Chapterh04h-hEvaluatinghahCompany'shResources,hCapabilities,handhCompetitiveness
Chapter 04 h
Evaluating a Company's Resources, Capabilities, and Competitiveness
h h h h h h
hh
h MultiplehChoicehQuestionsh
h
1.hWhichhofhthehfollowinghishnothonehofhthehsixhquestionshthathcomprisehthehtaskhofhevaluatinghahc
ompany'shresourceshandhcompetitivehposition?h
A.hWhatharehthehcompany'shmosthprofitablehgeographichmarkethsegments?
B.hHowhwellhishthehcompany'shpresenthstrategyhworking?
C.hArehthehcompany'shpriceshandhcostshcompetitive?
D.hIshthehcompanyhcompetitivelyhstrongerhorhweakerhthanhkeyhrivals?
E.hWhathstrategichissueshandhproblemshmerithfront-burnerhmanagerialhattention?
h
2.hWhichhofhthehfollowinghishnothahcomponenthofhevaluatinghahcompany'shresourceshandhcompetit
ivehposition?h
A.hEvaluatinghhowhwellhthehpresenthstrategyhishworking
B.hScanninghthehenvironmenthtohdeterminehahcompany'shbesthandhmosthprofitablehcustomers
C.hAssessinghwhetherhthehcompany'shcostshandhpricesharehcompetitive
D.hEvaluatinghwhetherhthehcompanyhishcompetitivelyhstrongerhorhweakerhthanhkeyhrivals
E.hPinpointinghwhathstrategichissueshandhproblemshmerithfront-burnerhmanagerialhattention
h
3.hThehspotlighthinhanalyzinghahcompany'shresources,hinternalhcircumstances,handhcompetitivene
sshincludeshsuchhquestions/concernshash
A.hwhetherhthehcompany'shpresenthstrategyhishbetterhthanhthehstrategieshofhitshclosesthrivalshbasedh
onhsuchhperformancehmeasureshashearningshperhshare,hROE,hdividendhpayouthratio,handhaverageh
annualhincreasehinhthehcommonhstockhprice.
B.hwhetherhthehcompany'shkeyhsuccesshfactorsharehmorehdominanththanhthehkeyhsuccesshfactorsho
fhclosehrivals.
C.hwhetherhthehcompanyhhashthehindustry'shmosthefficienthandheffectivehvaluehchain.
D.hwhatharehthehcompany'shresourcehstrengthshandhweaknesseshandhitshexternalhopportunitieshand
hthreats.
E.hwhathnewhacquisitionshthehcompanyhwouldhbehwellhadvisedhtohmakehinhorderhtohstrengthenhitsh
financialhperformancehandhoverallhbalancehsheethposition.
4-1
,Chapterh04h-hEvaluatinghahCompany'shResources,hCapabilities,handhCompetitiveness
Questionh1:hHowhWellhIshthehCompany'shPresenthStrategyhWorking?
4.hWhichhofhthehfollowinghishnothpertinenthinhidentifyinghahcompany'shpresenthstrategy?h
A.hThehkeyhfunctionalhstrategiesh(R&D,hsupplyhchainhmanagement,hproduction,hsaleshandhmarke
ting,hHR,handhfinance)hahcompanyhishemploying
B.hManagement'shplanned,hproactivehmoveshtohoutcompetehrivalsh(viahbetterhproducthdesign,him
provedhqualityhorhservice,hwiderhproducthlines,handhsohon)
C.hThehcompany'shmission,hstrategichobjectives,handhfinancialhobjectives
D.hMoveshtohrespondhandhreacthtohchanginghconditionshinhthehmacro-
environmenthandhinhindustryhandhcompetitivehconditions
E.hThehstrategichrolehofhitshcollaborativehpartnershipshandhstrategichallianceshwithhothers
h
5.hOnehimportanthindicatorhofhhowhwellhahcompany'shpresenthstrategyhishworkinghishwhetherh
A.hithhashmorehcorehcompetencieshthanhclosehrivals.
B.hitshstrategyhishbuiltharoundhathleasthtwohofhthehindustry'shkeyhsuccesshfactors.
C.hthehcompanyhishachievinghitshfinancialhandhstrategichobjectiveshandhwhetherhithishanhabove-
averagehindustryhperformer.
D.hithishcustomarilyhahfirst-
moverhinhintroducinghnewhorhimprovedhproductsh(ahgoodhsign)horhahlate-moverh(ahbadhsign).
E.hithishsubjecthtohweakerhcompetitivehforceshandhpressureshthanhclosehrivalsh(ahgoodhsign)horhstro
ngerhcompetitivehforceshandhpressuresh(ahbadhsign).
h
6.hThehbesthquantitativehevidencehofhwhetherhahcompany'shpresenthstrategyhishworkinghwellhish
A.hwhetherhthehcompanyhhashmorehcompetitivehassetshthanhithdoeshcompetitivehliabilities.
B.hwhetherhthehcompanyhishinhthehindustry'shbesthstrategichgroup.
C.hthehcaliberhofhresultshthehstrategyhishproducing,hspecificallyhwhetherhthehcompanyhishachievin
ghitshfinancialhandhstrategichobjectiveshandhwhetherhithishanhabove-averagehindustryhperformer.
D.hwhetherhthehcompanyhhashahshorterhvaluehchainhthanhclosehrivals.
E.hwhetherhthehcompanyhishinhthehFortuneh500.
h
4-2
,Chapterh04h-hEvaluatinghahCompany'shResources,hCapabilities,handhCompetitiveness
7.hWhichhonehofhthehfollowinghishnothahreliablehmeasurehofhhowhwellhahcompany'shcurrenthstrateg
yhishworking?h
A.hWhetherhthehcompany'shsalesharehgrowinghfaster,hslower,horhabouththehsamehpacehashthehindust
ryhashahwhole,hthushresultinghinhahrising,hfalling,horhstablehmarkethshare
B.hWhetherhithhashahlargerhnumberhofhcompetitivehassetshthanhcompetitivehliabilitieshandhwhether
hithhashahsuperiorhqualityhproduct
C.hThehfirm'shimagehandhreputationhwithhitshcustomers
D.hWhetherhitshprofithmarginsharehrisinghorhfallinghandhhowhlargehitshmarginsharehrelativehtohthose
hofhitshrivals
E.hHowhwellhthehfirmhstackshuphagainsthrivalshonhtechnology,hproducthinnovation,hcustomerhservi
ce,hproducthquality,hprice,hspeedhinhgettinghnewlyhdevelopedhproductshtohmarket,handhotherhrelev
anthfactorshonhwhichhbuyershbasehtheirhchoicehofhwhichhbrandhtohpurchase
Questionh2:hWhathArehthehCompany’shCompetitivelyhImportanthResourceshandhCapabilit
ies?
8.hAhcompany'shresourcehandhcapabilityhanalysish
A.hrepresenthitshcorehcompetencies.
B.harehthehmosthimportanthpartshofhthehcompany'shvaluehchain.
C.hsignalhwhetherhithhashthehwherewithalhtohbehahstronghcompetitorhinhthehmarketplace.
D.hgivehithexcellenthabilityhtohinsulatehitselfhagainsththehimpacthofhthehindustry'shdrivinghforces.
E.hcombinehtohgivehithahdistinctivehcompetence.
h
9.hWhichhofhthehfollowinghdoeshnothrepresentshahcompanyhresource?h
A.hahcompany'shbrand.
B.hahproductivehinpuththathishownedhbyhthehfirm.
C.hmarketinghandhbrandhmanagement.
D.hR&Dhteams.
E.hahproductivehinpuththathishcontrolledhbyhthehfirm.
h
4-3
, Chapterh04h-hEvaluatinghahCompany'shResources,hCapabilities,handhCompetitiveness
10.hWhichhofhthehfollowinghishahclearhrepresentationhofhahcompany'shcapability?h
A.hahcompany'shbrand.
B.hahproductivehinpuththathishownedhorhcontrolledhbyhthehfirm.
C.hcapacityhofhahfirmhtohperformhsomehactivity.
D.hanhalliancehorhcollaborationhwithhanotherhfirm.
E.hAllhofhthese.
h
11.hWhichhofhthehfollowinghmosthaccuratelyhreflecthahcompany'shresourcehstrengths?h
A.hItshhuman,hphysicalhand/orhorganizationhassets;hitshskillshandhcompetitivehcapabilities;handhac
hievementshorhattributeshthathenhancehthehcompany'shabilityhtohcompeteheffectively
B.hThehsizeshofhitshunithsales,hrevenues,handhmarkethsharehvis-à-vishthosehofhkeyhrivals
C.hThehsizeshofhitshprofithmarginshandhreturnhonhinvestmenthvis-à-vishthosehofhkeyhrivals
D.hWhetherhithhashmorehprimaryhactivitieshinhitshvaluehchainhthanhclosehrivalshandhahbetterhoverall
hvaluehchainhthanhthesehrivals
E.hWhetherhithhashmorehcorehcompetencieshthanhclosehrivals
h
12.hAhcompany'shstrengthhcanhconcernh
A.hahskill,hspecializedhexpertise,horhcompetitivelyhimportanthcapability.
B.hvaluablehhumanhassetshandhintellectualhcapital.
C.hanhachievementhorhattributehthathputshthehcompanyhinhahpositionhofhmarkethadvantage.
D.hcompetitivelyhvaluablehallianceshorhcooperativehventures.
E.hAllhofhthese.
h
13.hThehbesthexamplehofhahcompanyhresourcehish
A.hhavinghhigherhearningshperhsharehandhahhigherhreturnhonhshareholders'hequityhinvestmenththan
hkeyhrivals.
B.hbeinghtotallyhself-
sufficienthsuchhthaththehcompanyhdoeshnothhavehtohrelyhinhanyhwayhonhkeyhsuppliers,hpartnerships
hwithhoutsiders,horhstrategichalliances.
C.hhavinghprovenhtechnologicalhexpertisehandhabilityhtohchurnhouthnewhandhimprovedhproductsho
nhahregularhbasis.
D.hhavinghahlargerhnumberhofhcompetitivehassetshthanhcompetitivehliabilities.
E.hhavinghmorehbuilt-inhkeyhsuccesshfactorshthanhrivals.
h
4-4
Chapter 04 h
Evaluating a Company's Resources, Capabilities, and Competitiveness
h h h h h h
hh
h MultiplehChoicehQuestionsh
h
1.hWhichhofhthehfollowinghishnothonehofhthehsixhquestionshthathcomprisehthehtaskhofhevaluatinghahc
ompany'shresourceshandhcompetitivehposition?h
A.hWhatharehthehcompany'shmosthprofitablehgeographichmarkethsegments?
B.hHowhwellhishthehcompany'shpresenthstrategyhworking?
C.hArehthehcompany'shpriceshandhcostshcompetitive?
D.hIshthehcompanyhcompetitivelyhstrongerhorhweakerhthanhkeyhrivals?
E.hWhathstrategichissueshandhproblemshmerithfront-burnerhmanagerialhattention?
h
2.hWhichhofhthehfollowinghishnothahcomponenthofhevaluatinghahcompany'shresourceshandhcompetit
ivehposition?h
A.hEvaluatinghhowhwellhthehpresenthstrategyhishworking
B.hScanninghthehenvironmenthtohdeterminehahcompany'shbesthandhmosthprofitablehcustomers
C.hAssessinghwhetherhthehcompany'shcostshandhpricesharehcompetitive
D.hEvaluatinghwhetherhthehcompanyhishcompetitivelyhstrongerhorhweakerhthanhkeyhrivals
E.hPinpointinghwhathstrategichissueshandhproblemshmerithfront-burnerhmanagerialhattention
h
3.hThehspotlighthinhanalyzinghahcompany'shresources,hinternalhcircumstances,handhcompetitivene
sshincludeshsuchhquestions/concernshash
A.hwhetherhthehcompany'shpresenthstrategyhishbetterhthanhthehstrategieshofhitshclosesthrivalshbasedh
onhsuchhperformancehmeasureshashearningshperhshare,hROE,hdividendhpayouthratio,handhaverageh
annualhincreasehinhthehcommonhstockhprice.
B.hwhetherhthehcompany'shkeyhsuccesshfactorsharehmorehdominanththanhthehkeyhsuccesshfactorsho
fhclosehrivals.
C.hwhetherhthehcompanyhhashthehindustry'shmosthefficienthandheffectivehvaluehchain.
D.hwhatharehthehcompany'shresourcehstrengthshandhweaknesseshandhitshexternalhopportunitieshand
hthreats.
E.hwhathnewhacquisitionshthehcompanyhwouldhbehwellhadvisedhtohmakehinhorderhtohstrengthenhitsh
financialhperformancehandhoverallhbalancehsheethposition.
4-1
,Chapterh04h-hEvaluatinghahCompany'shResources,hCapabilities,handhCompetitiveness
Questionh1:hHowhWellhIshthehCompany'shPresenthStrategyhWorking?
4.hWhichhofhthehfollowinghishnothpertinenthinhidentifyinghahcompany'shpresenthstrategy?h
A.hThehkeyhfunctionalhstrategiesh(R&D,hsupplyhchainhmanagement,hproduction,hsaleshandhmarke
ting,hHR,handhfinance)hahcompanyhishemploying
B.hManagement'shplanned,hproactivehmoveshtohoutcompetehrivalsh(viahbetterhproducthdesign,him
provedhqualityhorhservice,hwiderhproducthlines,handhsohon)
C.hThehcompany'shmission,hstrategichobjectives,handhfinancialhobjectives
D.hMoveshtohrespondhandhreacthtohchanginghconditionshinhthehmacro-
environmenthandhinhindustryhandhcompetitivehconditions
E.hThehstrategichrolehofhitshcollaborativehpartnershipshandhstrategichallianceshwithhothers
h
5.hOnehimportanthindicatorhofhhowhwellhahcompany'shpresenthstrategyhishworkinghishwhetherh
A.hithhashmorehcorehcompetencieshthanhclosehrivals.
B.hitshstrategyhishbuiltharoundhathleasthtwohofhthehindustry'shkeyhsuccesshfactors.
C.hthehcompanyhishachievinghitshfinancialhandhstrategichobjectiveshandhwhetherhithishanhabove-
averagehindustryhperformer.
D.hithishcustomarilyhahfirst-
moverhinhintroducinghnewhorhimprovedhproductsh(ahgoodhsign)horhahlate-moverh(ahbadhsign).
E.hithishsubjecthtohweakerhcompetitivehforceshandhpressureshthanhclosehrivalsh(ahgoodhsign)horhstro
ngerhcompetitivehforceshandhpressuresh(ahbadhsign).
h
6.hThehbesthquantitativehevidencehofhwhetherhahcompany'shpresenthstrategyhishworkinghwellhish
A.hwhetherhthehcompanyhhashmorehcompetitivehassetshthanhithdoeshcompetitivehliabilities.
B.hwhetherhthehcompanyhishinhthehindustry'shbesthstrategichgroup.
C.hthehcaliberhofhresultshthehstrategyhishproducing,hspecificallyhwhetherhthehcompanyhishachievin
ghitshfinancialhandhstrategichobjectiveshandhwhetherhithishanhabove-averagehindustryhperformer.
D.hwhetherhthehcompanyhhashahshorterhvaluehchainhthanhclosehrivals.
E.hwhetherhthehcompanyhishinhthehFortuneh500.
h
4-2
,Chapterh04h-hEvaluatinghahCompany'shResources,hCapabilities,handhCompetitiveness
7.hWhichhonehofhthehfollowinghishnothahreliablehmeasurehofhhowhwellhahcompany'shcurrenthstrateg
yhishworking?h
A.hWhetherhthehcompany'shsalesharehgrowinghfaster,hslower,horhabouththehsamehpacehashthehindust
ryhashahwhole,hthushresultinghinhahrising,hfalling,horhstablehmarkethshare
B.hWhetherhithhashahlargerhnumberhofhcompetitivehassetshthanhcompetitivehliabilitieshandhwhether
hithhashahsuperiorhqualityhproduct
C.hThehfirm'shimagehandhreputationhwithhitshcustomers
D.hWhetherhitshprofithmarginsharehrisinghorhfallinghandhhowhlargehitshmarginsharehrelativehtohthose
hofhitshrivals
E.hHowhwellhthehfirmhstackshuphagainsthrivalshonhtechnology,hproducthinnovation,hcustomerhservi
ce,hproducthquality,hprice,hspeedhinhgettinghnewlyhdevelopedhproductshtohmarket,handhotherhrelev
anthfactorshonhwhichhbuyershbasehtheirhchoicehofhwhichhbrandhtohpurchase
Questionh2:hWhathArehthehCompany’shCompetitivelyhImportanthResourceshandhCapabilit
ies?
8.hAhcompany'shresourcehandhcapabilityhanalysish
A.hrepresenthitshcorehcompetencies.
B.harehthehmosthimportanthpartshofhthehcompany'shvaluehchain.
C.hsignalhwhetherhithhashthehwherewithalhtohbehahstronghcompetitorhinhthehmarketplace.
D.hgivehithexcellenthabilityhtohinsulatehitselfhagainsththehimpacthofhthehindustry'shdrivinghforces.
E.hcombinehtohgivehithahdistinctivehcompetence.
h
9.hWhichhofhthehfollowinghdoeshnothrepresentshahcompanyhresource?h
A.hahcompany'shbrand.
B.hahproductivehinpuththathishownedhbyhthehfirm.
C.hmarketinghandhbrandhmanagement.
D.hR&Dhteams.
E.hahproductivehinpuththathishcontrolledhbyhthehfirm.
h
4-3
, Chapterh04h-hEvaluatinghahCompany'shResources,hCapabilities,handhCompetitiveness
10.hWhichhofhthehfollowinghishahclearhrepresentationhofhahcompany'shcapability?h
A.hahcompany'shbrand.
B.hahproductivehinpuththathishownedhorhcontrolledhbyhthehfirm.
C.hcapacityhofhahfirmhtohperformhsomehactivity.
D.hanhalliancehorhcollaborationhwithhanotherhfirm.
E.hAllhofhthese.
h
11.hWhichhofhthehfollowinghmosthaccuratelyhreflecthahcompany'shresourcehstrengths?h
A.hItshhuman,hphysicalhand/orhorganizationhassets;hitshskillshandhcompetitivehcapabilities;handhac
hievementshorhattributeshthathenhancehthehcompany'shabilityhtohcompeteheffectively
B.hThehsizeshofhitshunithsales,hrevenues,handhmarkethsharehvis-à-vishthosehofhkeyhrivals
C.hThehsizeshofhitshprofithmarginshandhreturnhonhinvestmenthvis-à-vishthosehofhkeyhrivals
D.hWhetherhithhashmorehprimaryhactivitieshinhitshvaluehchainhthanhclosehrivalshandhahbetterhoverall
hvaluehchainhthanhthesehrivals
E.hWhetherhithhashmorehcorehcompetencieshthanhclosehrivals
h
12.hAhcompany'shstrengthhcanhconcernh
A.hahskill,hspecializedhexpertise,horhcompetitivelyhimportanthcapability.
B.hvaluablehhumanhassetshandhintellectualhcapital.
C.hanhachievementhorhattributehthathputshthehcompanyhinhahpositionhofhmarkethadvantage.
D.hcompetitivelyhvaluablehallianceshorhcooperativehventures.
E.hAllhofhthese.
h
13.hThehbesthexamplehofhahcompanyhresourcehish
A.hhavinghhigherhearningshperhsharehandhahhigherhreturnhonhshareholders'hequityhinvestmenththan
hkeyhrivals.
B.hbeinghtotallyhself-
sufficienthsuchhthaththehcompanyhdoeshnothhavehtohrelyhinhanyhwayhonhkeyhsuppliers,hpartnerships
hwithhoutsiders,horhstrategichalliances.
C.hhavinghprovenhtechnologicalhexpertisehandhabilityhtohchurnhouthnewhandhimprovedhproductsho
nhahregularhbasis.
D.hhavinghahlargerhnumberhofhcompetitivehassetshthanhcompetitivehliabilities.
E.hhavinghmorehbuilt-inhkeyhsuccesshfactorshthanhrivals.
h
4-4
