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Chapter 3 reading
Terms in this set (84)
According to value-chain analysis, a firm ______.
is profitable when the value it receives exceeds total costs
Which of the following are among the primary activities of a firm's value chains? (Check all that apply.)
marketing and sales
inbound and outbound logistics
Support activities add value by themselves or through their relationships with which kinds of activities?
Primary and other support activities
Which of the following processes are included in inbound logistics? (Check all that apply.)
Returns to suppliers
JIT has helped companies like Dell to do which of the following?
Decrease the time it takes to deliver products to customers
Decrease storage costs, since parts arrive only hours before needed
Which type of analysis views the organization as a sequential process of value-creating activities?
______ activities are the sequential activities of the value chain that refer to the physical creation of the product or service, its sale and transfer to the buyer, and its service after sale.
______ includes all activities associated with transforming inputs into the final product.
Which of the following are examples of support activities? (Check all that apply.)
Human Resources management
______ is associated with receiving, storing, and distributing product inputs.
Just-in-time (JIT) inventory systems are designed to help companies with their ______.
Which of the following processes are associated with outbound logistics? (Check all that apply.)
delivery vehicle operation
Operations includes which of the following activities? (Check all that apply.)
______ activities are associated with purchases of products and services by end users and the inducements used to get them to make purchases.
Marketing and sales
______ includes the actions associated with providing assistance to enhance or maintain the value of the product.
Procurement activities include the purchase of which of the following? (Check all that apply.)
Which of the following describe activities associated with the technology development support function? (Check all that apply.)
developing technologies that train personnel
research and development activities that lead to new products
developing a company-wide Intranet
______ is collecting, storing, and distributing products or services to buyers.
Human resource management's activities include which of the following? (Check all that apply.)
negotiations with labor unions
hiring engineers and forklift operators
Which of the following are marketing and sales activities? (Check all that apply.)
General administration is often seen ______.
only as overhead
Which of the following are service activities? (Check all that apply.)
A firm's expanded value chain includes ______.
______ refers to the function of purchasing inputs used in the firm's value chain.
Which of the following actions should firms take to build sustainability capabilities in both primary and support activities in the value chain?
Research and development
______ includes activities that are associated with the development of new knowledge that is applied to the firm's operations.
_______ consists of activities involving recruiting, hiring, training, development, and compensating personnel.
Human resources management
______ consists of activities that support the entire value chain and not individual activities.
Which of the following statements describe the relationships among value-chain activities? (Check all that apply.)
They are relationships among activities within the firm and other stakeholders.
They are interrelationships among activities within the firm.
When addressing the value-chain concept, it is important to focus on the interrelationship between the organization and its most important stakeholders, which are ______.
True or false: The value-chain concept does not apply to service organizations.
The ______ view of the firm states that a firm's competitive advantages are due to its endowment of strategic resources that are valuable, rare, costly to imitate, and costly to substitute.
Competitive advantages are created and sustained through having ______.
resources that are valuable, rare, and hard to duplicate and substitute
Which of the following are examples of tangible resources? (Check all that apply.)
Match each type of resource (on the left) with an appropriate example (on the right).
Tangible: accounts receivables
Intangible: experience of employees
organization capability: outstanding customer service
The application of value-chain activities is easily applied to service organizations when one understands ______.
the focus is on adding value for customers
The resource-based view of the firm combines which of the following perspectives?
The company's internal analysis
An external analysis of the industry and its competitive environment
Typically, resources ______.
on their own do not yield a competitive advantage
Examples of intangible resources include which of the following? (Check all that apply.)
the experience and capabilities of employees
the company's brand name
technical and scientific skills
______ resources are organizational assets that include physical and financial assets and are relatively easy to identify.
______ are the competencies and skills that a firm employs to transform inputs into outputs.
Which of the following are included in a firm's intangible resources? (Check all that apply.)
brand name and reputation
the firm's culture
Resources are valuable only when they enable a firm to ______.
formulate and implement strategies that improve its efficiency or effectiveness
______ resources are organizational assets that are difficult to identify and account for and are typically embedded in unique routines and practices.
Resources that not many firms possess are known as ______ resources.
Which of the following are examples of organizational capabilities?
Superb innovation process
Outstanding customer service
Excellent product development capabilities
Resources that competitors can easily imitate generate ______.
Strategic resources must meet four criteria in order for them to provide a firm with the potential for a ______ competitive advantage.
Which of the following are examples of physical uniqueness? (Check all that apply.)
patented products that cannot be copied
a beach resort location on a one-of-a-kind island
a company's mineral rights
______ is a characteristic of resources that is developed and/or accumulated through a unique series of events.
Resources are only rare when other companies ______.
do not possess the same valuable resource
______ is a characteristic of a firm's resources that is costly to imitate because a competitor cannot determine what the resource is and/or how it can be re-created.
Which of the following are examples of socially complex resources? (Check all that apply.)
interpersonal relationships among managers
reputation with suppliers and customers
Which of the following are ways that resource inimitability (difficulty to imitate) is a key to value creation? (Check all that apply.)
It makes profits more likely to be sustainable.
It constrains competition.
Resources must have ______ strategically equivalent and valuable substitutes in order to be a source of sustainable competitive advantage.
______ is the first source of resource inimitability due to being inherently difficult to copy.
Which of the following are reasons why competitors have difficulty imitating resources that were developed over time? (Check all that apply.)
Their uniqueness is due in part to all that happened along the path of development.
They cannot go out and buy these resources quickly and easily.
Which of the following describe the two forms that resource substitutability may take? (Check all that apply.)
a substitute that is a similar resource that enables the firm to implement the same strategy
a substitute that is a very different resource that becomes a strategic substitute because it provides the same end result differently
Which of the following are examples of resource characteristics that are inimitable due to causal ambiguity? (Check all that apply.)
organizational capabilities that involve complex social interactions that make up a company's culture
processes that are difficult for outsiders to understand
True or false: The only thing a firm needs to achieve a sustainable competitive advantage is a resource that is difficult to imitate.
______ is a characteristic of a firm's resources that is costly to imitate because the social engineering required is beyond the capability of competitors.
Which of the following help to explain the extent to which employees and managers may be able to obtain a proportionately high level of generated profits?
Manager bargaining power
Employee exit cost
Employee replacement cost
Employee bargaining power
Two valuable firm resources are strategically equivalent (substitutes) when each ______.
can be exploited separately to implement the same strategies
The stakeholder view takes a(n) ______ approach than the financial ratio analysis in evaluating the firm.
A firm can substitute one resource for another by doing which activity?
substituting a similar resource
Which of the following are among the five types of financial ratios that are used to analyze a firm's performance? (Check all that apply.)
short-term and long-term solvency measures
asset management ratio
profitability and market value ratios
Resources that are valuable, rare, difficult to imitate, and do not have substitutes provide a firm with a ______.
sustainable competitive advantage
When employees are essential to a firm's unique capabilities, they will earn higher wages and also have more ______.
Rather than analyzing its finances in isolation, a firm should make use of ______.
Two approaches to evaluate firm performance include which of the following? (Check all that apply.)
financial ratio analysis
stakeholder view (balance scorecard)
______ is a method of evaluating a firm's performance using performance measures from four perspectives: customer, internal, innovation and learning, and financial.
______ is a technique for measuring the performance of a firm according to its balance sheet, income statement, and market valuation.
Financial ratio analysis
The ______ perspective provides a measure of firm performance that indicates how well firms are satisfying customer expectations.
Internal business perspective measures should focus on the ______ processes that have the greatest effect on customer satisfaction.
The ______ perspective measures how well a firm is changing its product and service offerings to adapt to changes in the internal and external environments.
innovation and learning
Which of the following should be included as reference points so that a firm's financial position is in the proper context for analysis? (Check all that apply.)
key competitor comparisons
comparisons with industry norms
Which of the following statements about using the balanced scorecard method of evaluating a firm's performance are true? (Check all that apply.)
It includes financial and customer satisfaction measures.
It provides managers with a fast but comprehensive view of the business.
It takes into account organizational innovation and learning perspective.
The ______ perspective measures a firm's monetary performance to see how well strategy implementation and execution are contributing to bottom-line improvement.
Which of the following are the key categories of customer concerns? (Check all that apply.)
time and quality
cost of the good or service
performance and service
Which of the following are potential limitations of using the balanced scorecard approach? (Check all that apply.)
lack of long term senior management commitment
poor execution of the approach
poor alignment with individuals' scorecards
The ______ perspective involves measures of firm performance that indicate how well a firm's internal processes, decisions, and actions are contributing to customer satisfaction.
Which of the following statements about the firm's innovation and learning perspective are correct? (Check all that apply.)
Human capital, information capital and organization capital are critical to this perspective.
Managers must make frequent changes to existing products and introduce new products.
The criteria for success are constantly changing due to rapid changes.
Which of the following are typical financial goals? (Check all that apply.)
Which of the following is the greatest limitation of the balanced scorecard?
Treating the balanced scorecard as a quick fix.
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