Question 1

Which one of the following is not something that can be learned from doing a competitive strength assessment?
A)Factors on which a company is competitively strongest and weakest vis-à-vis key rivals
B)Whether a company should correct its weaknesses by adopting best practices and/or revamping the makeup of its value chain
C)Which of the rated companies is competitively strongest and what size competitive advantage it enjoys
D)Whether a company has a net competitive advantage or a net competitive disadvantage relative to key rivals (with the size of the advantage/disadvantage being indicated by the differences among the companies' competitive strength scores)
E)Which rival company is competitively weakest and the areas where it is most vulnerable to competitive attack

Accepted Answer

A competitive strength assessment does not directly determine whether a company should correct its weaknesses by adopting best practices or revamping its value chain; it focuses on evaluating competitive positions.

Question 2

Briefly discuss the meaning and significance of each of the following terms:
a.SWOT analysis
b.Company value chain
c.Industry value chain
d.Weighted competitive strength assessment
e.Benchmarking

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Question 3

How can a resource-based strategy lead to a sustainable competitive advantage?

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Question 4

A distinctive competence represents competitively superior resource strength.True or false? Explain your answer.

Accepted Answer

A distinctive competence is a competitively important activity that a company performs better than its rivals-it thus represents a competitively superior internal strength.It can enable a company to deliver standout value to customers (in the form of lower prices,better product performance,or superior service).

Question 5

Identify at least five indicators of whether a company's present strategy is working well.

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Question 6

Costs and price differences among competing companies can have origins in activities performed by
A)whether the company has a longer or shorter value chain than its close rivals.
B)value chains of the company's suppliers.
C)developing a "worry list" of problems and issues for managerial strategy making.
D)the company's internally performed activities (its own value chain),but also on costs in the value chain of its suppliers and distribution channel allies.
E)value chains of a company's distributors and retail dealers and forward channel allies.

Accepted Answer

The costs and price differences among competing companies can have origins in activities performed by the company's own value chain, as well as the value chains of its suppliers and distribution channel allies. Therefore, option D is the best choice as it includes both the company's internally performed activities and those of its suppliers and distribution channel allies.

Question 7

In conducting a SWOT analysis,is it enough to simply compile lists of the company's strengths,weaknesses,opportunities,and threats? Why or why not?

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Question 8

Identify the five questions that form the framework of evaluating a company's resources and competitive position.

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Question 9

Identify the six questions to consider in evaluating a company's ability to compete successfully against market rivals.

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Question 10

A company lacking stand-alone resource strength should focus on bundling several resource strengths into a core competence.True or false? Explain and support your answer.

Accepted Answer

Cross-functional capabilities draw on a number of different kinds of resources and are multidimensional in nature-they spring from the effective collaboration among people with different types of expertise working in different organizational units.A resource bundle is a linked and closely integrated set of competitive assets centered around one or more cross-functional capabilities.Resource bundles can sometimes pass the VRIN tests of a resource's competitive power even when the individual components of the resource bundle cannot.They fulfill an important strategic objective as it imparts a potential for attractive and long-lived profitability.

Question 11

Which of the following is not an option for remedying a forward channel-related cost disadvantage?
A)Negotiate more favorable prices with suppliers.
B)Integrate forward into company-owned retail outlets.
C)Collaborate closely with forward channel allies to identify mutual cost-saving opportunities.
D)Change to a more economical distribution strategy.
E)Pressure dealer-distributors to reduce their costs and markups.

Accepted Answer

Negotiating more favorable prices with suppliers is not related to remedying a forward channel-related cost disadvantage. It is a strategy aimed at reducing input costs from suppliers, not addressing costs associated with the distribution or selling of the product. Forward channel strategies involve the movement of goods from the company to the consumer, including distribution methods and retailing, not the procurement of inputs.

Question 12

Doing a competitive strength assessment entails
A)determining whether a company has a cost-effective value chain.
B)ranking the company against major rivals on each of the important factors that determine market success and ascertaining whether the company has a net competitive advantage or disadvantage versus major rivals.
C)identifying a company's core competencies and distinctive competencies (if any).
D)analyzing whether a company is well positioned to gain market share and be the industry's profit leader.
E)developing quantitative measures of a company's chances for future profitability.

Accepted Answer

A competitive strength assessment involves comparing a company to its major rivals on important factors that determine success in the market. This helps to determine whether the company has a net competitive advantage or disadvantage. While options A, C, D, and E may be important factors to consider in this assessment, they are not the main focus of a competitive strength assessment.

Question 13

Identifying the strategic issues a company faces and compiling a "worry list" of problems and roadblocks is an important component of company situation analysis because
A)without a precise fix on what problems/issues a company confronts,managers cannot know what are the industry's key success factors.
B)the "worry list" sets the management agenda for taking actions to improve the company's performance and business outlook.
C)without a precise fix on what problems/roadblocks a company confronts,managers are less clear about what value chain activities to benchmark.
D)the "worry list" helps company managers clarify their thinking about how best to modify the company's value chain.
E)these issues and obstacles must be cleared before management can focus clearly on what is the best strategy for the company to pursue.

Accepted Answer

The "worry list" helps set the management agenda for taking action to improve the company's performance and business outlook. It clarifies the strategic issues and roadblocks the company is facing, allowing managers to focus on what needs to be addressed and prioritized. Without a clear understanding of these issues, it is difficult to develop and implement an effective strategy. Therefore, identifying these issues is critical for effective company situation analysis.

Question 14

The value of doing competitive strength assessment is to
A)determine the competitiveness of the company's core competencies.
B)learn if the company's market opportunities are better than those of its rivals.
C)learn whether a company has a distinctive competence.
D)learn how the company ranks relative to rivals on each of the important factors that determine market success and ascertain whether the company has a net competitive advantage or disadvantage vis-à-vis key rivals.
E)determine whether a company's resource strengths are sufficient to allow it to earn bigger profits than rivals.

Accepted Answer

The value of doing competitive strength assessment is to learn how the company ranks relative to rivals on important factors that determine market success and ascertain whether the company has a net competitive advantage or disadvantage vis-à-vis key rivals. This helps in identifying areas where the company needs to improve or leverage its strengths to gain an edge over competitors. Options A, B, C, and E are either too narrow or do not capture the full value of competitive strength assessment.

Question 15

Which of the following is not accurate as concerns the task of identifying the strategic issues and problems that merit front-burner managerial attention?
A)Drawing upon the results and conclusions from analyzing the company's external environment
B)Drawing on the results and conclusions from evaluating the company's own resources and competitive position
C)Developing a "worry list" of problems and issues for managerial strategy making
D)Identifying the strategic issues and problems that the company faces is the first thing that company managers need to do before starting to analyze the company's internal and external environment.
E)Developing a list of what issues and problems that management needs to address (and to resolve)should always precede deciding upon a strategy and what actions to take to improve the company's position and prospects.

Accepted Answer

Identifying the strategic issues and problems that the company faces may not necessarily be the first thing that company managers need to do before starting to analyze the company's internal and external environment. It may be more beneficial to evaluate the company's internal and external environment first and then identify the strategic issues and problems that need to be addressed.

Question 16

The options for remedying a cost disadvantage associated with activities performed by forward channel allies include
A)switching to lower-priced substitutes.
B)pressuring forward channel allies to reduce their costs and markups.
C)shifting into the production of substitute products.
D)shifting from a differentiation strategy to a best-cost strategy or focus strategy.
E)implementing a benchmarking program and adopting best practices.

Accepted Answer

Pressuring forward channel allies to reduce their costs and markups can help to address the cost disadvantage associated with their activities. This approach can help to achieve greater cost efficiency and make the products more competitive in the marketplace. Other options such as switching to lower-priced substitutes or shifting to a different strategy may not be viable or effective solutions in all situations. Implementing a benchmarking program and adopting best practices can be useful in identifying opportunities for cost savings, but may also require a significant investment in time and resources. Shifting into the production of substitute products may require a significant shift in business focus and may not be feasible or desirable for all companies.

Question 17

Draw a typical company value chain,and briefly explain the difference between primary activities and support activities.

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Question 18

A company's competitive strength scores
A)pinpoint its strengths and weaknesses against rivals and point to offensive and defensive strategies capable of producing first-rate results.
B)determine whether a company has a cost-effective value chain.
C)determine if the company's market opportunities are better than those of its rival.
D)analyze whether a company is well positioned to gain market share and be the industry's profit leader.
E)determine whether a company's resource strengths are sufficient to allow it to earn bigger profits than rivals.

Accepted Answer

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A)pinpoint its strengths...

Question 19

Activity-based costing
A)is a tool for identifying the activities that cause a company's product to be strongly differentiated from the products of rivals.
B)is far superior to SWOT analysis for analyzing a firm's internal situation.
C)involves developing a "worry list" of problems and issues for managerial strategy making.
D)is an accounting system that assigns a company's expenses to whichever activity in a company's value chain is responsible for creating the cost.
E)involves determining which value chain activities represent variable costs and which represent fixed costs.

Accepted Answer

Activity-based costing is an accounting system that assigns a company's expenses to whichever activity in a company's value chain is responsible for creating the cost. It helps to determine the true cost of producing a product or providing a service by analyzing the costs involved in the various activities in the value chain.

Question 20

Why do a company's core competencies matter in crafting strategy?

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Quiz 4: Evaluating a Companys Resources, capabilities, and Competitiveness

Which one of the following is not something that can be learned from doing a competitive strength assessment?

Briefly discuss the meaning and significance of each of the following terms: a.SWOT analysis b.Company value chain c.Industry value chain d.Weighted competitive strength assessment e.Benchmarking

How can a resource-based strategy lead to a sustainable competitive advantage?

A distinctive competence represents competitively superior resource strength.True or false? Explain your answer.

Identify at least five indicators of whether a company's present strategy is working well.

Costs and price differences among competing companies can have origins in activities performed by

In conducting a SWOT analysis,is it enough to simply compile lists of the company's strengths,weaknesses,opportunities,and threats? Why or why not?

Identify the five questions that form the framework of evaluating a company's resources and competitive position.

Identify the six questions to consider in evaluating a company's ability to compete successfully against market rivals.

A company lacking stand-alone resource strength should focus on bundling several resource strengths into a core competence.True or false? Explain and support your answer.

Which of the following is not an option for remedying a forward channel-related cost disadvantage?

Doing a competitive strength assessment entails

Identifying the strategic issues a company faces and compiling a "worry list" of problems and roadblocks is an important component of company situation analysis because

The value of doing competitive strength assessment is to

Which of the following is not accurate as concerns the task of identifying the strategic issues and problems that merit front-burner managerial attention?

The options for remedying a cost disadvantage associated with activities performed by forward channel allies include

Draw a typical company value chain,and briefly explain the difference between primary activities and support activities.

A company's competitive strength scores

Activity-based costing

Why do a company's core competencies matter in crafting strategy?