Which of the following is NOT a limitation of SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis?

44.

Which of the following is NOT a limitation of SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis?    A.  Organizational strengths may not lead to competitive advantage. B.  The SWOT focus on the external environment is too broad and integrative. C.  SWOT gives a one-shot view of a moving target. D.  SWOT overemphasizes a single dimension of strategy. Among the limitations of SWOT are: organizational strengths may not lead to competitive advantage; the SWOT focus on the external environment is too narrow; it gives a one-shot view of a moving target; and it overemphasizes a single dimension of strategy.

AACSB: Analytic Blooms: Remember Learning Objective: 03-01 The benefits and limitations of SWOT analysis in conducting an internal analysis of the firm. Level of Difficulty: 1 Easy Topic: The benefits and limitations of SWOT analysis

45.

In value-chain analysis, the activities of an organization are divided into two major categories of value activities: primary and support. Which of the following is a primary activity?    A.  purchasing key inputs B.  repairing the product for the consumer C.  recruiting and training employees D.  monitoring the cost of producing the product through a cost accounting system Five primary activities (inbound logistics, operations, outbound logistics, marketing and sales, and service (which includes repairs)) contribute to the physical creation of the product or service, its sale and transfer to the buyer, and its service after the sale.

AACSB: Analytic Blooms: Understand Learning Objective: 03-01 The benefits and limitations of SWOT analysis in conducting an internal analysis of the firm. Level of Difficulty: 2 Medium Topic: Value-Chain Analysis

46.

Inbound logistics include:    A.  machining and packaging. B.  repair and parts supply. C.  warehousing and inventory control. D.  promotion and packaging. Inbound logistics is associated primarily with receiving, storing, and distributing inputs to the product. It includes material handling, warehousing, inventory control, vehicle scheduling, and returns to suppliers.

AACSB: Analytic Blooms: Understand Learning Objective: 03-02 The primary and support activities of a firm's value chain. Level of Difficulty: 2 Medium Topic: Value-Chain Analysis

47.

In assessing its primary activities, an airline would examine ___________.    A.  baggage handling B.  employee training programs C.  criteria for lease versus purchase decisions D.  the effectiveness of its lobbying activities Five primary activities: inbound logistics, operations (which would include baggage handling for an airline), outbound logistics, marketing and sales, and service contribute to the physical creation of the product or service, its sale and transfer to the buyer, and its service after the sale.

AACSB: Analytic Blooms: Understand Learning Objective: 03-02 The primary and support activities of a firm's value chain. Level of Difficulty: 2 Medium Topic: Value-Chain Analysis

48.

Advertising is a __________ activity. Supply of replacement parts is a __________ activity.    A.  support; primary B.  support; secondary C.  primary; support D.  primary; primary Five primary activities (inbound logistics, operations, outbound logistics, marketing and sales, and service) contribute to the physical creation of the product or service, its sale and transfer to the buyer, and its service after the sale. Inbound logistics is primarily associated with receiving, storing, and distributing inputs to the product. Marketing and sales activities include advertising.

AACSB: Analytic Blooms: Understand Learning Objective: 03-02 The primary and support activities of a firm's value chain. Level of Difficulty: 2 Medium Topic: Value-Chain Analysis

49.

Which of the following examples demonstrates how successful organizations manage their primary activities?    A.  Motorola has revised its compensation system to reward employees who learn a variety of skills. B.  Hewlett Packard has cut lead time from five days to one by employing JIT inventory management. C.  National Steel improved its efficiency by reducing the number of job classifications. D.  Wal-Mart implemented a sophisticated information system that resulted in reduced inventory carrying costs and shortened customer response times. Just-in-time (JIT) inventory systems were designed to achieve efficient inbound logistics, which is one of the five primary activities in value-chain analysis. With JIT inventory systems, parts deliveries arrive at the assembly plants only hours before they are needed.

AACSB: Analytic Blooms: Understand Learning Objective: 03-02 The primary and support activities of a firm's value chain. Level of Difficulty: 2 Medium Topic: Value-Chain Analysis

50.

Which of the following is not an advantage of Just-In-Time inventory systems?    A.  reduced raw material storage costs B.  minimized idle production facilities and workers C.  reduced dependence on suppliers D.  reduced work-in-process inventories With JIT inventory systems, parts deliveries arrive at the assembly plants only hours before they are needed. This requires greater reliance on superior performance of suppliers.

AACSB: Analytic Blooms: Understand Learning Objective: 03-02 The primary and support activities of a firm's value chain. Level of Difficulty: 2 Medium Topic: Value-Chain Analysis

51.

XYZ Corp. is focusing on the objective of low-cost, high quality, on-time production by minimizing idle productive facilities and workers. The XYZ Corp. is taking advantage of a __________ system.    A.  Last In, First Out (LIFO) B.  First In, First Out (FIFO) C.  Just-In-Time (JIT) D.  Highly mechanized Just-in-time (JIT) inventory systems were designed to achieve efficient inbound logistics, which is one of the five primary activities in value-chain analysis. With JIT inventory systems, parts deliveries arrive at the assembly plants only hours before they are needed, which reduces idle production capacity.

AACSB: Analytic Blooms: Understand Learning Objective: 03-02 The primary and support activities of a firm's value chain. Level of Difficulty: 2 Medium Topic: Value-Chain Analysis

52.

___________ is/are associated with collecting, storing, and distributing the product or service to buyers. They consist of warehousing, material handling, delivery operation, order processing, and scheduling.    A.  Services B.  Outbound logistics C.  Inbound logistics D.  Operations Outbound logistics is associated with collecting, storing, and distributing the product or service to buyers. These activities include finished goods, warehousing, material handling, delivery vehicle operation, order processing, and scheduling.

AACSB: Analytic Blooms: Understand Learning Objective: 03-02 The primary and support activities of a firm's value chain. Level of Difficulty: 2 Medium Topic: Value-Chain Analysis

53.

Customer service includes ________.    A.  product promotion B.  parts supply C.  product distribution D.  procurement of critical supplies Service activity includes all actions associated with providing service to enhance or maintain the value of the product, such as installation, repair, training, parts supply, and product adjustment.

AACSB: Analytic Blooms: Understand Learning Objective: 03-02 The primary and support activities of a firm's value chain. Level of Difficulty: 2 Medium Topic: Value-Chain Analysis

54.

Which of the following is a support activity?    A.  inbound logistics B.  technology development C.  operations D.  customer service Support activities in the value chain can be divided into four generic categories: general administration, human resource management, technology development, and procurement.

AACSB: Analytic Blooms: Understand Learning Objective: 03-02 The primary and support activities of a firm's value chain. Level of Difficulty: 2 Medium Topic: Value-Chain Analysis

55.

Which of the following lists consists of support activities?    A.  human resource management, technology development, customer service, and procurement B.  human resource management, customer service, marketing and sales, and operations C.  customer service, information systems, technology development, and procurement D.  human resource management, technology development, procurement, and firm infrastructure Support activities in the value chain can be divided into four generic categories: general administration, human resource management, technology development, and procurement.

AACSB: Analytic Blooms: Understand Learning Objective: 03-02 The primary and support activities of a firm's value chain. Level of Difficulty: 2 Medium Topic: Value-Chain Analysis

56.

Human resource management consists of activities involved in the recruiting, hiring, training, development, and compensation of all types of personnel. It supports _______________.    A.  only individual primary activities B.  both individual primary and support activities and the entire value chain C.  only individual support activities D.  mostly support activities but does have some impact on primary activities Human resource management consists of activities involved in the recruiting, hiring, training, development, and compensation of all types of personnel. It supports both individual primary and support activities and the entire value chain.

AACSB: Analytic Blooms: Understand Learning Objective: 03-02 The primary and support activities of a firm's value chain. Level of Difficulty: 2 Medium Topic: Value-Chain Analysis

57.

According to value-chain analysis, which of the following would be considered part of the general administration in a firm?    A.  human resource management B.  technology development C.  information systems D.  procurement General administration consists of a number of activities, including general management, planning, finance, accounting, legal and government affairs, quality management, and information systems. Administration typically supports the entire value chain and not individual activities.

AACSB: Analytic Blooms: Understand Learning Objective: 03-02 The primary and support activities of a firm's value chain. Level of Difficulty: 2 Medium Topic: Value-Chain Analysis

58.

Although general administration is often viewed only as overhead expense, it can become a source of competitive advantage. Examples include all of the following EXCEPT:    A.  negotiating and maintaining ongoing relations with regulatory bodies B.  marketing expertise increasing the revenues of the firm and enabling it to enter new markets C.  effective information systems contributing significantly to overall cost leadership strategy for the firm D.  top management providing a key role in collaborating with important customers General administration consists of a number of activities, including general management, planning, finance, accounting, legal and government affairs, quality management, and information systems. Marketing is a primary activity.

AACSB: Analytic Blooms: Understand Learning Objective: 03-02 The primary and support activities of a firm's value chain. Level of Difficulty: 2 Medium Topic: Value-Chain Analysis

59.

For firms such as CarMax, information systems have been a source of competitive advantage. Their proprietary information system captures, analyzes, interprets, and disseminates information about all cars on the CarMax lot. Which of the following can be attributed to this information system?    A.  decrease in uncertainties in hard to forecast areas such as inventory management B.  decrease in operational efficiency C.  reduced customer service D.  decrease in sales CarMax also operates a proprietary information system that captures, analyzes, interprets, and disseminates information about all cars on the CarMax lot. The key features of this system provide CarMax management with real-time business insights into different store operations, such as inventory management, pricing, and sales consultant productivity. This advanced information system allows CarMax to decrease uncertainties in traditionally hard to forecast areas such as inventory management, allowing management to improve operational efficiency and anticipate future trends.

AACSB: Analytic Blooms: Understand Learning Objective: 03-02 The primary and support activities of a firm's value chain. Level of Difficulty: 2 Medium Topic: Value-Chain Analysis

60.

A marketing department that promises delivery faster than the ability of the production department to produce is an example of a lack of understanding of the _____________.    A.  organizational culture and leadership B.  interrelationships among functional areas and firm strategies C.  need to maintain the reputation of the company D.  synergy of the business units Important to value-chain analysis are interrelationships which are the collaborative and strategic exchange relationships between value-chain activities either (a) within firms or (b) between firms. Strategic exchange relationships involve exchange of resources such as information, people, technology, or money that contribute to the success of the firm.

AACSB: Analytic Blooms: Understand Learning Objective: 03-03 How value-chain analysis can help managers create value by investigating relationships among activities within the firm and between the firm and its customers and suppliers. Level of Difficulty: 2 Medium Topic: Value-Chain Analysis