Abstract
4 43. (p. 339) Bartlett and Ghoshal studied several of the most successful global companies in the last decade. Their research suggests that combining flexible responsiveness with integration and innovation: A. Requires consistency in the management role in a twenty-first century company B. Is based
Multiple Choice Questions SET#1 QUESTIONS 1. (p. 326) _____________ is the process and practice by key executives of guiding and shepherding people in an organization toward a vision over time and developing that organizations future leadership and organizational culture. A. Organizational structure B. Organizational strategy C. Organizational leadership D. Cultural context Difficulty: Easy Learning Objective: 1 2. (p. 328) Which of the following is NOT a way through which leaders galvanize commitment to embrace change? A. Involve every employee in corporate strategic decision making B. Shape organizational culture C. Build the organization D. Clarify strategic intent Difficulty: Easy Learning Objective: 1 3. (p. 328) Leaders help their company embrace change by setting forth their ________ a clear sense of where they want to lead the company and what results they expect to achieve. A. Strategic quota B. Mission C. Vision D. Strategic intent Difficulty: Medium Learning Objective: 1 4. (p. 328) Traditionally, the concept of _________ has been a description or picture of what the company could be that accommodates the needs of all its stakeholders. A. Mission B. Vision C. Strategy D. Performance Difficulty: Medium Learning Objective: 2 5. (p. 328) A _________ is an articulation of a simple criterion or characterization of what the leader sees the company must become to establish and sustain global leadership. A. Leaders principle B. Mission C. Leaders vision D. Strategic intent Difficulty: Medium Learning Objective: 2 6. (p. 329) A key element of good organizational leadership is to make clear the ___________ a leader has for the organization and managers in it, as they seek to move toward the vision. This will help keep the firm on track in the present term. A. Strategic purpose B. Strategic goals C. Alternative structures D. Performance expectations Difficulty: Medium Learning Objective: 2 7. (p. 331) Because leaders are attempting to embrace change, they are often _____________ their organization. A. Abandoning B. Rebuilding or remaking C. Divesting businesses in D. Repositioning Difficulty: Medium Learning Objective: 2 8. (p. 331) ____________ is the effort to familiarize future leaders with the skills important to the company and to develop exceptional leaders among the managers you employ. A. Identifying an action plan B. Education and leadership development C. Developing principles D. Creating passion Difficulty: Easy Learning Objective: 3 9. (p. 333) ____________ are your fundamental personal standards that guide your sense of honesty, integrity and ethical behavior. A. Values B. Ethics C. Principles D. Passions Difficulty: Medium Learning Objective: 3 10. (p. 333) A future leaders personal philosophies and choices ___________ for any key leaders of any organization. A. Manifest themselves exponentially B. Are usually diminished over time C. Always permeate the company D. Become less pronounced with time Difficulty: Medium Learning Objective: 3 11. (p. 333) An effective organization is better built and is strongest when: A. Its leaders clearly articulate their vision for the firm B. Its leaders show by example what principles are important C. Its leaders manage from afar D. Its leaders micromanage the employees of the firm Difficulty: Easy Learning Objective: 3 12. (p. 333) _____________ can be seen in principles, honesty and living by example. This can become a major force by which a leader will shape and move his or her organization. A. Prioritization B. Transparency C. Strategy D. Long-term objectives Difficulty: Easy Learning Objective: 3 13. (p. 332) __________ is the capacity to see a commitment through to completion long after most people would have stopped trying. A. Perseverance B. Passion C. Principle D. Integrity Difficulty: Easy Learning Objective: 3 14. (p. 334) __________ is a highly motivated sense of commitment to what you do and want to do. A. Passion B. Patience C. Perseverance D. Principle Difficulty: Easy Learning Objective: 3 15. (p. 336) Leaders look to managers to execute strategy, accept risk and cope with the complexity of change. So, _________ becomes a major leadership role. A. Setting short-term strategy B. Selection and development of key managers C. Establishing priority among senior executives D. Limiting managerial buy-in Difficulty: Easy Learning Objective: 3 16. (p. 336) ___________ will increase pressure on corporations to push authority downward in their organizations. This means every line manager will have to exercise leadership prerogatives to an extent unthinkable a generation earlier. A. Globalization B. Fragmentation of industries C. Consolidation of industries D. The accelerated pace and complexity of business Difficulty: Medium Learning Objective: 3 17. (p. 338) Researcher David Goleman addressed the question of: A. What types of competencies are needed among organizational leaders? B. The optimal age and maturity for successful organizational leaders C. What types of personality attributes generate the ideal type of competencies needed in organizations? D. How an organization can groom new executives from within Difficulty: Medium Learning Objective: 3 18. (p. 338) _________ exists in terms of the ability to read and understand ones emotions and assess ones strengths and weaknesses, underlain by the confidence that stems from positive self-worth. A. Self-management B. Self-awareness C. Social awareness D. Social skills Difficulty: Hard Learning Objective: 3 19. (p. 338) __________ exists in terms of control, integrity, conscientiousness, initiative and achievement orientation. A. Social awareness B. Self-awareness C. Social skills D. Self-management Difficulty: Hard Learning Objective: 3 20. (p. 338) ___________ occurs in relation to sensing others emotions, reading the organization and recognizing customers needs. A. Self-awareness B. Social skills C. Social awareness D. Self-management Difficulty: Medium Learning Objective: 3 21. (p. 338) One may define _________ as sensing others emotions. A. Sympathy B. Empathy C. Relationship D. Sensitivity Difficulty: Medium Learning Objective: 3 22. (p. 338) One can define _________ as being able to read the organization. A. Social integrity B. Empathy C. Organizational awareness D. Social-management Difficulty: Easy Learning Objective: 3 23. (p. 338) ___________ comes from recognizing customers needs. A. Service orientation B. Position power C. Self-awareness D. Organizational management Difficulty: Medium Learning Objective: 3 24. (p. 338) ____________ occur(s) in relation to influencing and inspiring others; communicating, collaborating and building relationships with others; and managing change and conflict. A. Competitive management B. Social skills C. Self-management D. Self-awareness Difficulty: Medium Learning Objective: 3 25. (p. 338) A key way the characteristics of the desirable manager manifest themselves in a managers routine activities is found in the way they: A. Seek to get favorable decisions from corporate management B. Collaborate with others C. Choose individual workers D. Seek to get the work of their unit done over time Difficulty: Medium Learning Objective: 3 26. (p. 338) Organizational sources of power are derived from: A. The managers tenure at the firm B. The managers role in the organization C. The managers style of working individually D. The managers functional tactics Difficulty: Medium Learning Objective: 4 27. (p. 338) _________ is formally established based on the managers position in the organization. A. Organization power B. Reward power C. Position power D. Information power Difficulty: Easy Learning Objective: 4 28. (p. 338) By virtue of Sams vice presidency in the organization, certain decision-making authorities and responsibilities are conferred that he is entitled to use to get things done. This is an example of: A. Peer influence B. Expert influence C. Punitive power D. Position power Difficulty: Medium Learning Objective: 4 29. (p. 338) ___________ is the source of power many new managers expect to be able to rely on, but often the least useful. A. Referent power B. Reward power C. Punitive power D. Position power Difficulty: Medium Learning Objective: 4 30. (p. 338) __________ is available when the manager confers something in return for desired actions and outcomes. A. Punitive power B. Referent influence C. Reward power D. Information power Difficulty: Medium Learning Objective: 4 31. (p. 338) Often a power source, _________ is the type used when Jomar, a business unit manager, gave Elisa, his subordinate, the option to have a flexible work schedule or to work from home in return for her finishing several projects on-deadline. A. Referent power B. Reward power C. Information power D. Peer influence Difficulty: Easy Learning Objective: 4 32. (p. 338) ___________ can be particularly effective and is derived from a managers access to and control over the dissemination of information that is important to subordinates yet not easily available in the organization. A. Information power B. Organization power C. Expert influence D. Referent power Difficulty: Easy Learning Objective: 4 33. (p. 338) Jerry was using __________ when he asked his workers to reorganize the department. They did not yet know why they were doing this, but knew that Jerry had a good reason that he had not yet shared. A. Referent power B. Punitive power C. Information power D. Peer influence Difficulty: Easy Learning Objective: 4 34. (p. 338) ___________ is the power exercised via coercion or fear of punishment for mistakes by a managers subordinates. A. Expert influence B. Information power C. Position power D. Punitive power Difficulty: Easy Learning Objective: 4 35. (p. 338) The assembly line workers had already received cutbacks in bonus compensation when profits fell last quarter. Rogecos managers made it clear that unless productivity and profits were brought back up to the industry benchmarks within two quarters, further cuts would be made to base pay. This demonstrates: A. Expert influence B. Referent influence C. Information power D. Punitive power Difficulty: Medium Learning Objective: 4 36. (p. 338) Leaders today _________ rely on their personal ability to influence others. A. Decreasingly B. Try not to C. Increasingly D. Should never Difficulty: Medium Learning Objective: 4 37. (p. 338) ________, a form of power, comes mainly from three sources: expert, referent and peer influences. A. External influence B. Personal influence C. Punitive influence D. Organizational influence Difficulty: Easy Learning Objective: 4 38. (p. 338) _________ is derived from a leaders knowledge in a particular area or situation. A. Expert influence B. Information power C. Punitive power D. Peer influence Difficulty: Medium Learning Objective: 4 39. (p. 338) __________ comes from having others want to identify with the leader. A. Expert influence B. Peer influence C. Referent influence D. Coercive power Difficulty: Medium Learning Objective: 4 40. (p. 338) Asif was one of the most charismatic managers at Titan Systems. He had a great personality and was always very empathetic to employee needs. Asif can be characterized as having strong: A. Referent influence B. Peer influence C. Expert influence D. Information power Difficulty: Medium Learning Objective: 4 41. (p. 339) ___________ can be a very effective way for leaders to influence the behaviors of others. This is used when leaders use the assignment of team members and the charge to the team to influence the outcomes produced. A. Punitive power B. Peer influence C. Information power D. Referent influence Difficulty: Easy Learning Objective: 4 42. (p. 339) Effective leaders: A. Choose just one key source of power and influence B. Tend to limit these types of influence and use more legitimate means C. Usually do not have reason to use more than one of these types of power at a time D. Make use of all seven sources of power, often in combination Difficulty: Medium Learning Objective: 4 43. (p. 339) Bartlett and Ghoshal studied several of the most successful global companies in the last decade. Their research suggests that combining flexible responsiveness with integration and innovation: A. Requires consistency in the management role in a twenty-first century company B. Is based on an institution, not a process in a twenty-first century company C. Determines the value of the management role in a twenty-first century company D. Requires rethinking the management role and the distribution of management roles within a twenty-first century company Difficulty: Medium Learning Objective: 5 44. (p. 339) The ___________ according to Bartlett and Ghoshal involves decisions about opportunities to pursue and resource deployment. A. Entrepreneurial process B. Integration process C. Innovation process D. Renewal process Difficulty: Medium Learning Objective: 5 45. (p. 339) The ___________ according to Bartlett and Ghoshal involves building and deploying organizational capabilities. A. Integration process B. Innovation process C. Entrepreneurial process D. Renewal process Difficulty: Medium Learning Objective: 5 46. (p. 339) The ___________ according to Bartlett and Ghoshal involves shaping organizational purpose and enabling change. A. Entrepreneurial process B. Renewal process C. Integration process D. Innovation process Difficulty: Medium Learning Objective: 5 47. (p. 339) The research of Bartlett and Ghoshal suggests that the critical management functions: A. Must be present in the organization, but not necessarily in all three levels of management B. Is strictly the domain of top management? C. Should be confined, typically, to the top two management levels D. Need to be shared and distributed across three management levels Difficulty: Medium Learning Objective: 5 48. (p. 339) Developing operating managers and supporting their activities occurs in middle management as part of the: A. Integration process B. Renewal process C. Innovation process D. Entrepreneurial process Difficulty: Hard Learning Objective: 5 49. (p. 339) In front-line management, creating and pursuing opportunities and managing contiguous performance improvement is an example of the: A. Integration process B. Entrepreneurial process C. Renewal process D. Innovation process Difficulty: Hard Learning Objective: 5 50. (p. 339) Providing institutional leadership through shaping and embedding corporate purpose and challenging embedded assumptions at the top management level is reflective of the: A. Innovation process B. Integration process C. Renewal process D. Entrepreneurial process Difficulty: Medium Learning Objective: 5 51. (p. 339) Linking skills, knowledge and resources across units in the middle-management level demonstrates the: A. Renewal process B. Integration process C. Entrepreneurial process D. Innovation process Difficulty: Medium Learning Objective: 5 52. (p. 339) Attracting resources and capabilities and developing the business at the front-line management level exemplifies the: A. Renewal process B. Integration process C. Innovation process D. Entrepreneurial process Difficulty: Medium Learning Objective: 5 53. (p. 340) ________ is the set of important assumptions that members of an organization share in common. A. Organizational culture B. Organizational leadership C. Organizational strategy D. Organizational change Difficulty: Easy Learning Objective: 5 54. (p. 340) The important assumptions shared by members of an organization are often: A. Very similar to all other organizations in that industry B. Very obvious to outsiders C. Unstated D. Formalized Difficulty: Medium Learning Objective: 5 55. (p. 340) When a member internalizes the beliefs and values of the firm, the corresponding behavior is: A. A shared assumption B. Extrinsically rewarding C. Enforced using referent power D. Intrinsically rewarding Difficulty: Medium Learning Objective: 5 56. (p. 340) Assumptions become shared assumptions through __________ among an organizations individual members. A. Internalization B. Externalization C. Reiteration D. Reflection Difficulty: Medium Learning Objective: 5 57. (p. 340) Joe Germane, CEO of Brady Healthcare, has made sure to visit each of the international business units biannually since he was brought on in the firm. This demonstrates Joes: A. Building time in the organization B. Emphasizing key themes C. Adapting common themes in a unique way D. Institutionalizing practices that reinforce desired beliefs Difficulty: Easy Learning Objective: 6 58. (p. 341) An organization is much like a(n) __________, in which new members must be initiated and earn trust and credibility among fellow members. A. Institution B. Tribe C. Army D. Elite club Difficulty: Medium Learning Objective: 6 59. (p. 342) ________ are a persons basis for differentiating right from wrong. A. Principles B. Ethical standards C. Morals D. Laws Difficulty: Hard Learning Objective: 6 60. (p. 344) Power Fund is a long-standing brokerage firm with a great history of high returns and well-managed growth. The managers at Power Fund repeatedly refer to terms like quality, growth, and reliability in the firms advertisements. This demonstrates managers: A. Dissemination of stories and legends about core values B. Emphasis on key themes or dominant values C. Building time into the organization D. Managing the firm globally Difficulty: Medium Learning Objective: 6 61. (p. 344) Foto Show, an online full-service photo processing site, institutionalizes its storytelling among old and new employees alikethey even give awards to reinforce the given theme. This demonstrates: A. Emphasizing dominant values B. Encouraging dissemination of legends about core values C. Building time in the organization D. Managing organizational culture in a global organization Difficulty: Medium Learning Objective: 6 62. (p. 345) _________ create differences across national boundaries that influence how people interact, read personal cues and otherwise interrelate socially. A. Values B. Religions C. Social norms D. Educations Difficulty: Medium Learning Objective: 6 63. (p. 345) __________ about similar circumstances varies from country to country. In North America, individualism is central, but in Japan, the needs of the group dominate. A. Values and attitudes B. Religions C. Educations D. Social norms Difficulty: Medium Learning Objective: 6 64. (p. 345) __________, manifest in holidays, practices and belief structures, differ in fundamental ways that must be taken into account as one attempts to shape organizational culture in a global setting. A. Values and attitudes B. Social norms C. Religion D. Education Difficulty: Easy Learning Objective: 6 65. (p. 346) __________ differs across national borders in the various ways people are accustomed to learning. A. Social norms B. Social awareness C. Education D. Religion Difficulty: Easy Learning Objective: 6 66. (p. 346) When there is a high potential compatibility of changes with the existing culture and many changes in key organizational factors that are necessary to implement the new strategy: A. Managers should manage around the culture B. Managers should reformulate strategy or prepare carefully for long-term, difficult cultural change C. Managers should link changes to the basic mission and fundamental organizational norms D. Managers should focus on reinforcing the culture and achieving synergies Difficulty: Hard Learning Objective: 7 67. (p. 346) When there is a low potential compatibility of changes with the existing culture and many changes in key organizational factors that are necessary to implement the new strategy: A. Managers should link changes to the basic mission and fundamental organizational norms B. Managers should reformulate strategy or prepare carefully for long-term, difficult cultural change C. Managers should focus on reinforcing the culture and achieving synergies D. Managers should manage around the culture Difficulty: Hard Learning Objective: 7 68. (p. 346) When there is a high potential compatibility of changes with the existing culture and few changes in key organizational factors that are necessary to implement the new strategy: A. Managers should focus on reinforcing the culture and achieving synergies B. Managers should link changes to the basic mission and fundamental organizational norms C. Managers should manage around the culture D. Managers should reformulate strategy or prepare carefully for long-term, difficult cultural change Difficulty: Hard Learning Objective: 7 69. (p. 346) When there is a low potential compatibility of changes with the existing culture and few changes in key organizational factors that are necessary to implement the new strategy: A. Managers should link changes to the basic mission and fundamental organizational norms B. Managers should focus on reinforcing the culture and achieving synergies C. Managers should manage around the culture D. Managers should reformulate strategy or prepare carefully for long-term, difficult cultural change Difficulty: Hard Learning Objective: 7 70. (p. 347) Using a time of relative stability to remove organizational roadblocks to the desired culture is one broad theme in attempting to: A. Manage around culture B. Maximize synergy C. Link to mission D. Reformulate the strategy or culture ================================================= SET#2 Chapter 06 Internal Analysis Multiple Choice Questions 1. (p. 138) The tendency to accept the status quo and disregard signals that change is needed is called: A. Management myopia B. Environmental awareness C. Management long-sightedness D. Subjective management Difficulty: Medium Learning Objective: 1 2. (p. 140) SWOT analysiss value and continued use is found in its: A. Complexity B. Difficulty C. Simplicity D. Short-sighted nature Difficulty: Medium Learning Objective: 1 3. (p. 140) What have strategists sought in frameworks besides SWOT for conducting internal analysis? A. They have sought to get less detail from other frameworks B. They have sought that the frameworks be more comprehensive C. They have sought a less generic framework D. They have sought to better account for internal factors in light of external factors Difficulty: Difficult Learning Objective: 1 4. (p. 140) _______ views a firm as a sequential process of value-creating activities. A. Resource-based analysis B. Value chain analysis C. SWOT analysis D. Primary internal analysis Difficulty: Easy Learning Objective: 2 5. (p. 140) Common to all the approaches to internal analysis is: A. The use of meaningful standards for comparison in internal analysis B. The use of external factors of analysis C. The process point of view D. Management market myopia Difficulty: Difficult Learning Objective: 2 6. (p. 140) ________ is a historically popular technique through which managers create a quick overview of a companys strategic situationit is based on achieving a sound fit between internal resources and the external situation. A. Internal analysis B. External analysis C. Value chain analysis D. SWOT analysis Difficulty: Medium Learning Objective: 1 7. (p. 140) A(n) ________ is a major favorable situation in a firms environment. A. Value chain B. Strength C. Opportunity D. Capability Difficulty: Easy Learning Objective: 1 8. (p. 140) A(n) ______ is a major unfavorable situation in a firms environment. A. Weakness B. Core strength C. Competitive disadvantage D. Threat Difficulty: Easy Learning Objective: 1 9. (p. 140) Which of the following is NOT an example of an opportunity for the firm? A. Identification of a previously overlooked market segment B. Improved buyer or supplier relationships C. Positive changes in regulatory circumstances D. Strong reputation and image with a key demographic Difficulty: Medium Learning Objective: 1 10. (p. 141) A(n) ______ is a resource or capability controlled by or available to a firm that gives it an advantage relative to its competitors in meeting the needs of the customers it serves. A. Competence B. Strength C. Opportunity D. Competitive advantage Difficulty: Easy Learning Objective: 1 11. (p. 141) A(n) _______ is a limitation or deficiency in one or more of a firms resources or capabilities relative to its competitors that creates a disadvantage in effectively meeting customer needs. A. Weakness B. Threat C. Competitive limit D. Marginal resource Difficulty: Easy Learning Objective: 1 12. (p. 141) Consider e-Pixels, a company that produces miniature digital video cameras that feature easy downloads and uplinks to computers. Which of the following represents a potential strength for the firm? A. Brand name B. Digitalization of most types of media C. Growing global computer companies with similar technology D. Limited experience with video technology Difficulty: Medium Learning Objective: 1 13. (p. 142) According to a SWOT analysis diagram, what strategy does Cell 1 support? A. Aggressive B. Turnaround C. Defensive D. Diversification Difficulty: Difficult Learning Objective: 1 14. (p. 142) The cells on the left side of the SWOT diagram are both characterized by: A. Substantial internal strengths B. Numerous environmental opportunities C. Critical internal weaknesses D. Major environmental threats Difficulty: Difficult Learning Objective: 1 15. (p. 142) Which cell in the SWOT analysis diagram is the most favorable situation? A. Cell 1 B. Cell 2 C. Cell 3 D. Cell 4 Difficulty: Medium Learning Objective: 1 16. (p. 142) ________ represents the least favorable situation, with the firm facing major environmental threats from a weak resource position. A. Cell 1 B. Cell 2 C. Cell 3 D. Cell 4 Difficulty: Medium Learning Objective: 1 17. (p. 142) Which cell supports a turnaround-oriented strategy? A. Cell 2 B. Cell 3 C. Cell 4 D. Cell 1 Difficulty: Difficult Learning Objective: 1 18. (p. 142) Which of the following describes the situation for a firm in Cell 2? A. The firm faces several environmental opportunities and has numerous strengths that encourage pursuit of those opportunities B. The firm faces major environmental threats from a weak resource position C. The firm has identified several key strengths, but faces an unfavorable environment D. The firm faces impressive market opportunity, but is constrained by weak internal resources Difficulty: Difficult Learning Objective: 1 19. (p. 144) What makes SWOT analysis susceptible to key limitations? A. Its narrow focus on external factors B. Its broad conceptual approach C. Its vastly limited applicability D. Its portrayal of the essence of sound strategy formulation Difficulty: Easy Learning Objective: 1 20. (p. 144) Which of the following statements is false? A. A SWOT analysis can overemphasize external threats and downplay internal strengths B. A SWOT analysis can be static and can risk ignoring changing circumstances C. A strength, as identified by SWOT analysis is not necessarily a source of competitive advantage D. A SWOT analysis can overemphasize a single strength or element of strategy Difficulty: Medium Learning Objective: 1 21. (p. 145) Which of the following statements is true? A. A strength is not always a source of competitive advantage B. Strengths are synonymous with competitive advantage C. Every company resource or capability is a strength and leads to competitive advantage D. Strengths are always inimitable Difficulty: Easy Learning Objective: 1 22. (p. 145) A perspective in which business is seen as a chain of activities that transforms inputs into outputs that customers value is called: A. Value chain B. Value chain analysis C. Resource-base D. Process division Difficulty: Medium Learning Objective: 2 23. (p. 145) Which of the following is NOT an example of a basic source from which customer value is derived? A. Activities that differentiate the product B. Activities that lower its cost C. Activities that add to product complexity D. Activities that meet the customers need more quickly Difficulty: Easy Learning Objective: 2 24. (p. 145) Value chain analysis takes a: A. Process point of view B. Functional point of view C. Horizontal point of view D. Corporate point of view Difficulty: Medium Learning Objective: 2 25. (p. 145) Which method of internal analysis disaggregates the business into sets of activities that occur within the business, starting with inputs and finishing with the firms products and after-service sales? A. Resource-based view B. Value chain analysis C. SWOT analysis D. Porters generic strategies Difficulty: Easy Learning Objective: 2 26. (p. 146) Which of the following is an example of a primary activity in the typical firm? A. Human resources management B. Research, technology and systems development C. General administration D. Logistics Difficulty: Medium Learning Objective: 2 27. (p. 146) Which of the following is an example of support activities in the typical firm? A. Operations B. Procurement C. Marketing and sales D. Service Difficulty: Medium Learning Objective: 2 28. (p. 146) Those activities in a firm that are involved in the physical creation of the product, marketing and transfer to the buyer and after-sales support are called: A. Operational activities B. Support activities C. Secondary activities D. Primary activities Difficulty: Easy Learning Objective: 2 29. (p. 148) The initial step in value chain analysis is to: A. Allocate costs to different activities within the value chain B. Identify the firms strengths and weaknesses C. Divide a companys operations into specific activities or processes D. Identify the firms key resources and capabilities Difficulty: Easy Learning Objective: 2 30. (p. 148) In VCA, which method of cost accounting is preferred? A. Activity-based cost accounting B. Value-based cost accounting C. Traditional cost accounting D. Financial cost accounting Difficulty: Medium Learning Objective: 2 31. (p. 149) Which of the following is usually true about a firms value chain? A. Scrutinizing a firms value chain may bring attention to several sources of differentiation advantage relative to competitors B. Scrutinizing a firms value chain does not usually reveal cost advantages or disadvantages C. Scrutinizing the firms value chain can minimize the activities that are critical to buyer satisfaction D. Analysis of the firms value chain can lead a firm to limit its market success Difficulty: Medium Learning Objective: 2 32. (p. 151) Which of the following considerations is critical at the examination stage of the value chain analysis? A. All primary activities differentiate the firm B. The managers choice of activities to be examined influences the mission statement of the firm C. The nature of value chains and the relative importance of the activities within them are standard across industries D. The relative importance of value activities can vary by a companys position in a broader value system that includes the value chains of its upstream suppliers and downstream customers or partners Difficulty: Medium Learning Objective: 2 33. (p. 151) It is especially important that managers take into account their level of ________ when comparing their cost structure for activities on their value chain with those of key competitors. A. Competition B. Horizontal integration C. Vertical integration D. Concentric diversification Difficulty: Difficult Learning Objective: 2 34. (p. 153) The _______ is a new perspective on understanding a firms success based on how well the firm uses its internal resources. A. Resource-based view B. Value chain view C. Corporate view D. Functional view Difficulty: Easy Learning Objective: 3 35. (p. 153) What is the underlying premise of the resource-based view? A. Firms generally have very similar capabilities stemming from almost identical resources B. Imitation of resources is the best way to achieve competitive advantages C. Firms differ in fundamental ways because each firm possesses a unique bundle of resources D. Firms intangible resources c
