Two useful tools for determining whether a company's prices and costs are competitive are:
a. competitive strength analysis and SWOT analysis.
b. SWOT analysis and key success factor analysis.
c. SWOT analysis and strategic cost assessment.
d. value chain analysis and benchmarking.
e. competitive position assessment and competitive strength assessment.
Which of the following is an accurate interpretation of the overall strength scores that result from doing a competitive strength assessment:
a. The company with the highest score is excellently positioned to have the biggest market share in the industry while the company with the lowest score is likely to have the lowest market share in the industry.
b. The company with the highest score is excellently positioned to be the most profitable company in the industry while the company with the lowest score is likely to be the least profitable company in the industry.
c. The company with the highest score has the most resources strengths and competitive capabilities while the company with the lowest score has the fewest resources strengths and competitive capabilities.
d. The higher a company's overall strength score the stronger is its competitiveness and ability to compete successfully against rival industry members; low scores signal weak competitiveness and probable competitive disadvantage compared to rivals with higher scores.
e. High scores indicate which rivals are most vulnerable to competitive attack and low scores indicate companies with strong defenses against competitive attack.
According to Figure 4.1, which of the following is not pertinent in identifying a company's present strategy?
a. The company's moves to respond to changing conditions in the macro environment or in industry and competitive conditions
b. The company's strategic intent and the moves it has made to build an attractive value chain
c. Management's planned, proactive moves to attract customers and outcompete rivals and its initiatives to build a particular type of competitive advantage
d. The key functional strategies (R&D, supply chain management, production, sales and marketing, information technology, HR, and finance) a company is employing
e. Efforts to expand or narrow the company's geographic coverage and whether it has undertaken efforts to build valuable partnerships and strategic alliances with other enterprises
Which of the following is most likely to represent a company's most potent resource strength?
a. A distinctive competence in performing a competitively important value chain activity
b. A credit rating of A or higher
c. A core competence in performing a competitively important value chain activity
d. A large market share e. A large amount of cash on hand