Chapter Six Quiz
Rare resources are resources that are not controlled or possessed by many competing firms and are necessary to sustain a competitive advantage.
True
A strategic group is a task force within a company that analyzes the company's own weaknesses to determine how competitors could exploit them for competitive advantage.
False
Which of the following best defines cash cows?
They are the companies that have a large share of a slow-growing market.
A competitive advantage becomes a sustainable competitive advantage when:
other companies cannot duplicate the value a firm is providing to customers.
A situational analysis is an assessment of the strengths and weaknesses in an organization's internal environment and the opportunities and threats in its external environment.
true
Which of the following is the first step of a strategy-making process?
Assessing the need for strategic change
Which of the following statements is true of a portfolio strategy?
It guides the strategic decisions of corporations that compete in a variety of businesses.
Which of the following statements is true of the BCG matrix?
It is used to categorize a corporation's businesses by growth rate and relative market share.
Which of the following conditions must be met if a firm's resources are to be used to achieve a sustainable competitive advantage?
The resources must be valuable, rare, imperfectly imitable, and nonsubstitutable.
A _____ is a competitive countermove, prompted by a rival's attack, to defend or improve a company's market share or profit.
response
