Professional Documents
Culture Documents
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Copyright 2012 Pearson Education, Inc.
46) When a company's core competencies are superior to those of competitors, these are called
A) resources.
B) distinctive competencies.
C) core competencies.
D) critical success factors.
E) key performance factors.
47) Which of the following statements is true concerning clusters?
A) The desire to build or upgrade a core competency is one reason why entrepreneurial and other fast-growing
firms often tend to locate close to their competitors.
B) Clusters are geographic concentrations of interconnected companies and industries.
C) An example of a cluster in the U.S. is California's Silicon Valley.
D) According to Porter, clusters provide access to employees, suppliers, specialized information, and
complementary products.
E) all of the above
48) The rate at which a firm's underlying resources and capabilities depreciate or become obsolete is called
A) replicability.
B) transparency.
C) imitability.
D) durability.
E) transferability.
49) The rate at which a firm's underlying resources, capabilities, or core competencies can be duplicated by
others is called
A) replicability.
B) transparency.
C) imitability.
D) durability.
E) transferability.
50) When a firm takes apart a competitor's product in order to find out how it works, this process is known as
A) durability.
B) replicability.
C) reverse engineering.
D) transparency.
E) transferability.
51) The speed with which other firms can understand the relationship of resources and capabilities supporting a
successful firm's strategy is called
A) imitability.
B) reverse engineering.
C) transferability.
D) transparency.
E) durability.
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Copyright 2012 Pearson Education, Inc.
52) The ability of competitors to use duplicated resources and capabilities to imitate the other firm's success is
called
A) imitability.
B) durability.
C) transferability.
D) transparency.
E) replicability.
53) Knowledge that can be easily articulated and communicated is known as
A) tacit knowledge.
B) explicit knowledge.
C) imitable knowledge.
D) transferable knowledge.
E) durable knowledge.
54) ________ is more valuable because it can provide companies with a sustainable competitive advantage that
is harder for competitors to imitate.
A) Tacit knowledge
B) Explicit knowledge
C) Imitable knowledge
D) Transferable knowledge
E) Durable knowledge
55) Knowledge that is not easily communicated because it is deeply rooted in employee experience or in a
corporation's culture is called
A) tacit knowledge.
B) explicit knowledge.
C) imitable knowledge.
D) transferable knowledge.
E) durable knowledge.
56) On the continuum of resource sustainability, where would Sony's Walkman be placed?
A) slow-cycle resources
B) sustainable resources
C) standard-cycle resources
D) fast-cycle resources
E) down-cycle resources
57) The business model used by IBM to make money not selling IBM products, but by selling its expertise to
improve their customers operations is the
A) profit pyramid model.
B) advertising model.
C) customer solutions model.
D) efficiency model.
E) entrepreneurial model.
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Copyright 2012 Pearson Education, Inc.
58) The business model used by HP in selling printers and printer cartridges is the
A) profit pyramid model.
B) advertising model.
C) customer solutions model.
D) efficiency model.
E) multi-component system/installed base model.
59) A linked set of value-creating activities beginning with basic materials provided by suppliers and ending
with distributors getting the final product into the hands of the ultimate consumer is called a(n)
A) value chain.
B) continuum of sustainability.
C) strategic capability.
D) fully integrated activity set.
E) a strategic group.
60) The part of an industry's value chain that is most important to a company and the point where its greatest
expertise and capabilities lie is called the company's
A) functional crossroads.
B) center of gravity.
C) dynamic equilibrium.
D) R&D intensity.
E) economy of scope.
61) Which of the following is NOT a primary activity of the value chain?
A) raw materials handling
B) installation
C) repair
D) purchasing
E) warehousing
62) Which of the following is NOT a support activity of the value chain?
A) procurement
B) technology development
C) human resource management
D) marketing and sales
E) strategic planning
63) When examining the corporate value chain of a particular product or service, which one of the following is
NOT one of the PRIMARY activities that usually occur?
A) operations
B) inbound and outbound logistics
C) auditing and accounting
D) marketing and sales
E) customer service
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Copyright 2012 Pearson Education, Inc.
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Copyright 2012 Pearson Education, Inc.
70) According to the text, which one of the following is NOT descriptive of a corporation's culture?
A) A corporation's culture is a collection of beliefs, expectations, and values learned and shared by corporation's
members and transmitted from one generation of employees to another.
B) Corporate cultures are only temporary and can be easily changed.
C) Corporate culture norms are created which define acceptable behavior from top management to operative
employee.
D) Myths and rituals often emerge over time to explain why a certain aspect of the culture is important.
E) Cultures have a powerful influence on the behavior of managers and can strongly affect a corporation's
ability to shift its strategic direction.
71) What are the two distinct attributes of corporate culture?
A) differentiation and integration
B) durability and imitability
C) concern for people and concern for task
D) intensity and integration
E) amount of complexity and tolerance of change
72) What is the attribute of corporate culture that is the degree to which members of a unit accept the norms,
values, or other culture content associated with the unit?
A) integration
B) strength
C) intensity
D) coordination
E) unity
73) Which of the following is a function of corporate culture?
A) It encourages a laissez faire set of attitudes.
B) It encourages flexibility and thus constant change.
C) It conveys a sense of identity for employees.
D) It generates creative approaches to new situations.
E) It focuses employee commitment on their own careers.
74) Which of the following is NOT a function of corporate culture?
A) conveys a sense of identity for employees
B) adds to the stability of the organization as a social system
C) helps generate employee commitment to something greater than themselves
D) keeps people guessing about what to do next
E) serves as a frame of reference for employees to use as a guide for appropriate behavior
75) The breadth of an organization's culture is also known as
A) cultural integration.
B) cultural diversification.
C) cultural intensity.
D) cultural strategy.
E) cultural prerogative.
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Copyright 2012 Pearson Education, Inc.
76) Through market research, corporations can target their various products or services so that management can
discover what niches to seek or develop, and how to minimize competitive pressure. This is descriptive of
A) marketing position.
B) product life cycle.
C) market segmentation.
D) marketing mix.
E) marketing leverage.
77) The particular combination of product, place, promotion, and price is called
A) marketing position.
B) product life cycle.
C) market segmentation.
D) marketing mix.
E) marketing leverage.
78) An example of the promotion variable of the marketing mix is
A) advertising.
B) discounts
C) location.
D) services.
E) quality.
79) A graph showing time plotted against the dollar sales of a product as it moves from introduction through
growth and maturity to decline is called the
A) marketing position.
B) product life cycle.
C) market segmentation.
D) marketing mix.
E) marketing leverage.
80) Which of the following statements is true concerning a corporate reputation?
A) It is a widely held perception of a company by the general public.
B) A good corporate reputation can be a strategic resource.
C) There is a positive relationship between corporate reputation and financial performance.
D) Reputation tends to be long-lasting and hard for others to duplicate.
E) all of the above
81) As compared to a firm with low financial leverage, a firm with a high amount of financial leverage in an
expanding market should have
A) lower profits.
B) higher profits
C) higher earnings per share.
D) lower earnings per share.
E) higher sales revenue.
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Copyright 2012 Pearson Education, Inc.
89) According to the text, the primary task of the operations manager is to
A) make sure all the products or services are producing maximum revenue.
B) develop and operate a system that will produce the required number of products or services with a certain
quality, at a given cost, within an allotted time.
C) make sure the process has a high quality control.
D) ensure that the process is manufactured or delivered as efficiently as possible.
E) interface with the other functional departments to coordinate their operations in avoiding duplication of
effort.
90) Which of the following terms best describes a system in which items are normally processed sequentially,
but the work and sequence of the process vary?
A) continuous system
B) debt capacity
C) chronological processing
D) operating leverage
E) intermittent system
91) An automobile assembly line is an example of which approach to manufacturing?
A) continuous system
B) debt capacity
C) sequential processing
D) job shop
E) intermittent system
92) The impact of a specific change in sales volume on net operating income is referred to as the
A) continuous system.
B) chronological processing.
C) operating leverage.
D) debt capacity.
E) intermittent system.
93) The concept that suggests that unit production costs decline by some fixed percent each time the total
accumulated volume of production in units doubles is referred to as
A) the R & D mix.
B) the experience curve.
C) technological competence.
D) break-even analysis.
E) technology transfer.
94) Which one of the following is NOT descriptive of the experience curve?
A) It is useful because it is consistent within the industry for all involved firms over time.
B) It is used to estimate the production cost of a product produced by newly introduced techniques or processes.
C) It is used to estimate the production costs of a product never before made with the present techniques and
process.
D) The concept was first applied in the airframe industry.
E) It shows that production costs decline by some fixed percentage as production in units doubles.
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Copyright 2012 Pearson Education, Inc.