Deck 2: Identifying Competitive Advantages

Question 1

A leadership plan that achieves a specific set of goals or objectives is a business strategy.

Answer 1

True

Question 2

In a SWOT analysis, potential external threats are harmful when they identify all threats or risks detrimental to your organization, including new market entrants, substitute products, employee turnover, differentiating products, shrinking markets, adverse changes in regulations, economic shifts, and so on.

Answer 2

True

Question 3

Decreasing customer loyalty, increasing costs, and decreasing sales are all examples of business strategies.

Answer 3

False

Question 4

Porter's Five Forces Model outlines the process for a sales strategy.

Question 5

In a SWOT analysis, potential internal strengths are helpful when they identify all key strengths associated with the competitive advantage including cost advantages, new and/or innovative services, special expertise and/or experience, proven market leader, improved marketing campaigns, and so on.

Question 6

FedEx created a first-mover advantage by developing its customer self-service software, which allows people to request parcel pickups, print mailing slips, and track parcels online.

Question 7

A SWOT analysis evaluates an organization's strengths, worries, opportunities, and technologies to identify significant influences that work for or against business strategies.

Question 8

Competitive advantages provide the same product or service either at a lower price or with additional value that can fetch premium prices.

Question 9

To combat business challenges, leaders communicate and execute business strategies (from the Greek word stratus for army and ago for leading).

Question 10

A first-mover advantage is the process of gathering information about the competitive environment, including competitors' plans, activities, and products, to improve a company's ability to succeed.

Question 11

A SWOT analysis evaluates an organization's strengths, weaknesses, opportunities, and threats to identify significant influences that work for or against business strategies.

Question 12

In a SWOT analysis, potential external opportunities are helpful when they identify all significant trends along with how the organization can benefit from each, including new markets, additional customer groups, legal changes, innovative technologies, population changes, competitor issues, and so on.

Question 13

When a company is the first to market with a competitive advantage, it gains a particular benefit known as competitive intelligence.

Question 14

In a SWOT analysis, potential internal weaknesses are harmful when they identify all key areas that require improvement.Weaknesses focus on the absence of certain strengths, including absence of an Internet marketing plan, damaged reputation, problem areas for service, outdated technology, employee issues, and so on.

Question 15

Businesses rarely need to update business strategies as the business environment remains relatively stable.

Question 16

In a SWOT analysis, strengths and weaknesses originate inside an organization, or internally.Opportunities and threats originate outside an organization, or externally, and cannot always be anticipated or controlled.

Question 17

A SWOT analysis will evaluate potential internal strengths, internal weaknesses, and external opportunities.

Question 18

Mark Peterson identified the Porter's Five Forces Model which analyzes the competitive forces within a business environment.

Question 19

Attracting new customers, decreasing costs, and entering new markets are all examples of successful business strategies.

Question 20

A SWOT analysis evaluates an organization's strengths, weaknesses, objectives, and threats.

Question 21

Rivalry among existing competitors refers to the ability of buyers to affect the price they must pay for an item.

Question 22

Primary value activities are standardized activities that accomplish a specific task, such as processing a customer's order.

Question 23

According to Porter it is recommended to adopt only one of the three generic strategies.

Question 24

Buyer power is included as one of Porter's three generic strategies.

Question 25

With the Five Forces Model, companies should watch the forces in the market.If the forces are strong, competition generally increases, and if the forces are weak, competition typically decreases.

Question 26

Product differentiation occurs when a company develops unique differences in its products or services with the intent to influence demand.

Question 27

Porter has identified three generic business strategies including focused, broad cost leadership, and switching strategy.

Question 28

Value chain analysis views a firm as a series of business processes that each adds value to the product or service.

Question 29

Supplier power is one of Porter's five forces and it measures the suppliers' ability to influence the prices they charge for supplies (including materials, labor, and services).

Question 30

A business process is a standardized set of activities that accomplish a specific task, such as processing a customer's order.

Question 31

A standardized set of activities that accomplish a specific task is called a supply chain component.

Question 32

Buyer power is the ability of buyers to affect the price they must pay for an item.

Question 33

The value chain will group a company's activities into two categories: primary value activities and support value activities.

Question 34

Tiffany & Company competes in the marketplace by offering high-cost custom jewelry.Tiffany & Company is following a broad market and cost leadership strategy.

Question 35

According to Porter's three generic strategies, Walmart is following a business strategy that focuses on broad market and low cost.

Question 36

Polaroid had a unique competitive advantage for many years until it forgot to observe competitive intelligence.The firm went bankrupt when people began taking digital pictures.Polaroid provides a great example of Porter's supplier power.

Question 37

The threat of substitute products or services refers to the power of competitors to enter a new market.

Question 38

There are many challenges to changing doctors, including transferring medical records and losing the doctor patient relationship along with the doctor's knowledge of the patient's history.Changing doctors provides a great example of switching costs.

Question 39

Inbound logistics and operations are part of the primary value activities.

Question 40

The threat of substitute products or services refers to the power of customers to purchase alternatives.

Question 41

Which group of stakeholders' primary interests include maximizing profits, growing market share, and high return on investment?

A)Partners/Suppliers
B)Shareholders/Investors
C)Community
D)Government

Question 42

Which group of stakeholders' primary interests include professional associations, ethical recycling, and increasing employment?

A)Employees
B)Shareholders/Investors
C)Community
D)Customers

Question 43

Identifying competitive advantages can be difficult, which explains why most competitive advantages are typically

A)temporary.
B)satisfactory.
C)terminated.
D)unsuccessful.

Question 44

Which of the following is not a typical way that a company would duplicate a competitive advantage?

A)Acquiring the new technology.
B)Copying the business operations.
C)Hiring away key employees.
D)Carrying large product inventories.

Question 45

A __________ features a product or service on which customers place a greater value than they do on similar offerings from competitors.

A)Competitive advantage
B)Competitor advantage
C)Power advantage
D)First mover advantage

Question 46

Which of the following represents a reason why competitive advantages are typically temporary?

A)The competitor will hire away your key employees.
B)The competitor quickly seeks ways to duplicate your business operations.
C)The competitor will purchase new technology.
D)All of these.

Question 47

Which group of stakeholders' primary interests include exceptional customer service, high-quality products, and ethical dealings?

A)Partners/Suppliers
B)Shareholders/Investors
C)Community
D)Customers

Question 48

Which of the following is a tool a manager can use to analyze competitive intelligence and identify competitive advantages?

A)The three generic strategies.
B)The threat of substitute buyer power.
C)Differentiated costs.
D)Supplier loyalty.

Question 49

Which group of stakeholders' primary interests include adhering to regulations/laws, increasing employment, and ethical taxation reporting?

A)Partners/Suppliers
B)Shareholders/Investors
C)Community
D)Government

Question 50

The process of gathering information about the competitive environment, including competitors' plans, activities, and products, to improve a company's ability to succeed is the definition of ___________.

A)Feedback
B)Information
C)Competitive intelligence
D)Data

Question 51

Firm infrastructure and human resource management are part of the support value activities.

Question 52

A business strategy achieves a specific set of goals which include __________.

A)Developing new products or services, attracting new competition
B)Increasing costs, attracting new competition
C)Attracting new customers, developing new products or services
D)All of these

Question 53

Inbound logistics and operations are part of the support value activities.

Question 54

Firm infrastructure and human resource management are part of the primary value activities.

Question 55

Which group of stakeholders' primary interests include fair compensation, job security, and ethical conduct/treatment?

A)Employees
B)Shareholders/Investors
C)Community
D)Customers

Question 56

Updating business strategies is a continuous undertaking as internal and external environments ________.

A)Become less competitive
B)Remain stagnant
C)Rapidly change
D)Become more consistent

Question 57

Which group of stakeholders' primary interests include reliable contracts, ethical materials handling, and responsible production?

A)Partners/Suppliers
B)Shareholders/Investors
C)Community
D)Government

Question 58

What is a competitive advantage?

A)A product that an organization's customers place a lesser value on than similar offerings from a competitor.
B)A feature of a product or service on which customers place a lesser value than they do on similar offerings from a supplier.
C)A service that an organization's customers place a lesser value on than similar offerings from a supplier.
D)A feature of a product or service on which customers place a greater value than they do on similar offerings from competitors.

Question 59

A first-mover advantage occurs when a company is the first to market with a competitive advantage.All of the following companies were first-movers except ____________.

A)FedEx - online self-service software
B)Apple - iPad
C)Apple - iPod
D)Microsoft - Bing Search Engine

Question 60

What is a person or group that has an interest or concern in an organization?

A)Stakeholder
B)Business strategy
C)Supplier
D)Partner

Question 61

What is a SWOT analysis?

A)Evaluation of an organization's strengths, weaknesses, opportunities, and threats to identify significant influences that work for or against business strategies.
B)Analysis of the competitive forces within the environment in which a company operates to assess the potential for profitability in an industry.
C)View of a firm as a series of business processes, each of which adds value to the product or service.
D)Generic business strategies that are neither organization nor industry specific and can be applied to any business, product, or service.

Question 62

Where would you categorize strengths in a SWOT analysis?

A)Internal, helpful
B)Internal, harmful
C)External, helpful
D)External, harmful

Question 63

Which of the following are included as potential internal weaknesses in a SWOT analysis that are harmful to an organization?

A)Core competencies, market leaders, cost advantages, excellent management.
B)Lack of strategic direction, obsolete technologies, lack of managerial talent, outdated product line.
C)Expanded product line, increase in demand, new markets, new regulations.
D)New entrants, substitute products, shrinking markets, costly regulatory, requirements.

Question 64

What are Porter's three generic strategies?

A)Evaluation of an organization's strengths, weaknesses, opportunities, and threats to identify significant influences that work for or against business strategies.
B)Analysis of the competitive forces within the environment in which a company operates to assess the potential for profitability in an industry.
C)View of a firm as a series of business processes, each of which adds value to the product or service.
D)Generic business strategies that are neither organization nor industry specific and can be applied to any business, product, or service.

Question 65

Which of the following are included as potential external weaknesses in a SWOT analysis that are harmful to an organization?

A)Core competencies, market leaders, cost advantages, excellent management.
B)Lack of strategic direction, obsolete technologies, lack of managerial talent, outdated, product line.
C)Expanded product line, increase in demand, new markets, new regulations.
D)New entrants, substitute products, shrinking markets, costly regulatory, requirements.

Question 66

Which of the following describes a stakeholder?

A)A leadership plan that achieves a specific set of goals or objectives.
B)A feature of a product or service on which customers place a greater value.
C)A person or group that has an interest or concern in an organization.
D)Information about a competitive environment.

Question 67

Where would you categorize threats in a SWOT analysis?

A)Internal, helpful
B)Internal, harmful
C)External, helpful
D)External, harmful

Question 68

Which of the following are included as potential internal strengths in a SWOT analysis that are helpful to an organization?

A)Core competencies, market leaders, cost advantages, excellent management.
B)Lack of strategic direction, obsolete technologies, lack of managerial talent, outdated product line.
C)Expanded product line, increase in demand, new markets, new regulations.
D)New entrants, substitute products, shrinking markets, costly regulatory, requirements.

Question 69

Where would you categorize weaknesses in a SWOT analysis?

A)Internal, helpful
B)Internal, harmful
C)External, helpful
D)External, harmful

Question 70

What is included in a SWOT analysis?

A)Strengths, weaknesses, organizations, and technology.
B)Strengths, weaknesses, opportunities, and threats.
C)Success, willingness, opportunities, and technology.
D)Success, weaknesses, organizations, and threats.

Question 71

Which strategy below helps an organization choose its business focus?

A)SWOT Analysis
B)The Five Forces Model
C)Value Chain Analysis
D)Three Generic Strategies

Question 72

What is Porter's Five Forces Model?

A)Evaluation of an organization's strengths, weaknesses, opportunities, and threats to identify significant influences that work for or against business strategies.
B)Analysis of the competitive forces within the environment in which a company operates to assess the potential for profitability in an industry.
C)View of a firm as a series of business processes, each of which adds value to the product or service.
D)Generic business strategies that are neither organization nor industry specific and can be applied to any business, product, or service.

Question 73

Which of the following are included as potential external opportunities in a SWOT analysis that are helpful to an organization?

A)Core competencies, market leaders, cost advantages, excellent management.
B)Lack of strategic direction, obsolete technologies, lack of managerial talent, outdated, product line.
C)Expanded product line, increase in demand, new markets, new regulations.
D)New entrants, substitute products, shrinking markets, costly regulatory, requirements.

Question 74

Which of the following statements is correct when considering a SWOT analysis?

A)Strengths and weaknesses originate outside an organization.
B)Opportunities and threats originate outside an organization.
C)Strengths and threats originate inside an organization.
D)Opportunities and weaknesses organization outside an organization.

Question 75

Where would you categorize opportunities in a SWOT analysis?

A)Internal, helpful
B)Internal, harmful
C)External, helpful
D)External, harmful

Question 76

What executes business strategy?

A)SWOT Analysis
B)The Five Forces Model
C)Value Chain Analysis
D)Three Generic Strategies

Question 77

Which of the following evaluates a project's position?

A)SWOT Analysis
B)The Five Forces Model
C)Value Chain Analysis
D)Three Generic Strategies

Question 78

What is a value chain analysis?

A)Evaluation of an organization's strengths, weaknesses, opportunities, and threats to identify significant influences that work for or against business strategies.
B)Analysis of the competitive forces within the environment in which a company operates to assess the potential for profitability in an industry.
C)View of a firm as a series of business processes, each of which adds value to the product or service.
D)Generic business strategies that are neither organization nor industry specific and can be applied to any business, product, or service.

Question 79

Which of the following statements is correct when considering a SWOT analysis?

A)Strengths and weaknesses originate inside an organization.
B)Opportunities and threats originate inside an organization.
C)Strengths and threats originate inside an organization.
D)Opportunities and weaknesses organization outside an organization.

Question 80

What evaluates industry attractiveness?

A)SWOT Analysis
B)The Five Forces Model
C)Value Chain Analysis
D)Three Generic Strategies