Complete Test Bank | Ch4 – The Organisation Value-Creating

Chapter 4: The Organisation: Value-Creating Activities

Test Bank

Type: fill-in-blank

Title: Chapter 04 Question 01

1) Firms possessing similar resources operating in the same industry can experience different levels of profitability. The situation is referred to as ______________________.

Type: multiple choice question

Title: Chapter 4 Question 02

2) Within the debate regarding differential performance, Rumelt (1991) is of the view that:

a. Industry is the main driver of firm performance

b. Factors at the individual firm level, such as resources and strategy, are the main drivers of firm performance

c. Factors in the external environment are the main drivers of firm performance

d. Leadership is the main driver of firm performance

Type: multiple choice question

Title: Chapter 04 Question 03

3) Hamel and Prahalad are associated with which school of thought.

a. The outside-in school

b. The positioning school

c. The resource-based view of strategy

d. The emergent view of strategy

Type: multiple response question

Title: Chapter 04 Question 04

4) There are a number of strategic decisions to make concerning the value chain. These might include: Please select all that apply.

Type: multiple choice question

Title: Chapter 4 Question 05

5) The support activities in Porter’s Value Chain are:

a. Procurement, technology development, human resource management, finance

b. Procurement, technology development, human resource management, firm infrastructure

c. Procurement, technology development, human resource management, leadership

d. Procurement, technology development, human resource management, organizational structure

Type: multiple choice question

Title: Chapter 04 Question 06

6) In the production of a newspaper, the after sales service could be:

a. Delivering the newspapers to newsagents

b. Including advertisements in the newspaper

c. Receiving and responding to reader feedback

d. The maintenance of the printers that print the newspapers

Type: multiple choice question

Title: Chapter 4 Question 07

7) The primary and support activities contain a further subdivision of activities that impact on competitive advantage. These are:

a. Direct activities, indirect activities, and quality assurance

b. Direct activities, indirect activities, and learning

c. Direct activities, indirect activities, and development

d. Direct activities, indirect activities, and peripheral activities

Type: multiple choice question

Title: Chapter 4 Question 08

8) The leadership style of the person leading an organization would come under which support activity?

a. Procurement

b. Technology development

c. Human resource management

d. Firm infrastructure

Type: multiple response question

Title: Chapter 04 Question 09

9) Which of the following activities is part of the procurement activity? Please select all that apply.

Type: fill-in-blank

Title: Chapter 04 Question10

10) It is very important to consider the impact of one activity in the value chain on another activity. Therefore, a key aspect of the value chain is the management of _______________.

Type: fill-in-blank

Title: Chapter 04 Question 11

11) According to Porter, effective management of linkages can lead to competitive advantage in two ways. These are _________________ and coordination.

Type: multiple choice question

Title: Chapter 04 Question 12

12) The interaction between value chains of the organization and its suppliers, distributors, and consumers is referred to as:

a. The value chain system

b. 3PL

c. Vertical integration

d. Horizontal integration

Type: multiple response question

Title: Chapter 04 Question 13

13) BMW has outsourced its logistics to a third-party logistics provider. This is likely to have the effect of: Please select all that apply.

Type: fill-in-blank

Title: Chapter 04 Question 14

14) An organization has to decide whether it would be better off undertaking manufacturing of a particular part within the organization or outsourcing it to someone else. This is popularly known as a ______________ decision.

Type: true-false

Title: Chapter 04 Question 15

15) In general, it is not advisable to outsource an activity that is of strategic importance.

a. True

b. False

Type: true-false

Title: Chapter 04 Question 16

16) When compiling a SWOT analysis, opportunities and threats can be drawn from the macro-environment and the competitive environment.

a. True

b. False

Type: true-false

Title: Chapter 04 Question 17

17) The SWOT analysis involves an assessment of how existing strengths can be used to serve the market and also a consideration of how resources would need to change to cope with a changing environment.

a. True

b. False

Type: true-false

Title: Chapter 04 Question 18

18) Scenario planning and PESTLE analysis can be used to identify the external opportunities and threats facing an organization.

a. True

b. False

Type: multiple response question

Title: Chapter 04 Question 19

19) Which of the following statements represent criticisms of the SWOT analysis? Please select all that apply.

Type: true-false

Title: Chapter 04 Question 20

20) The principal-agent problem is more profound in a small business.

a. True

b. False

Type: multiple response question

Title: Chapter 04 Question 21

21) Shareholders of a business can be which of the following? Please select all that apply.

Type: true-false

Title: Chapter 04 Question 22

22) Milton Friedman, the famous economist is of the view that ‘business is society’.

a. True

b. False

Type: multiple choice question

Title: Chapter 04 Question 23

23) The government wants to close down the Child Support Agency. If it did a stakeholder mapping exercise in relation to this proposal, where are journalists likely to be mapped on Mendelow’s power/interest matrix?

a. Low power, low interest

b. High power, low interest

c. High power, high interest

d. Low power, low interest

Type: multiple choice question

Title: Chapter 04 Question 24

24) Which two countries are most likely to give prominence to shareholders in their corporate governance framework?

a. Germany and France

b. Japan and South Korea

c. Sweden and Norway

d. UK and USA

Type: multiple response question

Title: Chapter 04 Question 25

25) The weaknesses that the balanced scorecard is supposed to address in relation to performance measurement are: Please select all that apply.

Type: multiple response question

Type: true-false

Title: Chapter 04 Question 27

27) Kaplan and Norton suggest that 20-30 measures are appropriate for the balanced scorecard approach.

a. True

b. False

Type: multiple choice question

Title: Chapter 04 Question 28

28) The overall purpose of the balanced scorecard approach is to:

a. Help turn strategy into action

b. Benchmark against competitors

c. Measure financial performance

d. Measure product quality

Type: multiple choice question

Title: Chapter 04 Question 29

29) The Balanced Scorecard approach has been criticized for leaving out certain measures. One of these is:

a. Financial measures

b. Employee satisfaction measures

c. Customer satisfaction measures

d. Technological innovation measures

Type: multiple choice question

Title: Chapter 04 Question 30

30) Benchmarking is a popular tool to measure performance. Benchmarking involves the continual process of comparing organizational performance against:

a. Industry standards

b. High achieving organizations

c. Rivals

d. Organizations within the same industry