Strategic Management Text and Cases Gregory Dess 9th Edition – Test Bank
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Strategic Management Text and Cases Gregory Dess 9th Edition – Test Bank
Strategic Management: Text and Cases, 9e (Dess)
Chapter 3 Assessing the Internal Environment of the Firm
1) Value-chain analysis assumes that the basic economic purpose of a firm is to create value, and it is a useful framework for analyzing the strengths and weaknesses of the firm.
Answer: TRUE
Explanation: Value-chain analysis views the organization as a sequential process of value-creating activities. It provides greater insights into analyzing the competitive position of a firm than SWOT analysis does by itself.
Difficulty: 2 Medium
Topic: Value Chain Analysis
Learning Objective: 03-01 The primary and support activities of a firm’s value chain.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
2) In value-chain analysis, value is measured by the market value of the total stock outstanding of the company.
Answer: FALSE
Explanation: Value is the amount that buyers are willing to pay for what a firm provides them and is measured by total revenue, a reflection of the price the product of the firm commands and the quantity it can sell.
Difficulty: 2 Medium
Topic: Value Chain Analysis
Learning Objective: 03-01 The primary and support activities of a firm’s value chain.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
3) Primary activities contribute to the physical creation of a product or service, its sale and transfer to the buyer, and its service after the sale.
Answer: TRUE
Explanation: The five primary activities in the Porter value chain model (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.
Difficulty: 2 Medium
Topic: Value Chain Analysis
Learning Objective: 03-01 The primary and support activities of a firm’s value chain.
Bloom’s: Analyze
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
MAECENAS IACULIS
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