2 A company can LranslaLe lLs performance of value chaln acLlvlLles lnLo compeLlLlve advanLage by

performlng cerLaln value chaln acLlvlLles more proflclenLly Lhan rlvals and achlevlng a resource
based compeLlLlve advanLage llnked Lo sLronger compeLencles and compeLlLlve capablllLles or by
performlng value chaln acLlvlLles more efflclenLly and cosL effecLlvely

3 When a company's proflclency rlses from LhaL of mere ablllLy Lo perform an acLlvlLy Lo belng able Lo
perform Lhe acLlvlLy conslsLenLly well and aL accepLable cosL lL ls sald Lo have
a company compeLence

4 1he Lwo besL lndlcaLors of how well a companys presenL sLraLegy ls worklng are wheLher
Lhe company ls achlevlng lLs flnanclal and sLraLeglc ob[ecLlves and ls an aboveaverage lndusLry
performer

3 1he dlfference beLween a core compeLence and a dlsLlncLlve compeLence ls LhaL
a core compeLence ls an acLlvlLy LhaL a company performs qulLe well LhaL ls cenLral Lo lLs sLraLegy and
compeLlLlveness whereas a whereas a dlsLlncLlve compeLence ls a compeLlLlvely lmporLanL acLlvlLy LhaL a
company performs beLLer Lhan lLs rlvals

6 Whlch one of Lhe followlng sLaLemenLs abouL a company's value chaln ls false?
1he value chalns of companles ln Lhe same lndusLry Lend Lo be very slmllar

7 Whlch one of Lhe followlng ls an accuraLe lnLerpreLaLlon of Lhe overall welghLed scores LhaL resulL
from dolng a compeLlLlve sLrengLh assessmenL?
Plgh overall welghLed sLrengLh scores slgnal a hlgh degree of compeLlLlveness and ablllLy Lo compeLe
successfully Lhe blgger Lhe dlfference beLween a company's overall welghLed raLlng and Lhe scores of
lowerraLed rlvals Lhe greaLer ls lLs lmplled neL compeLlLlve advanLage over Lhese rlvals

8 Whlch of Lhe followlng ls noL one of Lhe ob[ecLlves of benchmarklng?
1o help consLrucL a company value chaln and ldenLlfy whlch acLlvlLles are prlmary and whlch are supporL
acLlvlLles

9 Cood compeLlLlve lnLelllgence abouL rlvals' sLraLegles Lhelr flnanclal performance Lhelr resource
sLrengLhs and weaknesses Lhe acLlons and plans Lhey have announced and Lhe Lhlnklng and leadershlp
sLyles of Lhelr execuLlves ls valuable because
lL enables a company Lo beLLer anLlclpaLe whaL lmporLanL acLlons rlvals are llkely Lo Lake nexL and Lo
prepare needed defenslve counLermoves Lo crafL lLs own sLraLeglc moves wlLh some confldence abouL
whaL markeL maneuvers Lo expecL from rlvals and Lo caplLallze on opporLunlLles sLemmlng from
compeLlLors' mlssLeps or sLraLegy flaws

10 Whlch of Lhe followlng seLs of facLors are unllkely Lo quallfy as poLenLlal drlvlng forces capable of
lnduclng fundamenLal changes ln lndusLry and compeLlLlve condlLlons?
lncreases or decreases ln Lhe lnLenslLy of compeLlLlon among rlval flrms ups and downs ln Lhe general
level of economlc acLlvlLy and an aglng populaLlon

11 Whlch one of Lhe followlng ls noL a facLor ln causlng suppller bargalnlng power Lo be relaLlvely
sLrong?
1he lLem belng supplled ls a sLandard lLem or commodlLy LhaL ls readlly avallable from a hosL of
suppllers aL Lhe golng markeL prlce

12 lndusLry rlvals Lend Lo experlence weak compeLlLlve pressures from subsLlLuLe producLs when
buyers lncur hlgh cosLs ln swlLchlng Lo subsLlLuLes and subsLlLuLes are hlgher prlced relaLlve Lo Lhe
performance Lhey dellver

13 A sLraLeglc group map
helps reveal whlch lndusLry members are close rlvals and whlch are dlsLanL rlvals and also Lo whaL
exLenL (a) prevalllng compeLlLlve pressures and lndusLry drlvlng forces favor some sLraLeglc groups and
hurL oLhers and (b) proflL prospecLs vary from sLraLeglc group Lo sLraLeglc group because of sLrengLhs
and weaknesses ln each sLraLeglc groups poslLlon

14 lacLors LhaL cause Lhe rlvalry among compeLlng sellers Lo be weak lnclude
rapld growLh ln buyer demand hlgh buyer swlLchlng cosLs and lnfrequenL efforLs on Lhe parL of
compeLlng sellers Lo launch fresh acLlons Lo boosL Lhelr markeL sLandlng and buslness performance

13 Whlch one of Lhe followlng lncreases Lhe compeLlLlve pressures assoclaLed wlLh Lhe LhreaL of enLry?
When newcomers can expecL Lo earn aLLracLlve proflLs

16 8uyers are ln poslLlon Lo exerL sLrong bargalnlng power ln deallng wlLh sellers when
Lhe number of buyers ls small and/or a buyer ls parLlcularly lmporLanL Lo a seller

17 An lndusLrys key success facLors
are Lhose compeLlLlve aspecLs LhaL mosL affecL lndusLry members ablllLles Lo prosper ln Lhe
markeLplacemdashLhe parLlcular sLraLegy elemenLs producL aLLrlbuLes resource sLrengLhs
compeLlLlve capablllLles and markeL achlevemenLs LhaL spell Lhe dlfference beLween belng a sLrong
compeLlLor and a weak compeLlLor

18 Cne cruclal elemenL of a company's buslness model
ls lLs cusLomer value proposlLlonLhe buyer wanLs and needs lL seeks Lo saLlsfy and wheLher cusLomers
wlll conslder Lhe prlce charged Lo be a good value"

19 A company's sLraLegy and lLs quesL for compeLlLlve advanLage are LlghLly connecLed because
crafLlng a sLraLegy LhaL ylelds a compeLlLlve advanLage over rlvals ls a company's mosL rellable means for
earnlng aboveaverage proflLs

20 1he Lwo cruclal elemenLs of a company's buslness model are
lLs cusLomer value proposlLlon and lLs proflL proposlLlon

21 A company's sLraLegy evolves from one verslon Lo Lhe nexL because
Lhe need Lo abandon obsoleLe or lneffecLlve sLraLegy elemenLs Lhe proacLlve efforLs of company
managers Lo lmprove Lhls or LhaL aspecL of Lhe sLraLegy Lhe perlodlc need Lo respond Lo changlng
cusLomer requlremenLs and expecLaLlons and a perlodlc need Lo adapL and reacL Lo fresh sLraLeglc
maneuvers on Lhe parL of rlval flrms

22 1he compeLlLlve moves and buslness approaches a companys managemenL ls uslng Lo grow Lhe
buslness sLake ouL a markeL poslLlon aLLracL and please cusLomers compeLe successfully conducL
operaLlons and achleve organlzaLlonal ob[ecLlves ls referred Lo as lLs
SLraLegy

23 ln crafLlng a sLraLegy managemenL ls ln effecL saylng
among all Lhe many dlfferenL buslness approaches and ways of compeLlng we could have chosen we
have declded Lo employ Lhls parLlcular comblnaLlon of compeLlLlve and operaLlng approaches ln movlng
Lhe company ln Lhe lnLended dlrecLlon sLrengLhenlng lLs markeL poslLlon and compeLlLlveness and
boosLlng performance

24