Question 1

Ted is an accountant at ABC Company.He is calculating the total revenues minus total costs before tax.Ted is calculating the

Accepted Answer

Ted is calculating the total revenues minus total costs before tax, which is the net profit.

Question 2

When Rollie's car wash began to lose business to rivals,Rollie read publications for car wash owners to learn the best practices in the industry.Then she implemented the best practices.Rollie is using ____ to improve her car wash.

Accepted Answer

Rollie is using benchmarking to improve her car wash. Benchmarking involves comparing one's own business practices to those of other successful businesses in the same industry, with the goal of improving performance. Rollie read publications for car wash owners to learn about the best practices in the industry and then implemented them, demonstrating the use of benchmarking to improve her business.

Question 3

Innovation refers to the act of

Accepted Answer

Innovation is the process of creating new products and processes. Seeking patent protection is one method that a company may use to protect their innovations, but it is not the definition of innovation itself. Repackaging current products may be a part of a company's innovation strategy, but it does not always constitute true innovation unless it involves significant changes or improvements.

Question 4

Give one example of a firm that has achieved a distinctive competency in efficiency and describe that competency.Then do the same for a firm with a distinctive competency in quality,innovation,and responsiveness to customers.

Accepted Answer

The answer of Give one example of a firm that...

Question 5

A company's competitive advantage is more durable when

Accepted Answer

A company's competitive advantage is more durable when barriers to imitation are high, as it prevents competitors from easily replicating the company's unique resources or capabilities.

Question 6

Customer responsiveness includes which of the following?

Accepted Answer

Customer responsiveness includes identifying and satisfying customer needs, improving product quality, customizing products, and superior product design. Therefore, all of the listed choices are included in customer responsiveness.

Question 7

Explain how tangible and intangible resources and capabilities can lead to distinctive competencies.Give specific examples.

Accepted Answer

The answer of Explain how tangible and intangible resources and...

Question 8

Ray is a doctor who treats individuals with heart conditions.Ben is one of Ray's patients.Which function of the value chain is in operation when Ray checks Ben's blood pressure?

Accepted Answer

Checking Ben's blood pressure is a part of the Production function of the value chain as it involves delivering the healthcare service to the patient, which is the main output of the healthcare industry.

Question 9

Intel's invention of the microprocessor in the early 1970s,Cisco's development of the router for routing data over the Internet in the mid-1980s,and Apple's development of the iPod,iPhone,and iPad in the 2000s can be referred to as _____ innovations.

Accepted Answer

The innovations mentioned all involve the development of new products that had a significant impact on the market and how people use technology. Process innovations involve improvements to how a product is made or delivered, customer innovations focus on improving the customer experience, sector innovations involve changes to the industry as a whole, and absorptive innovations involve adopting and integrating external knowledge and technology.

Question 10

Kim's T-shirt factory was expert at providing unique and high-quality but costly shirts.Even though the designs were very nice and the amount of detail increased over time,the high price meant that few customers bought shirts from her and her factory went bankrupt.Kim's factory failed due to

Accepted Answer

The Icarus paradox refers to a situation where a company's strengths become its weaknesses, leading to its downfall. In this case, Kim's factory focused on high-quality, unique designs, but the high costs associated with these strengths led to a lack of customers and eventual bankruptcy.

Question 11

When companies find it hard to change their strategies and structures to adapt to changing competitive conditions,they suffer from

Accepted Answer

Inertia refers to a resistance to change, which may result in companies being unable to adapt their strategies and structures to changing competitive conditions.

Question 12

A company's strategic commitments

Accepted Answer

Strategic commitments are a company's investment in a particular set of resources and capabilities that give it a competitive advantage and allow it to stand out from its competitors. These commitments are not easily imitated by competitors, thus providing the company with a sustainable competitive advantage. In essence, strategic commitments help a company develop a unique identity that sets it apart from its competitors.

Question 13

Which of the following is not a way that companies can avoid failure?

Accepted Answer

The answer of Which of the following is not a...

Question 14

Kodak possesses the leading imaging technology.This technology has allowed the company to differentiate its products from those offered by rivals.Imaging is Kodak's

Accepted Answer

Kodak's imaging technology is their distinctive competence, as it sets them apart from their competitors and gives them a competitive advantage in the market.

Question 15

The Icarus paradox suggests that

Accepted Answer

The Icarus paradox suggests that companies may become so dazzled by their early success that they believe more of the same kind of effort will assure future success, leading to their downfall. This is a warning against complacency and the assumption that past success guarantees future success. Therefore, option C is the correct choice.

Question 16

Dale's horseshoeing methods save time and money for his employer,but when Dale suggests that everyone use his method,his boss says,"No.That's not the way we've always done it around here." Dale's employer is suffering from

Accepted Answer

Dale's employer is suffering from organizational inertia, which is the resistance to change and the tendency to continue doing things the way they have always been done. By rejecting Dale's suggestion, the employer is maintaining the status quo and unwilling to adopt new methods that could potentially improve efficiency and save money.

Question 17

The concept of quality applies to

Accepted Answer

The concept of quality applies to all products, regardless of their price, brand or purpose. Quality can be defined as the degree to which a product meets or exceeds customer expectations, and it can be evaluated based on various criteria such as functionality, reliability, durability, safety, and aesthetics. Therefore, any product that is produced, marketed, and consumed can benefit from quality management practices, regardless of its category or industry.

Question 18

____ can help an organization overcome inertia.

Accepted Answer

A crisis can shake up an organization and force it to take action, reducing inertia. When faced with a crisis, organizations may be forced to adjust strategies or adopt new ones in order to survive, which can help them overcome previous strategic commitments and inertia.

Question 19

Cost of goods sold is determined by examining which of the following?

Accepted Answer

Cost of goods sold is a key component of the income statement, which outlines the revenue earned and expenses incurred by a company during a specific period. It is calculated by subtracting the beginning inventory from the cost of goods purchased or manufactured during the period and adding the ending inventory.

Question 20

Industry dynamism refers to

Accepted Answer

Industry dynamism refers to a rapidly changing industry environment in terms of competition, technology, regulation, and customer demands.

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