MGMT 490 CH 4 - QUESTIONS AND VERIFIED
ANSWERS
A company's strategy should always be based on __________. - Answers - the
company's internal strengths
Which of the following are things that management must do to maintain the value of the
company's resources and capabilities? (Choose every correct answer.) - Answers - -
Continually modify existing assets
-Watch for the chance to develop new capabilities
A company's sales revenues minus the cost of goods sold divided by the sales
revenues is called the company's _________ margin. - Answers - gross profit
Debt-to-equity, long-term debt-to-capital, and total debt-to-assets are all examples of
______ ratios. - Answers - leverage
In a SWOT analysis, something a firm does well or a quality it has that increases its
competitiveness in the marketplace is a ___________. - Answers - strength
When a company's proficiency rises from that of mere ability to perform an activity to the
point of being able to perform it consistently well and at acceptable cost, it is said to
have a(n)___________________ or a true capability. (Enter one word in the blank.) -
Answers - competence
Which of the following are true of a company's core competencies? (Choose every
correct answer.) - Answers - -They can be leveraged to create new markets.
-They can be leveraged to create new product demand.
An activity that a company performs poorly in comparison to its competitors is an
example of a competitive deficiency, _____________or . (Enter one word in the blank.)
- Answers - weakness
The value of performing a detailed competitive strength assessment is that it allows a
company to do which of the following? (Choose every correct answer.) - Answers - -
Pinpoint competitors' relative weaknesses
-Plan offensive and defensive strategies
-Address vulnerabilities
, Which of the following are potential market opportunities that managers try to identify
when tailoring strategy to a company's situation? (Choose every correct answer.) -
Answers - -Expansion into new geographic markets
-Serving additional customer groups or market segments
-Acquiring rival companies with attractive capabilities
Changes in what factors contribute to the erosion of a company's competitive advantage
over time? (Choose every correct answer.) - Answers - -Customer preferences
-Distribution channels
-Technology
Which of the following types of market opportunities are the most relevant for a
company to pursue? (Choose every correct answer.) - Answers - -Market opportunities
that match up with the company's competitive assets
-Market opportunities that offer the best chances for profitability
-Market opportunities that offer the best chances for growth
Which of the following are external factors that pose threats to a company's profitability
and competitive well-being? (Choose every correct answer.) - Answers - -Burdensome
new regulations
-Unfavorable demographic shifts
-The emergence of lower cost or improved technologies
A company's competitive assets are made up of which of the following? (Choose every
correct answer.) - Answers - -Capabilities
-Resources
The ability of a company to perform competently in carrying out a particular internal
activity, such as product innovation or development, is called a ___________.
Multiple choice question. - Answers - capability
Patents and copyrights are types of resources that are part of a company's
__________. - Answers - technological resources
In addition to human resources, which of the following are a company's intangible
assets? (Choose every correct answer.) - Answers - -Its reputation
ANSWERS
A company's strategy should always be based on __________. - Answers - the
company's internal strengths
Which of the following are things that management must do to maintain the value of the
company's resources and capabilities? (Choose every correct answer.) - Answers - -
Continually modify existing assets
-Watch for the chance to develop new capabilities
A company's sales revenues minus the cost of goods sold divided by the sales
revenues is called the company's _________ margin. - Answers - gross profit
Debt-to-equity, long-term debt-to-capital, and total debt-to-assets are all examples of
______ ratios. - Answers - leverage
In a SWOT analysis, something a firm does well or a quality it has that increases its
competitiveness in the marketplace is a ___________. - Answers - strength
When a company's proficiency rises from that of mere ability to perform an activity to the
point of being able to perform it consistently well and at acceptable cost, it is said to
have a(n)___________________ or a true capability. (Enter one word in the blank.) -
Answers - competence
Which of the following are true of a company's core competencies? (Choose every
correct answer.) - Answers - -They can be leveraged to create new markets.
-They can be leveraged to create new product demand.
An activity that a company performs poorly in comparison to its competitors is an
example of a competitive deficiency, _____________or . (Enter one word in the blank.)
- Answers - weakness
The value of performing a detailed competitive strength assessment is that it allows a
company to do which of the following? (Choose every correct answer.) - Answers - -
Pinpoint competitors' relative weaknesses
-Plan offensive and defensive strategies
-Address vulnerabilities
, Which of the following are potential market opportunities that managers try to identify
when tailoring strategy to a company's situation? (Choose every correct answer.) -
Answers - -Expansion into new geographic markets
-Serving additional customer groups or market segments
-Acquiring rival companies with attractive capabilities
Changes in what factors contribute to the erosion of a company's competitive advantage
over time? (Choose every correct answer.) - Answers - -Customer preferences
-Distribution channels
-Technology
Which of the following types of market opportunities are the most relevant for a
company to pursue? (Choose every correct answer.) - Answers - -Market opportunities
that match up with the company's competitive assets
-Market opportunities that offer the best chances for profitability
-Market opportunities that offer the best chances for growth
Which of the following are external factors that pose threats to a company's profitability
and competitive well-being? (Choose every correct answer.) - Answers - -Burdensome
new regulations
-Unfavorable demographic shifts
-The emergence of lower cost or improved technologies
A company's competitive assets are made up of which of the following? (Choose every
correct answer.) - Answers - -Capabilities
-Resources
The ability of a company to perform competently in carrying out a particular internal
activity, such as product innovation or development, is called a ___________.
Multiple choice question. - Answers - capability
Patents and copyrights are types of resources that are part of a company's
__________. - Answers - technological resources
In addition to human resources, which of the following are a company's intangible
assets? (Choose every correct answer.) - Answers - -Its reputation
