Bus 189 Mid2

The balanced scorecard can accommodate

Both short and long term performance metrics

Economic value creation is the best expressed as

consumer surplus plus firm profit

Competitive advantage goes to the firm that achieves

A. largest economic value created.

A high percentage of R&D/revenue ratio indicates

A. strong focus on innovation to improve current products and services.

Value drivers contribute to a firms competitive advantage only if

A. the increase in value creation exceeds the increase in costs.

Which of the following states is true of accounting data

Accounting data are historical data and thus backward looking

Unlike the financial ratios based on accounting data, total return to shareholders is A. backward-looking and historic in nature. B. an external performance metric. C. an absolute measure of competitive advantage. D. unaffected by market volatility or macroeconomic factors.

And external performance metric

When wireless service providers offer free or discounted mobile phones for subscriptions to their wireless voice and data service, the perceived value of the service offering increases. In this case, the value driver would be

Availability of complements

Organizational and managerial skills that find their expression in a company's structure, routines, and culture are referred to as

Capabilities

Invoro is a market leader in co summer electronics. If finolo and ethver, companies that manufacture televisions, develop the same customer knowledge base and create products with the same customer appeal as invoro, then

Invoro will have a resource that is valuable but no longer rare

A firm incurs $400 to manufacture a television. In the market, customers are willing to pay a maximum of $600 for the television priced at $500. The difference of $200 ($600 minus $400) is the A. consumer surplus. B. total return to shareholders. C. customer lifetime value. D. economic value created.

Economic value created

___ is best described as decreases in cost per unit as output increases

Economies of scale

Differentiation and cost leadership strategies are only effective in manufacturing industries

False

High demand for online video streaming options is one of Netflix's core competencies

False

In constraint to a differentiator, a cost leader will

Focus it's research and development on process technologies to improve efficiency

_____ describes a process in which the options one faces in a current situation are limited by decisions made in the past

Path dependence

A firms business strategy can lead to a competitive advantage if it allows the firm to

Perform different activities than it's rivals

A firm is said to gain a competitive advantage when it can

Provide products similar to its competitors but at lower prices

An observer may conclude that the organizational culture of Zappos and online retailer for shoes including might be the basis for its competitive advantage. However, reverse social engineering to crack a Zappos code of success might be much more difficult for a company trying to exactly imitated strategy. Thus, the source of Zappos competitive advantage is said to be

Socially complex

Which of the following is not a limitation of the economic value creation framework

The framework fails to provide the foundation that will help firms decide between cost-leadership or differentiation strategies.

Which of the following approaches to asses competitive advantage is based on the view that non economic factors can have a significant impact on a firms financial performance?

The triple bottom line approach

A resource based view of a firm provides a model that systematically aids in identifying

core competencies

The concept of a(n) _____ attempts to capture both learning effects and process improvements at firms.

experience curve

When a differentiator charges a similar price as its competitors in the same strategic group but offers more perceived value, it

gains market share from other firms

According to value-chain analysis, which of the following is a primary activity?

marketing and sales

The resource based view of a firm assumes that

resource bundles of firms competing in the same industry are unique to some extent and thus differ from one another.

When a firm makes choices between a cost or a value position to achieve competitive advantage, it is primarily involved in

strategic trade-offs

When a blue ocean strategy goes bad, a firm has neither a clear differentiation nor a clear cost-leadership profile. This situation is referred to as

stuck in the middle

A defining characteristic of the pay as you go business model is that the

users pay for only the services they consume