Comm 226: Chapter 3

Front 1

The competitive strategy followed by an organization is derived from its ________________

Back 1

structure

Front 2

The competitive strategy of an organization determines its _____________

Back 2

value chains

Front 3

Porter orginally developed the 5 forces model to determine________________________

Back 3

the potential profitability of an industry

Front 4

Porter's 5 competitive forces can be grouped into two types:

1) Forces related to ______________________

2) Forces related to _______________________

Back 4

competition, supply chain bargaining power

Front 5

Porter's model includes the bargaining power of which of the following groups as one of the 5 factors?

Back 5

Customers

Front 6

In Porter's 5 factor model, each of the three competitive forces concerns the danger of______________________________

Back 6

customers taking their business elsewhere

Front 7

Two strength factors that relate to all three competitive forces are ________________ and customer loyalty

Back 7

switching costs

Front 8

In which of the following cases is the strength of competitive forces low?

Back 8

When switching costs are high

Front 9

If customers perceive the benefits of a substitute to be similar to that of a product then______________________________________

Back 9

the threat from the substitute is strong

Front 10

The strength of bargaining power forces depends on the availability of substitutes and ____________________________________compared to the size of suppliers or customers

Back 10

the relative size of the firm

Front 11

An organization responds to the structure of its structure of its industry by choosing a _______________strategy

Back 11

competitive

Front 12

Which of the following is an example of a competitive strategy employed by a firm?

Back 12

Launching a unique product targeted at a section of consumers

Front 13

According to Porter, to be effective the organization's goals, objectives, culture, and activities must be consistent with the ____________________

Back 13

organization's strategy

Front 14

Porter defined__________as the amount of money that a customer is willing to pay for a resource, product, or service.

Back 14

value

Front 15

Which of the following is true of a value-chain?

Back 15

It is a network of value-creating activities

Front 16

A business that selects a differentiation strategy would ______________________________________

Back 16

add cost to an activity provided it has a positive margin

Front 17

The difference between the value that an activity generates and the cost of the activity is called the______________

Back 17

margin

Front 18

Collecting, storing, and physically distributing the product to buyers describes which of the following primary activities?

Back 18

Outbound logistics

Front 19

Inducing buyers to purchase the product and providing a means for them to do so describes which of the following primary activities?

Back 19

Sales and marketing

Front 20

Each stage of the value chain not only adds value to the product but also__________________

Back 20

accumulates costs

Front 21

Which of the following is a primary activity in the value chain?

Back 21

Delivering products to consumers

Front 22

______________________includes general management, finance, accounting, legal and government affairs.

Back 22

Firm infrastructure

Front 23

Porter's model of business activities includes __________, which are interactions across value activities.

Back 23

linkages

Front 24

Manufacturing systems that include linkages, use __________________ to plan production.

Back 24

sales forecast

Front 25

Manufacturing systems use__________to reduce inventory costs

Back 25

Linkages

Front 26

As Porter says, the processes and systems in an organization pursuing differentiation must _________________________________

Back 26

create sufficient value to cover their costs

Front 27

If a vlaue chain's margin is positive, the company must___________________________

Back 27

retain its present practices

Front 28

Organizations gain a competitive advantage by creating new products or services, _______________________and by differentiating their products and services from those of their competitors.

Back 28

enhancing products and services

Front 29

Which of the following is a process implementation principle of competitive advantage?

Back 29

Enhance goods or services

Front 30

Which of the following strategies is also called establishing high switching costs?

Back 30

Locking in customers

Front 31

Which of the following is a process implementation principle of competitive advantage?

Back 31

Establishing alliances

Front 32

Which of the following is least likely to be an outcome of organizations forming alliances with each other?

Back 32

Increase in mutual competitiveness