1. Performance of ________ activities would not be possible without ________ activities.

A. core; support

B. primary; support

C. support; primary

D. strategic; support

2. Resources that the organization possesses and capabilities that the organization has developed, both of which can be developed into a sustainable competitive advantage, are known as:

A. weaknesses.

B. strengths.

C. opportunities.

D. threats.

3. Internal analysis is important for identifying and evaluating an organization’s:

A. strengths and weaknesses.

B. goals and objectives.

C. distinctive offerings.

D. mission and vision.

4. Customer value is determined by:

A. a unique and different product.

B. a low-priced product.

C. the ability to respond to specific or distinct customer needs.

D. All of the answer choices are correct.

5. The most important part of an internal analysis involves:

A. setting organizational goals.

B. identifying distinctive and dynamic capabilities.

C. creating a competitive advantage.

D. evaluating resources, capabilities, and core competencies.

6. After a current product-market profile has been assessed, the next step is to

A. identify sources of competitive advantage and the disadvantage in the main product-market segments.

B. emphasize the interactions between the organization and customers.

C. conduct an external assessment of competitors.

D. All of the answer choices are correct.

7. An internal analysis involves an examination of the organization’s:

A. mission and vision.

B. resources and capabilities.

C. strategic objectives.

D. functional and business strategies.

8. The ability of Honda to use its fuel-efficient and reliable engines in automobiles, motorcycles, and power generators is an example of:

A. contributing to superior customer value.

B. creating a product that is difficult for competitors to imitate.

C. developing an innovation that can be used in a number of ways.

D. simulating an effective system developed by a competitor.

9. _______ are the special and unique capabilities that distinguish an organization from its competitors.

A. Organizational strengths

B. Distinctive organizational capabilities

C. Competitive advantages

D. Core competencies

10. The organization’s major value-creating skills and capabilities that are shared across multiple product lines or multiple businesses are called:

A. distinctive organizational capabilities.

B. competitive intelligence.

C. core opportunities.

D. core competencies.

11. All of the following constitute primary activities except:

A. procurement.

B. marketing and sales.

C. outbound logistics.

D. operations.

12. The various organizational routines and processes that determine how efficiently and effectively the organization transforms its inputs into outputs are called

A. strengths.

B. core competencies.

C. capabilities.

D. customer value.

13. Southwest’s capability of quick gate turnaround time and exceptional employee-customer interactions is known as:

A. a distinctive organizational capability.

B. an exceptional opportunity.

C. a superior customer value.

D. a distinguished service.

14. The amenities and conveniences travelers want is an example of:

A. contributing to superior customer value.

B. a second-to-market philosophy.

C. operating under a benchmarking philosophy.

D. providing a system that is easily duplicated.

15. Which of the following are considered to be primary activities in a value chain analysis as outlined by Porter?

A. Inbound logistics

B. Procurement

C. Human resource management

D. Firm’s infrastructure

16. The second step in identifying distinctive organizational capabilities through a capabilities assessment profile is:

A. describe all the organizational capabilities and competencies.

B. identify and agree on the key capabilities and competencies.

C. identify sources of competitive advantage and disadvantage in the main product-market segments.

D. sort the core capabilities and competencies according to strategic importance.

17. Characteristics of dynamic capabilities include all of the following except:

A. timely responsiveness.

B. reactive responsiveness.

C. rapid and flexible product innovation.

D. coordinating and deploying organizational resources and capabilities.

18. The question, “Does the capability provide tangible customer benefits?” occurs under what step of the capabilities assessment profile which identifies distinctive organizational capabilities?

A. Sort the core capabilities and competencies according to strategic importance.

B. Identify and agree on the key capabilities and competencies.

C. Describe all the organizational capabilities and competencies.

D. Prepare current product-market profile.

19. Factors like Coca-Cola’s brand name “Coke” and Nike’s “swoosh” symbol construct ________ resources for the organization.

A. physical

B. intangible

C. financial

D. invisible

20. The internal audit answers the questions of:

A. Do the various functions have the needed resources to perform their assigned work activities?

B. How well do they perform these assigned work activities?

C. What are the organization’s primary opportunities and threats?

D. possessing the needed resources and then performing assigned work activities.

21. ________ strategies are the short-term goal-directed decisions and actions of the organization’s various functional areas.

A. Competitive

B. Coordinating

C. Corporate

D. Functional

22. The ________ strategy is one in which an organization continually innovates by finding and exploiting new product and market opportunities.

A. prospector

B. defender

C. analyzer

D. reactor

23. The ________ works hard to establish brand loyalty.

A. differentiator

B. cost leader

C. defender

D. reactor

24. Which of the following is a possible production-operations management strategy?

A. Selective specialization

B. Inventory management systems

C. User positioning

D. Market logistics

25. If Mr. Carol wanted to introduce high-performance work practices in his organization, which of the following practices would he adopt?

A. Centralized decision making

B. Fixed job assignments

C. Limited communication

D. Self-managed work teams

26. When a company builds a profitable business by “stealing” ideas from other successful peers, it is following a(n) ________ strategy.

A. prospector

B. defender

C. analyzer

D. reactor

27. Determining the optimum mix of equity or debt is a decision made by which organizational support process?

A. Financial-accounting systems

B. Corporate governance systems

C. Procurement systems

D. Product development systems

28. Designing which of the following systems involves making sure we have the information we need, when the information is needed, and in the form needed?

A. Marketing

B. Human resources

C. Information

D. Financial-accounting

29. When an organization hasn’t developed a low cost or a differentiation competitive advantage, it is said to be

A. stuck-in-the-middle.

B. using an integrated strategy.

C. using a strategy of best cost.

D. pursuing a niche-based competitive advantage.

30. An organization’s ________ strategies reflect its commitment to and treatment of its employees.

A. procurement

B. corporate

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