Question 1

Gillette combines several technologies (e.g.,metallurgy,physiology,physics) to attain unparalleled success in the wet shaving industry.This is an example of their

Accepted Answer

A)   tangible resources.
B)   intangible resources.
C)   organizational capabilities.
D)   strong primary activities.E) B) and C)
F) B) and D)

Question 2

Historical comparisons provide information to managers about changes in a firm's competitive position.Historical comparisons are often misleading

Accepted Answer

A)   if the overall strategy of the firm is the same.
B)   in periods of recession or economic boom.
C)   if the firm shows constant growth.
D)   if the firm's stock is publicly traded.E) C) and D)
F) None of the above

Question 3

Financial analysis provides an accurate way to assess the relative strengths of firms and can be used as a complete guide to study companies.

Accepted Answer

A) True 
 B)False  False

Question 4

An important implication of the balanced scorecard is that managers need not look at their job as primarily balancing stakeholder demands.

Accepted Answer

A) True 
 B)False

Question 5

The best measure of a company's ability to meet imminent financial obligations is known as the

Accepted Answer

A)   current ratio.
B)   total asset turnover.
C)   debt ratio.
D)   profit margin.E) All of the above
F) B) and C)

Question 6

How can a firm develop (or enhance)its advantages in the marketplace by having strong,positive interrelationships among its value chain activities and those of its suppliers and customers? Provide an example.

Accepted Answer

Having strong,positive interrelationship...

Question 7

A meaningful ratio analysis

Accepted Answer

A)   must go beyond the calculation and interpretation of financial ratios.
B)   is based primarily on leverage ratios.
C)   involves only liquidity ratios.
D)   involves profitability ratios at a single point in time.E) C) and D)
F) A) and D)

Question 8

Which of these categories of financial ratios is used to measure a company's ability to meet its short-term financial obligations?

Accepted Answer

A)   Leverage ratios
B)   Profitability ratios
C)   Activity ratios
D)   Liquidity ratiosE) All of the above
F) None of the above

Question 9

Inbound logistics include

Accepted Answer

A)   machining and packaging.
B)   warehousing and inventory control.
C)   repair and parts supply.
D)   promotion and packaging.E) A) and C)
F) A) and D)

Question 10

In value chain analysis,value is measured by market value of the total stock outstanding of the company.

Accepted Answer

A) True 
 B)False

Question 11

The following are examples of socially complex organizational phenomena except

Accepted Answer

A)   a firm's culture
B)   interpersonal relations among a firm's managers
C)   complex physical technology
D)   reputation with suppliers and customersE) None of the above
F) C) and D)

Question 12

When using industry norms as a standard of comparison,managers must be sure that the firms used in the comparisons are representative of all sizes and strategies within the industry.

Accepted Answer

A) True 
 B)False

Question 13

How should managers assess changes in their firm's competitive position in their industries during a period of unusual economic growth?

Accepted Answer

A)   Compare the firm's financial ratios with ratios of firms in other strategic groups in the industry.
B)   Compare the firm's financial ratios over the most recent one-year period.
C)   Compare the financial ratios of all firms in the country's industry-some of whom serve very diverse market segments and have specialized accordingly.
D)   Compare the financial ratios of firms in the company's strategic group.E) None of the above
F) All of the above

Question 14

Products and services that are difficult to imitate help firms sustain their profitability.

Accepted Answer

A) True 
 B)False

Question 15

Primary activities contribute to the physical creation of a product or service,its sale and transfer to the buyer,and its service after the sale.

Accepted Answer

A) True 
 B)False

Question 16

The balanced scorecard enables managers to consider their business from all of the following perspectives except

Accepted Answer

A)   customer perspective.
B)   internal business perspective.
C)   innovation and learning perspective.
D)   ethical perspective.E) A) and B)
F) None of the above

Question 17

A primary benefit of the "balanced scorecard" is that it complements financial indicators with operational measures of customer satisfaction,internal processes,and the organization's innovation and improvement activities.

Accepted Answer

A) True 
 B)False  True

Question 18

The "balanced scorecard" developed by Kaplan and Norton helps to integrate

Accepted Answer

A)   financial analysis and a firm's reputation.
B)   intangible resources and operational measures.
C)   financial analysis and stakeholder perspectives.
D)   short-term perspectives and strategic positioning.E) B) and C)
F) A) and D)

Question 19

What are some ways in which a firm's general administration can help create (or enhance)competitive advantages?

Accepted Answer

General administration includes activiti...

Question 20

Advertising is a _____ activity.Supply of replacement parts is a _____ activity.

Accepted Answer

A)   primary; primary
B)   support; primary
C)   support; secondary
D)   primary; supportE) B) and C)
F) C) and D) A

Exam 3: Assessing the Internal Environment of the Firm

Gillette combines several technologies (e.g.,metallurgy,physiology,physics) to attain unparalleled success in the wet shaving industry.This is an example of their

Correct AnswerverifiedShow Answer

Historical comparisons provide information to managers about changes in a firm's competitive position.Historical comparisons are often misleading

Correct AnswerverifiedShow Answer

Financial analysis provides an accurate way to assess the relative strengths of firms and can be used as a complete guide to study companies.

Correct AnswerverifiedFalse

An important implication of the balanced scorecard is that managers need not look at their job as primarily balancing stakeholder demands.

Correct AnswerverifiedShow Answer

The best measure of a company's ability to meet imminent financial obligations is known as the

Correct AnswerverifiedShow Answer

How can a firm develop (or enhance)its advantages in the marketplace by having strong,positive interrelationships among its value chain activities and those of its suppliers and customers? Provide an example.

Correct AnswerverifiedHaving strong,positive interrelationship...View AnswerShow Answer

A meaningful ratio analysis

Correct AnswerverifiedShow Answer

Which of these categories of financial ratios is used to measure a company's ability to meet its short-term financial obligations?

Correct AnswerverifiedShow Answer

Inbound logistics include

Correct AnswerverifiedShow Answer

In value chain analysis,value is measured by market value of the total stock outstanding of the company.

Correct AnswerverifiedShow Answer

The following are examples of socially complex organizational phenomena except

Correct AnswerverifiedShow Answer

When using industry norms as a standard of comparison,managers must be sure that the firms used in the comparisons are representative of all sizes and strategies within the industry.

Correct AnswerverifiedShow Answer

How should managers assess changes in their firm's competitive position in their industries during a period of unusual economic growth?

Correct AnswerverifiedShow Answer

Products and services that are difficult to imitate help firms sustain their profitability.

Correct AnswerverifiedShow Answer

Primary activities contribute to the physical creation of a product or service,its sale and transfer to the buyer,and its service after the sale.

Correct AnswerverifiedShow Answer

The balanced scorecard enables managers to consider their business from all of the following perspectives except

Correct AnswerverifiedShow Answer

A primary benefit of the "balanced scorecard" is that it complements financial indicators with operational measures of customer satisfaction,internal processes,and the organization's innovation and improvement activities.

Correct AnswerverifiedTrue

The "balanced scorecard" developed by Kaplan and Norton helps to integrate

Correct AnswerverifiedShow Answer

What are some ways in which a firm's general administration can help create (or enhance)competitive advantages?

Correct AnswerverifiedGeneral administration includes activiti...View AnswerShow Answer

Advertising is a _____ activity.Supply of replacement parts is a _____ activity.

Correct AnswerverifiedA

Correct Answer
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False

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Having strong,positive interrelationship...
View Answer

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True

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General administration includes activiti...
View Answer

Advertising is a _ activity.Supply of replacement parts is a _ activity.

Correct Answer
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A