Question 1

Which of the following is not a basic way in which value can be created?
A) By providing customers with the same benefits they can get elsewhere and charging the widely accepted industry price, or a little more to earn some profit.
B) By providing greater benefits for the same price the customer has been accustomed to paying.
C) By providing the same benefits but at a lower price that the customer has been accustomed to paying.
D) By broadening access to benefits to a wider audience, without sacrificing the benefits delivered to existing customers.

Accepted Answer

Providing customers with the same benefits they can get elsewhere and charging the widely accepted industry price does not create additional value; it merely maintains the status quo. Value creation typically involves offering greater benefits, reducing costs, or expanding access.

Question 2

Value is best captured when a company's set of activities is ________ and those activities are not easily imitated by a competitor.
A) contestable
B) hidden
C) idiosyncratic
D) embedded in routines

Accepted Answer

Value is best captured when a company's activities are unique and specific to them, making them difficult for competitors to imitate.

Question 3

Value chain activities that are far less obvious to outsiders and competitors, and therefore far more difficult to imitate are ________ activities.
A) primary
B) support
C) transactional
D) data-driven

Accepted Answer

Support activities are less visible and harder for competitors to imitate because they involve internal processes like technology development, human resources, and procurement.

Question 4

Relying on internal activities and processes, tapping customers and suppliers for ideas, and engaging in other boundary-spanning activities meant to identify emerging trends are all means by which a company can deliberately create a focus on
A) the behaviors of rivals.
B) the likelihood of an industry price war.
C) opportunity recognition.
D) its changing culture.

Accepted Answer

These activities are aimed at identifying new opportunities and trends in the market, which is the essence of opportunity recognition.

Question 5

Performance and cost dimensions of activities that are derived from business operations involving people, systems, routines, culture, and coordination that usually have a fairly important learning component are known as
A) executional drivers.
B) cost drivers.
C) contingent drivers.
D) success drivers.

Accepted Answer

Executional drivers are factors that influence the performance and cost dimensions of activities derived from business operations, including people, systems, routines, culture, and coordination, and often involve a significant learning component.

Question 6

Performance and cost dimensions of activities that are derived from the strategic choices made about the underlying economic logic and structure of the business are known as
A) organizational drivers.
B) structural drivers.
C) performance drivers.
D) cultural drivers.

Accepted Answer

Structural drivers refer to the performance and cost dimensions of activities that stem from strategic choices about the economic logic and structure of the business.

Question 7

Contrast the purposes of an external analysis and an internal analysis.

Accepted Answer

The answer of Contrast the purposes of an external analysis...

Question 8

In your own words describe some of the benefits and drawbacks of using a SWOT analysis.

Accepted Answer

The answer of In your own words describe some of...

Question 9

What are some of the fundamental primary and support activities by which a company can create value?

Accepted Answer

The answer of What are some of the fundamental primary...

Question 10

What are the basic ways in which a company creates and captures value through its various activities? How does this added value lead to a competitive advantage?

Accepted Answer

The answer of What are the basic ways in which...

Quiz 5: Value Chain Analysis

Which of the following is not a basic way in which value can be created?

Value is best captured when a company's set of activities is ________ and those activities are not easily imitated by a competitor.

Value chain activities that are far less obvious to outsiders and competitors, and therefore far more difficult to imitate are ________ activities.

Relying on internal activities and processes, tapping customers and suppliers for ideas, and engaging in other boundary-spanning activities meant to identify emerging trends are all means by which a company can deliberately create a focus on

Performance and cost dimensions of activities that are derived from business operations involving people, systems, routines, culture, and coordination that usually have a fairly important learning component are known as

Performance and cost dimensions of activities that are derived from the strategic choices made about the underlying economic logic and structure of the business are known as

Contrast the purposes of an external analysis and an internal analysis.

In your own words describe some of the benefits and drawbacks of using a SWOT analysis.

What are some of the fundamental primary and support activities by which a company can create value?

What are the basic ways in which a company creates and captures value through its various activities? How does this added value lead to a competitive advantage?