Chapter #3

Question 1

Receiving, storing, and distributing inputs of a product.

Answer 1

Inbound Logistics

Question 2

All activities associated with transforming inputs into the final product form.

Answer 2

Operations

Question 3

Collecting, storing, and distributing the product or service to buyers.

Answer 3

Outbound Logistics

Question 4

Activities associated with purchases of products and services by end users and the inducements used to get them to make purchases.

Answer 4

Marketing and Sales

Question 5

Actions associated with providing service to enhance or maintain the value of the product.

Answer 5

Service

Question 6

The function of purchasing inputs used in the firm’s value chain, including raw materials, supplies, and other consumable items as well as assets such as machinery, laboratory equipment, office equipment, and buildings.

Answer 6

Procurement

Question 7

Activities associated with the development of new knowledge that is applied to the firm’s operations.

Answer 7

Technology Development

Question 8

Activities involved in the recruiting, hiring, training, development, and compensation of all types of personnel.

Answer 8

Human Resource Management

Question 9

General management, planning, finance, accounting, legal and government affairs, quality management, and information systems; activities that support the entire value chain and not individual activities.

Answer 9

General Administration

Question 10

Collaborative and strategic exchange relation ships between value-chain activities either (a) within firms or (b) between firms. Strategic exchange relationships involve exchange of resources such as information, people, technology, or money that contribute to the success of the firm.

Answer 10

Interrelationships

Question 11

Perspective that firms’ competitive advantages are due to their endowment of strategic resources that are valuable, rare, costly to imitate, and costly to substitute.

Answer 11

Resource-Based View of the Firm (RBV)

Question 12

Organizational assets that are relatively easy to identify, including physical assets, financial resources, organizational resources, and technological resources.

Answer 12

Tangible Resources

Question 13

Organizational assets that are difficult to identify and account for and are typically embedded in unique routines and practices, including human resources, innovation resources, and reputation resources.

Answer 13

Intangible Resources

Question 14

The competencies and skills that a firm employs to transform inputs into outputs.

Answer 14

Organizational Capabilities

Question 15

A characteristic of resources that is developed and/or accumulated through a unique series of events.

Answer 15

Path Dependency

Question 16

A characteristic of a firm’s resources that is costly to imitate because a competitor cannot determine what the resource is and/or how it can be re-created.

Answer 16

Causal Ambiguity

Question 17

A characteristic of a firms resources that is costly to imitate because the social engineering required is beyond the capability of competitors, including interpersonal relations among managers, organizational culture, and reputation with suppliers and customers.

Answer 17

Social Complexity

Question 18

A method of evaluating a company’s performance and financial well-being through ratios of accounting values, including short-term solvency, long-term solvency, asset utilization, profitability, and market value ratios.

Answer 18

Financial Ratio Analysis

Question 19

A method of evaluating a firm’s performance measures from the customer, internal, innovation and learning, and financial perspectives.

Answer 19

Balanced Scorecard

Question 20

Measures of firm performance that indicate how well firms are satisfying customers’ expectations. (Balanced Scoreboard)

Answer 20

Customer Perspective

Question 21

Measures of firm performance that indicate how well firms’ internal processes, decisions, and actions are contributing to customer satisfaction. (Balanced Scoreboard)

Answer 21

Internal Business Perspective

Question 22

Measures of firm performance that indicate how well firms are changing their product and service offerings to adapt to changes in the internal and external environments. (Balanced Scoreboard)

Answer 22

Innovation and Learning Perspective

Question 23

Measures of firms’ financial performance that indicate how well strategy, implementation, and execution are contributing to bottom-line improvement. (Balanced Scoreboard)

Answer 23

Financial Perspective