Crafting Executing Strategy 17th Edition by Arthur A. Jr. Thompson Test bank

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Crafting Executing Strategy 17th Edition by Arthur A. Jr. Thompson Test bank

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TEST BANK
CHAPTER
4 Evaluating a Companys Resources and Competitive Position
Multiple Choice Questions
The Key Questions in Analyzing a Companys Resources and Competitive Position
1. Which of the following is not one of the five questions that comprise the task of evaluating a companys resources and competitive position?
A) What are the companys most profitable geographic market segments?
B) How well is the companys present strategy working?
C) Are the companys prices and costs competitive?
D) Is the company competitively stronger or weaker than key rivals?
E) What strategic issues and problems merit front-burner management attention?
Answer: A Page: 101 Learning Objective: 1 Difficulty: Easy Taxonomy: Knowledge AACSB: Value Creation
2. Which of the following is not a component of evaluating a companys resources and competitive position?
A) Evaluating how well the present strategy is working
B) Scanning the environment to determine a companys best and most profitable customers
C) Assessing whether the companys costs and prices are competitive
D) Evaluating whether the company is competitively stronger or weaker than key rivals
E) Pinpointing what strategic issues and problems merit front-burner management attention
Answer: B Page: 101 Learning Objective: 1 Difficulty: Easy Taxonomy: Knowledge AACSB: Value Creation
3. The spotlight in analyzing a companys resources, internal circumstances, and competitiveness includes
such questions/concerns as
A) whether the companys present strategy is better than the strategies of its closest rivals based on such performance measures as earnings per share, ROE, dividend payout ratio, and average annual increase in the common stock price.
B) whether the companys key success factors are more dominant than the key success factors of close rivals.
C) whether the company has the industrys most efficient and effective value chain.
D) what are the companys resource strengths and weaknesses and its external opportunities and threats.
E) what new acquisitions the company would be well advised to make in order to strengthen its financial
performance and overall balance sheet position.
Answer: D Page: 101 Learning Objective: 1 Difficulty: Easy Taxonomy: Knowledge AACSB: Value Creation
Crafting & Executing Strategy 17th Edition 171
171
172 Chapter 4 Evaluating a Companys Resources and Competitive Position
Question 1: How Well Is the Companys Present Strategy Working?
4. Which of the following is not pertinent in identifying a companys present strategy?
A) The key functional strategies (R&D, supply chain management, production, sales and marketing, HR,
and finance) a company is employing
B) Managements planned, proactive moves to outcompete rivals (via better product design, improved
quality or service, wider product lines, and so on)
C) The companys mission, strategic objectives, and financial objectives
D) Moves to respond and react to changing conditions in the macro-environment and in industry and
competitive conditions
E) The strategic role of its collaborative partnerships and strategic alliances with others
Answer: C Page: 102 Learning Objective: 1 Difficulty: Medium Taxonomy: Comprehension AACSB: Value Creation
5. One important indicator of how well a companys present strategy is working is whether
A) it has more core competencies than close rivals.
B) its strategy is built around at least two of the industrys key success factors.
C) the company is achieving its financial and strategic objectives and whether it is an above-average
industry performer.
D) it is customarily a first-mover in introducing new or improved products (a good sign) or a late-mover
(a bad sign).
E) it is subject to weaker competitive forces and pressures than close rivals (a good sign) or stronger
competitive forces and pressures (a bad sign).
Answer: C Page: 103 Learning Objective: 1 Difficulty: Medium Taxonomy: Comprehension AACSB: Value Creation
6. The best quantitative evidence of whether a companys present strategy is working well is
A) whether the company has more competitive assets than it does competitive liabilities.
B) whether the company is in the industrys best strategic group.
C) the caliber of results the strategy is producing, specifically whether the company is achieving its
financial and strategic objectives and whether it is an above-average industry performer.
D) whether the company has a shorter value chain than close rivals.
E) whether the company is in the Fortune 500.
Answer: C Page: 103 Learning Objective: 1 Difficulty: Medium Taxonomy: Comprehension AACSB: Value Creation
7. Which one of the following is not a reliable measure of how well a companys current strategy is working?
A) Whether the companys sales are growing faster, slower, or about the same pace as the industry as a
whole, thus resulting in a rising, falling, or stable market share
B) Whether it has a larger number of competitive assets than competitive liabilities and whether it has a
superior quality product
C) The firms image and reputation with its customers
D) Whether its profit margins are rising or falling and how large its margins are relative to those of its
rivals
E) How well the firm stacks up against rivals on technology, product innovation, customer service,
product quality, price, speed in getting newly developed products to market, and other relevant factors on which buyers base their choice of which brand to purchase
Answer: B Page: 103 Learning Objective: 1 Difficulty: Medium Taxonomy: Comprehension AACSB: Value Creation

Crafting & Executing Strategy 17th Edition 173 Question 2: What Are the Companys Resource Strengths and
Weaknesses and Its External Opportunities and Threats?
8. Identifying and assessing a companys resource strengths and weaknesses and its external opportunities and threats is called
A) SWOT analysis.
B) competitive asset/liability analysis.
C) competitive positioning analysis.
D) strategic resource assessment.
E) company resource mapping.
Answer: A Page: 106 Learning Objective: 1 Difficulty: Easy Taxonomy: Knowledge AACSB: Value Creation
9. SWOT analysis is a powerful tool for
A) gauging whether a company has a cost competitive value chain.
B) sizing up a companys resource capabilities and deficiencies, its market opportunities, and the external
threats to its future well-being.
C) evaluating whether a company is in the most appropriate strategic group.
D) determining a companys competitive strength vis-a-vis close rivals.
E) identifying the market segments in which a company is strongly positioned and weakly positioned.
Answer: B Page: 106 Learning Objective: 1 Difficulty: Easy Taxonomy: Comprehension AACSB: Value Creation
10. SWOT analysis
A) is a way to measure whether a companys value chain is longer or shorter than the chains of key
rivals.
B) is a tool for benchmarking whether a firms strategy is closely matched to industry key success
factors.
C) reveals whether a company is competitively stronger than its closest rivals.
D) provides a good overview of whether a companys situation is fundamentally healthy or unhealthy.
E) identifies the reasons why a companys strategy is or is not working very well.
Answer: D Page: 106 Learning Objective: 1 Difficulty: Easy Taxonomy: Knowledge AACSB: Value Creation
11. The payoff of doing a thorough SWOT analysis is
A) identifying whether the companys value chain is cost effective vis-a-vis the value chains of rivals.
B) helping strategy-makers benchmark the companys resource strengths against industry key success
factors.
C) enabling a company to assess its overall competitive position relative to its key rivals.
D) revealing whether a companys market share, measures of profitability, and sales compare favorably or
unfavorably vis-a-vis key competitors.
E) assisting strategy-makers in crafting a strategy that is well-matched to the companys resources and
capabilities, its market opportunities, and the external threats to its future well-being.
Answer: E Page: 106 Learning Objective: 1 Difficulty: Medium Taxonomy: Comprehension AACSB: Value Creation
174 Chapter 4 Evaluating a Companys Resources and Competitive Position
Identifying Company Resource Strengths, Competencies, and
Competitive Capabilities
12. A company resource strength can concern
A) a skill, specialized expertise, or competitively important capability.
B) valuable human assets and intellectual capital.
C) an achievement or attribute that puts the company in a position of market advantage.
D) competitively valuable alliances or cooperative ventures.
E) All of these.
Answer: E Page: 106 Learning Objective: 1 Difficulty: Easy Taxonomy: Comprehension AACSB: Value Creation
13. Which of the following most accurately reflect a companys resource strengths?
A) Its human, physical and/or organization assets; its skills and competitive capabilities; and achievements
or attributes that enhance the companys ability to compete effectively
B) The sizes of its unit sales, revenues, and market share vis-a-vis those of key rivals
C) The sizes of its profit margins and return on investment vis-a-vis those of key rivals
D) Whether it has more primary activities in its value chain than close rivals and a better overall value
chain than these rivals
E) Whether it has more core competencies than close rivals
Answer: A Page: 106 Learning Objective: 1 Difficulty: Medium Taxonomy: Comprehension AACSB: Value Creation
14. The best example of a company strength is
A) having higher earnings per share and a higher return on shareholders equity investment than key
rivals.
B) being totally self-sufficient such that the company does not have to rely in any way on key suppliers,
partnerships with outsiders, or strategic alliances.
C) having proven technological expertise and ability to churn out new and improved products on a regular
basis.
D) having a larger number of competitive assets than competitive liabilities.
E) having more built-in key success factors than rivals.
Answer: C Page: 106 Learning Objective: 1 Difficulty: Medium Taxonomy: Application AACSB: Value Creation
15. Which of the following is not a good example of a company strength?
A) More intellectual capital and better e-commerce capabilities than rivals
B) Fruitful partnerships or alliances with suppliers that reduce costs and/or enhance product quality and
performance
C) Having higher earnings per share and a higher stock price than key rivals
D) A well-known brand name and enjoying the confidence of customers
E) A lower-cost value chain than rivals
Answer: C Page: 106 Learning Objective: 1 Difficulty: Medium Taxonomy: Application AACSB: Value Creation

16. A companys resource strengths are important because
A) they pave the way for establishing a low-cost advantage over rivals.
B) they represent its competitive assets and are big determinants of its competitiveness and ability to
succeed in the marketplace.
C) they provide extra muscle in helping lengthen the companys value chain.
D) they give it competitive protection against the industrys driving forces.
E) they provide extra organizational muscle in turning a core competence into a key success factor.
Answer: B Page: 107 Learning Objective: 1 Difficulty: Medium Taxonomy: Comprehension AACSB: Value Creation
17. A companys resource strengths
A) represent its core competencies.
B) are the most important parts of the companys value chain.
C) signal whether it has the wherewithal to be a strong competitor in the marketplace
D) give it excellent ability to insulate itself against the impact of the industrys driving forces.
E) combine to give it a distinctive competence.
Answer: C Page: 107 Learning Objective: 1 Difficulty: Medium Taxonomy: Comprehension AACSB: Value Creation
18. When a company has real proficiency in performing a competitively important value chain activity, it is said
to have
A) a distinctive competence.
B) a core competence.
C) a key value chain proficiency.
D) a competitive advantage over rivals.
E) a company competence.
Answer: B Page: 107 Learning Objective: 1 Difficulty: Easy Taxonomy: Comprehension AACSB: Value Creation
19. When a company is good at performing a particular internal activity, it is said to have
A) a competitive advantage over rivals.
B) a competitive capability.
C) a distinctive competence.
D) a core competence.
E) a company competence.
Answer: E Page: 107 Learning Objective: 1 Difficulty: Medium Taxonomy: Comprehension AACSB: Value Creation
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176 Chapter 4 Evaluating a Companys Resources and Competitive Position
20. The difference between a company competence and a core competence is that
A) a company competence refers to a companys best-executed functional strategy and a core competence
refers to a companys best-executed business strategy.
B) a company competence refers to a companys strongest resource whereas a core competence refers to
a companys lowest-cost and most efficiently performed value chain activity.
C) a company competence is a competitively relevant activity which a firm performs especially well relative to other internal activities, whereas a core competence is an activity that a company has learned
to perform proficiently.
D) a company competence represents real proficiency in performing an internal activity whereas a core
competence is a competitively relevant activity which a firm performs better than other internal
activities.
E) a core competence usually resides in a companys technology and physical assets whereas a company
competence usually resides in a companys human assets and intellectual capital.
Answer: D Page: 107-108 Learning Objective: 1 Difficulty: Medium Taxonomy: Comprehension AACSB: Value Creation
21. The difference between a core competence and a distinctive competence is that
A) a distinctive competence refers to a companys strongest resource or competitive capability and a core
competence refers to a companys lowest-cost and most efficiently executed value-chain activity.
B) a core competence usually resides in a companys base of intellectual capital whereas a distinctive
competence stems from the superiority of a companys physical and tangible assets.
C) a core competence is a competitively relevant activity which a firm performs especially well in comparison to the other activities it performs, whereas a distinctive competence is a competitively relevant activity which a firm performs especially well in comparison to other firms with which it
competes.
D) a core competence represents a resource strength whereas a distinctive competence is achieved by
having more resource strengths than rival companies.
E) a core competence usually resides in a companys technology and physical assets whereas a distinctive
competence usually resides in a companys know-how, expertise, and intellectual capital.
Answer: C Page: 107-108 Learning Objective: 1 Difficulty: Medium Taxonomy: Comprehension AACSB: Value Creation
22. A core competence
A) adds to a companys arsenal of competitive capabilities and competitive assets and is a genuine resource
strength.
B) is typically knowledge-based, residing in a companys intellectual capital and not in its tangible
physical assets on the balance sheet.
C) is often grounded in cross-department combinations of knowledge and expertise.
D) is a competitively relevant activity which a firm performs especially well in comparison to the other
activities it performs.
E) All of the above.
Answer: E Page: 107-108 Learning Objective: 1 Difficulty: Medium Taxonomy: Comprehension AACSB: Value Creation
23. A core competence
A) gives a company competitive capability and is a genuine company strength and resource.
B) typically has competitive value, the amount of which is reflected in the physical and tangible assets on
a companys balance sheet.
C) usually is grounded in the technological expertise of a particular department or work group.
D) is more difficult for rivals to copy than a distinctive competence.
E) refers to a companys lowest-cost and most efficiently executed value-chain activity.
Answer: A Page:107-108 Learning Objective: 1 Difficulty: Medium Taxonomy: Comprehension AACSB: Value Creation
24. When a company performs a particular competitively important activity truly well in comparison to its competitors, it is said to have
A) a company competence.
B) a strategic resource.
C) a distinctive competence.
D) a core competence.
E) a key success factor.
Answer: C Page: 108 Learning Objective: 1 Difficulty: Medium Taxonomy: Knowledge AACSB: Value Creation
25. Which of the following does not represent a potential core competence?
A) Skills in manufacturing a high-quality product at a low cost
B) Know-how in creating and operating systems for cost-efficient supply chain management
C) The capability to fill customer orders accurately and swiftly
D) Having a wider product line than rivals
E) The capability to speed new or next-generation products to the marketplace
Answer: D Page:107-108 Learning Objective: 1 Difficulty: Easy Taxonomy: Comprehension AACSB: Value Creation
26. A distinctive competence
A) is a competitively important activity that a company performs better than its competitors.
B) gives a company competitively valuable capability that is unmatched by rivals.
C) is a basis for sustainable competitive advantage.
D) can underpin and add real punch to a companys strategy.
E) All of the above.
Answer: E Page:108 Learning Objective: 1 Difficulty: Easy Taxonomy: Comprehension AACSB: Value Creation
27. Which one of the following is inaccurate as concerns a distinctive competence?
A) A distinctive competence is a competitively important activity that a company performs better than its
competitors.
B) A distinctive competence is typically less difficult for rivals to copy than a core competence.
C) A distinctive competence can be a basis for sustainable competitive advantage.
D) A distinctive competence can underpin and add real punch to a companys strategy.
E) A distinctive competence gives a company competitively valuable capability that is unmatched by
rivals.
Answer: B Page:108 Learning Objective: 1 Difficulty: Easy Taxonomy: Comprehension AACSB: Value Creation
Crafting & Executing Strategy 17th Edition 177

178 Chapter 4 Evaluating a Companys Resources and Competitive Position
28. The competitive power of a companys core competence or distinctive competence depends on
A) whether it helps differentiate a companys product offering from the product offerings of rival firms.
B) how hard it is to copy and how easily it can be trumped by substitute resource strengths and competitive
capabilities of rivals.
C) whether customers are aware of the competence and view the competence positively enough to boost
the companys brand name reputation.
D) whether the competence is one of the industrys key success factors.
E) whether the competence is technology-based or based on superior marketing know-how.
Answer: B Page:109 Learning Objective: 1 Difficulty: Medium Taxonomy: Knowledge AACSB: Value Creation
29. The competitive power of a company resource strength or competitive capability hinges on
A) how hard it is for competitors to copy.
B) whether it is rare and something rivals lack.
C) whether it is really competitively valuable and having the potential to contribute to a competitive
advantage.
D) how easily it can be trumped by the substitute resources/capabilities of rivals.
E) All of these.
Answer: E Page:109 Learning Objective: 1 Difficulty: Easy Taxonomy: Knowledge AACSB: Value Creation
30. For a particular company resource/capability to have real competitive power and perhaps qualify as a basis for competitive advantage, it should
A) be hard for competitors to copy, be rare and something rivals lack, be competitively valuable, and not be easily trumped by substitute resource strengths possessed by rivals.
B) be something that a company does internally rather than in collaborative arrangements with outsiders.
C) be patentable.
D) be an industry key success factor and occupy a prime position in the companys value chain.
E) have the potential for lowering the firms unit costs.
Answer: A Page:109 Learning Objective: 1 Difficulty: Easy Taxonomy: Comprehension AACSB: Value Creation
31. The competitive power of a company resource strength is not measured by which one of the following tests?
A) Is the resource rare and something rivals lack?
B) Is the resource strength something that a company does internally rather than in collaborative
arrangements with outsiders?
C) Is the resource strength easily trumped by the substitute resources/capabilities of rivals?
D) Is the resource strength hard to copy?
E) Is the resource strength competitively valuable, having the potential to contribute to a competitive
advantage?
Answer: B Page:109 Learning Objective: 1 Difficulty: Medium Taxonomy: Knowledge AACSB: Value Creation

32. Ifacompanydoesntpossessstandaloneresourcestrengthscapableofcontributingtocompetitiveadvantage
A) all potential for competitive advantage is lost.
B) it is unlikely to survive in the marketplace and should exit the industry.
C) it may have a bundle of resources that can be leveraged to develop a distinctive competence.
D) it is virtually blocked from using offensive strategies and must rely on defensive strategies.
E) its best strategic option is to revamp its value chain in hopes of creating stronger competitive capabilities.
Answer: C Page: 110 Learning Objective: 1 Difficulty: Medium Taxonomy: Comprehension AACSB: Value Creation
Competitively Valuable Resourse Strengths and the Use of a Resource-Based Strategy
33. A resource-based strategy
A) is often based on cross-department combinations of intellectual capital and expertise.
B) uses a companys valuable and rare resource strengths and competitive capabilities to deliver value to
customers that rivals have difficulty matching.
C) is typically based on a stand-alone resource strength such as technological expertise.
D) refers to a companys most efficiently executed value-chain activity.
E) uses industry key success factors to provide a company with a core competence that rivals cannot
effectively imitate.
Answer: B Page: 110 Learning Objective: 1 Difficulty: Easy Taxonomy: Comprehension AACSB: Value Creation
34. A resource-based strategy
A) focuses on exploiting a companys best-executed operating strategy.
B) is based upon efficient performance of the companys primary value chain activites.
C) concentrates on minimizing the costs associated with the design of a product or service.
D) deliberately develops valuable competencies and capabilities that add to a companys competitive
power in the marketplace.
E) focuses on working with forward channel allies to develop capabilities to outmatch the capabilities of
rivals.
Answer: D Page: 110 Learning Objective: 1 Difficulty: Easy Taxonomy: Comprehension AACSB: Value Creation
Identifying Company Resource Weaknesses, Missing Capabilities, and Competitive Deficiencies
35. A company resource weakness or competitive deficiency
A) represents a problem that needs to be turned into a strength because weaknesses prevent a firm from
being a winner in the marketplace.
B) causes the company to fall into a lower strategic group than it otherwise could compete in.
C) prevents a company from having a distinctive competence.
D) usually stems from having a missing link or links in the industry value chain.
E) is something a company lacks or does poorly (in comparison to rivals) or a condition that puts it at a
disadvantage in the marketplace.
Answer: E Page: 111 Learning Objective: 1 Difficulty: Easy Taxonomy: Knowledge AACSB: Value Creation
Crafting & Executing Strategy 17th Edition 179
180 Chapter 4 Evaluating a Companys Resources and Competitive Position
36. A companys resource weaknesses can relate to
A) inferior or unproven skills, expertise, or intellectual capital in competitively important parts of the
business.
B) something that it lacks or does poorly (in comparison to rivals).
C) deficiencies in competitively important physical, organizational, or intangible assets.
D) missing or competitively inferior capabilities in key areas.
E) All of these.
Answer: E Page: 111 Learning Objective: 1 Difficulty: Easy Taxonomy: Knowledge AACSB: Value Creation
37. In doing SWOT analysis, which one of the following is not an example of a potential resource weakness or competitive deficiency that a company may have?
A) Less productive R & D efforts than rivals
B) Having a single, unified functional strategy instead of several distinct functional strategies
C) Lack of a strong brand image and reputation (as compared to rivals)
D) Higher overall unit costs relative to rivals
E) Too narrow a product line relative to rivals
Answer: B Page:112 Learning Objective: 1 Difficulty: Medium Taxonomy: Comprehension AACSB: Value Creation
38. Sizing up a companys overall resource strengths and weaknesses
A) essentially involves constructing a strategic balance sheet where the companys resource strengths
represent competitive assets and its resource weaknesses represent competitive liabilities.
B) is called benchmarking.
C) is called competitive strength assessment.
D) is focused squarely on ascertaining whether the company has more/less resource strengths than
weaknesses.
E) is called company resource mapping.
Answer: A Page:111 Learning Objective: 1 Difficulty: Medium Taxonomy: Comprehension AACSB: Value Creation
Identifying a Companys External Market Opportunities
39. The external market opportunities which are most relevant to a company are the ones that
A) increase market share.
B) reinforce its overall business strategy.
C) match up well with the firms financial resources and competitive capabilities, offer the best growth
and profitability, and present the most potential for competitive advantage.
D) correct its internal weaknesses and resource deficiencies.
E) help defend against the external threats to its well-being.
Answer: C Page: 113 Learning Objective: 1 Difficulty: Medium Taxonomy: Comprehension AACSB: Value Creation

40. The market opportunities most relevant to a particular company are those that
A) offer the best growth and profitability.
B) provide a strong defense against threats to the companys profitability.
C) hold the most potential for product innovation.
D) provide avenues for taking market share away from close rivals.
E) hold the most potential to reduce costs.
Answer: A Page:113 Learning Objective: 1 Difficulty: Medium Taxonomy: Comprehension AACSB: Value Creation
41. Which of the following best describes the market opportunities that tend to be most relevant to a particular company?
A) Those market opportunities that provide avenues for taking market share away from close rivals and enhance a companys image as a leader in product innovation and product quality.
B) Those market opportunities that offer the company a chance to raise entry barriers.
C) Those market opportunities that help promote greater diversification of revenues and profits.
D) Those market opportunities that match up well with the firms financial resources and competitive
capabilities, offer the best growth and profitability, and present the most potential for competitive
advantage.
E) Those market opportunities that help correct a companys biggest weaknesses and competitive
deficiencies.
Answer: D Page:113 Learning Objective: 1 Difficulty: Medium Taxonomy: Comprehension AACSB: Value Creation
42. In doing SWOT analysis and trying to identify a companys market opportunities, which of the following is not an example of a potential market opportunity that a company may have?
A) Serving additional customer groups or market segments
B) Growing buyer preferences for substitutes for the industrys product
C) Acquiring rival firms or companies with attractive technological expertise or capabilities
D) Expanding into new geographic markets
E) Openings to win market share away from rivals
Answer: B Page:112 Learning Objective: 1 Difficulty: Easy Taxonomy: Knowledge AACSB: Value Creation
Identifying the External Threats to a Companys Future Profitability
43. Which of the following is not an example of an external threat to a companys future profitability?
A) The lack of a distinctive competence
B) New legislation that entails burdensome and costly government regulations
C) Slowdowns in market growth
D) More intense competitive pressures
E) The introduction of restrictive trade policies in countries where the company does business
Answer: A Page: 112 Learning Objective: 1 Difficulty: Easy Taxonomy: Knowledge AACSB: Value Creation
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182 Chapter 4 Evaluating a Companys Resources and Competitive Position
44. Which of the following is not an example of an external threat to a companys future profitability?
A) Likely entry of potent new competitors
B) The lack of a well-known brand name with which to attract new customers and help retain existing
customers
C) Shifts in buyer needs and tastes away from the industrys product
D) Costly new regulatory requirements
E) Growing bargaining power on the part of the companys major customers and major suppliers
Answer: B Page: 112 Learning Objective: 1 Difficulty: Easy Taxonomy: Knowledge AACSB: Value Creation
What Can Be Learned From a SWOT Analysis?
45. One of the lessons of SWOT analysis is that a companys strategy should
A) be grounded in its resource strengths and capabilities.
B) be aimed at those market opportunities that offer the best potential for both profitable growth and
competitive advantage.
C) seek to defend against threats to the companys future profitability.
D) generally not place heavy demands on areas where company resources are weak or unproven.
E) All of these.
Answer: E Page: 114 Learning Objective: 1 Difficulty: Easy Taxonomy: Comprehension AACSB: Value Creation
46. Which one of the following is not part of conducting a SWOT analysis?
A) Identifying a companys resource strengths and competitive capabilities
B) Benchmarking the companys resource strengths and competitive capabilities against industry key
success factors
C) Identifying a companys market opportunities
D) Drawing conclusions about the companys overall business situationwhat is attractive and what is
unattractive about the companys circumstances?
E) Translating the results of the analysis into actions for improving the companys strategy and market
position
Answer: B Page: 114 Learning Objective: 1 Difficulty: Medium Taxonomy: Knowledge AACSB: Value Creation
47. The two most important parts of SWOT analysis are
A) pinpointing the companys competitive assets and pinpointing its competitive liabilities.
B) identifying the companys resource strengths and identifying the companys best market
opportunities.
C) identifying the external threats to a companys future profitability and pinpointing how many market
opportunities it has.
D) drawing conclusions from the SWOT listings about the companys overall situation and translating
these into strategic actions to better match the companys strategy to its resource strengths and market
opportunities, correct the important weaknesses, and defend against external threats.
E) making accurate lists of the companys strengths, weaknesses, opportunities, and threats and then
using these lists as a basis for ascertaining how well the companys strategy is working.
Answer: D Page: 114 Learning Objective: 1 Difficulty: Medium Taxonomy: Comprehension AACSB: Value Creation

48. The three steps of SWOT analysis are
A) identifying the companys resource strengths and weaknesses and its opportunities and threats, draw-
ing conclusions about the companys overall situation, and translating the conclusions into strategic
actions to improve the companys strategy.
B) pinpointing the companys competitive assets, pinpointing its competitive deficiencies, and determining
whether it enjoys a competitive advantage.
C) determining whether the company has more competitive assets than competitive liabilities, determining
whether the company has good market opportunities, and evaluating the seriousness of the threats to
the companys future profitability.
D) matching the companys strategy to its resource strengths, correcting the companys important resource
weaknesses, and identifying the companys best market opportunities.
E) benchmarking the companys strengths and weaknesses against those of key rivals, identifying its
market opportunities and the external threats it faces, and determining the companys potential for establishing a competitive advantage over rivals.
Answer: A Page: 114 Learning Objective: 1 Difficulty: Hard Taxonomy: Knowledge AACSB: Value Creation
49. Which one of the following is not something that can be gleaned from identifying a companys resource strengths, resource weaknesses, market opportunities, and external threats?
A) How to improve a companys strategy by using company strengths and capabilities as cornerstones for its strategy
B) Which market opportunities are best suited to a companys strengths and capabilities
C) Which resource weaknesses and deficiencies need to be corrected so as to better enable the pursuit of
important market opportunities and to better defend against certain external threats
D) How to turn a core competence into a distinctive competence
E) Whether any of the companys resource strengths can be used to help lessen the impact of external
threats
Answer: D Page: 114 Learning Objective: 1 Difficulty: Easy Taxonomy: Comprehension AACSB: Value Creation
Question 3: Are the Companys Prices and Costs Competitive with Those of Rivals?
50. One of the most telling signs of whether a companys market position is strong or precarious is
A) whether its product is strongly or weakly differentiated from rivals.
B) whether its prices and costs are competitive with those of key rivals.
C) whether it has a lower stock price than key rivals.
D) the opinions of buyers regarding which seller has the best product quality and customer service.
E) whether it is in a bigger or smaller strategic group than its closest rivals.
Answer: B Page: 116 Learning Objective: 2 Difficulty: Medium Taxonomy: Comprehension AACSB: Value Creation
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184 Chapter 4 Evaluating a Companys Resources and Competitive Position
51. Two analytical tools useful in determining whether a companys prices and costs are competitive are
A) SWOT analysis and key success factor analysis.
B) SWOT analysis and benchmarking.
C) value chain analysis and benchmarking.
D) competitive position assessment and competitive strength assessment.
E) driving forces analysis and SWOT analysis.
Answer: C Page: 116 Learning Objective: 2 Difficulty: Easy Taxonomy: Comprehension AACSB: Value Creation
The Concept of a Company Value Chain
52. A companys value chain identifies
A) the steps it goes through to convert its net income into value for shareholders.
B) the primary activities it performs in creating value for its customers and the related support activities.
C) the series of steps it takes to get a product from the raw materials stage into the hands of end-users.
D) the activities it performs in transforming its competencies into distinctive competencies.
E) the competencies and competitive capabilities that underpin its efforts to create value for customers
and shareholders.
Answer: B Page: 116 Learning Objective: 2 Difficulty: Medium Taxonomy: Knowledge AACSB: Value Creation
53. A companys value chain
A) consists of the primary activities that it performs in seeking to deliver value to shareholders in the form
of higher dividends and a higher stock price.
B) depicts the internally performed activities associated with creating and enhancing the companys
competitive assets.
C) consists of two broad categories of activities: the primary activities that create customer value and the
requisite support activities that facilitate and enhance the performance of the primary activities.
D) concerns the basic process the company goes through in performing R&D and developing new
products.
E) consists of the series of steps a company goes through to develop a new product, get it produced and
into the marketplace, and then start collecting revenues and earning a profit.
Answer: C Page: 116 Learning Objective: 2 Difficulty: Medium Taxonomy: Knowledge AACSB: Value Creation
54. Identifying the primary and secondary activities that comprise a companys value chain
A) indicates whether a companys resource strengths will ultimately translate into greater value for
shareholders.
B) reveals whether a companys resource strengths are well-matched to the industrys key success
factors.
C) is a first step in understanding a companys cost structure (since each activity in the value chain gives
rise to costs).
D) is called benchmarking.
E) is called resource value analysis.
Answer: C Page: 117 Learning Objective: 2 Difficulty: Medium Taxonomy: Comprehension AACSB: Value Creation
55. Activity-based cost accounting is used to
A) determine whether the value chains of rival companies are similar or different.
B) benchmark the costs of primary value chain activities against the costs of the support value chain
activities.
C) determine the costs of each primary and support activity comprising a companys value chain and
thereby reveal the nature and make-up of a companys internal cost structure.
D) determine the costs of each strategic action a company initiates.
E) None of the above accurately describes what activity-based costing is about.
Answer: C Page: 117 Learning Objective: 2 Difficulty: Medium Taxonomy: Comprehension AACSB: Value Creation
Why the Value Chains of Rival Companies Often Differ
56. The value chains of rival companies
A) tend to be essentially the sameany differences are typically minor.
B) can differ substantially, reflecting differences in the evolution of each companys own particular
business, differences in strategy, and differences in the approaches being used to execute strategy.
C) are fairly similar or fairly different, depending on how many activities are performed internally and
how many are outsourced.
D) can be either fairly similar or fairly different, depending on the extent to which each companys primary
and support activities are comprised of fixed cost activities and variable cost activities.
E) are fairly similar except when rival companies have quite different product designs.
Answer: B Page: 117 Learning Objective: 2 Difficulty: Hard Taxonomy: Comprehension AACSB: Value Creation
57. The three main areas in the value chain where significant differences in the costs of competing firms can occur include
A) age of plants and equipment, number of employees, and advertising costs.
B) operating-level activities, functional area activities, and line of business activities.
C) the nature and make-up of their own internal operations, the activities performed by suppliers, and the
activities performed by wholesale distribution and retailing allies.
D) human resource activities (particularly labor costs), vertical integration activities, and strategic
partnership activities.
E) variable cost activities, fixed cost activities, and administrative activities.
Answer: C Page: 117-119 Learning Objective: 2 Difficulty: Hard Taxonomy: Comprehension AACSB: Value Creation
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186 Chapter 4 Evaluating a Companys Resources and Competitive Position The Value Chain System for an Entire Industry
58. Which one of the following provides the most accurate picture of whether a company is cost competitive with its rivals?
A) How the costs of the companys internally performed activities (its own value chain) compare against the costs of the internally-performed activities of rival companies
B) Costs in the value chains of the companys suppliers
C) Costs in the value chains of a companys distributors and retail dealers forward channel allies
D) The costs of a companys internally performed activities, costs in the value chains of both the companys
suppliers and forward channel allies, and how all these costs compare against the costs that make up
the value chain systems employed by rival firms
E) Whether the company has a longer or shorter value chain than its close rivals
Answer: D Page: 119-120 Learning Objective: 2 Difficulty: Medium Taxonomy: Comprehension AACSB: Value Creation
59. Determining whether a companys prices and costs are competitive
A) requires looking at the costs of a companys competitively relevant suppliers and forward channel
allies (distributors/dealers).
B) requires considering the costs of a companys internally performed activities.
C) involves the use of benchmarking the costs in a companys value chain system (the costs of its suppliers,
its internally performed activities, the costs of its distributors/dealers) against the costs of the value
chain systems employed by rival firms.
D) typically involves the use of activity-based cost accounting.
E) All of these.
Answer: E Page: 119-120 Learning Objective: 2 Difficulty: Easy Taxonomy: Comprehension AACSB: Value Creation
Activity-Based Cost Accounting to Learn the Costs of Value Chain Activities
60. Activity-based cost accounting aims at
A) making cross-company comparisons of the costs of each value chain activity.
B) dividing all company expenses into two categories: activities whose costs are variable and activities
whose costs are fixed.
C) determining the costs of each activity comprising a companys value chain by establishing expense
categories for specific value chain activities and assigning costs to the activity responsible for creating
the cost.
D) determining the costs of each strategic action a company initiates.
E) None of the above accurately describes what activity-based costing is about.
Answer: C Page: 121 Learning Objective: 2 Difficulty: Medium Taxonomy: Knowledge AACSB: Value Creation
61. Activity-basedcosting
A) is an accounting system that assigns a companys expenses to whichever activity in a companys value
chain is responsible for creating the cost.
B) involves using benchmarking techniques to develop cost estimates for the value chain activities of
each major rival.
C) is a powerful tool for identifying the different pieces of a companys value chain and classifying them
as primary activities and support activities.
D) involves determining which value chain activities represent variable costs and which represent fixed
costs.
E) is a tool for identifying the activities that cause a companys product to be strongly differentiated from
the products of rivals.
Answer: A Page: 121 Learning Objective: 2 Difficulty: Medium Taxonomy: Knowledge AACSB: Value Creation
Benchmarking: A Tool for Assessing Whether a Companys Value Chain Activities Are Competitive
62. Benchmarkinginvolves
A) comparing how different companies perform various value chain activities and then making cross-
company comparisons of the costs of these activities.
B) checking whether a company has achieved more of its financial and strategic objectives over the past
five years relative to the other firms it is in direct competition with.
C) studying whether a companys resource strengths are more/less powerful than the resource strengths
of rival companies.
D) studying how a companys competitive capabilities stack up against the competitive capabilities of
selected companies known to have world class competitive capabilities.
E) comparing the best practices in one industry against the best practices in another industry.
Answer: A Page: 122 Learning Objective: 2 Difficulty: Medium Taxonomy: Knowledge AACSB: Value Creation
63. A much-used and potent managerial tool for determining whether a company performs particular functions or activities in a manner that represents the best practice when both cost and effectiveness are taken into account is
A) competitive strength analysis.
B) activity-based costing.
C) resource cost mapping.
D) SWOT analysis.
E) benchmarking.
Answer: E Page: 122 Learning Objective: 2 Difficulty: Easy Taxonomy: Knowledge AACSB: Value Creation
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188 Chapter 4 Evaluating a Companys Resources and Competitive Position
64. Which of the following is not one of the objectives of benchmarking?
A) To identify the best practices in performing various value chain activities
B) To learn how best practice companies achieve lower costs or better results in performing benchmarked
activities
C) To help construct a company value chain and identify which activities are primary and which are
support activities
D) To develop cross-company comparisons of the costs of performing specific value chain activities
E) To take actions to improve a companys cost competitiveness when benchmarking reveals that its costs
and results of performing an activity are not as good as what other companies have achieved
Answer: C Page: 123 Learning Objective: 2 Difficulty: Medium Taxonomy: Comprehension AACSB: Value Creation
Strategic Options for Remedying a Cost Disadvantage
65. The options for remedying an internal cost disadvantage include
A) investing in productivity-enhancing, cost-saving technological improvements.
B) redesigning the product or some of its components to facilitate speedier and more economical
manufacture or assembly.
C) implementing the use of best practices, particularly for high-cost activities.
D) eliminating some cost-producing activities from the value chain, especially low value-added
activities.
E) All of these.
Answer: E Page: 125 Learning Objective: 2 Difficulty: Medium Taxonomy: Comprehension AACSB: Value Creation
66. Which of the following is not a good option for trying to remedy high internal costs vis-a-vis rivals firms?
A) Investing in productivity-enhancing, cost-saving technological improvements
B) Redesigning the product or some of its components to permit more economical manufacture or
assembly
C) Implementing aggressive strategic resource mapping to permit across-the-board cost reduction
D) Outsourcing high-cost activities to vendors or contractors who can perform them more economically
E) Relocating high-cost activities (like manufacturing) to geographic areas (like China or Latin America
or Eastern Europe) where they can be performed more cheaply
Answer: C Page: 125 Learning Objective: 2 Difficulty: Medium Taxonomy: Comprehension AACSB: Value Creation
67. A companys strategic options for remedying cost disadvantages in internally performed value chain activities do not include
A) revamping its value chain to eliminate or bypass some cost-producing activities (particularly low value-added activities).
B) implementing the use of best practices, particularly for high-cost activities.
C) investing in productivity-enhancing, cost-saving technological improvements.
D) switching to activity-based costing.
E) outsourcing the performance of high-cost activities to vendors that can perform them more cheaply.
Answer: D Page: 125 Learning Objective: 2 Difficulty: Medium Taxonomy: Comprehension AACSB: Value Creation

68. The options for remedying a supplier-related cost disadvantage include
A) trying to negotiate more favorable prices with suppliers and switching to lower priced substitute
inputs.
B) forward vertical integration.
C) shifting into the production of substitute products.
D) shifting from a low-cost leadership strategy to a differentiation or focus strategy.
E) cutting selling prices and trying to win a bigger market share.
Answer: A Page: 125 Learning Objective: 2 Difficulty: Easy Taxonomy: Comprehension AACSB: Value Creation
69. Which of the following is not an option for remedying a supplier-related cost disadvantage?
A) Integrate backward into the business of high-cost suppliers in an effort to reduce the costs of the items
being purchased
B) Negotiate more favorable prices with suppliers
C) Collaborate closely with suppliers to identify mutual cost-saving opportunities
D) Switch to lower priced substitute inputs.
E) Persuade forward channel allies to implement best practices
Answer: E Page: 125 Learning Objective: 2 Difficulty: Easy Taxonomy: Comprehension AACSB: Value Creation
70. Which of the following is not an option for remedying a cost disadvantage associated with activities performed by forward channel allies (wholesale distributors and retail dealers)?
A) Shifting to a more economical distribution strategy such as putting more emphasis on cheaper distri- bution channels (perhaps direct sales via the Internet) or perhaps integrating forward into company- owned retail outlets
B) Trying to make up the difference by cutting costs earlier in the value chain
C) Pressuring distributors-dealers and other forward channel allies to reduce their costs and markups so
as to make the final price to buyers more competitive with the prices of rivals
D) Insisting on across-the-board cost cuts in all value chain activitiesthose performed by suppliers,
those performed in-house, and those performed by distributors-dealers
E) Working closely with forward channel allies to identify win-win opportunities to reduce costs
Answer: D Page: 126 Learning Objective: 2 Difficulty: Easy Taxonomy: Comprehension AACSB: Value Creation
Translating Proficient Performance of Value Chain Activities into Competitive Advantage
71. A company that does a first-rate job of managing its value chain activities relative to competitors
A) is likely to have more distinctive competencies than rivals.
B) stands a good chance of achieving competitive advantage by performing its value chain activities
either more proficiently or at lower cost.
C) is almost certainly going to have a longer and more profitable value chain.
D) usually has strong proficiencies in activity-based costing and benchmarking.
E) usually has the fewest primary activities and the lowest costs in the industry.
Answer: B Page: 126 Learning Objective: 2 Difficulty: Medium Taxonomy: Comprehension AACSB: Value Creation
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190 Chapter 4 Evaluating a Companys Resources and Competitive Position
72. Out-managing rivals in performing value chain activities
A) is one of the most dependable ways a company can build a competitive advantage over rivals.
B) allows a company to avoid the impact of the five competitive forces.
C) is one of the best ways for a company to avoid being impacted by the industrys driving forces.
D) allows a company to move into a higher strategic group.
E) helps neutralize external threats to a companys future business prospects.
Answer: A Page: 126 Learning Objective: 2 Difficulty: Medium Taxonomy: Comprehension AACSB: Value Creation
73. For a company to translate its performance of value chain activities into competitive advantage, it must
A) develop core competencies and maybe a distinctive competence over rivals and that are instrumental in helping it deliver attractive value to customers or else be more cost efficient in how it performs value
chain activities.
B) have more core competencies than rivals.
C) have at least three distinctive competencies.
D) have competencies that allow it to produce the highest quality product in the industry.
E) have more competitive assets than competitive liabilities.
Answer: A Page: 126 Learning Objective: 2 Difficulty: Medium Taxonomy: Comprehension AACSB: Value Creation
74. To build a competitive advantage by out-managing rivals in performing value chain activities, a company must
A) position itself in the industrys more favorably situated strategic group.
B) develop resources strengths that will enable it to pursue the industrys most attractive opportunities.
C) develop core competencies and maybe a distinctive competence that rivals dont have or cant quite
match and that are instrumental in helping it deliver attractive value to customers or else be more cost
efficient in how it performs value chain activities such that it has a low-cost advantage.
D) outsource most all of its value chain activities to world-class vendors and suppliers.
E) eliminate its resource weaknesses.
Answer: C Page: 126 Learning Objective: 2 Difficulty: Medium Taxonomy: Comprehension AACSB: Value Creation
Question 4: Is the Company Competitively Stronger or Weaker than Key Rivals?
75. The value of doing competitive strength assessment is to
A) determine how competitively powerful the companys core competencies are.
B) learn if the companys market opportunities are better than those of its rivals.
C) learn whether a company has a distinctive competence.
D) learn how the company ranks relative to rivals on each of the important factors that determine market
success and ascertain whether the company has a net competitive advantage or disadvantage vis-a-vis
key rivals.
E) determine whether a companys resource strengths are sufficient to allow it to earn bigger profits than
rivals.
Answer: D Page: 128 Learning Objective: 3 Difficulty: Medium Taxonomy: Comprehension AACSB: Value Creation
76. Doing a competitive strength assessment entails
A) determining whether a company has a cost-effective value chain.
B) ranking the company against major rivals on each of the important factors that determine market
success and ascertaining whether the company has a net competitive advantage or disadvantage versus
major rivals.
C) identifying a companys core competencies and distinctive competencies (if any).
D) analyzing whether a company is well positioned to gain market share and be the industrys profit
leader.
E) developing quantitative measures of a companys chances for future profitability.
Answer: B Page: 128 Learning Objective: 3 Difficulty: Medium Taxonomy: Knowledge AACSB: Value Creation
77. A weighted competitive strength assessment is generally analytically superior to an unweighted strength assessment because
A) a weighted ranking identifies which competitive advantages are most powerful.
B) an unweighted ranking doesnt discriminate between companies with high and low market shares.
C) it singles out which competitor has the most competitively potent core competencies.
D) weighting each companys overall competitive strength by its percentage share of total industry profits
produces a more accurate measure of its true competitive strength.
E) all of the various measures of competitive strength are not equally important.
Answer: E Page: 130 Learning Objective: 3 Difficulty: Medium Taxonomy: Comprehension AACSB: Value Creation
78. A weighted competitive strength analysis is conceptually stronger than an unweighted analysis because
A) it provides a more accurate assessment of the strength of competitive forces.
B) it eliminates the bias introduced for those firms having large market shares.
C) the different measures of competitive strength are unlikely to be equally important.
D) the results provide a more reliable measure of what competitive moves rivals are likely to make next.
E) weighting each companys overall competitive strength by the size of its market share produces a more
accurate measure of its true competitive strength.
Answer: C Page: 130 Learning Objective: 3 Difficulty: Medium Taxonomy: Comprehension AACSB: Value Creation
79. In a weighted competitive strength assessment, the sum of the weights should add up to
A) 100%.
B) 1.0.
C) 10.
D) 100.
E) None of the above.
Answer: B Page: 130 Learning Objective: 3 Difficulty: Medium Taxonomy: Comprehension AACSB: Value Creation
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192 Chapter 4 Evaluating a Companys Resources and Competitive Position
80. In a weighted competitive strength analysis, each strength measure is assigned a weight based on
A) its percentage share of total industry revenues.
B) the importance of each competitive strength measure in building a sustainable competitive
advantage.
C) its perceived importance in determining a companys competitive success in the marketplace.
D) its percentage share of total industry profits.
E) what it takes to provide better analytical balance between the companies with high ratings and the
companies with low ratings and thus get the sum of the weights to add up to 1.0.
Answer: C Page: 130 Learning Objective: 3 Difficulty: Medium Taxonomy: Comprehension AACSB: Value Creation
Interpreting the Competitive Strength Assessments
81. Calculating competitive strength ratings for a company and its rivals using the industrys most telling measures of competitive strength or weakness
A) is a way of determining which competitor has the biggest overall competitive advantage in the marketplace and which competitor is faced with the biggest overall competitive disadvantage.
B) is the most reliable indicator of which industry member has the highest overall product quality.
C) is a powerful way of revealing which competitors are in the best and worst strategic groups.
D) is the most reliable indicator of which industry member has the lowest overall costs and is the low-cost
leader.
E) pinpoints which industry rivals are most insulated from the industrys driving forces.
Answer: A Page: 130 Learning Objective: 3 Difficulty: Medium Taxonomy: Comprehension AACSB: Value Creation
82. Quantitative measures of a companys competitive strength
A) signal which competitor has the most distinctive competencies and which competitor has the fewest.
B) provide useful indicators of how a company compares against key rivals, factor by factor and capability
by capabilitythus indicating whether the company has a net overall competitive advantage or
disadvantage against each rival.
C) reveal which competitors are in the best and worst strategic groups.
D) show which industry rival has the best overall market opportunities and which competitor has the
poorest market opportunities.
E) pinpoint which industry rival is subject to the least amount of competitive pressures from the five
competitive forces.
Answer: B Page: 130 Learning Objective: 3 Difficulty: Medium Taxonomy: Comprehension AACSB: Value Creation
83. Which one of the following is an accurate interpretation of the scores that result from doing a competitive strength assessment?
A) High scores signal a strong competitive position and possession of a competitive advantage over companies with lower scores.
B) High scores indicate that a company is a power-user of best practices while low scores signal minimal or ineffective adoption of best practices.
C) The company with the lowest score has the lowest-cost value chain.
D) The company with the lowest score has the strongest net competitive advantage over its rivals.
E) High scores indicate which rivals are most vulnerable to competitive attack.
Answer: A Page: 130 Learning Objective: 3 Difficulty: Medium Taxonomy: Comprehension AACSB: Value Creation
84. Which one of the following is not something that can be learned from doing a competitive strength assessment?
A) The factors on which a company is competitively strongest and weakest vis-a-vis key rivals
B) Whether a company should correct its weaknesses by adopting best practices and revamping the
makeup of its value chain
C) Which of the rated companies is competitively strongest and what size competitive advantage it
enjoys
D) Whether a company has a net competitive advantage or a net competitive disadvantage relative to
key rivals (with the size of the advantage/disadvantage being indicated by the differences among the
companies competitive strength scores)
E) Which rival company is competitively weakest and the areas where it is most vulnerable to competitive
attack
Answer: B Page: 130-131 Learning Objective: 3 Difficulty: Medium Taxonomy: Comprehension AACSB: Value Creation
85. Calculating competitive strength ratings for a company and comparing them against strength ratings for its key competitors helps indicate
A) which weaknesses and vulnerabilities of competitors that the company might be able to attack successfully.
B) which competitors are in profitable strategic groups and which competitors are in unprofitable strategic groups.
C) which competitors are employing offensive strategies and which competitors are employing defensive strategies.
D) which competitors are likely to make money and which are likely to lose money in the years ahead.
E) what the industrys key success factors are.
Answer: A Page: 130-131 Learning Objective: 3 Difficulty: Medium Taxonomy: Comprehension AACSB: Value Creation
Question 5: What Strategic Issues and Problems Merit Front-Burner Management Attention?
86. Identifying the strategic issues a company faces and compiling a worry list of problems and roadblocks is an important component of company situation analysis because
A) without a precise fix on what problems/issues a company confronts, managers cannot know what the industrys key success factors are.
B) the worry list sets the management agenda for taking actions to improve the companys performance and business outlook.
C) without a precise fix on what problems/roadblocks a company confronts, managers are less clear about what value chain activities to benchmark.
D) the worry list helps company managers clarify their thinking about how best to modify the companys value chain.
E) these issues and obstacles must be cleared before management can focus clearly on what is the best strategy for the company to pursue.
Answer: B Page: 132 Learning Objective: 4 Difficulty: Easy Taxonomy: Comprehension AACSB: Value Creation
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194 Chapter 4 Evaluating a Companys Resources and Competitive Position
87. Identifying the strategy-related issues and problems that company managers need to address and resolve entails
A) drawing on what was learned from having analyzed the companys industry and competitive environ- ment.
B) drawing on the evaluations of the companys own resources, internal circumstances, and competi- tiveness.
C) locking in on what challenges/obstacles/roadblocks the company has to overcome in order to be financially and competitively successful in the years ahead.
D) developing a worry list of how to, whether to., and what to do about..
E) All of the above.
Answer: E Page: 132 Learning Objective: 4 Difficulty: Easy Taxonomy: Comprehension AACSB: Value Creation
88. Identifying the strategic issues and problems t

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