SEVI 3013H FINAL EXAM QUESTIONS
AND ANSWERS
organizational capabilities - Answer-the competencies and skills that a firm employs to
transform inputs into outputs
financial ratio analysis - Answer-a method of evaluating a company's performance and
financial well-being through ratios of accounting values, including short-term solvency,
long-term solvency, asset utilization, profitability, and market value ratios
balanced scorecard - Answer-a method of evaluating a firm's performance using
performance measures from the customers', internal, innovation and learning, and
financial perspectives
1. customer perspective
2. internal business perspective
3. innovation and learning perspective
4. financial perspective - Answer-What are the 4 perspectives of the balanced
scorecard?
economic segment of the general environment - Answer-characteristics of the economy,
including national income and monetary conditions
global segment of the general environment - Answer-influences from foreign countries,
including foreign market opportunities, foreign-based competition, and expanded capital
markets
industry - Answer-a group of firms that produce similar goods or services
competitive environment - Answer-factors that pertain to an industry and affect a firm's
strategies
Porter's five forces model of industry competition - Answer-a tool for examining the
industry-level competitive environment, especially the ability of firms in that industry to
set prices and minimize costs
1. threat of new entrants
2. bargaining power of buyers
3. bargaining power of suppliers
4. threat of substitute products and services
5. intensity of rivalry among competitors - Answer-What are Porter's 5 Forces?
threat of new entrants - Answer-the possibility that the profits of established firms in the
industry may be eroded by new competitors
, bargaining power of buyers - Answer-the threat that buyers may force down prices,
bargain for higher quality or more services, and play competitors against each other
bargaining power of suppliers - Answer-the threat that suppliers may raise prices or
reduce the quality of purchased goods and services
threat of substitute products and services - Answer-the threat of limiting the potential
returns of an industry by placing a ceiling on the prices that firms in that industry can
profitably charge without losing too many customers to substitute products
intensity of rivalry among competitors - Answer-the threat that customers will switch
their business to competitors within the industry
strategic groups - Answer-clusters of firms that share similar strategies
value-chain analysis - Answer-a strategic analysis of an organization that uses value-
creating activities
primary activities - Answer-sequential activities of the value chain that refer to the
physical creation of the product or service, its sale and transfer to the buyer, and its
service after sale
1. inbound logistics
2. operations
3. outbound logistics
4. marketing and sales
5. service - Answer-What are the primary activities of the value chain?
inbound logistics - Answer-receiving, storing, and distributing inputs of a product
operations - Answer-all activities associated with transforming inputs into the final
product form
outbound logistics - Answer-collecting, storing, and distributing the product or service to
buyers
marketing and sales - Answer-activities associated with purchases of products and
services by end users and the inducements used to get them to make purchases
service - Answer-actions associated with providing service to enhance or maintain the
value of the product
1. general administration
2. human resource management
3. technology development
AND ANSWERS
organizational capabilities - Answer-the competencies and skills that a firm employs to
transform inputs into outputs
financial ratio analysis - Answer-a method of evaluating a company's performance and
financial well-being through ratios of accounting values, including short-term solvency,
long-term solvency, asset utilization, profitability, and market value ratios
balanced scorecard - Answer-a method of evaluating a firm's performance using
performance measures from the customers', internal, innovation and learning, and
financial perspectives
1. customer perspective
2. internal business perspective
3. innovation and learning perspective
4. financial perspective - Answer-What are the 4 perspectives of the balanced
scorecard?
economic segment of the general environment - Answer-characteristics of the economy,
including national income and monetary conditions
global segment of the general environment - Answer-influences from foreign countries,
including foreign market opportunities, foreign-based competition, and expanded capital
markets
industry - Answer-a group of firms that produce similar goods or services
competitive environment - Answer-factors that pertain to an industry and affect a firm's
strategies
Porter's five forces model of industry competition - Answer-a tool for examining the
industry-level competitive environment, especially the ability of firms in that industry to
set prices and minimize costs
1. threat of new entrants
2. bargaining power of buyers
3. bargaining power of suppliers
4. threat of substitute products and services
5. intensity of rivalry among competitors - Answer-What are Porter's 5 Forces?
threat of new entrants - Answer-the possibility that the profits of established firms in the
industry may be eroded by new competitors
, bargaining power of buyers - Answer-the threat that buyers may force down prices,
bargain for higher quality or more services, and play competitors against each other
bargaining power of suppliers - Answer-the threat that suppliers may raise prices or
reduce the quality of purchased goods and services
threat of substitute products and services - Answer-the threat of limiting the potential
returns of an industry by placing a ceiling on the prices that firms in that industry can
profitably charge without losing too many customers to substitute products
intensity of rivalry among competitors - Answer-the threat that customers will switch
their business to competitors within the industry
strategic groups - Answer-clusters of firms that share similar strategies
value-chain analysis - Answer-a strategic analysis of an organization that uses value-
creating activities
primary activities - Answer-sequential activities of the value chain that refer to the
physical creation of the product or service, its sale and transfer to the buyer, and its
service after sale
1. inbound logistics
2. operations
3. outbound logistics
4. marketing and sales
5. service - Answer-What are the primary activities of the value chain?
inbound logistics - Answer-receiving, storing, and distributing inputs of a product
operations - Answer-all activities associated with transforming inputs into the final
product form
outbound logistics - Answer-collecting, storing, and distributing the product or service to
buyers
marketing and sales - Answer-activities associated with purchases of products and
services by end users and the inducements used to get them to make purchases
service - Answer-actions associated with providing service to enhance or maintain the
value of the product
1. general administration
2. human resource management
3. technology development
