QUESTION 1 Samsung is concerned about its competitive advantage with regard to i

Question

QUESTION 1

Samsung is concerned about its competitive advantage with regard to its mobile devices and generates a value chain to conduct a cost analysis with Apple. Of the following, which would be the most important to consider in this analysis?

  Compare overall cost positions of the two companies.

Compare cost positions only for comparable products.

Compare cost positions for the average products for each company.

Include Samsung’s capital expenses for its new manufacturing site.

Exclude consideration of customers’ willingness to pay at this time.

4 points   

QUESTION 2

The balanced scorecard is based on lagging indicators (i.e., net income and cash flow for the preceding year).

HINT: Read the question and make sure you know what a lagging indicator is (look it up).

True

False

4 points   

QUESTION 3

All of the following can be determined by examining the relative success in satisfying customer needs (i.e., price, quality, etc.), EXCEPT:

Which needs are important to customers

Which company fulfills which customer needs

Identifying the next strategic option for a company

Showing the static and dynamic elements of the marketplace

How managers are able to understand how activities alter costs

4 points   

QUESTION 4

The strategy map complements the balanced scorecard.

True

False

4 points   

QUESTION 5

Toyota customers have a wide range of preferences. Some prefer the fuel economy of a hybrid (Prius), some prefer a family van (Odyssey), and others may prefer a large SUV (Highlander). This is an example of

segmentation

horizontal differentiation

vertical differentiation

mass customization.

differences in willingness to pay.

4 points   

QUESTION 6

A company that excels on all attributes of a value proposition is likely to

have a strong competitive advantage.

have been too generous in assessing its own performance.

be the profit leader for the industry.

have a dual competitive advantage.

show it values multiple customer segments.

4 points   

QUESTION 7

Industry-level differences account for greater variation in profitability than intra-industry differences do.

True

False

4 points   

QUESTION 8

A firm has a competitive advantage over its rivals if it has driven a large wedge between the amount its customers are willing to pay and the costs it incurs.

True

False

4 points   

QUESTION 9

Firms that do not add value can still be very profitable and competitive.

True

False

4 points   

QUESTION 10

A differentiation strategy refers to a firm that has boosted the willingness of customers to pay for its goods and services.

True

False

QUESTION 11

Firms cannot achieve a competitive advantage by producing superior goods at a lower cost.

True

False

QUESTION 12

A value chain should list primary and supporting activities that a firm does differently from competitors, including what it does not do.

True

False

  

QUESTION 13

A firm that discovers factors that contribute to higher distribution costs for itself than its competitors incur has identified a cost driver.

True

False

QUESTION 14

A firm needs to stand out on at least one attribute of the value proposition to demonstrate a competitive advantage.

True

False

QUESTION 15

The concept of competitive advantage focuses on

what customers are willing to pay.

     the costs a firm incurs in delivering a product and/or service.

increasing the wedge between what customers are willing to pay and the cost that the firm incurs.

decreasing the wedge between what customers are willing to pay and the cost that the firm incurs.

creating an attractive industry.

QUESTION 16

Competitive advantage refers to

refers to intra-industry competition.

refers to how a firm does something unique to create added value.

occurs when a firm’s range of activities (i.e., production, finance, marketing, logistics, etc.) act in harmony as a set of integrated choices.

All of the answers are correct.

None of these answers is correct.

QUESTION 17

A firm decides to provide support services for its products, for which its customers will pay extra. These services are not offered by its competitors, and the firm does not incur commensurate supplier opportunity costs when it offers the services. This firm has achieved which of the following?

Competitive advantage

Added value

Unrestricted bargaining

Competitive advantage and added value

All of the above

QUESTION 18

A firm can develop competitive advantage by

raising willingness to pay a great deal with only slight increases in costs.

developing large cost savings with only slight decreases in customer willingness to pay.

      producing superior products at lower costs.

None of the answers is correct

All of the answers are correct

QUESTION 19

Of the following, which is the most important goal when analyzing a firm’s value chain?

Assessing a firm’s low-cost strategy

   Assessing a firm’s differentiation strategy

Assessing a firm’s dual competitive advantage strategy

Understanding why the firm does or does not have a competitive advantage

  

QUESTION 20

McDonald’s conducts a value chain analysis of Burger King and discovers that Burger King’s logistics and procurement of inputs are less costly than its own, which allows Burger King to achieve a higher profit margin. This is an example of

analyzing primary activities.

analyzing support activities.

identifying the cost drivers for each activity.

analyzing competitors’ pricing.

assessing willingness to pay

QUESTION 21

Balanced scorecard helps firms answer 4 questions. Which one of the following is one of those questions?

How do our competitors see us?

What actions will our competitors take?

How do we look to shareholders?

How do our competitors look to shareholders?

  

QUESTION 22

Each component of the Balanced Scorecard includes a set of goals and specific measurements necessary to assess performance against goals.

True

False

QUESTION 23

Process time to maturity, cycle time, unit cost and yield are measurements that capture the costs embedded in manufacturing processes.

True

False

QUESTION 24

Process improvement can create excess capacity. What should managers do with the excess capacity created?

Use it or get rid of it: it is costing the company

Ignore it: the company may need that extra capacity in the next 10 years

Ignore it: There is no cost to unused capacity

All of the above

  

QUESTION 25

The Balanced Scorecard article gives the example of a chemicals company that developed a daily income statement that allowed estimation of the value of production output using market prices and subtracting the cost of raw materials, energy and capital consumed. What was the purpose of this measurement, as discussed in the article?

customer satisfaction

   new recruit training

quality and productivity improvement

shareholder value

a.

  Compare overall cost positions of the two companies.

b.

Compare cost positions only for comparable products.

c.

Compare cost positions for the average products for each company.

d.

Include Samsung’s capital expenses for its new manufacturing site.

e.

Exclude consideration of customers’ willingness to pay at this time.

Explanation / Answer

Can answer only four parts according to chegg policy policy. Please send other parts as separate question

1 answer is compare cost positions for only comparable products. Comparative cost is measured only with respect to similar products

2 True. Both leading and lagging indicators are involved

3 e is right answer. Cost knowledge has nothing to do with it

4 True. Both complement each other. Strategy maps are build before balanced scorecards however

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