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Question 1

The term 'differential performance' refers to:

a) The way that firms differentiate themselves

b) The way that firm's vary over time in their profitability

c) The effect that industry has on a firm's performance

d) The differences in performance between firms with similar resources operating in the same industry

Question 2

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

a) Industry is the main driver of firm performance

b) The internal resources of the firm are the main driver of firm performance

c) The type of generic strategy chosen is the main driver of firm performance

d) Leadership is the main driver of firm performance

Question 3

The value chain is subdivided into two main headings. These are primary activities and:

a) Peripheral activities

b) Support activities

c) Secondary activities

d) Outsourced activities

Question 4

The primary activities in Porter's Value Chain are:

a) Inbound logistics, operations, outbound logistics, marketing and sales, service

b) Procurement, operations, outbound logistics, marketing and sales, service

c) Inbound logistics, operations, distribution, marketing and sales, service

d) procurement, operations, distribution, marketing and sales, service

Question 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

Question 6

The 'operation' in a passenger airline service would be:

a) The manufacture of the aircraft

b) Getting passengers and baggage from A to B by means of flying in an aircraft

c) The design of the price structure and yield plan

d) Selling the tickets to passengers

Question 7

Which of the following activities is not the direct concern of the procurement activity?

a) Negotiating prices on raw materials

b) Obtaining assets such as plant and machinery

c) Receiving raw materials into the operation

d) Deciding whether to manage quality jointly with the supplier

Question 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

Question 9

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

Question 10

Porter suggests that linkages within the value chain can lead to competitive advantage in two ways. These are Optimization and:

a) Consolidation

b) Convergence

c) Cooperation

d) Coordination

Question 11

The decision regarding whether to do manufacturing within the organization or to sub-contract it to someone else is popularly known as:

a) An 'in or out' decision

b) A 'make or buy' decision

c) A 'do-it-yourself' decision

d) A 'vertical-integration' decision

Question 12

The value-chains of different organizations that form relationships with each other can be seen as being part of a:

a) Value chain system

b) Buyer-supplier relationship

c) Transactional relationship

d) Value trust system

Question 13

A firm shares its offices with another firm in a foreign location to reduce costs. This is an example of:

a) Outsourcing

b) Economies of scope

c) Synergy

d) A core competence

Question 14

WH-Smith the stationer and bookseller has a store on most high streets in the UK. In terms of the SWOT analysis, this could be considered a:

a) Strength

b) Weakness

c) Strength and a weakness

d) Neither a strength or a weakness

Question 15

The two main schools of though regarding how competitive advantage is achieved are:

a) The environment school and the resources school

b) The positioning school and the resource-based view

c) The positioning school and the SWOT view

d) The environment school and the value school

Oxford University Press, Online Resource Centre, Chapter 04.

Chapter 04

Instructions