MBA 703 EVALUATION TEST ANSWERS AND
QUESTIONS SET A+
✔✔sustainable competitive advantage - ✔✔goal of a firm; financial performance that
consistently outperforms their industry peers
✔✔Operational effectiveness - ✔✔performing the same tasks better than rivals perform
them
The danger of operational effectiveness is "sameness" because the efforts can be
matched. It is not enough to yield sustainable dominance over the competition.
✔✔Which is "better" according to Michael Porter, Operational effectiveness or strategic
positioning? - ✔✔Strategic positioning
✔✔fast follower problem exists when competitors: - ✔✔•Watch a pioneer's efforts.
•Learn from their successes and missteps.
•Enter the market quickly with a comparable or superior product at a lower cost before
the first mover can dominate.
✔✔strategic positioning - ✔✔performing different activities from those of rivals, or the
same activities in a different way
Technology can be easy to copy, and technology alone rarely offers sustainable
advantage.
✔✔inventory turns - ✔✔The number of times inventory is sold or used during a specific
period (such as a year or quarter). A higher figure means a firm is selling products
quickly so it collects money quicker than its rivals do
✔✔Resource-based view of competitive advantage (4 resource attributes) - ✔✔If a firm
is to maintain sustainable competitive advantage, it must control a set of exploitable
resources that have four critical characteristics:
1. valuable,
, 2. rare,
3. imperfectly imitable (tough to imitate),
4. and non-substitutable
✔✔dense wave division multiplexing (DWDM) - ✔✔technology that increases the
transmission capacity of fiber optic cable
✔✔imitation-resistant value chain - ✔✔A way of doing business that competitors
struggle to replicate and that frequently involves technology in a key enabling role.
✔✔Value Chain - ✔✔the set of interrelated activities that bring products or services to
market
elements in the value chain work together to create and reinforce competitive
advantages that others cannot easily copy
✔✔5 primary components of the value chain - ✔✔1. Inbound logistics—getting needed
materials and other inputs into the firm from suppliers
2. Operations—turning inputs into products or services
3. Outbound logistics—delivering products or services to consumers, distribution
centers, retailers, or other partners
4. Marketing and sales—customer engagement, pricing, promotion, and transaction
5. Support—service, maintenance, and customer support
✔✔4 secondary components of the value chain - ✔✔1. Firm infrastructure—functions
that support the whole firm, including general management, planning, IS, and finance
2. Human resource management—recruiting, hiring, training, and development
3. Technology / research and development—new product and process design
4. Procurement—sourcing and purchasing functions
✔✔brand - ✔✔symbolic embodiment of all the information connected with a product or
service, and can also be an exceptionally powerful resource for competitive advantage.
used by consumers to lower search costs
✔✔a strong brand -------- and --------- - ✔✔proxies quality and inspires trust
✔✔viral marketing - ✔✔marketing activities that aim to increase brand awareness or
sales by consumers passing a message along to other consumers
✔✔Sources of Competitive Advantage - ✔✔1. Imitation resistant value chain
2. brand
3. scale
4. switching costs and data
5. differentiation
QUESTIONS SET A+
✔✔sustainable competitive advantage - ✔✔goal of a firm; financial performance that
consistently outperforms their industry peers
✔✔Operational effectiveness - ✔✔performing the same tasks better than rivals perform
them
The danger of operational effectiveness is "sameness" because the efforts can be
matched. It is not enough to yield sustainable dominance over the competition.
✔✔Which is "better" according to Michael Porter, Operational effectiveness or strategic
positioning? - ✔✔Strategic positioning
✔✔fast follower problem exists when competitors: - ✔✔•Watch a pioneer's efforts.
•Learn from their successes and missteps.
•Enter the market quickly with a comparable or superior product at a lower cost before
the first mover can dominate.
✔✔strategic positioning - ✔✔performing different activities from those of rivals, or the
same activities in a different way
Technology can be easy to copy, and technology alone rarely offers sustainable
advantage.
✔✔inventory turns - ✔✔The number of times inventory is sold or used during a specific
period (such as a year or quarter). A higher figure means a firm is selling products
quickly so it collects money quicker than its rivals do
✔✔Resource-based view of competitive advantage (4 resource attributes) - ✔✔If a firm
is to maintain sustainable competitive advantage, it must control a set of exploitable
resources that have four critical characteristics:
1. valuable,
, 2. rare,
3. imperfectly imitable (tough to imitate),
4. and non-substitutable
✔✔dense wave division multiplexing (DWDM) - ✔✔technology that increases the
transmission capacity of fiber optic cable
✔✔imitation-resistant value chain - ✔✔A way of doing business that competitors
struggle to replicate and that frequently involves technology in a key enabling role.
✔✔Value Chain - ✔✔the set of interrelated activities that bring products or services to
market
elements in the value chain work together to create and reinforce competitive
advantages that others cannot easily copy
✔✔5 primary components of the value chain - ✔✔1. Inbound logistics—getting needed
materials and other inputs into the firm from suppliers
2. Operations—turning inputs into products or services
3. Outbound logistics—delivering products or services to consumers, distribution
centers, retailers, or other partners
4. Marketing and sales—customer engagement, pricing, promotion, and transaction
5. Support—service, maintenance, and customer support
✔✔4 secondary components of the value chain - ✔✔1. Firm infrastructure—functions
that support the whole firm, including general management, planning, IS, and finance
2. Human resource management—recruiting, hiring, training, and development
3. Technology / research and development—new product and process design
4. Procurement—sourcing and purchasing functions
✔✔brand - ✔✔symbolic embodiment of all the information connected with a product or
service, and can also be an exceptionally powerful resource for competitive advantage.
used by consumers to lower search costs
✔✔a strong brand -------- and --------- - ✔✔proxies quality and inspires trust
✔✔viral marketing - ✔✔marketing activities that aim to increase brand awareness or
sales by consumers passing a message along to other consumers
✔✔Sources of Competitive Advantage - ✔✔1. Imitation resistant value chain
2. brand
3. scale
4. switching costs and data
5. differentiation
