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

A) human assets and intellectual capital
B) technological assets
C) brand,image,and reputation
D) relationships
E) company culture

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A) investing in productivity-enhancing,cost-saving technological improvements
B) redesigning the product or some of its components to permit more economical manufacture or assembly
C) implementing aggressive strategic resource mapping to permit across-the-board cost reduction
D) outsourcing high-cost activities to vendors or contractors who can perform them more economically
E) relocating high-cost activities (such as manufacturing) to geographic areas (such as China or Latin America or Eastern Europe) where they can be performed more cheaply

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A) core competencies.
B) distinct capabilities.
C) sustainable activities.
D) socially complex activities.
E) distributive factors.

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A) switching to lower-priced substitutes.
B) pressuring forward channel allies to reduce their costs and markups.
C) shifting into the production of substitute products.
D) shifting from a differentiation strategy to a best-cost strategy or focus strategy.
E) implementing a benchmarking program and adopting best practices.

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A) how hard it is for competitors to copy or imitate.
B) whether it is rare and,therefore,something rivals lack.
C) whether it is really competitively valuable.
D) how easily it can be trumped by the substitute resources/capabilities of rivals.
E) All of these choices are correct.

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A) Integrate backward into the business of high-cost suppliers in an effort to reduce the costs of the items being purchased.
B) Negotiate more favorable prices with suppliers.
C) Collaborate closely with suppliers to identify mutual cost-saving opportunities.
D) Switch to lower-priced substitute inputs.
E) Persuade forward channel allies to implement best practices.

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A) trends in the company's sales and earnings growth
B) the company's development of human capital,organizational capital,and information capital
C) changes in the firm's image and reputation with its customers
D) the company's overall financial strength
E) evidence of improvement in internal processes such as defect rate,order fulfillment,and employee productivity

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A) its core competencies,competitive capabilities,and valuable intangible assets
B) sizes of its unit sales,revenues,and market share vis-à-vis those of key rivals
C) sizes of its profit margins and return on investment vis-à-vis those of key rivals
D) whether it has more primary activities in its value chain than close rivals and a better overall value chain than these rivals
E) whether it has a more profitable business model than close rivals

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A typical value chain for an entire industry can be represented as a series of interconnected activities that add value to a product or service as it moves from raw material to the final consumer. This can include activities such as sourcing raw materials, manufacturing, marketing, distribution, and customer service. The activities performed by value chain allies are strategically relevant because they contribute to the overall success and competitiveness of the industry. Each activity in the value chain plays a crucial role in creating value for the end consumer and differentiates the industry from its competitors. For example, sourcing high-quality raw materials can lead to a superior product, while efficient distribution can ensure timely delivery to customers. Furthermore, the activities performed by value chain allies can also impact the cost structure of the industry. For instance, efficient manufacturing processes can lead to cost savings, which can then be passed on to consumers in the form of lower prices or higher quality products. In addition, the activities performed by value chain allies can also impact the overall reputation and brand image of the industry. For example, strong customer service can lead to increased customer satisfaction and loyalty, while effective marketing can help create a positive brand image. Overall, the activities performed by value chain allies are strategically relevant because they directly impact the industry's ability to create value, differentiate itself from competitors, manage costs, and build a strong brand image. Therefore, understanding and optimizing these activities is crucial for the overall success of the industry.

A) determine how competitively powerful the company's core competencies are.
B) learn if the company's market opportunities are better than those of its rivals.
C) learn whether a company has a distinctive competence.
D) learn how the company ranks relative to rivals on each of the important factors that determine market success and ascertain whether the company has a net competitive advantage or disadvantage vis-à-vis key rivals.
E) determine whether a company's resource strengths are sufficient to allow it to earn bigger profits than rivals.

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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.

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A) investing in productivity-enhancing,cost-saving technological improvements.
B) outsourcing internally performed activities to those able to perform the activities at a lower cost.
C) implementing the use of best practices,particularly for high-cost activities.
D) eliminating some cost-producing activities from the value chain,especially low value-added activities.
E) All of these choices are correct.

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A) continually strengthened and nurtured.
B) broadened and deepened to cover emerging market opportunities.
C) refreshed,modified,or sometimes phased out and replaced in response to ongoing market changes.
D) difficult to imitate.
E) All of these are correct,except answer choice "difficult to imitate."

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E

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One strategic move the firm can make to ...

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A) revamping its value chain to eliminate or bypass some cost-producing activities (particularly low value-added activities) .
B) implementing the use of best practices,particularly for high-cost activities.
C) investing in productivity-enhancing,cost-saving technological improvements.
D) switching to activity-based costing.
E) outsourcing the performance of high-cost activities to vendors that can perform them more cheaply.

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A) a company's own internal activities.
B) the suppliers industry value chain.
C) the forward channel portion of the industry chain.
D) a company's own internal activities,the suppliers industry value chain,and the forward channel portion of the industry chain.
E) None of these choices are correct.

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D

A) lack of a distinctive competence
B) potential of a hostile takeover
C) adverse changes in foreign exchange rates
D) unfavorable demographic shifts
E) introduction of restrictive trade policies in countries where the company does business

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