Question 1

The ________ element of the value chain relates to activities such as receiving and warehousing.&#10;A) outbound logistics&#10;B) inbound logistics&#10;C) procurement&#10;D) infrastructure

Accepted Answer

Inbound logistics is the element of the value chain that involves receiving and warehousing of raw materials and other inputs. Outbound logistics, on the other hand, relates to activities such as distribution and delivery of finished products to customers. Procurement refers to the process of acquiring the necessary inputs for production, while infrastructure involves the support services that enable the organization to operate efficiently, such as IT, HR, and accounting.

Question 2

Which of the following is NOT a primary activity of typical value chains?&#10;A) service&#10;B) operations&#10;C) human resources&#10;D) outbound logistics

Accepted Answer

Human resources is not a primary activity of typical value chains. The primary activities of a typical value chain are inbound logistics, operations, outbound logistics, marketing and sales, and service. Human resources is considered a support activity.

Question 3

On a value-chain analysis using an SPA,a firm determines that its performance is low in the area of operations.Operations is an area of low importance to the firm.Which of the following would be the best recommendation for the firm?

A) Do not focus additional effort on operations.
B) Focus more effort and resources on operations.
C) Modify the value chain to emphasize operations.
D) Re-evaluate how the firm handles current operations.

A

Accepted Answer

Since operations is an area of low importance to the firm, it would not make sense for the firm to focus additional effort and resources on improving it. Instead, the firm can prioritize other areas of the value chain where it can improve its performance and add more value. Therefore, the best recommendation for the firm is to not focus additional effort on operations, as mentioned in option A.

Question 4

Firms can create ________ when they are able to perform value chain activities more effectively or efficiently than their competitors.&#10;A) consumer loyalty&#10;B) core competencies&#10;C) logistical strengths&#10;D) competitive advantage

Accepted Answer

Competitive advantage refers to a firm's ability to outperform its competitors in terms of value creation or delivering the same value at a lower cost. This is achieved when the firm can perform value chain activities more effectively or efficiently compared to competitors, which can lead to lower costs, higher quality, or better customer service, among other advantages. Core competencies, consumer loyalty, and logistical strengths are important elements of a firm's strategy, but they are not directly linked to the firm's ability to outperform competitors.

Question 5

Which of the following organizes all of the activities a firm performs to bring a product to the market?&#10;A) value chain&#10;B) operating matrix&#10;C) distribution channel&#10;D) situation assessment

Accepted Answer

The value chain is a framework that defines the various activities that a firm must perform in order to produce and deliver a product to the market. It includes primary activities such as inbound logistics, operations, outbound logistics, marketing and sales, and after-sales service, as well as support activities such as procurement, technology development, human resource management, and firm infrastructure. The value chain helps managers to identify areas where they can create value, reduce costs, and differentiate their products from those of their competitors.

Question 6

The primary purpose for conducting a value chain analysis is to ________.&#10;A) identify target markets&#10;B) analyze consumer trends&#10;C) generate a profit margin&#10;D) assess competitor strengths

Accepted Answer

A value chain analysis is primarily conducted to understand the activities that create value in a business and generate a profit margin. It helps in identifying areas for improvement to enhance profitability.

Question 7

Firm X performs the individual activities of its value chain more efficiently than is competitors.Firm X most likely has a ________.&#10;A) strategic plan&#10;B) cost advantage&#10;C) core competency&#10;D) differentiation advantage

Accepted Answer

Firm X's efficient performance of its value chain activities suggests it has a cost advantage over competitors, meaning it can produce goods or services at a lower cost than competitors.

Question 8

A company has a significant competitive advantage when it is more efficient than a rival in a value chain activity of high strategic importance.

Accepted Answer

Efficiency in a high strategic importance value chain activity can give a company a significant competitive advantage by allowing it to produce goods or services at a lower cost than its competitors, or by providing better quality products or services at the same cost. This can result in increased profitability, market share, and customer loyalty.

Question 9

In a typical value chain,service is considered a support activity rather than a primary activity.

Accepted Answer

Service is actually considered as a primary activity in many value chains, especially in service industries. It can be a crucial part of the overall customer experience and can differentiate the company from competitors. In fact, service may even be the core product itself in service industries such as healthcare or consulting.

Question 10

Which of the following is used to depict the importance of individual value chain activities on a two-dimensional matrix?&#10;A) integrated analysis&#10;B) dissonance analysis&#10;C) situation assessment&#10;D) strategic priority analysis

Accepted Answer

Strategic priority analysis is typically used to depict the importance of individual value chain activities on a two-dimensional matrix. This analysis helps organizations prioritize their activities and allocate resources effectively. Integrated analysis, dissonance analysis, and situation assessment are not commonly used for this purpose.

Question 11

What is a value chain? Why are the individual activities of the value chain important to a firm's overall strategy?

Accepted Answer

The answer of What is a value chain? Why are...

Question 12

Primary activities of a typical value chain relate to the creation or delivery of a product and include areas such as information management,process improvement,and employee compensation.

Accepted Answer

The answer of Primary activities of a typical value chain...

Deck 7: Note : Company Assessment - the Value Chain