CAPSIM EXAM 2 UPDATED QUESTIONS AND ANSWERS
The common types of valuable resources and competitive capabilities that management should consider
when crafting a strategy include - CORRECT ANSWER✅✅✅- a skill, expertise, or capability
- physical and intangible assets
- human and intellectual capital
- organizational assets and alliances
NOT
- market share, profit growth, increase in stock price
Every organization has many resources, capabilities, and routines; however, those few things the
company does really well and performs with a very high proficiency are termed - CORRECT
ANSWER✅✅✅distinct capabilities
A company's competitive strength scores - CORRECT ANSWER✅✅✅pinpoint its
strengths/weaknesses against rivals and point to offensive/defensive strategies capable of producing
first rate results
Which of the following is not a tangible resource? - CORRECT ANSWER✅✅✅A company's reputation
for integrity and quality products
A company's value chain - CORRECT ANSWER✅✅✅consists of two categories: primary activities
creating customer value and support activities that facilitate/enhance the performance of primary
activities.
Which of the following is not a value driver of a broad differentiation strategy? - CORRECT
ANSWER✅✅✅Using just-in-time inventories and made-to-order products when customer demand
rises
The target market of a best-cost provider strategy is - CORRECT ANSWER✅✅✅value-conscious
buyers
, Companies can pursue differentiation from many angles including - CORRECT ANSWER✅✅✅-
providing a unique competitive product taste
- executing superior customer service
- ensuring engineering design and performance benefits
- providing products that ensure luxury and prestige
NOT
- investing in managerial productivity and enjoying experience curve effects
The aim of the best-cost provider strategy is to create a competitive advantage by - CORRECT
ANSWER✅✅✅incorporating attractive or upscale product attributes at a lower cost than rivals
What sets focused/market niche strategies apart from low-cost leadership and broad differentiation
strategies? - CORRECT ANSWER✅✅✅their concentrated attention on a narrow piece of the overall
market
Being first to initiate a strategic move can have a high payoff in all of the following instances - CORRECT
ANSWER✅✅✅- pioneering builds a firm's image and reputation
- customers stay loyal to the firm
- cost advantage over rivals
- preemptive strike
NOT
- when pioneering leadership is costlier than followership
Which of the following is an offensive strategy option - CORRECT ANSWER✅✅✅- adopting or
improving on good ideas of rivals
- preemptive strike
- better product, lower price
- introducing new models to fill vacant niches, better match products of rivals
NOT
- attacking rivals' big profit market segments
The common types of valuable resources and competitive capabilities that management should consider
when crafting a strategy include - CORRECT ANSWER✅✅✅- a skill, expertise, or capability
- physical and intangible assets
- human and intellectual capital
- organizational assets and alliances
NOT
- market share, profit growth, increase in stock price
Every organization has many resources, capabilities, and routines; however, those few things the
company does really well and performs with a very high proficiency are termed - CORRECT
ANSWER✅✅✅distinct capabilities
A company's competitive strength scores - CORRECT ANSWER✅✅✅pinpoint its
strengths/weaknesses against rivals and point to offensive/defensive strategies capable of producing
first rate results
Which of the following is not a tangible resource? - CORRECT ANSWER✅✅✅A company's reputation
for integrity and quality products
A company's value chain - CORRECT ANSWER✅✅✅consists of two categories: primary activities
creating customer value and support activities that facilitate/enhance the performance of primary
activities.
Which of the following is not a value driver of a broad differentiation strategy? - CORRECT
ANSWER✅✅✅Using just-in-time inventories and made-to-order products when customer demand
rises
The target market of a best-cost provider strategy is - CORRECT ANSWER✅✅✅value-conscious
buyers
, Companies can pursue differentiation from many angles including - CORRECT ANSWER✅✅✅-
providing a unique competitive product taste
- executing superior customer service
- ensuring engineering design and performance benefits
- providing products that ensure luxury and prestige
NOT
- investing in managerial productivity and enjoying experience curve effects
The aim of the best-cost provider strategy is to create a competitive advantage by - CORRECT
ANSWER✅✅✅incorporating attractive or upscale product attributes at a lower cost than rivals
What sets focused/market niche strategies apart from low-cost leadership and broad differentiation
strategies? - CORRECT ANSWER✅✅✅their concentrated attention on a narrow piece of the overall
market
Being first to initiate a strategic move can have a high payoff in all of the following instances - CORRECT
ANSWER✅✅✅- pioneering builds a firm's image and reputation
- customers stay loyal to the firm
- cost advantage over rivals
- preemptive strike
NOT
- when pioneering leadership is costlier than followership
Which of the following is an offensive strategy option - CORRECT ANSWER✅✅✅- adopting or
improving on good ideas of rivals
- preemptive strike
- better product, lower price
- introducing new models to fill vacant niches, better match products of rivals
NOT
- attacking rivals' big profit market segments
