarus paradox. 
E) barriers to changes in the organization.

Question 7

Distinctive competencies are finn-specific strengths that allow a company to differentiate its products and achieve substantially lower costs than its rivals.

Accepted Answer

A) True 
 B)False

Question 8

Anna bakes cookies for about $10 per batch, she charges customers $15 to a batch, and customers perceive that the cookies are worth $25 per batch.Anna's profit margin is:

Accepted Answer

A) $5. 
B) $7.5. 
C) $10. 
D) $15. 
E) $25.

Question 9

Lucy is an entrepreneur who is interested in opening her own bakery.She is concerned with obtaining money for equipment for the bakery such as ovens, pots and pans, and display cabinets.Lucy is trying to obtain intangible resources for her business.

Accepted Answer

A) True 
 B)False

Question 10

The intellectual property of an organization is a(n):

Accepted Answer

A) tangible resource. 
B) strategic commitment. 
C) tangible capability. 
D) barrier to change. 
E) intangible resource.

Question 11

The importance of reliability in building competitive advantage has increased dramatically over the past decade.

Accepted Answer

A) True 
 B)False

Question 12

Factors that make it difficult for a competitor to copy a company's distinctive competencies are known as:

Accepted Answer

A) barriers to imitation. 
B) marketing know-how. 
C) technological know-how. 
D) support activities. 
E) capabilities.

Question 13

According to Ghernawat, a strategic commitment is:

Accepted Answer

A) the factor that make it difficult for a competitor to copy a company's distinctive competencies. 
B) the time that it takes for a good to be delivered or a service to be performed.. 
C) the set of activities related to the design, creation, and delivery of the product, its marketing, and its support and after-sales service. 
D) the collection nonphysical entities such as brand names, company reputation, experiential knowledge, and intellectual property, including patents, copyrights, and trademarks.. 
E) a company's dedication to developing a particular set of resources and capabilities.

Question 14

Texas Instruments achieved early success through engineering excellence.But thereafter, they became so obsessed with engineering that they lost sight of market realities.This is an example of the Icarus Paradox.

Accepted Answer

A) True 
 B)False

Question 15

The concept of quality applies to:

Accepted Answer

A) all products produced by a finn. 
B) products consumers believe to be high-quality; not low-quality. 
C) only those products of a finn popular among a large customer base. 
D) custom-made products only. 
E) only those products that have been redesigned.

Question 16

Kodak possesses the leading imaging technology.This technology has allowed the company to differentiate its products from those offered by rivals.Imaging technology is Kodak's:

Accepted Answer

A) distinctive competence. 
B) profit. 
C) support activity. 
D) value chain. 
E) retired product.

Question 17

Ford Motors developed the Explorer sports utility vehicle, the number I selling sports utility vehicle in the United States, based on an extensive study of customer preferences.Which value chain activity of Ford conducted those studies?

Accepted Answer

A) Research and development 
B) Human resources 
C) Materials management 
D) Marketing and sales 
E) Company infrastructure

Question 18

A value chain is a sequence of activities for transforming inputs into outputs that are valued by customers.

Accepted Answer

A) True 
 B)False

Question 19

The most successful fmns are those that constantly learn and upgrade their distinctive competencies.

Accepted Answer

A) True 
 B)False

Question 20

A company's competitive advantage is more durable when:

Accepted Answer

A) barriers to imitation are low and there are few capable competitors. 
B) barriers to imitation are high and there are many capable competitors. 
C) barriers to imitation are high and the industry is stable. 
D) the industry is stable and there are many capable competitors. 
E) the industry is stable and barriers to imitation are low.

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

One of the basic building blocks of competitive advantage is:

Tangible resources include experiential knowledge and technological know-how.

Nene works in a factory where she picks crab meat from crabs.She is paid per day based upon the number of pounds of crab meat that she picks.Nene's daily number of pounds of crab meat can be referred to as her productivity.

The more a resource is fmu-specific and difficult to imitate, the more likely a company holding that resource is said to have a distinctive competency.

Which of the following support activities in the value chain refers to the transmission of physical materials from procurement through production and into distribution?

Competitive advantage typically leads to:

Distinctive competencies are finn-specific strengths that allow a company to differentiate its products and achieve substantially lower costs than its rivals.

Anna bakes cookies for about $10 per batch, she charges customers $15 to a batch, and customers perceive that the cookies are worth $25 per batch.Anna's profit margin is:

Lucy is an entrepreneur who is interested in opening her own bakery.She is concerned with obtaining money for equipment for the bakery such as ovens, pots and pans, and display cabinets.Lucy is trying to obtain intangible resources for her business.

The intellectual property of an organization is a(n) :

The importance of reliability in building competitive advantage has increased dramatically over the past decade.

Factors that make it difficult for a competitor to copy a company's distinctive competencies are known as:

According to Ghernawat, a strategic commitment is:

Texas Instruments achieved early success through engineering excellence.But thereafter, they became so obsessed with engineering that they lost sight of market realities.This is an example of the Icarus Paradox.

The concept of quality applies to:

Kodak possesses the leading imaging technology.This technology has allowed the company to differentiate its products from those offered by rivals.Imaging technology is Kodak's:

Ford Motors developed the Explorer sports utility vehicle, the number I selling sports utility vehicle in the United States, based on an extensive study of customer preferences.Which value chain activity of Ford conducted those studies?

A value chain is a sequence of activities for transforming inputs into outputs that are valued by customers.

The most successful fmns are those that constantly learn and upgrade their distinctive competencies.

A company's competitive advantage is more durable when: