BUSI 4940 EXAM 2 ACTUAL TEST
QUESTIONS AND ACCURATE ANSWERS
COMPLETE REVIEW SHEET
●● Value
Answer: is measured by a product's performance characteristics and by
its attributes for which customers are willing to pay
●● Tangible resources
Answer: are assets that can be observed and quantified.
- Tangible resources are hard to leverage.
- it is difficult to derive additional business or value from
●● Intangible resources
Answer: are assets that are rooted deeply in the firm's history,
accumulate over time, and are relatively difficult for competitors to
analyze and imitate.
- Are less visible and more difficult for competitors to understand,
purchase, imitate, or substitute for
- Are more relied on to be the foundation for a firm's capabilities
- Can be leveraged
●● Valuable capabilities
,Answer: allow the firm to exploit opportunities or neutralize threats in
its external environment.
●● Rare capabilities
Answer: capabilities that few, if any, competitors possess.
●● Costly-to-imitate capabilities
Answer: are capabilities that other firms cannot easily develop.
- historical: a unique and a valuable organizational culture or brand
name
- ambiguous cause: the causes and uses of competence are unclear
- social complexity: interpersonal relationships, trust, and friendships
among managers, suppliers, and customers
●● nonsubstitutable capabilities
Answer: do not have strategic equivalents.
●● Value chain activities
Answer: are activities or tasks the firm completes in order to produce
products and then sell, distribute, and service those products in ways that
create value for customers.
●● Support functions
,Answer: include the activities or tasks the firm completes in order to
support the work being done to produce, sell, distribute, and service the
products the firm is producing.
●● business-level strategy
Answer: is an integrated and coordinated set of commitments and
actions the firm uses to gain a competitive advantage by exploiting core
competencies in a specific product market.
●● Market segmentation
Answer: is the process of dividing customers into groups based on their
needs.
- used to cluster customers with similar needs into identifiable groups.
- Firms can use almost any identifiable human or organizational
characteristic to subdivide a market into segments that differ from one
another on a given characteristic.
●● business model
Answer: describes what a firm does to create, deliver, and capture value
for its stakeholders.
●● cost leadership strategy
Answer: - is an integrated set of actions taken to produce products with
features that are acceptable to customers at the lowest cost, relative to
that of competitors.
, - these firms usually sell standardized goods/ services but with
competitive levels of differentiation, to the industry's most typical
customers.
●● differentiation strategy
Answer: - is an integrated set of actions taken to produce products (at an
acceptable cost) that customers perceive as being different in ways that
are important to them.
- target customers for whom the firm creates value because of the
manner in which its products differ from those produced and marketed
by competitors.
●● focus strategy
Answer: integrated set of actions taken to produce products that serve
the needs of
a particular segment of customers.
●● integrated cost leadership/differentiation strategy
Answer: finds a firm engaging simultaneously in primary value-chain
activities and support functions
to achieve a low-cost position with some product differentiation.
- firms seek to produce products at a relatively low cost that have some
differentiated features that their customers value.
QUESTIONS AND ACCURATE ANSWERS
COMPLETE REVIEW SHEET
●● Value
Answer: is measured by a product's performance characteristics and by
its attributes for which customers are willing to pay
●● Tangible resources
Answer: are assets that can be observed and quantified.
- Tangible resources are hard to leverage.
- it is difficult to derive additional business or value from
●● Intangible resources
Answer: are assets that are rooted deeply in the firm's history,
accumulate over time, and are relatively difficult for competitors to
analyze and imitate.
- Are less visible and more difficult for competitors to understand,
purchase, imitate, or substitute for
- Are more relied on to be the foundation for a firm's capabilities
- Can be leveraged
●● Valuable capabilities
,Answer: allow the firm to exploit opportunities or neutralize threats in
its external environment.
●● Rare capabilities
Answer: capabilities that few, if any, competitors possess.
●● Costly-to-imitate capabilities
Answer: are capabilities that other firms cannot easily develop.
- historical: a unique and a valuable organizational culture or brand
name
- ambiguous cause: the causes and uses of competence are unclear
- social complexity: interpersonal relationships, trust, and friendships
among managers, suppliers, and customers
●● nonsubstitutable capabilities
Answer: do not have strategic equivalents.
●● Value chain activities
Answer: are activities or tasks the firm completes in order to produce
products and then sell, distribute, and service those products in ways that
create value for customers.
●● Support functions
,Answer: include the activities or tasks the firm completes in order to
support the work being done to produce, sell, distribute, and service the
products the firm is producing.
●● business-level strategy
Answer: is an integrated and coordinated set of commitments and
actions the firm uses to gain a competitive advantage by exploiting core
competencies in a specific product market.
●● Market segmentation
Answer: is the process of dividing customers into groups based on their
needs.
- used to cluster customers with similar needs into identifiable groups.
- Firms can use almost any identifiable human or organizational
characteristic to subdivide a market into segments that differ from one
another on a given characteristic.
●● business model
Answer: describes what a firm does to create, deliver, and capture value
for its stakeholders.
●● cost leadership strategy
Answer: - is an integrated set of actions taken to produce products with
features that are acceptable to customers at the lowest cost, relative to
that of competitors.
, - these firms usually sell standardized goods/ services but with
competitive levels of differentiation, to the industry's most typical
customers.
●● differentiation strategy
Answer: - is an integrated set of actions taken to produce products (at an
acceptable cost) that customers perceive as being different in ways that
are important to them.
- target customers for whom the firm creates value because of the
manner in which its products differ from those produced and marketed
by competitors.
●● focus strategy
Answer: integrated set of actions taken to produce products that serve
the needs of
a particular segment of customers.
●● integrated cost leadership/differentiation strategy
Answer: finds a firm engaging simultaneously in primary value-chain
activities and support functions
to achieve a low-cost position with some product differentiation.
- firms seek to produce products at a relatively low cost that have some
differentiated features that their customers value.
