Strategic Management Test Bank Wheelen smbp12 TB 05

24.11.
2023 01:52 Strateg c Management test bank Wheelen smbp12 tb 05
Strategic Management & Business Policy, 12e (Wheelen/Hunger)

Chapter 5 Internal Scanning and Organizational Analysis
1) Resources are the organization's assets and are the basic building blocks of the organization.
Answer: TRUE
Diff: 1 Page Ref: 138
Topic: A Resource-Based Approach to Organizational Analysis
2) The resources of an organization include tangible assets, human assets, and intangible assets.
Answer: TRUE
3) Capabilities refer to a corporation's ability to exploit its resources.

Answer: TRUE
4) New product development would be a core competency if it goes beyond one division.
Answer: TRUE
AACSB: Analytic Skills
5) General Electric is well known for its distinctive competency in management development.
Answer: TRUE
6) Core competencies may mature and become core deficiencies.

Answer: TRUE
7) An example of a cluster in the US is found in the Silicon Valley.

Answer: TRUE
8) Two characteristics that determine the sustainability of a firm's distinctive competency are
durability and transparency.
Answer: FALSE
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24.11.2023 01:52 Strateg c Management test bank Wheelen smbp12 tb 05
9) Durability is the rate at which a firm's underlying resources and capabilities (core
competencies) can be duplicated by others.
Answer: FALSE
10) A core competency can be easily imitated to the extent that it is transparent, transferable, and
replicable.
Answer: TRUE
11) Since competitors were not able to understand how Gillette's Mach 3 razor was produced, it
was considered transparent.
Answer: FALSE
12) Transferability is the ability of competitors to use duplicated resources and capabilities to
imitate the other firm's success.
Answer: FALSE
13) Tacit knowledge is knowledge that can be easily communicated or articulated and as result
can be easily imitated.
Answer: FALSE
14) eBay and Amazon.com have successfully used the efficiency model by acting as an
intermediary to connect multiple sellers to multiple buyers.
Answer: FALSE
Topic: Business Models
AACSB: Reflective Thinking
15) A value chain is a linked set of value-creating activities.

Answer: TRUE
Topic: Value-Chain Analysis
16) A company's center of gravity is the part of the value chain that is most important to the
company and the point where its greatest expertise and core competencies lie.
Answer: TRUE
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17) A company's center of gravity is usually the point at which the company started.
Answer: TRUE
18) According to Porter, a manufacturing firm's support activities usually begin with inbound
logistics, go through an operations process in which a product is manufactured, and continue on
to outbound logistics and finally to service.
Answer: FALSE
19) When a company uses the same marketing channel for two separate products, this is an
example of an economy of scope.
Answer: TRUE
20) A functional structure is appropriate for a medium sized firm with several product lines in
one industry.
Answer: FALSE
Topic: Scanning Functional Resources and Capabilities
21) A divisional structure has no functional or product categories and is appropriate for a small,
entrepreneur-dominated company with one or two product lines that operates in a reasonably
small, easily identifiable market niche.
Answer: FALSE
22) Cultural integration is the degree to which members of a unit accept the norms, values, or
other culture content associated with the unit.
Answer: FALSE
23) When employees across the organization hold the same cultural values and norms, this
demonstrates a high level of cultural integration.
Answer: TRUE
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24) The corporate culture generally reflects the values of the founder(s) and the mission of the
firm.
Answer: TRUE
25) The marketing mix refers to the particular combination of key variables under the
corporation's control that can be used to affect demand and to gain competitive advantage.
Answer: TRUE
26) The product life cycle enables a marketing manager to examine the marketing mix of a
particular product or group of products in terms of its position in its life cycle.
Answer: TRUE
27) Research reveals a positive relationship between corporate reputation and financial
performance.
Answer: TRUE
28) Research indicates that greater financial leverage has a positive impact on performance for
firms in dynamic environments.
Answer: FALSE
29) A good rule of thumb for R & D spending is that a corporation should spend at a "normal"
rate for that particular industry unless its strategic plan calls for unusual expenditures.
Answer: TRUE
30) A company's capability in product R & D can be measured by consistent reductions in unit
manufacturing costs and by the number of product defects.
Answer: FALSE
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31) It is generally accepted that product R & D normally dominates the early stages of a
product's life cycle, whereas process R & D becomes especially important in the later stages.
Answer: TRUE
32) Historically, competitive leadership in a market changes hands as one technology nears the
end of its S-curve.
Answer: TRUE
33) An example of an intermittent manufacturing system is an auto body repair shop.

Answer: TRUE
Diff: 2 Page Ref: 156-157
34) Intermittent manufacturing systems reap benefits from economies of scale.

Answer: FALSE
35) Flexible manufacturing permits the low-volume output of custom-tailored products at

relatively low unit costs through economies of scope.
Answer: TRUE
36) Using concurrent engineering, Chrysler Corporation was able to reduce its product
development cycle from 60 to 36 months.
Answer: TRUE
37) To increase flexibility, avoid layoffs, and reduce labor costs, corporations are using more
contingent workers.
Answer: TRUE
38) A current trend in corporate information systems is the increasing use of the Internet for
marketing, intranets for internal communication, and extranets for logistics and distribution.
Answer: TRUE
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39) The EFAS Table is one way to organize the internal factors into generally accepted categories
of strengths and weaknesses as well as to analyze how well a particular company's management
is responding to these specific factors in light of the perceived importance of these factors to the
company.
Answer: FALSE
Topic: Synthesis of Internal Factors
40) Those critical strengths and weaknesses that are likely to determine if a firm will be able to
take advantage of opportunities while avoiding threats are called
A) SWOT.
B) competitive forces.
C) internal strategic factors.
D) quality accounting.
E) factor analysis.
Answer: C
41) Which of the following is NOT one of the four question areas Barney proposes in his VRIO
framework used to evaluate a firm's key resources?
A) durability
B) organization
C) rareness
D) value
E) imitability
Answer: A
42) When a company determines a competency's competitive advantage, Barney refers to this
issue as
A) value.
B) rareness.
C) imitability.
D) organization.
E) durability.
Answer: A
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faydüğümak
43) According to Barney's VRIO framework, the exploitation of a resource pertains to the
________ of the resource.
A) value
B) rareness
C) imitability
D) organization
E) durability
Answer: D
44) A corporation's ability to exploit its resources is referred to as its

A) resources.
B) capabilities.
F
C) core competencies.
D) critical success factors.
E) key performance factors.
Answer: B
45) Things that a corporation can do exceedingly well across the corporation are called
A) resources.
B) distinctive competencies.
D) critical success factors.
Answer: C
46) When a company's core competencies are superior to those of competitors, these are known
as
A) resources.
B) distinctive competencies. F st nct jn
D) critical success factors. p erces
Answer: B
7
Accord ng to Porter cluster prov de

access to employees
suppl ers
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47) Which of the following statements is true concerning clusters?

A) The desire to build or upgrade a core competency is one reason why entrepreneurial and other
fast-growing firms often tend to locate close to their competitors.
B) Clusters are geographic concentrations of interconnected companies and industries.
C) An example of a cluster in the U.S. is California's Silicon Valley.
D) According to Porter, clusters provide access to employees, suppliers, specialized information,
and complementary products.
E) all of the above
8ᵗʰ
Answer: E
48) The rate at which a firm's underlying resources and capabilities depreciate or become
obsolete is called
ITTI
A) replicability.
B) transparency.
C) imitability.
D) durability.
E) transferability.
Answer: D
49) The rate at which a firm's underlying resources, capabilities, or core competencies can be
duplicated by others is called
A) replicability.
B) transparency.
C) imitability.
D) durability.
E) transferability.
Answer: C
50) When a company takes apart a competitor's product in order to find out how it works, this
process is known as e
A) durability.
B) replicability.
C) reverse engineering.
D) transparency.
E) transferability.
Answer: C
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51) The speed with which other firms can understand the relationship of resources and
capabilities supporting a successful firm's strategy is called
A) imitability.
B) reverse engineering.
C) transferability.
D) transparency.
E) durability.
Answer: D
52) The ability of competitors to use duplicated resources and capabilities to imitate the other
firm's success is called
A) imitability.
B) durability.
C) transferability.
D) transparency.
E) replicability.
Answer: E
53) Knowledge that can be easily articulated and communicated is known as

A) tacit knowledge.
B) explicit knowledge.
C) imitable knowledge. ac l yanley n
D) transferable knowledge.
E) durable knowledge.
Answer: B
54) ________ is more valuable because it can provide companies with a sustainable competitive
Türkopol
advantage that is harder for competitors to imitate.
A) Tacit knowledge
B) Explicit knowledge
C) Imitable knowledge
D) Transferable knowledge
E) Durable knowledge
Answer: A
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Faüstü
55) Knowledge that is not easily communicated because it is deeply rooted in employee
experience or in a corporation's culture is called
A) tacit knowledge.
B) explicit knowledge. kapalı tac t
C) imitable knowledge.
D) transferable knowledge.
E) durable knowledge.
Answer: A
o
56) On the continuum of resource sustainability, where would Sony's Walkman be placed?
A) slow-cycle resources
B) sustainable resources
C) standard-cycle resources
D) fast-cycle resources
dürüleb l rl k
E) down-cycle resources
Answer: D
Diff: 3 Page Ref: 141-142
57) The business model used by IBM to make money not selling IBM products, but by selling its
expertise to improve their customers operations is the
A) profit pyramid model.
B) advertising model.
C) customer solutions model.
D) efficiency model.
E) entrepreneurial model.
Answer: C
58) The business model used by HP in selling printers and printer cartridges is the
A) profit pyramid model.
B) advertising model.
C) customer solutions model.
D) efficiency model.
fazlaSey
E) multi-component system/installed base model.
Answer: E b rden
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24.11.

2023 01:52 Strateg c Management test bank Wheelen smbp12 tb 05

Strategic Management & Business Policy, 12e (Wheelen/Hunger)

3) Capabilities refer to a corporation's ability to exploit its resources.

6) Core competencies may mature and become core deficiencies.

7) An example of a cluster in the US is found in the Silicon Valley.

15) A value chain is a linked set of value-creating activities.

33) An example of an intermittent manufacturing system is an auto body repair shop.

34) Intermittent manufacturing systems reap benefits from economies of scale.

35) Flexible manufacturing permits the low-volume output of custom-tailored products at

44) A corporation's ability to exploit its resources is referred to as its

Accord ng to Porter cluster prov de

47) Which of the following statements is true concerning clusters?

53) Knowledge that can be easily articulated and communicated is known as

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