ch 5 euntra
The mission statement and strategies can be developed after identifying potential customers. *
False
Emotional intelligence of a company is listed as
Intangible assets
_________ are the capabilities and skills of the founder or employees *
Intangible assets
Which of the following is NOT a characteristic of a sustainable competitive advantage? *
It does not impact the implementation of the mission statement.
All of the following are characteristics of a simple mission statement EXCEPT: *
It is not appropriate.
Capabilities
Resources that combine to allow a firm to do things better then it composition
What is a mission statement and why is it vital to a business?
Something to show how the firm will compete, this is needed because it can give an idea of what and if customers should buy the product.
Jane has developed a special Italian sauce for pizza. The sauce cannot be easily copied. This is a(n): *
Sustainable competitive advantage
_________ provides you with the opportunity to make money when other businesses cannot easily copy your advantages. *
Sustainable competitive advantage
_________ are items that include equipment or location. *
Tangible assets
First-mover advantage
The benefit of gaining customer loyalty by being the first firm in the market
The book mentions that organizations should develop quantitative measures of success. Which of the following are characteristic of quantitative measures?
They are tied to the strategic and financial goals of an organization.
A metric is a type of measurement used to evaluate whether a person or firm is meeting its goals. *
True
A mission statement needs to be known to all the employees, not just the top management *
True
An example of a qualitative measure could be customer service reviews.
True
The computers in a company are an example of tangible assets. *
True
The cornerstone of building a competitive advantage is a deep understanding of your customer's needs. *
True
The mission of a business needs to be actionable, which means to provide employees with the information they need to make decisions. *
True
Strategy
a plan or action to achieve a goal.
Strategy is a _________ field of study. *
complex
Explain the three steps for identifying a sustainable competitive advantage.
develop a list, break the list into two groups, and evaluate the unique resources
To be most effective, a mission statement should be complex and universal. *
false
Followers
firms that enter the market after the first mover
are firms that enter a market after the first mover.
followers
All of these are tangible assets EXCEPT: *
industry experience
Sally copies James's hamburger restaurant by starting her own hamburger restaurant on the other side of town. This is a form of _________. *
Followers
Tangible assets
Hard assets such as equipment or a location ( touchable)
All of these are intangible items EXCEPT: *
initial financing
List and describe the five elements of designing a mission statement. *
keep it short, simple, applicable, specific, and establish measerable goals
Metric
A measure to evaluate whether a person or firm is meeting started goal
_________ are resources that combine to allow a firm to do things better than its competitors. *
Capabilities
All of these are steps in identifying a sustainable competitive advantage EXCEPT: *
Develop a list of all potential customers.
A mission statement is a long narrative used to summarize a business. *
False
A mission statement of a firm that states "to make money" would be very effective. *
False
A product mix uses the resources of a company to do things better than its competitors. *
False
A quantitative measure is the corporate culture of an organization.
False
Metrics, once they are identified, are never altered.
False
One example of a key tangible asset is a strong working relationship with a vendor *
False
A firm's mission statement *helps the company by targeting its efforts in specific areas *helps the business specify what the business does best *helps the business stay away from things that sound promising and away from its focus
all of these
A mission statement can also be described as: * *overall strategy *goals *simple rules
all of these
An example of intangible assets includes all of the following, EXCEPT: *previous start-up experience *unique knowledge of the industry * skill set of founders
all of these
Sustainable competitive advantage
something that cannot immediately copy.
What is the difference between a tangible and an intangible asset? Provide examples. *
tangible is what I help me remember is touchable, intangible is not touchable so for tangible it wouldn't be something you touch like a computer, intagible would be like knowledge. knowledge is not physic.
Economic rent
the extra amount earned by a resource
_________ is (are) a brief statement that summarizes how and where the firm will compete in the industry. *
Mission statement
A mission statement should be specific and establish measurable goals for the business to accomplish.
True
An example of a quantitative measure could be the financial goals of an organization. *
True
Gators is a business that created a shoe that is a knock-off of Crocks shoes. Gators is called a follower.
True
Intangible assets are the capabilities and skills of the founder and employees. *
True
One way of having a competitive advantage is to have a close working relationship with your vendors.
True
Mission statement
a brief statement that summarizes how and where a firm will compete
James has the benefit of gaining customer loyalty by being the first company to bring out a new gourmet burger. This is a form of _________. *
first mover advantage
A company should develop its strategy based on
mission statement
An example of tangible assets includes all of the following, EXCEPT: * *industry experience *contacts *education
none of these
According to the book, the greatest source of sustainable advantage is
personal relationship with customer
An owner should establish the mission statement and strategies _________. *
prior to its inception
What are the two measures used to evaluate whether a person or firm is meeting its goals?
quantitative and qualitative
Intangible assets
things that are not physical, but are just as critical to succeed
A small business owner must understand what the customer values, and how much money the customer is willing to pay to obtain the firm's product or service.
true
A sustainable competitive advantage is an advantage that other firms cannot immediately copy. *
true
As a business grows, it gets progressively more difficult to change its direction.
true
It is critical for a new business to conserve its resources and focus on areas that have the potential to maximize the firm's success. *
true
