SEVI 3013 - FINAL EXAM QUESTIONS
WITH COMPLETE ANSWERS
Support Functions - Answer-- these functions provide a level of service that is essential
for the excellence of operational teams and the company's overall efficiency
- Finance -> Human Resources -> Management Information Systems
Value Chain Activities - Answer-- a useful tool for working out how you can create the
greatest possible value for your customers
Supply Chain
- Management -> Operations -> Distribution -> Marketing (sales) -> Follow-up Services
Stakeholders - Answer-people, organizations who are impacted by - and have claims on
- a firms performance
Capital market stakeholder - Answer-shareholders suppliers, host communities and
unions
Product Market stakeholder - Answer-customers, suppliers, host communities, unions
Components of External Analysis
2. Monitoring - Answer-defining meaning through ongoing observations of changes and
trends
Components of External Analysis
3. Forecasting - Answer-developing projections of anticipated outcomes based on
changes and trends
Components of External Analysis
4. Assessing - Answer-determining the timing and importance of changes and trends
for firms strategies
Internal Analysis - Answer-- The process of examining an organization's strengths and
weaknesses.
- helps the company decision-makers accurately identify areas for growth or revision to
form a practical business strategy or business plan.
Tangible Resources - Answer-resources that have physical attributes and thus are
visible
intangible resources - Answer-resources that do not have physical attributes and thus
are invisible
, Building Competitive Advantage - Answer-1. Resources: physical, human,
organizational capital (tangible & intangible)
2. Capability: an integrated set of resources
3. Core competencies: a source of competitive advantage
Characteristics of Core Competency - Answer-- costly to imitate
- valuable
- rare
- non substitutable
Not valuable, rare, costly to imitate, non-substitutable - Answer-its has a competitive
disadvantage with below avg returns
valuable and somewhat non substitutable - Answer-it has competitive parity with
average returns
valuable, rare, and somewhat non substitutable - Answer-temporary competitive
advantage and above avg to avg returns
is valuable, rare, costly to imitate and non substitutable - Answer-sustainable
competitive advantage and above avg returns
Organizational stakeholder - Answer-employees and managers
business level strategy - Answer-integrated and coordinated set of commitments and
actions the firm uses to gain a competitive advantage by exploiting core competencies
in specific product markets
Key Issues in Business-level strategy - Answer-- who will be served?
- what needs will be satisfied?
- how will those needs be satisfied?
Business level strategy alternatives - Answer-the set of strategic alternatives from which
an organization chooses as it conducts business in a particular industry or market
Business level strategy alternatives
"competitive advantage" - Answer-lowest cost & distinctiveness
Business level strategy alternatives
"scope of operations" - Answer-broad target & narrow target
Cost leadership (lowest cost, broad target) - Answer-hinges on a company's ability to
lower costs of production to offer quality products at low prices
Differentiation (distinctiveness, broad target) - Answer-the approach businesses use to
attract and keep customers by giving them a unique product or service.
WITH COMPLETE ANSWERS
Support Functions - Answer-- these functions provide a level of service that is essential
for the excellence of operational teams and the company's overall efficiency
- Finance -> Human Resources -> Management Information Systems
Value Chain Activities - Answer-- a useful tool for working out how you can create the
greatest possible value for your customers
Supply Chain
- Management -> Operations -> Distribution -> Marketing (sales) -> Follow-up Services
Stakeholders - Answer-people, organizations who are impacted by - and have claims on
- a firms performance
Capital market stakeholder - Answer-shareholders suppliers, host communities and
unions
Product Market stakeholder - Answer-customers, suppliers, host communities, unions
Components of External Analysis
2. Monitoring - Answer-defining meaning through ongoing observations of changes and
trends
Components of External Analysis
3. Forecasting - Answer-developing projections of anticipated outcomes based on
changes and trends
Components of External Analysis
4. Assessing - Answer-determining the timing and importance of changes and trends
for firms strategies
Internal Analysis - Answer-- The process of examining an organization's strengths and
weaknesses.
- helps the company decision-makers accurately identify areas for growth or revision to
form a practical business strategy or business plan.
Tangible Resources - Answer-resources that have physical attributes and thus are
visible
intangible resources - Answer-resources that do not have physical attributes and thus
are invisible
, Building Competitive Advantage - Answer-1. Resources: physical, human,
organizational capital (tangible & intangible)
2. Capability: an integrated set of resources
3. Core competencies: a source of competitive advantage
Characteristics of Core Competency - Answer-- costly to imitate
- valuable
- rare
- non substitutable
Not valuable, rare, costly to imitate, non-substitutable - Answer-its has a competitive
disadvantage with below avg returns
valuable and somewhat non substitutable - Answer-it has competitive parity with
average returns
valuable, rare, and somewhat non substitutable - Answer-temporary competitive
advantage and above avg to avg returns
is valuable, rare, costly to imitate and non substitutable - Answer-sustainable
competitive advantage and above avg returns
Organizational stakeholder - Answer-employees and managers
business level strategy - Answer-integrated and coordinated set of commitments and
actions the firm uses to gain a competitive advantage by exploiting core competencies
in specific product markets
Key Issues in Business-level strategy - Answer-- who will be served?
- what needs will be satisfied?
- how will those needs be satisfied?
Business level strategy alternatives - Answer-the set of strategic alternatives from which
an organization chooses as it conducts business in a particular industry or market
Business level strategy alternatives
"competitive advantage" - Answer-lowest cost & distinctiveness
Business level strategy alternatives
"scope of operations" - Answer-broad target & narrow target
Cost leadership (lowest cost, broad target) - Answer-hinges on a company's ability to
lower costs of production to offer quality products at low prices
Differentiation (distinctiveness, broad target) - Answer-the approach businesses use to
attract and keep customers by giving them a unique product or service.
