Question 1

In an interview with Lise Saari, former director of global workforce research at IBM, she notes that HR must be a true partner of the business, with a deep and up-to-date understanding of business realities and objectives, and must ensure HR initiatives fully support them at all points of the value chain. This is an example of

Accepted Answer

Managers must not ignore the importance of relationships among value-chain activities. These can be collaborative and strategic exchange relationships between value-chain activities either (a) within firms or (b) between firms. With regard to this example of the Lise Saari interview, this demonstrates interrelationships among activities within the firm.

Question 2

Which of the following examples demonstrates how successful organizations manage their primary activities?

Accepted Answer

Just-in-time (JIT) inventory systems were designed to achieve efficient inbound logistics, which is one of the five primary activities in value-chain analysis. With JIT inventory systems, parts deliveries arrive at the assembly plants only hours before they are needed.

Question 3

Which of the following lists consists of support activities?

Accepted Answer

Support activities in the value chain can be divided into four generic categories: general administration, human resource management, technology development, and procurement.

Question 4

Human resource management consists of activities involved in the recruiting, hiring, training, development, and compensation of all types of personnel. It supports

Accepted Answer

Human resource management consists of activities involved in the recruiting, hiring, training, development, and compensation of all types of personnel. It supports both individual primary and support activities and the entire value chain.

Question 5

Which of the following is not an advantage of Just-In-Time inventory systems?

Accepted Answer

With JIT inventory systems, parts deliveries arrive at the assembly plants only hours before they are needed. This requires greater reliance on superior performance of suppliers.

Question 6

XYZ Corp. is focusing on the objective of low-cost, high quality, on-time production by minimizing idle productive facilities and workers. The XYZ Corp. is taking advantage of a __________ system.

Accepted Answer

Just-in-time (JIT) inventory systems were designed to achieve efficient inbound logistics, which is one of the five primary activities in value-chain analysis. With JIT inventory systems, parts deliveries arrive at the assembly plants only hours before they are needed, which reduces idle production capacity.

Question 7

Advertising is a __________ activity. Supply of replacement parts is a __________ activity.

Accepted Answer

Five primary activities (inbound logistics, operations, outbound logistics, marketing and sales, and service) contribute to the physical creation of the product or service, its sale and transfer to the buyer, and its service after the sale. Inbound logistics is primarily associated with receiving, storing, and distributing inputs to the product. Marketing and sales activities include advertising.

Question 8

In terms of value chain analysis, a telephone operating company would find that negotiating and maintaining ongoing relations with regulatory bodies are important activities for achieving

Accepted Answer

Although general administration is sometimes viewed only as overhead, it can be a powerful source of competitive advantage. In a telephone operating company, for example, negotiating and maintaining ongoing relations with regulatory bodies can be among the most important activities for competitive advantage.

Question 9

A SWOT analysis alone __________ helps a firm develop competitive advantages that it can sustain over time.

Accepted Answer

SWOT analysis has much to offer, but only as a starting point. By itself, it rarely helps a firm develop competitive advantages that it can sustain over time.

Question 10

General administration is sometimes viewed as only _______ but can be a powerful source of competitive advantage.

Accepted Answer

Although general administration is sometimes viewed only as overhead, it can be a powerful source of competitive advantage.

Question 11

In assessing its primary activities, an airline would examine

Accepted Answer

Five primary activities: inbound logistics, operations (which would include baggage handling for an airline), outbound logistics, marketing and sales, and service contribute to the physical creation of the product or service, its sale and transfer to the buyer, and its service after the sale.

Question 12

A marketing department that promises delivery faster than the ability of the production department to produce is an example of a lack of understanding of the

Accepted Answer

Important to value-chain analysis are interrelationships which are the collaborative and strategic exchange relationships between value-chain activities either (a) within firms or (b) between firms. Strategic exchange relationships involve exchange of resources such as information, people, technology, or money that contribute to the success of the firm.

Question 13

Inbound logistics include

Accepted Answer

Inbound logistics is associated primarily with receiving, storing, and distributing inputs to the product. It includes material handling, warehousing, inventory control, vehicle scheduling, and returns to suppliers.

Question 14

In a retail service industry, which of the following is not a primary value-chain activity?

Accepted Answer

Primary value-chain activities include: inbound logistics, operations, outbound logistics, marketing and sales, and service. Human resource management is a support activity.

Question 15

Competition among organizations is played out over time. As circumstances, capabilities, and strategies change, _________ techniques do not reveal the dynamics of the competitive environment.

Accepted Answer

Competition among organizations is played out over time. As circumstances, capabilities, and strategies change, static analysis techniques do not reveal the dynamics of the competitive environment.

Question 16

German truck and trailer manufacturer, Schmitz Cargobull, mainly serves customers that are operators of truck or trailer fleets. What sets the company apart is its expertise in telematics (the integrated application of telecommunications data) to monitor the current state of any Schmitz Cargobull-produced trailer. This is an example of using ________ to enhance customer value and increase _______ position.

Accepted Answer

Information technology (IT) can also play a key role in enhancing the value that a company can provide its customers and, in turn, increasing its own revenues and profits. Schmitz Cargobull, a German truck and trailer manufacturer, uses IT to further its competitive position.

Question 17

___________ is/are associated with collecting, storing, and distributing the product or service to buyers. They consist of warehousing, material handling, delivery operation, order processing, and scheduling.

Accepted Answer

Outbound logistics is associated with collecting, storing, and distributing the product or service to buyers. These activities include finished goods, warehousing, material handling, delivery vehicle operation, order processing, and scheduling.

Question 18

Which of the following is a support activity?

Accepted Answer

Support activities in the value chain can be divided into four generic categories: general administration, human resource management, technology development, and procurement.

Question 19

Customer service includes

Accepted Answer

Service activity includes all actions associated with providing service to enhance or maintain the value of the product, such as installation, repair, training, parts supply, and product adjustment.

Question 20

According to value-chain analysis, which of the following would be considered part of the general administration in a firm?

Accepted Answer

General administration consists of a number of activities, including general management, planning, finance, accounting, legal and government affairs, quality management, and information systems. Administration typically supports the entire value chain and not individual activities.

Quiz 3: Assessing the Internal Environment of the Firm

Which of the following examples demonstrates how successful organizations manage their primary activities?

Which of the following lists consists of support activities?

Human resource management consists of activities involved in the recruiting, hiring, training, development, and compensation of all types of personnel. It supports

Which of the following is not an advantage of Just-In-Time inventory systems?

XYZ Corp. is focusing on the objective of low-cost, high quality, on-time production by minimizing idle productive facilities and workers. The XYZ Corp. is taking advantage of a __________ system.

Advertising is a activity. Supply of replacement parts is a activity.

In terms of value chain analysis, a telephone operating company would find that negotiating and maintaining ongoing relations with regulatory bodies are important activities for achieving

A SWOT analysis alone __________ helps a firm develop competitive advantages that it can sustain over time.

General administration is sometimes viewed as only _______ but can be a powerful source of competitive advantage.

In assessing its primary activities, an airline would examine

A marketing department that promises delivery faster than the ability of the production department to produce is an example of a lack of understanding of the

Inbound logistics include

In a retail service industry, which of the following is not a primary value-chain activity?

Competition among organizations is played out over time. As circumstances, capabilities, and strategies change, _________ techniques do not reveal the dynamics of the competitive environment.

___________ is/are associated with collecting, storing, and distributing the product or service to buyers. They consist of warehousing, material handling, delivery operation, order processing, and scheduling.

Which of the following is a support activity?

Customer service includes

According to value-chain analysis, which of the following would be considered part of the general administration in a firm?