Group 3 (5 Assets 2 Liabilities)

Instructions: Answer OBJECTIVELY and choose the BEST answer

1.) What is the relationship between distinctive competency and strategy?
a. direct
b. indirect
c. reciprocal
d. no relationship
2.) When is a resource considered valuable?
a. rare
b. difficult to imitate
c. protected by law
d. all of the above
3.) These are considered assets of the company
a. resources
b. money
c. employees
d. inventory
4.) The system used by Toyota to reduce its cost
a. Lean Manufacturing System
b. JIT System
c. All of the above
d. None of the above
5.) It identifies the strengths and weaknesses of a company.
a. Value Chain Analysis
b. Intrernal analysis
c. SWOT analysis
d. PEST analysis
6.) The 4 building blocks of Competitive Advantage are the following except.?
a. Superior Quality
b. Superior Effectivity
c. Superior Innovation

d. Superior Customer Responsiveness

7.) When customers perceive that a products attributes provide higher utility than
those of its rivals is said to be of?
a Superior Efficiency
b Superior Production
c Superior Quality
d Superior Reliability
8.) What are the Impacts of High Product Quality on Competitive Advantage?
a Increase in customer utility
b Greater Efficiency
c Lower Unit Cost
d All of the above
9.) Development of products that are new to the world or have superior attributes to
existing products.
a Material Innovation
b Product Innovation
c Process Innovation
d Quality Innovation
10.) The time it takes for a good to be delivered or a service to be performed is
known as
a Customer Support Time
b Customer Response Time
c Customer Management Time
d Customer Service Time
11.) I. The four building blocks should be considered independent from one
another.
II. These generic competencies/factors allow a company to differentiate itself
and increase cost structure.
III. The more efficient a company is, the more inputs is required to produce a
given output.
IV. The most common measure of efficiency is Monthly productivity
Which of the following are false?
a III
b III and IV
c II, III and IV
d All of the above
12.) In the long run, what is considered the most important building block of
competitive advantage?
a Efficiency
b Innovation
c Customer Responsiveness
d Quality
13. ) How profitable a company depends on three factors, except
a.) Price of the product
b.) Value customers place on the product
c.) Cost of creating a product

d.) Number of employees

14.) What is the formula of Consumer Surplus?
a.) Profit + Cost
b.) Utility Cost
c.) Price Cost
d.) Utility - Price
15. ) ________ is something that customers get from a product
a.) Money
b.) Value
c.) Competitive advantage
d.) Utility
16.) Utility ( Price Profit Margin)
a.) Consumer Surplus
b.) Cost
c.) Net Income
d.) Value created
17. ) ________leads to superior profitability
a.) Profitability
b.) Value creation
c.) Pricing Option
d.) Competitive advantage
18.) The more utility that customers get from a companys products/services, the
more _______ it has
a.) power
b.) control
c.) money
d.) pricing options
19.) The following are the factors that contribute to the competitive advantage and
profitability of a company, except
a

Financial Performance

Business model

Strategies

Distinctive competencies

20.) According to many authorities, this measure of profitability is the best because
this measures the real operating performance of the company
a

Return on Equity

Return on Assets

Return on Invested Capital

Return on Sales

21.) The lowest cost operator offering wide range of general products in the retail
industry
a

Target

Sephora

Walmart

Drugstore

22.) Analyzing the financial performance of the company will help them determine
whether
a

They are more or less profitable than competitors

Their company strategies are maximizing the value being created

Their cost structure is out of line with those of competitors

All of the above

23.) The companys managers can increase ROIC by

a

Pursuing strategies to increase COGS for a given level of sales revenues

Pursuing strategies to increase sales revenues less than the increase in

the costs of the business

Pursuing strategies to increase the amount of working capital needed to

generate a given level of sales

Pursuing strategies to reduce plant, property and equipment for a given

level of sales

24.) It is a reason for failure where companies find it difficult to change their
strategies and structures when adapting to changing competitive conditions.

a. Icarus paradox
b. Prior strategic commitment
c. Inertia
d. None of the above
25.) IBM, company had major investments in the mainframe computer business, so
when the market shifted, it was stuck with significant resources specialized to that
particular business. What is the related reason for failure?
a. Icarus paradox
b. Prior strategic commitment
c. Inertia
d. None of the above

Group 3 Answers:
1. C
2. D
3. A
4. C
5. B
6. B
7. C
8. D
9. D
10. B
11. D
12. B
13. D
14. D

15. D
16. D
17. D
18. D
19. A
20. C
21. C
22. D
23. D
24. C
25. B