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

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