Strategic Management: Chapter 9

8. The description of activities that comprise the economic performance and capabilities of the firm is known as A. the value chain. B. process innovation. C. quality assessment. D. none of the above

A. The value chain describes activities that comprise the economic performance and capabilities of the firm.

7. The tool that enables an organization to position itself to take advantage of particular opportunities in the environment while avoiding or minimizing environmental threats is called A. PEST analysis. B. SWOT analysis. C. TQM analysis. D. none of the above

B. The SWOT analysis enables a firm to position itself to take advantage of particular opportunities in the environment while avoiding or minimizing environmental threats.

11. Which of the following could not be an example of a weakness? A. product quality. B. fierce competition. C. human resources. D. All of the above could be weaknesses.

B. Fierce competition comes from outside of the organization and would be a threat, not a weakness.

9. To sustain competitive advantage, firms must acquire or develop resources that are A. difficult for competitors to imitate. B. long-lasting. C. difficult for competitors to acquire on the market. D. all of the above

D. A firm must utilize resources that are long lasting and not easily acquired by rivals through imitation, transfer, or replication if the firm is to sustain competitive advantage.

10. Physical resources include: A. production facilities. B. plant locations. C. production capacity. D. all of the above

D. Physical resources include currency of technology, quality and sophistication of the distribution network, production capacity, access to suppliers, and favorable locations.

12. Which type of alternative is always defensive in nature? A. strength-opportunity. B. strength-threat. C. weakness-opportunity. D. weakness-threat.

D. Weakness-threat alternatives are always defensive in nature. Strength-opportunity alternatives are always offensive. Other alternatives can be either offensive or defensive.

2. The value chain is an analytical technique for identifying organizational opportunities and threats. True or False

False The value chain is a useful tool for analyzing a firm's strengths and weaknesses and understanding how they might translate into competitive advantage or disadvantage.

6. Choosing the "no change" strategy and thereby recommending that the current strategy be continued is the least risky option. True or False

False. Choosing not to institute any strategic changes can be more risky than recommending major changes in the strategy, depending on the situation.

4. A factor can be both an opportunity and a strength. True or False

False. Only external factors can be opportunities and/or threats, whereas only internal factors can be strengths and/or weaknesses.

5. Another name for an opportunity is an alternative. True or False

False. Opportunities represent the application of macroenvironmental forces to a specific organization, whereas alternatives emanate from the SW/OT matrix and represent specific courses of action that the organization may choose to pursue.

3. Opportunities and threats should emanate from the analysis of macroenvironmental and industry forces. True or False

True. Opportunities and threats are developed from the analysis previously performed on the macroenvironment and the industry.

1. The first step in crafting a strategy is the SWOT analysis. True or False

True. The first step in crafting a strategy, a SWOT analysis, can enable the firm to position itself to take advantage of particular opportunities in the environment while avoiding or minimizing environmental threats.