Strategic Management Exam 2 UPDATED ACTUAL Questions And Correct
Answers
Terms in this set (86)
Value Benefits received relative to cost paid; firms create value by increasing customer
benefits and/or lowering production and delivery costs.
Value chain All activities a firm performs to create value for customers.
Primary activities Activities directly involved in creating, selling, delivering, and servicing the
product or service.
, Support activities Activities that help primary activities work more effectively and efficiently.
Inbound logistics Receiving, storing, and handling inputs.
Operations Transforming inputs into the final product or service.
Outbound logistics Warehousing, distributing, and delivering the finished product.
Marketing and sales Promoting, pricing, and selling the offering.
Service After-sale support such as repair, maintenance, and customer help.
Procurement Purchasing raw materials, supplies, and other inputs.
Technology development R&D, innovation, process improvement, and technical systems.
Human resource management Recruiting, training, compensating, and developing employees.
Firm infrastructure Leadership, planning, finance, accounting, legal, and control systems.
Product-based value chain Emphasizes manufacturing, inventory, physical inputs, and distribution.
Service-based value chain Emphasizes customer interaction, responsiveness, service quality, and the
customer experience.
Interrelationships in the value chain Activities create more value when they fit together and reinforce each other
across the firm.
External value-chain relationships Firms create value by coordinating with suppliers and customers to improve
quality, reduce delays, lower costs, and use feedback.
Vertical integration When a firm expands into stages of production or distribution that were
previously handled by outside companies.
Backward vertical integration A firm moves toward suppliers; example: making its own components or acquiring
sources of raw materials.
Forward vertical integration A firm moves toward customers or distribution; example: a manufacturer opening
its own stores.
Resource A tangible or intangible thing a firm can access to create value.
Capability Something a firm does especially well that creates value.
Tangible resources Physical or measurable assets such as buildings, equipment, cash, patents, and
data systems.
Intangible resources Harder-to-measure assets such as brand reputation, trust, culture, employee
knowledge, and technical expertise.
Answers
Terms in this set (86)
Value Benefits received relative to cost paid; firms create value by increasing customer
benefits and/or lowering production and delivery costs.
Value chain All activities a firm performs to create value for customers.
Primary activities Activities directly involved in creating, selling, delivering, and servicing the
product or service.
, Support activities Activities that help primary activities work more effectively and efficiently.
Inbound logistics Receiving, storing, and handling inputs.
Operations Transforming inputs into the final product or service.
Outbound logistics Warehousing, distributing, and delivering the finished product.
Marketing and sales Promoting, pricing, and selling the offering.
Service After-sale support such as repair, maintenance, and customer help.
Procurement Purchasing raw materials, supplies, and other inputs.
Technology development R&D, innovation, process improvement, and technical systems.
Human resource management Recruiting, training, compensating, and developing employees.
Firm infrastructure Leadership, planning, finance, accounting, legal, and control systems.
Product-based value chain Emphasizes manufacturing, inventory, physical inputs, and distribution.
Service-based value chain Emphasizes customer interaction, responsiveness, service quality, and the
customer experience.
Interrelationships in the value chain Activities create more value when they fit together and reinforce each other
across the firm.
External value-chain relationships Firms create value by coordinating with suppliers and customers to improve
quality, reduce delays, lower costs, and use feedback.
Vertical integration When a firm expands into stages of production or distribution that were
previously handled by outside companies.
Backward vertical integration A firm moves toward suppliers; example: making its own components or acquiring
sources of raw materials.
Forward vertical integration A firm moves toward customers or distribution; example: a manufacturer opening
its own stores.
Resource A tangible or intangible thing a firm can access to create value.
Capability Something a firm does especially well that creates value.
Tangible resources Physical or measurable assets such as buildings, equipment, cash, patents, and
data systems.
Intangible resources Harder-to-measure assets such as brand reputation, trust, culture, employee
knowledge, and technical expertise.
