Question 1

An analysis of a firm's value chain provides more actionable information for managing strategy than a SWOT analysis and it illustrates how a firm's strengths and weaknesses are produced.

Accepted Answer

A) True 
 B)False  True

Question 2

Some sophisticated strategy research has demonstrated that industry structure and conditions can explain only a small portion of the variance in the performance of firms within an industry.

Accepted Answer

A) True 
 B)False

Question 3

The three primary steps in performing a value chain analysis are: 1) identify the value chain activities, 2) evaluate their value-creating properties and cost characteristics, and 3) identify improvements that allow the company to capture greater value.

Accepted Answer

A) True 
 B)False

Question 4

A SWOT analysis can help uncover a company's strengths and weaknesses, knowledge it can then use as it creates or adjusts its strategy.

Accepted Answer

A) True 
 B)False

Question 5

The complexity of the value chain for Microsoft's Xbox 360 is best illustrated by the fact that

Accepted Answer

A)   Microsoft produces all of the components and assembles the consoles itself.
B)   each console has 1,700 components produced by 250 suppliers worldwide.
C)   Microsoft had to add a third manufacturing facility to keep up with demand.
D)   Xbox 360s are shipped to Long Beach, California and then on to Memphis, Tennessee.

Question 6

Most companies participate in ________ of the industry value chain.

Accepted Answer

A)   all
B)   almost none
C)   only part
D)   the raw materials end C

Question 7

Which of the following is a potential SWOT analysis drawback?

Accepted Answer

A)   It results in a concise list of items across the four categories.
B)   It provides a static view of the firm.
C)   It unambiguously distinguishes between strengths and weaknesses.
D)   All of the above are potential SWOT analysis drawbacks.

Question 8

Value capture occurs when a company creates value by acting in ways that its competitors cannot or will not act.

Accepted Answer

A) True 
 B)False

Question 9

In your own words describe some of the benefits and drawbacks of using a SWOT analysis.

Accepted Answer

There are several benefits to using a SW...

Question 10

A matrix that arrays a company's strengths and weaknesses against its opportunities and threats is called a probability-impact matrix.

Accepted Answer

A) True 
 B)False

Question 11

________ occurs when some other party appreciates something that we do for them and is willing to execute a profitable transaction with us as a result.

Accepted Answer

A)   Value creation
B)   A negotiated settlement
C)   An absence of transaction costs
D)   A bartered trade

Question 12

It has become more difficult to create value in the travel agency industry because

Accepted Answer

A)   more and more customers purchase airline tickets directly from web sites rather than from travel agents.
B)   travel agents primarily arrange domestic travel and today people tend more toward international travel.
C)   travelers are migrating toward cruises for vacations and are avoiding airline flights.
D)   airline fares have become much easier to understand than they were a few years ago. A

Question 13

A study of employment in the U.S. found that jobs in the economy

Accepted Answer

A)   mostly were in value chain primary activities.
B)   mostly were in value chain support activities.
C)   were evenly split between value chain support and primary activities.
D)   could not be readily ascertained to be in either value chain support or primary activities.

Question 14

It is possible to create value upstream for suppliers as well as for the community in which the company operates in addition to creating value for customers.

Accepted Answer

A) True 
 B)False

Question 15

Performance and cost dimensions of activities that are derived from the strategic choices made about the underlying economic logic and structure of the business are known as

Accepted Answer

A)   organizational drivers.
B)   structural drivers.
C)   performance drivers.
D)   cultural drivers.

Question 16

The benefits of value chain analysis over SWOT analysis include which of the following?

Accepted Answer

A)   A value chain analysis illustrates the derivation of strengths and weaknesses.
B)   A value chain analysis presents a dynamic rather than static view of the firm.
C)   A value chain analysis provides more actionable information for managing strategy.
D)   All of the above are benefits of a value chain analysis over a SWOT analysis.

Question 17

Value chain activities that are far less obvious to outsiders and competitors, and therefore far more difficult to imitate are ________ activities.

Accepted Answer

A)   primary
B)   support
C)   transactional
D)   data-driven

Question 18

Inputs, operations, distribution, and marketing and sales are representative support activities in the value chain.

Accepted Answer

A) True 
 B)False

Question 19

The ________ provides "a systematic way of examining all the activities a firm performs and how they interact..."

Accepted Answer

A)   value chain
B)   resource-based view
C)   structure-conduct-performance model
D)   audit trail

Question 20

The Microsoft Xbox console uses 1,700 components produced by 250 suppliers worldwide.

Accepted Answer

A) True 
 B)False

Exam 5: Value Chain Analysis

An analysis of a firm's value chain provides more actionable information for managing strategy than a SWOT analysis and it illustrates how a firm's strengths and weaknesses are produced.

Correct AnswerverifiedTrue

Some sophisticated strategy research has demonstrated that industry structure and conditions can explain only a small portion of the variance in the performance of firms within an industry.

Correct AnswerverifiedShow Answer

The three primary steps in performing a value chain analysis are: 1) identify the value chain activities, 2) evaluate their value-creating properties and cost characteristics, and 3) identify improvements that allow the company to capture greater value.

Correct AnswerverifiedShow Answer

A SWOT analysis can help uncover a company's strengths and weaknesses, knowledge it can then use as it creates or adjusts its strategy.

Correct AnswerverifiedShow Answer

The complexity of the value chain for Microsoft's Xbox 360 is best illustrated by the fact that

Correct AnswerverifiedShow Answer

Most companies participate in ________ of the industry value chain.

Correct AnswerverifiedC

Which of the following is a potential SWOT analysis drawback?

Correct AnswerverifiedShow Answer

Value capture occurs when a company creates value by acting in ways that its competitors cannot or will not act.

Correct AnswerverifiedShow Answer

In your own words describe some of the benefits and drawbacks of using a SWOT analysis.

Correct AnswerverifiedThere are several benefits to using a SW...View AnswerShow Answer

A matrix that arrays a company's strengths and weaknesses against its opportunities and threats is called a probability-impact matrix.

Correct AnswerverifiedShow Answer

________ occurs when some other party appreciates something that we do for them and is willing to execute a profitable transaction with us as a result.

Correct AnswerverifiedShow Answer

It has become more difficult to create value in the travel agency industry because

Correct AnswerverifiedA

A study of employment in the U.S. found that jobs in the economy

Correct AnswerverifiedShow Answer

It is possible to create value upstream for suppliers as well as for the community in which the company operates in addition to creating value for customers.

Correct AnswerverifiedShow Answer

Performance and cost dimensions of activities that are derived from the strategic choices made about the underlying economic logic and structure of the business are known as

Correct AnswerverifiedShow Answer

The benefits of value chain analysis over SWOT analysis include which of the following?

Correct AnswerverifiedShow Answer

Value chain activities that are far less obvious to outsiders and competitors, and therefore far more difficult to imitate are ________ activities.

Correct AnswerverifiedShow Answer

Inputs, operations, distribution, and marketing and sales are representative support activities in the value chain.

Correct AnswerverifiedShow Answer

The ________ provides "a systematic way of examining all the activities a firm performs and how they interact..."

Correct AnswerverifiedShow Answer

The Microsoft Xbox console uses 1,700 components produced by 250 suppliers worldwide.

Correct AnswerverifiedShow Answer

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There are several benefits to using a SW...
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A

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