Question

Tell me wether each statement is true or false:

1.Factors that cause the rivalry among competing sellers to be weak include low buyer switching costs and rival sellers that are relatively equal is size and capability.

2.High labor productivity (especially if the production process has high labor content) is a good example of a manufacturing-related key success factor.

3.Whether the company’s sales are growing faster, slower, or about the same pace as the industry as a whole, thus resulting in a rising, falling, or stable market share is a reliable measure of how well a company’s current strategy is working.

4.A core competence adds to a company's arsenal of competitive capabilities and competitive assets and is a genuine resource strength.

5.Scanning the environment to determine a company’s best and most profitable customers is a component of evaluating a company’s resources and competitive position.

6.A salad as a substitute for French fries is a good example of a substitute product (instead of a direct rival) that triggers stronger competitive pressures.

7.Competitive pressures coming from the threat of entry of new rivals is one of the key analytical tools in the Michael Porter’s Five-Forces Model.

8.The stronger a company’s financial performance and market position, the more likely it has a well-conceived, well-executed strategy.

9.The difference between a company’s mission statement and the concept of a strategic vision is that a mission statement typically concerns a company’s present business scope and purpose whereas a strategic vision sets forth “where we are going and why.”

10.Breaking down resistance to a new strategic vision typically requires that top management institute a balanced scorecard approach to measuring company performance, with the “balance” including a mixture of both old and new performance measures.

11.Low-cost provider strategy constantly seeks new and innovative products.

12.Business strategy, as distinct from corporate strategy, is chiefly concerned with forging actions and approaches to compete successfully in a particular line of business.

13.The market opportunities most relevant to a particular company are those that offer the best growth and profitability.

14.The external market opportunities which are most relevant to a company are the ones that match up well with the firm’s financial resources and competitive capabilities, offer the best growth and profitability, and present the most potential for competitive advantage.

15.The lack of a distinctive competence is an example of an external threat to a company’s future profitability.

16.If a company doesn’t possess stand alone resource strengths capable of contributing to competitive advantage, it is unlikely to survive in the marketplace and should exit the industry.

17.Value chain analysis and benchmarking are analytical tools useful in determining whether a company’s prices and costs are competitive.

18.A distinctive competency is a competitively important activity that a company performs better than other internal activities.

19.Corporate strategy for a diversified or multi-business enterprise is orchestrated by senior corporate executives and centers around the kinds of initiatives the company uses to establish business positions in different industries and efforts to boost the combined performance of the businesses the company has diversified into.

20.Having proven technological expertise and ability to churn out new and improved products on a regular basis is a good example of a company strength.

21.A company's value chain identifies the steps it goes through to convert its net income into value for shareholders.

22.An industry’s driving forces are generally determined by the sizes of strategic groups and the power of rival firms’ competitive strategies.

23.One important indicator of how well a company's present strategy is working is whether it has more core competencies than close rivals.

24.Product R & D capabilities and expertise in product design is a good example of a marketing-related key success factor.

25.Strategic group mapping is a technique for displaying the different market or competitive positions that rival firms occupy in an industry and identifying each rival’s closest competitors.

26.SWOT analysis is a way to measure whether a company’s value chain is longer or shorter than the chains of key rivals.

27.Key success factors for business are universal and are not necessarily different from industry to industry.

28.When good substitutes are not readily available or don’t exist, competitive pressure from substitutes are strong.

29.A company’s value chain identifies the steps it goes through to convert its net income into value for shareholders.

30.Geographic coverage and degree of vertical integration is useful in drawing a strategic group map.

Answer 1

1. F [ ‘T' stands for ‘True' and ‘F' stands for ‘False' ]

2. T

3. T (Little bit unsure)   

4. T

5. F

6. T

7. T

8. T

9. T

10. F

​​​​​​11. T (Little bit unsure)

12. T

13. T

14. T

15. F

16. F

17. T

18. F

19. T

20. T

21. F

22. F

23. F

24. F

25. T

26. F

27. F (little bit unsure)

28. F

29. F

30. F

I am little bit unsure about the answers of some questions. Please pardon me for that. Please provide your valuable feedback through comment or rating. It will motivate me to give my best to you.