Question 1

When identifying competitive advantages,comparisons made between a firm and its strongest competitors should be based on ________.&#10;A) managerial inputs&#10;B) customer opinions&#10;C) industry analysts&#10;D) expert reviews

Accepted Answer

Competitive advantages are often identified by understanding how customers view the firm in comparison to its competitors. Customer opinions provide direct insight into the firm's strengths and weaknesses from the perspective of those who purchase and use the products or services, making it a valuable metric for comparison.

Question 2

What is the first step in the process of identifying competitive advantages?&#10;A) prioritizing customers' buying criteria&#10;B) comparing the firm to competitors&#10;C) analyzing the firm's value chain&#10;D) assessing customers' loyalties

Accepted Answer

A

Question 3

Studies show that the resource-based view more accurately predicts firm-level success than the market-based view.

Accepted Answer

The resource-based view emphasizes the importance of a firm's unique resources and capabilities in achieving sustainable competitive advantage, while the market-based view focuses on external market conditions and positioning. Many studies have found that the resource-based view is a more accurate predictor of firm-level success, as a firm's internal resources and capabilities can be developed and leveraged to adapt to changes in market conditions and maintain a competitive advantage over time.

Question 4

What is the difference between a market-based view of strategy development and a resource-based view? Briefly outline the steps for developing a strategy for each philosophy.

Accepted Answer

The answer of What is the difference between a market-based...

Question 5

According to the market-based view of strategy development,the success of a firm most likely depends on ________.&#10;A) organizational resources&#10;B) industry attractiveness&#10;C) employee strengths&#10;D) customer loyalty

Accepted Answer

The market-based view of strategy development suggests that a firm's success most depends on the attractiveness of the industry in which it operates. This includes market size, growth rate, profitability, and competitive intensity. While organizational resources, employee strengths, and customer loyalty can all contribute to a firm's success, they are ultimately secondary to the external market conditions.

Question 6

Which of the following is a true statement about competitive advantages?&#10;A) Tangible resources are more important than intangible resources.&#10;B) Tangible resources are more difficult to obtain than intangible resources.&#10;C) Valuable and substitutable resources increase long-term customer loyalty rates.&#10;D) Valuable and rare resources that are easily substituted provide short-term advantages.

Accepted Answer

Valuable and rare resources that are easily substituted can indeed provide short-term competitive advantages because they are unique and can differentiate a company from its competitors. However, if these resources are easily substituted, the advantage may not last long as competitors find alternatives.

Question 7

The strategic importance of value chain activities varies by industry.

Accepted Answer

Each industry has a unique value chain and the specific activities within it that provide the greatest strategic importance will differ. For example, in a manufacturing industry, supply chain management and production processes may be critical, while in a service industry, customer service and marketing activities may be more important. It is essential for companies to understand the strategic importance of their particular value chain activities to gain a competitive advantage.

Question 8

According to modern strategic management theories,the best competitive advantages are ________.&#10;A) exploitable in other markets&#10;B) based on customer demands&#10;C) research oriented&#10;D) intangible

Accepted Answer

The answer of According to modern strategic management theories,the best...

Question 9

According to a market-based view of strategy development,the attractiveness of an industry is determined by all of the following EXCEPT ________.&#10;A) transferable resources of organizations&#10;B) bargaining powers of suppliers&#10;C) rivalries among competitors&#10;D) threats from new entrants

Accepted Answer

According to a market-based view of strategy development, the attractiveness of an industry is determined by factors such as the bargaining power of suppliers, the rivalries among competitors, the threats from new entrants, and the availability of transferable resources. Therefore, the correct answer is A, as transferable resources are not a factor in determining industry attractiveness.

Question 10

Which of the following best describes a capability that is valuable,rare,transferable,and easy to imitate?&#10;A) core competence&#10;B) tangible advantage&#10;C) short-term advantage&#10;D) not a competitive advantage

Accepted Answer

The answer of Which of the following best describes a...

Question 11

A resource-based view of strategy development asserts that a firm's success depends on ________.&#10;A) profitability ratios&#10;B) industry attractiveness&#10;C) industry macro environments&#10;D) sustainable competitive advantages

Accepted Answer

The answer of A resource-based view of strategy development asserts...

Question 12

What is the first step of strategy development if a firm follows a resource-based view?&#10;A) targeting profitable market segments&#10;B) analyzing the firm's strengths and weaknesses&#10;C) assessing the company's external environment&#10;D) identifying sustainable competitive advantages

Accepted Answer

The answer of What is the first step of strategy...

Question 13

Which of the following is NOT a characteristic of a resource that provides a firm with a sustainable competitive advantage?&#10;A) transferable&#10;B) unique&#10;C) tangible&#10;D) valuable

Accepted Answer

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

Question 14

According to the market-based view of strategy development,how a firm competes is more important than where a firm competes.

Accepted Answer

The answer of According to the market-based view of strategy...

Deck 24: Note : Competitive Advantages