Deck 5: Organizational Analysis and Competitive Advantage

Question 1

When a company takes apart a competitor's product in order to find out how it works,this process is known as

A) durability.
B) replicability.
C) reverse engineering.
D) transparency.
E) transferability.

Answer 1

C

Question 2

FedEx's application of information technology to all its operations is an example of

A) resources.
B) distinctive competencies.
C) core competencies.
D) critical success factors.
E) key performance factors.

Answer 2

C

Question 3

The speed with which other firms can understand the relationship of resources and capabilities supporting a successful firm's strategy is called

A) imitability.
B) reverse engineering.
C) transferability.
D) transparency.
E) durability.

Answer 3

D

Question 4

Capabilities refer to a corporation's ability to exploit its resources.

Question 5

Knowledge that can be easily articulated and communicated is known as

A) tacit knowledge.
B) explicit knowledge.
C) imitable knowledge.
D) transferable knowledge.
E) durable knowledge.

Question 6

Those critical strengths and weaknesses that are likely to determine if a firm will be able to take advantage of opportunities while avoiding threats are called

A) SWOT.
B) competitive forces.
C) internal strategic factors.
D) quality accounting.
E) factor analysis.

Question 7

Which of the following statements is true concerning clusters?

A) The desire to build or upgrade a core competency is one reason why entrepreneurial and other fast-growing firms often tend to locate close to their competitors.
B) Clusters are geographically dispersed companies operating within the same industry.
C) The United States does not have any clusters; they are all located in Europe.
D) According to Porter, clusters provide barriers to the access of employees, suppliers, and specialized information.
E) Employees from competitive firms in a cluster are not permitted to socialize with one another.

Question 8

New product development would be a core competency if it goes beyond one division.

Question 9

Knowledge that is not easily communicated because it is deeply rooted in employee experience or in a corporation's culture is called

A) tacit knowledge.
B) explicit knowledge.
C) imitable knowledge.
D) transferable knowledge.
E) durable knowledge.

Question 10

The ability of competitors to use duplicated resources and capabilities to imitate the other firm's success is called

A) imitability.
B) durability.
C) transferability.
D) transparency.
E) replicability.

Question 11

When a company determines that a competency provides a competitive advantage,Barney refers to this issue as

A) value.
B) rareness.
C) imitability.
D) organization.
E) durability.

Question 12

The rate at which others can duplicate a firm's underlying resources,capabilities,or core competencies is called

A) replicability.
B) transparency.
C) imitability.
D) durability.
E) transferability.

Question 13

Competencies are the organization's assets and are the basic building blocks of the organization.

Question 14

According to Barney's VRIO framework,the firm's exploitation of a competency pertains to

A) value.
B) rareness.
C) imitability.
D) organization.
E) durability.

Question 15

Which of the following is not one of the four question areas Barney proposes in his VRIO framework used to evaluate a firm's key resources?

A) organization
B) durability
C) rareness
D) valuable
E) imitability

Question 16

A winemaker in California finds it difficult to duplicate a French winery's key resources of land and climate.This is an example of

A) transferability.
B) transparency.
C) replicability.
D) tacit knowledge.
E) explicit knowledge.

Question 17

When a company's core competencies are superior to those of competitors,these are known as

A) resources.
B) distinctive competencies.
C) core competencies.
D) critical success factors.
E) key performance factors.

Question 18

________ is more valuable because it can provide companies with a sustainable competitive advantage that is harder for competitors to imitate.

A) Tacit knowledge
B) Explicit knowledge
C) Imitable knowledge
D) Transferable knowledge
E) Durable knowledge

Question 19

A corporation's ability to exploit its resources is referred to as its

A) business expertise.
B) capabilities.
C) core competencies.
D) critical success factors.
E) key performance factors.

Question 20

The resources of an organization include tangible assets,human assets,and intangible assets.

Question 21

Core competencies may mature and become core deficiencies.

Question 22

The business model used by IBM to make money not selling IBM products,but by selling its expertise to improve their customers operations is the

A) profit pyramid model.
B) advertising model.
C) customer solutions model.
D) efficiency model.
E) entrepreneurial model.

Question 23

Since competitors were not able to understand how Gillette's Fusion razor was produced,it was considered transparent.

Question 24

Which of the following is not a primary activity of the value chain?

A) raw materials handling
B) installation
C) repair
D) purchasing
E) warehousing

Question 25

Transferability is the ability of competitors to use duplicated resources and capabilities to imitate the other firm's success.

Question 26

An example of a cluster in the United States is computer technology found in the Silicon Valley.

Question 27

The part of an industry's value chain that is most important to a company and the point where its greatest expertise and capabilities lie is called the company's

A) functional crossroads.
B) center of gravity.
C) dynamic equilibrium.
D) R&D intensity.
E) economy of scope.

Question 28

Which of the following is not a support activity of the value chain?

A) procurement
B) technology development
C) human resource management
D) marketing and sales
E) strategic planning

Question 29

A core competency can be easily imitated to the extent that it is transparent,transferable,and replicable.

Question 30

When examining the corporate value chain of a particular product or service,which one of the following is not one of the primary activities that usually occur?

A) operations
B) inbound and outbound logistics
C) auditing and accounting
D) marketing and sales
E) customer service

Question 31

Tacit knowledge is harder than explicit knowledge for competitors to imitate.

Question 32

The attempt to hire brand managers away from P&G to learn how to duplicate the firm's brand management success is a competitor's attempt to address replicability.

Question 33

eBay and Amazon.com have successfully used the efficiency model by acting as an intermediary to connect multiple sellers to multiple buyers.

Question 34

On the continuum of resource sustainability,where would streaming movies be placed?

A) slow-cycle resources
B) sustainable resources
C) standard-cycle resources
D) fast-cycle resources
E) down-cycle resources

Question 35

The business model used by Spirit Airlines in offering a low-priced fare to the mass market is the

A) efficiency model.
B) advertising model.
C) customer solutions model.
D) entrepreneurial model.
E) profit pyramid model.

Question 36

The business model used by HP in selling printers and printer cartridges is the

A) profit pyramid model.
B) advertising model.
C) customer solutions model.
D) efficiency model.
E) multi-component system/installed base model.

Question 37

A linked set of value-creating activities beginning with basic materials provided by suppliers and ending with distributors getting the final product into the hands of the ultimate consumer is called a

A) value chain.
B) continuum of sustainability.
C) strategic capability.
D) fully integrated activity set.
E) strategic group.

Question 38

Durability is the rate at which others can duplicate a firm's underlying resources,capabilities,or core competencies.

Question 39

Describe Barney's VRIO framework.

Question 40

General Electric is well known for its distinctive competency in management development.

Question 41

Which one of the following best describes a divisional structure?

A) Work is divided into subunits on the basis of such functions as manufacturing, marketing, finance, and human resources.
B) This is most appropriate for large corporations with many product lines in several related industries, with employees acting as functional specialists attempting to gain synergy among divisional activities.
C) This is most appropriate for small, entrepreneur-dominated companies with one or two product lines that operate in a small niche market, with employees acting as jack-of-all trades.
D) Employees have two or more superiors, a project manager and a functional manager.
E) This is most appropriate for large corporations with many product lines in several unrelated industries, with employees acting as functional specialists but with no attempt at gaining synergy among the divisions.

Question 42

When a company uses the same marketing channel for two separate products,this is an example of an economy of scope.

Question 43

The second step in value chain analysis is to

A) identify the legal ramifications and responsibilities of their product or service.
B) examine the linkages within each product's value chain.
C) confirm that all variables have been included and taken into consideration.
D) ensure that quality management is adequately addressed.
E) examine the potential synergies among the corporation's product or business units.

Question 44

A value chain is a linked set of value-creating activities.

Question 45

Discuss the three basic organizational structures.

Question 46

According to the text,which one of the following is not descriptive of a corporation's culture?

A) A corporation's culture is a collection of beliefs, expectations, and values learned and shared by the corporation's members and transmitted from one generation of employees to another.
B) Corporate cultures are only temporary and can be easily changed.
C) Culture gives a company a sense of identity.
D) The culture reflects the company's values.
E) Cultures have a powerful influence on the behavior of managers and can strongly affect a corporation's ability to shift its strategic direction.

Question 47

When the value chains of two separate products or services share activities,such as the same marketing channels,in order to reduce costs,this is an example of

A) economies of scope.
B) economies of scale.
C) economies of integration.
D) economies of learning.
E) outsourcing.

Question 48

What is R&D intensity?

Question 49

According to Porter,a manufacturing firm's support activities usually begin with inbound logistics,go through an operations process in which a product is manufactured,and continue on to outbound logistics,and finally to service.

Question 50

Which of the following best describes a simple structure?

A) Work is divided into subunits on the basis of such functions as manufacturing, marketing, finance, and human resources.
B) This is most appropriate for large corporations with many product lines in several related industries, with employees acting as functional specialists attempting to gain synergy among divisional activities.
C) This is most appropriate for small, entrepreneur-dominated companies with one or two product lines that operate in a small niche market, with employees acting as jack-of-all trades.
D) Employees have two or more superiors, a project manager and a functional manager.
E) This is most appropriate for large corporations with many product lines in several unrelated industries, with employees acting as functional specialists but with no attempt at gaining synergy among the divisions.

Question 51

Which one of the following best describes a conglomerate structure?

A) Work is divided into subunits on the basis of such functions as manufacturing, marketing, finance, and human resources.
B) This is most appropriate for large corporations with many product lines in several related industries, with employees acting as functional specialists attempting to gain synergy among divisional activities.
C) This is most appropriate for small, entrepreneur-dominated companies with one or two product lines that operate in a small niche market, with employees acting as jack-of-all trades.
D) Employees have two or more superiors, a project manager and a functional manager.
E) This is appropriate for a large corporation with many product lines in several unrelated industries.

Question 52

A company's center of gravity is usually the point at which the company started.

Question 53

Which of the following describes a typical functional structure?

A) Employees tend to be specialists in the business functions important to that industry such as manufacturing, marketing, finance, and human resources.
B) This is most appropriate for large corporations with many product lines in several related industries, with employees acting as specialists attempting to gain synergy among divisional activities.
C) This is most appropriate for small, entrepreneur-dominated companies with one or two product lines that operate in a small niche market, with employees acting as jack-of-all trades.
D) Employees have two or more superiors, a project manager and a functional manager.
E) This is most appropriate for large corporations with many product lines in several unrelated industries, with employees acting as specialists but with no attempt at gaining synergy among the divisions.

Question 54

A divisional structure has no functional or product categories and is appropriate for a small,entrepreneur-dominated company with one or two product lines that operates in a reasonably small,easily identifiable market niche.

Question 55

Distinguish between continuous and intermittent manufacturing systems,providing examples of each.

Question 56

What are the two distinct attributes of corporate culture?

A) differentiation and integration
B) durability and imitability
C) concern for people and concern for task
D) intensity and integration
E) amount of complexity and tolerance of change

Question 57

Define a value chain and the significance of the center of gravity.

Question 58

A functional structure is appropriate for a medium-sized firm with several product lines in one industry.

Question 59

Discuss primary and support activities in a value chain.

Question 60

A company's center of gravity is the part of the value chain that is most important to the company and the point where its greatest expertise and core competencies lie.

Question 61

Which of the following is not a function of corporate culture?

A) conveys a sense of identity for employees
B) adds to the stability of the organization as a social system
C) helps generate employee commitment to something greater than themselves
D) keeps people guessing about what to do next
E) serves as a frame of reference for employees to use as a guide for appropriate behavior

Question 62

Which of the following statements is not true concerning a corporate reputation?

A) It is a widely held perception of a company by the general public.
B) A good corporate reputation can be a strategic resource.
C) There is a positive relationship between corporate reputation and financial performance.
D) Reputation tends to be long lasting and hard for others to duplicate.
E) Research shows no positive relationship between corporate reputation and financial performance.

Question 63

An automobile assembly line is an example of which approach to manufacturing?

A) continuous system
B) debt capacity
C) sequential processing
D) job shop
E) intermittent system

Question 64

As compared to a firm with low financial leverage,a firm with a high amount of financial leverage in an expanding market should have

A) lower profits.
B) higher profits.
C) higher earnings per share.
D) lower earnings per share.
E) higher sales revenue.

Question 65

The ratio of total debt to total assets is known as

A) budgeting leverage.
B) capital finance.
C) capital budgeting.
D) financial leverage.
E) financial budgeting.

Question 66

The displacement of one technology by another,as shown by two S-shaped curves on a graph,is referred to as

A) economies of scope versus operating leverage.
B) technology transfer.
C) the R&D mix.
D) technological discontinuity.
E) a disjunctive learning or experience curve.

Question 67

When scientists concentrate on quality control and the development of design specifications and improved production equipment,it is referred to as

A) basic R&D.
B) product R&D.
C) engineering R&D.
D) life cycle R&D.
E) R&D mix.

Question 68

Which of the following is a function of corporate culture?

A) It encourages a laissez faire set of attitudes.
B) It encourages flexibility and thus constant change.
C) It conveys a sense of identity for employees.
D) It generates creative approaches to new situations.
E) It focuses employee commitment on their careers.

Question 69

Through market research,corporations are able to practice ________ with various products or services so that managers can discover what niches to seek,which new types of products to develop,and how to ensure that a company's many products do not directly compete with one another.

A) marketing position.
B) product life cycle.
C) market segmentation.
D) marketing mix.
E) marketing leverage.

Question 70

According to the text,the primary task of the operations manager is to

A) make sure all the products or services are producing maximum revenue.
B) develop and operate a system that will produce the required number of products or services with a certain quality, at a given cost, within an allotted time.
C) make sure the process has a high quality control.
D) ensure that the process is manufactured or delivered as efficiently as possible.
E) interface with the other functional departments to coordinate their operations in avoiding duplication of effort.

Question 71

The breadth of an organization's culture or the extent to which units throughout an organization share a common culture is also known as

A) cultural intensity.
B) cultural diversification.
C) cultural integration.
D) cultural strategy.
E) cultural prerogative.

Question 72

The particular combination of product,place,promotion,and price is called

A) marketing position.
B) product life cycle.
C) market segmentation.
D) marketing mix.
E) marketing leverage.

Question 73

The process of taking a new technology from the laboratory to the marketplace is called

A) economies of scope versus operating leverage.
B) the R&D mix.
C) technological competence.
D) technology transfer.
E) technology discontinuity.

Question 74

Which of the following terms best describes a system in which items are normally processed sequentially,but the work and sequence of the process vary?

A) continuous system
B) debt capacity
C) chronological processing
D) operating leverage
E) intermittent system

Question 75

In Christensen's book,The Innovator's Dilemma,he explains that established market leaders are typically reluctant to move in a timely manner to a new technology.This reluctance to switch technologies is because the resource allocation process in most companies gives priority to those projects with the greatest likelihood of generating a

A) good return of investment.
B) high net present value.
C) significant cost reduction.
D) reduction in total operating expenses.
E) lowered time spent during technology implementation.

Question 76

What is the attribute of corporate culture that is the degree to which members of a unit accept the norms,values,or other culture content associated with the unit?

A) integration
B) strength
C) intensity
D) coordination
E) unity

Question 77

Which of the following is not a responsibility of a research and development manager?

A) choosing among alternative new technologies to use within the corporation
B) developing methods of embodying the new technology in new products and processes
C) deploying resources so that the new technology can be successfully implemented
D) taking the design and operationalizing the plan into mass production
E) suggesting and implementing a corporation's technological strategy in light of its corporate objectives and policies

Question 78

The proposition that silicon chips double in complexity every 18 months is referred to as

A) Ohm's Law.
B) Moore's Law.
C) Porter's Five Forces Model.
D) Mintzberg's Rule.
E) Keynesian's Theory.

Question 79

An example of the promotion variable of the marketing mix is

A) advertising.
B) discounts.
C) location.
D) services.
E) quality.

Question 80

A graph showing time plotted against the dollar sales of a product as it moves from introduction through growth and maturity to decline is called the

A) marketing position.
B) product life cycle.
C) market segmentation.
D) marketing mix.
E) marketing leverage.