Ace Institute of Management

Strategic Management
Quiz-IV: The Internal Analysis

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Name of the Student: ___Nabin Shiwakoti______________________________

Encircle the right option

1. The tendency to accept the status quo and disregard signals that change is needed is called: 
A. Management myopia
B. Environmental awareness
C. Management long-sightedness
D. Subjective management

2. _______ views a firm as a sequential process of value-creating activities. 

A. Resource-based analysis
B. Value chain analysis
C. SWOT analysis
D. Primary internal analysis

3. ________ is a historically popular technique through which managers create a quick overview of a
company's strategic situation—it is based on achieving a sound fit between internal resources and the
external situation. 
A. Internal analysis
B. External analysis
C. Value chain analysis
D. SWOT analysis

4. Which of the following is NOT an example of an opportunity for the firm? 

A. Identification of a previously overlooked market segment
B. Improved buyer or supplier relationships
C. Positive changes in regulatory circumstances
D. Strong reputation and image with a key demographic

5. Which of the following statements is false? 

A. A SWOT analysis can overemphasize external threats and downplay internal strengths
B. A SWOT analysis can be static and can risk ignoring changing circumstances
C. A strength, as identified by SWOT analysis is not necessarily a source of competitive advantage
D. A SWOT analysis can overemphasize a single strength or element of strategy

6. Value chain analysis takes a: 

A. Process point of view
B. Functional point of view
C. Horizontal point of view
D. Corporate point of view

7. Which of the following is an example of a primary activity in the typical firm? 

 A. Human resources management
B. Research, technology and systems development
C. General administration
D. Logistics

8. In VCA, which method of cost accounting is preferred? 

A. Activity-based cost accounting
B. Value-based cost accounting
C. Traditional cost accounting
D. Financial cost accounting

9. Which of the following is usually true about a firm's value chain? 

A. Scrutinizing a firm's value chain may bring attention to several sources of differentiation
advantage relative to competitors
B. Scrutinizing a firm's value chain does not usually reveal cost advantages or disadvantages
C. Scrutinizing the firm's value chain can minimize the activities that are critical to buyer satisfaction
D. Analysis of the firm's value chain can lead a firm to limit its market success

10. Which of the following considerations is critical at the examination stage of the value chain analysis? 
A. All primary activities differentiate the firm
B. The managers' choice of activities to be examined influences the mission statement of the firm
C. The nature of value chains and the relative importance of the activities within them are standard across
industries
D. The relative importance of value activities can vary by a company's position in a broader value
system that includes the value chains of its upstream suppliers and downstream customers or
partners

11. It is especially important that managers take into account their level of ________ when comparing their cost
structure for activities on their value chain with those of key competitors. 
A. Competition
B. Horizontal integration
C. Vertical integration
D. Concentric diversification

12. Which of the following is NOT a basic resource for any firm? 
A. Tangible assets
B. Core outputs
C. Intangible assets
D. Organizational capabilities

13. Which of the following is NOT one of the RBV guidelines? 

A. Resources are more valuable when they are critical to being able to meet a customer's need better than
other alternatives
B. Resources are more valuable when they are non-durable
C. Resources are most valuable when they are scarce
D. Resources are most valuable when they drive a key portion of overall profits

14. Consider Company A, a financial services company specializing in small business issues, whose location is
in a shopping mall in the suburbs and Company B, a similar business, whose location is downtown between
a successful law firm and a courthouse. Company A's comparative success can be best attributed to which
RBV guideline? 
 A. Resource are more valuable when they are scarce
B. Resources are more valuable when they are durable
C. Resources are more valuable when they drive a key portion of overall profits, in a manner controlled by
your firm
D. Resources are more valuable when they are critical to being able to meet a customer's need better
than other alternatives

15. The availability of substitutes affects which of the RBV guidelines? 

A. Resources are more valuable when they are scarce
B. Resources are more valuable when they are durable
C. Resources are more valuable when they drive a key portion of overall profits, in a manner controlled by
your firm
D Resources are more valuable when they are critical to being able to meet a customer's need better than
other alternatives

16.
_______ help the firm create resource scarcity by making resources hard to imitate. 
A. Resource bundles
B. Capabilities
C. Isolating mechanisms
D. Tangible resources

17. Which of the following statements is true? 

A. The faster a resource depreciates, the more valuable it is
B. The slower a resource depreciates, the more valuable it is
C. The larger a resource or asset, the more slowly it depreciates
D. Intangible assets can have their depletion measures easily

18. Which of the following illustrates what it means to utilize a functional perspective? 
A. Looking at different functional areas of the firm, disaggregating tangible and intangible assets as
well as organizational capabilities that are present, can begin to uncover important value-building
resources that deserve further analysis
B. Dividing categories by function into more specific competencies can allow a more measurable
assessment
C. Taking a creative look at what competencies the firm possesses (or has the potential to possess) can help
identify sources of competitive advantage
D. The value chain approach can uncover organizational capabilities, activities and processes that are
potential sources of competitive advantage

19. Which of the following combinations provides the best sources of competitive advantage? 
A. Resources/capabilities that are scarce, durable and sustainable
B. Resources/capabilities that are central to meeting a customer need better than other alternatives and are
inimitable
C. Resources/capabilities that are durable, scarce and appropriable to the firm
D. Resources/capabilities that are directly appropriable to the firm, inimitable, durable and meet
customer needs better than other alternatives

20. A manager's assessment of whether a certain internal factor--like financial capacity--is a strength or
weakness will be most strongly influenced by: 
A. The relative strength of other factors
B. The factor's flexibility within the organization
 C. The manager's experience in connection with that factor
D. The manger's perception of that factor in other firms
21. Using historical experience as a basis for identifying strengths and weaknesses can be likened to: 
A. Market myopia
B. Tunnel vision
C. Management myopia
D. Benchmarking

22. The differences in internal resources among companies in the same industry: 
A. Can become relative strengths or weaknesses depending on the strategy a firm chooses
B. Almost always result in competitive advantages based on relative strengths or weaknesses
C. Arise from benchmarking
D. Are easily observed and relative strengths are easily imitated

23. Company X's principal strength is its inbound and outbound logistics system; its relative weakness, however
is after-sales service. Its competitor, Company Y, however is often plagued with lagging shipments and an
inflexible distribution setup. Company Y remains successful because it maintains a fully staffed service
department and as a result the company is known for its dependable service. _______ allows them to
identify ways to build on relative strengths and avoid dependence on capabilities at which the other firm
excels. 
A. Industry comparison
B. Benchmarking
C. Past performance comparison
D. Disaggregating

24. A company producing toilet paper, tissues and other consumer paper goods can work to establish the right
product lines, with reasonable sales volumes, profit margins and growth potential in order to generate: 
A. Supplier power to face massive buyer power in retail customers
B. Buyer power for the end-consumers
C. Supplier power for the retail chains
D. Regional advantages over buyers

25.  ________ is one way to identify success factors against which executives can evaluate their firm's
competencies relative to its key product or products. 
A. Corporate strategy
B. Product life cycle
C. Diversification
D. Agglomeration

26. If you wanted to look at factors out of control of the business which may affect it you would look at:
A. Strengths and Weaknesses
B. Outsiders or Threats
C. Strengths and Threats
D. Opportunities and Threats

27. Looking at the following sentences can you identify which is a Strength?
A. Loyal customer base
B. New market opened up
C. Poor staff training
D. New competition
28. Looking at the following sentences can you identify which is a Weakness?
A. Overseas demand for product
B. Falling number of customers within specific age group
C. Making a profit
D. Poor quality goods

29. Looking at the following sentences can you identify which is an Opportunity?
A. New market opened up
B. Minimum wage so higher wages have to be paid
C. Negative publicity
D. Good financial situation

30. Looking at the following sentences can you identify which is a threat?
A. New market opened up
B. Poor staff training
C. Negative publicity
D. Expansion of business to overseas

31. Which of the following is true about preparing a SWOT Analysis?

A. It should focus on where the organization is today, not where it could be in the future.
B. A SWOT Analysis is objective
C. It should be specific and avoid grey areas
D. It should analyze the organization only and ignore the performance of competitors.

32. Which of the following could be strength?

A. Weather
B. A new international market
C. A price that is too high
D. The location of a business

33. Which of the following could be a weakness?

A. A developing market such as the Internet
B. Competitors with access to better channels of distribution
C. Poor quality of goods and services
D. Special marketing expertise

34. Which of the following could be an opportunity?

A. Having quality processes and procedures
B. Moving into new market segments that offer improved profits
C. Damaged reputation
D. A new competitor in your home market

35. Which of the following could be a threat?

A. Changes in technology
B. A market vacated by an ineffective competitor
C. Location of your business
D. Lack of marketing expertise

36. What are the five primary activities of the value chain model?
A. Inbound logistics, Operations, Outbound Logistics, Marketing and Sales, and Technology
Development
B. Inbound logistics, Operations, Outbound Logistics, Marketing and Sales, and Service
C. Inbound logistics, Operations, Outbound Logistics, Marketing and Sales, and Service
D. Inbound logistics, Operations, Infrastructure, HR Management, and Service
E. Inbound logistics, Procurement, Outbound Logistics, Marketing and Sales, and Service