Chapter 1 Study Guide (Part 5)

What is a standardized set of activities that accomplishes a specific task?

. Business process.

Which of the following decisions does a firm need to make as soon as it has identified the activities from the value chain that are bringing the highest added value to their customers?

All of the above.

When analyzing the book store industry, some of today's businesses compete with different business strategies and cost strategies. Which of the following is using a broad market competitive scope along with a low cost strategy?

Amazon.com.

Which of the following offers an example where Porter's Five Forces are mostly weak and competition is low?

An international hotel chain purchasing milk.

The goal of value chain analysis is to identify processes in which the firm can add value for the customer and create a competitive advantage for itself, with a ________ or ________________.

Cost advantage, product differentiation

According to Porter companies that wish to dominate broad markets should operate using a ________ strategy.

Cost leadership with a low cost

When analyzing Porter's three generic strategies for entering a market, if you have a focused strategy what market should you target?

. A niche market.

Your boss, Ty Jacob, has asked you to analyze the music industry using Porter's Five Forces model. Which of the following represents the threat of substitute products or services in the music industry?

. Game systems like Wii, social networks like Facebook.

Which of the following represents a typical supply chain?

. Suppliers - Company - Customers.

Which of the following analyzes a company's business processes and is useful for determining how to create the greatest possible value for customers?

. Value chain analysis.

Which of the following offers an example where Porter's Five Forces are mostly strong and competition is high?

A dog walking business.

When evaluating the value chain, all of the following are included in the primary value activities except:

MIS development.

. If a business is following a focused strategy then its competitive scope is ________.

Narrow market.

Which of the below is similar to focused strategy versus broad strategy?

Niche market versus large market

When reviewing Porter's value chain analysis, which of the below provides customer support after the sale of goods and services?

Service.

Your boss, Tom Repicci, has asked you to analyze the airline industry using Porter's three generic strategies. Which of the following companies are using a focused strategy?

Sky Taxi - a rent by the hour personal plane service.

Which of the below represents procurement as part of the support value activities in a value chain analysis?

Purchases inputs such as raw materials, resources, equipment and supplies.

Your boss, Kerry Miller, has asked you to analyze the soft drink industry using Porter's Five Forces model. Which of the following represents rivalry in the soft drink industry?

Coke and Pepsi submit bids to the owner of a football stadium for the exclusive sale of their products during games.

Your boss, Kerry Miller, has asked you to analyze the soft drink industry using Porter's Five Forces model. Which of the following represents buyer power in the soft drink industry?

Walmart negotiates a lower cost per bottle from Coke in exchange for premium shelf space in every Walmart store.

What are the two main categories in a value chain analysis?

Primary value activities & support value activities

Your boss, Ty Jacob, has asked you to analyze the music industry using Porter's Five Forces model. Which of the following represents buyer power in the music industry?

B. Walmart, Target, iTunes.

Your boss, Tom Repicci, has asked you to analyze the airline industry using Porter's three generic strategies. Which of the following companies are using a differentiation strategy?

British Airways, Singapore Airlines, Virgin Atlantic.

What is a feature of a product or service that customers have come to expect and entering competitors must offer the same if they want to survive?

Entry barrier.

Your boss, Ty Jacob, has asked you to analyze the music industry using Porter's Five Forces model. Which of the following represents supplier power in the music industry?

Established record labels like EMI, Sony, Universal.

When evaluating the value chain, which of the following is included in the support value activities?

Firm infrastructure.

Which of the following is not considered a category within the primary value activities in a value chain analysis?

Firm infrastructure.

Broad differentiation, broad cost leadership, and _________ create the three generic strategies identified by Porter.

Focused strategy

What is the support value activity that provides employees with training, hiring, and compensation?

Human resource management.

When applying Porter's three generic strategies, Tiffany & Co. has a competitive scope and cost strategy that is __________.

Narrow market - high cost strategy.

How can a company reduce the threat of substitute products or services?

Offer additional value through wider product distribution.

Which of the following is not considered a category within the support value activities in a value chain analysis?

Outbound logistics.

Which of the following offers an example of a company operating in a narrow-focused market operating as the low-cost provider?

Payless Shoes.

Your boss, Kerry Miller, has asked you to analyze the soft drink industry using Porter's Five Forces model. Which of the following represents supplier power in the soft drink industry?

Pepsi requires stores that carry Pepsi products to commit to minimum orders of 1,000 cases.

Amazon.com uses a customer profiling system whenever a customer visits its website. Using this system, Amazon can offer products tailored to that particular customer's profile and buying pattern. What is Amazon using to achieve this competitive advantage?

Product differentiation.

Your boss, Tom Repicci, has asked you to analyze the airline industry using Porter's three generic strategies. Which of the following companies are using a cost leadership strategy?

Southwest, Horizon, Frontier, JetBlue.

Porter identified three generic strategies that a business could follow after identifying a market it wanted to enter. Which of the following is not included as one of Porter's three generic strategies?

Supplier cost differentiation.

What includes support value activities and primary value activities and is used to determine how to create the greatest possible value for customers?

The Value Chain analysis.

Imagine you are creating a new product to sell in an up-and-coming market. Which of the below statements indicates that it would be easy for you as the new entrants to compete in this market?

The threat of new entrants force is high in the up-and-coming market.

Imagine you are creating a new product to sell in an up-and-coming market. Which of the below statements indicates that it would be difficult for you to enter this new market?

The threat of new entrants force is low in the up-and-coming market.

Which one of Porter's Five Forces is high when it is easy for new competitors to enter a market and low when there are significant entry barriers to joining a market?

Threat of new entrants.

Your boss, Kerry Miller, has asked you to analyze the soft drink industry using Porter's Five Forces model. Which of the following represents a substitute product in the soft drink industry?

Vitamin water, fruit juice, coffee.

Which of the following demonstrates a company that has implemented a low cost, broad market strategy?

Walmart.

Your boss, Kerry Miller, has asked you to analyze the soft drink industry using Porter's Five Forces model. Which of the following represents a threat of a new entrant in the soft drink industry?

Zevia Natural Diet Soda begins selling directly over the Internet.