MGMT 481 test 2

Activities

A firm's _____ Are best described as distinct and find green business processes such as order taken, let's go deliver products, or invoicing customers

Intangible tangible

According to the resource-based view, affirms competitive advantage often stems from its _____ resources opposed to its _____ resources

A

Delish Corp. is a chain of supermarkets that sells its fruits and vegetables at higher prices than its competitors. Yet, the supermarket chain has a large customer base due to its wide product portfolio and superior customer service. Which of the following generic business strategies has Delish Corp adopted in this scenario? A. Delish corp is probably pursuing a differentiation strategy B. Delish corp is probably pursuing a cost-leadership strategy C. Delish corp is probably pursuing a market penetration strategy

C

Dr. Shetty is able to drive down the cost of complex medical procedures from 4100,000 to $2,000 not by doing one big thing, but rather by doing a thousand small things. This approach focuses on driving down the cost of health care through A. Value of input factors B. Cost of input factors C. Process innovation

C

FL Systems Inc. and Oryxo Systems Inc. are two competing firms. FL Systems Inc. has $300,000 in tangible assets and $200,000 in intangible assets. Oryxo Systems Inc. has $150,000 in tangible assets and $347,000 in intangible assets. In the context of the resource- based view, which of the following is the most likely implication of the asset values of the two companies? A. Oryxo systems inc. has less valuable resources than FL systems inc B. Oryxo systems inc. has less invisible assets than FL systems inc. C. FL Systems inc. will find it harder than Oryxo systems inc to attain competitive advantage

temporary competitive advantage

If a firm is not effectively organized to exploit the competitive potential of a valuable, rare, and costly to imitate (VR) resource, the best case scenario

A

In SWOT analysis it is important to clearly differentiate between "internal" and "external" issues. Select the response that most accurate defines "internal" and "external" issues. A. If a firm no longer exists, but the issues remain, then the issues are external. However, if the issues also no longer exist, then they are internal. B. Imagine the firm grows. If the issues would keep the firm from growth, it is internal. C. External issues will impact suppliers of the firm.

C

In a focused differentiation strategy, a firm seeks to A. Offer low priced products and services with a narrow focus on a niche market B. Create higher customer value that it's competitors in different segments of a mass market C. Deliver products or services with new features to a specific narrow part of the market

B

In the context of SWOT analysis, affirm to develop a defense strategic option primarily by A. Maximizing an external strength to exploit an internal opportunity B. Eliminating an internal weakness to mitigate an external threat C. Leveraging an external opportunity to overcome an internal threat

A

In the context of the VRIO frame work, a resource is said to be valuable if it A. Allows a firm to take advantage of an external opportunity B. Helps a firm increase its costs but lower its prices C. Results in perfectly competitive industry structure

D

Intangible resources or capabilities may be a good hiatus for creating a competitive advantage because A. Intangible resources of capabilities are generally easily acquired B. Intangible resources of capabilities are generally rare. C. Intangible resources of capabilities are generally easily transferred. D. Intangible resources of capabilities are generally sticky to the firm.

C

Oberlo Autos competes against the global leaders in the automobile industry by developing and selling acceptable vehicles at a price This has been possible due to the company's large scale production that reduces manufacturing expenses Which of the following generic business strategies Oberlo Autos applying in this scenario? A. Differentiation strategy B. Product diversification strategy C. Cost-leadership strategy D. Liquidation strategy

B

Select the best definition of a strategic action with respect to SWOT A. An action that decreases your product's price in response to a competitor's price cut. B. A coherent set of goal-directed decisions that addresses the environment the firm competes within by utilizing firm resources and capabilities. C. A decision by the CEO about how to move forward that takes into account the environmental issues. D. An action taken by the firm that makes use of the firms important resources and capabilities

D

Supreme Coffee Roasters is a premium cafe that is reputed for its superior customer service. The coffee shop also serves gourmet food to its customers, which allows to charge a premium priceCheap Beansin contrast, is a chain of coffee shops that charges the lowest price in the industry due to its self-service policyHowever, Vale's Coffee has found a balance between these two strategic groups by using automated ordering to free up its employees to work as master baristas and bakersthus focusing on creating excellent products charges a price slightly above that of Cheap Beans In this scenarioVale's Coffee is following a A. Liquidation strategy B. Product diversification strategy C. Market penetration strategy D. Blue ocean strategy

Value chain view

The _____ describes the internal activities a firm engages in when transforming inputs into outputs.

A

The cost-leadership strategy helps a firm achieve competitive advantage when it does which one of the following? A. permits a firm to perform similar activities differently than its rivals with resulting lower costs B. Helps a firm create as large a gap as possible between the differential value created and the cost required C. Permits a firm to perform different activities than its rival with greater value creation

A

The different activities that Nike uses to create heroes improve its differentiation and costs relative to its competitors. Which internal analysis tool allows us to make this evaluation? A. value chain analysis B. Porter's five competitive forces model C. dynamic capabilities D. dynamic capabilities

D

The relationship between Phil Knight and Bill Bowerman and their contributions to Nike's success exemplify which aspect of competitive advantage? A. path dependence B. resource heterogeneity C. isolating mechanisms D. Social complexity

B

There are several cost drivers that can be managed in order to establish a low-cost leadership advantage One of the primary cost drivers is A. Adding unique features that turn standard commodities into differentiated products B. Combining experienced-based learning and process innovation to move into a steeper learning curve. C. Creating personalized customer service in order to minimize price sensitivity among customers

E

What differentiates Nike from other firms in the athletic shoe and apparel industry and allows it to maintain a competitive advantage over time? A. Waffle design of the running shoe B. Its dynamic capabilities C. Phil Knight's leadership D. Its strategic fit with its environment E. Its globally recognized brand

A

When a blue ocean strategy is successfully formulated and implemented, investments in differentiation and low costs are not A. Substitutes but complements B. Complements but substitutes C. Cost drivers but value drivers D. Value drivers but cost drivers

D

Which of the following explains how dynamic capabilities are different from the resource-based view? A. Dynamic capabilities deal with resource heterogeneity B. Dynamic capabilities deal with intangible resources. C. Dynamic capabilities deal with tangible resources. D. Dynamic capabilities deal with applying resources over time.

A

Which of the following is Nike's core competency? a. creating heroes b. retailing c. manufacturing high-end athletic gear d. inspiring athletes at all levels

B

Which of the following statements accurately brings out the difference between economies of scale and learning effects? A. While there are no diseconomies to scale, there are diseconomies to learning B. Learning effects occur over time, whereas economies of scale are captured at one point t in time when output is increase. C. Firms experience economies of scale when output increases, and they experience learning effects when output decreases.

D

Which of the following would be a good argument for why a resource or capability position would be rare? A. A resource or capability is rare because it is protected by a country's legal system. B. A resource or capability is rare because it is expensive to develop. C. A resource or capability is rare because it is protected by local governments. D. A resource or capability is rare because it developed over time along a unique path.

D

Which of the following would be a good argument for why a resource or capability would be valuable? A. The resource or capability enables the firm to copy what other firms do. B. The resource or capability increases the differentiation for a firm focused on offering standardize product. C. The resource or capability lowers the cost of production for a firm offering a differentiated product. D. The resource or capability enables the firm to address customer wants.

C

While SMART Tech Inc. incurs $350 to manufacture a laptop, its competitor, Better Electrionics Inc. incurs $300. However, laptops of bpth the companies have been able to create the same value among customers. From the given scenario, it can be inferred that A. SMART tech has a competitive advantage over better electronics B. SMART tech is a cost leader when compared to better electronics C. Better electronics and SMART tech share a differentiation party

A

While most of Sawy Inc.'s competitors were moving toward developing and emerging markets, Savvy Inc. decided to keep its operations limited to its home country so that it could gain some advantage. A few years later, however, Sawy Inc. lost its footing in the home market due to a sharp fall in demand. It then decided to invest in large-scale operations in the same developing nations as its competitors, within a short period of six months. However, its costs kept increasing, so it could not compete against the already established brands. In this scenario, the failure of Savvy Inc. can be best attributed to A. Time compression diseconomies B. Better expectations of future resource value C. Economies of scale D. Resource mobility

dynamic

for a firm to sustain its competitive advantage any fit between it internal strengths and the external environment must be