Strategic Management Creating Competitive Advantages Global Edition 7th Edition – Test Bank

1.

One advantage of SWOT analysis is that it helps managers to identify strengths that are almost always sources of competitive advantages that are sustainable. 
 
True    False

2.

The SWOT analysis can show managers how to achieve a competitive advantage. 
 
True    False

3.

The strengths and capabilities of a firm are enough to enable it to achieve a competitive advantage in the marketplace. 
 
True    False

4.

Toyota paid a heavy price for its excessive emphasis on cost control. By focusing on only one strength exclusively, it suffered severe losses. This is an example of the limitations of a SWOT analysis. 
 
True    False

5.

In conducting a SWOT analysis, a risk for strategists is that they rely on traditional definitions of their industry and competitive environment and therefore focus too narrowly on current competitors. 
 
True    False

6.

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. 
 
True    False

7.

In value-chain analysis, value is measured by the market value of the total stock outstanding of the company. 
 
True    False

8.

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. 
 
True    False

9.

The value-chain concept assumes that both primary and support activities are capable of producing value for customers. 
 
True    False