Question 1

The term value chain refers to the idea that a company is

Accepted Answer

The term value chain specifically refers to a series of activities that a company engages in to create and deliver a product or service that is valued by customers. Thus, option C is the most accurate choice. Option A refers to industry segments, which may or may not be relevant to the company in question. Option B is similar, but does not necessarily capture the idea of activities being linked together in a specific sequence. Option D is too broad and general to be a specific definition of the term value chain. Therefore, option E is incorrect as well.

Question 2

Mike works as a corporate trainer,teaching new employees how to perform manufacturing tasks.Mike works in which value chain activity?

Accepted Answer

Mike is involved in the human resources value chain activity, which includes activities related to the recruitment, training, and development of employees.

Question 3

Which of the following support activities in the value chain refers to the companywide context within which all the other value creation activities take place?

Accepted Answer

Company infrastructure refers to the overall companywide context within which all the other value creation activities take place. It includes factors such as organizational structure, management style, planning systems, quality control, and other support systems. Human resources refers to the activities involved in recruiting, developing, and retaining employees. Information systems refer to the technology and systems used to support business operations and decision-making. Materials management refers to the activities involved in the acquisition, storage, and movement of materials within an organization. Operations refer to the core business activities involved in producing and delivering products or services.

Question 4

One of the most widely used measures of financial performance is

Accepted Answer

ROIC measures how much profit a company generates for each dollar invested in the business. It provides a good indication of the overall performance of a company and its ability to generate returns for its investors. Net profit margin, share value, net sales, and productivity are all important measures, but they do not provide the same comprehensive view of financial performance as ROIC.

Question 5

Which of the following distinctive competencies typically has the lowest barrier to imitation?

Accepted Answer

The answer of Which of the following distinctive competencies typically...

Question 6

Strong leadership from top management is

Accepted Answer

The answer of Strong leadership from top management is
...

Question 7

A product can be thought of as a(n)

Accepted Answer

A product is a package of attributes that are intended to satisfy the needs or wants of consumers. These attributes can include physical aspects, such as size and color, as well as intangible aspects, such as quality and brand reputation. While a product may be made up of different parts or configurations, it is ultimately defined by the attributes that make it appealing to consumers.

Question 8

Which of the following factors does not determine the durability of a company's competitive advantage?

Accepted Answer

A company's prior strategic commitments are internal decisions and do not directly determine the durability of its competitive advantage, unlike external factors such as barriers to imitation, competitor capabilities, industry dynamism, and product innovation rate.

Question 9

When a firm produces products that customers perceive as having higher utility than those of its rivals,this firm's source of competitive advantage is

Accepted Answer

The answer of When a firm produces products that customers...

Question 10

Cost accountants are responsible for gathering and monitoring data used for controlling the organization's costs.Cost accountants work in which value chain activity?

Accepted Answer

The answer of Cost accountants are responsible for gathering and...

Question 11

The four basic building blocks of competitive advantage are

Accepted Answer

The answer of The four basic building blocks of competitive...

Question 12

A company's competitive advantage will not endure for long when that competitive advantage can be

Accepted Answer

If a company's competitive advantage can be easily replicated by other companies, then it would not endure for long as competitors can quickly catch up and the market will become saturated.

Question 13

Efficiency is

Accepted Answer

Efficiency is defined as achieving maximum productivity with minimum wasted effort or expense. Therefore, option B is the best choice, as it refers to the cost of inputs required to produce a given output.

Question 14

Ford Motors developed the Explorer sports utility vehicle,the number 1 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

The answer of Ford Motors developed the Explorer sports utility...

Question 15

Research and development activities are concerned with

Accepted Answer

Research and development activities can pertain to all of these areas, including product design, production processes, service activities, manufacturing activities, and even intangible products such as software or intellectual property.

Question 16

Which primary activity in the value chain is concerned with the design of products and production processes?

Accepted Answer

Research and development is the primary activity in the value chain that is concerned with the design of products and production processes. R&D involves activities such as market research, product design, process design, and testing to develop new products and improve existing ones.

Question 17

Using the value chain model,which of the following primary activities is performed last,as inputs are transformed into outputs?

Accepted Answer

After-sales service and support is the last primary activity in the value chain model, occurring after the product or service has been delivered to the customer.

Question 18

How profitable a company is ultimately depends on

Accepted Answer

The value customers place on the company's products ultimately determines how profitable the company is. If customers perceive the products as valuable and are willing to pay a higher price for them, the company will generate more revenue and profit. Conversely, if customers do not see the value in the products, the company will struggle to generate profits.

Question 19

At the most basic level,a business is simply a device for

Accepted Answer

A business takes inputs such as materials, labor, and capital and transforms them into outputs such as goods or services to sell to customers. This process of transforming inputs into outputs is the fundamental purpose of a business.

Question 20

Using the value chain model,which of the following primary activities is performed first,as inputs are transformed into outputs?

Accepted Answer

The answer of Using the value chain model,which of the...

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