Strategic Management Practice Test: Evaluating a Company’s Resources and Competitive Position | Practice Test / Quiz / MCQs

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Strategic Management Practice Test: Evaluating a Company’s Resources and Competitive Position

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Strategic Management Practice Test: Evaluating a Company’s Resources and Competitive Position

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1. One of the most telling signs of whether a company's market position is strong or precarious is

whether its product is strongly or weakly differentiated from rivals.whether its prices and costs are competitive with those of key rivals.the opinions of buyers regarding which seller has the best product quality and customer service.whether it has a lower stock price than key rivals.whether it is in a bigger or smaller strategic group than its closest rivals.

2. Identifying and assessing a company's resource strengths and weaknesses and its external opportunities and threats is called

strategic resource assessment.SWOT analysis.competitive positioning analysis.competitive asset/liability analysis.company resource mapping.

3. A much-used and potent managerial tool for determining whether a company performs particular functions or activities in a manner that represents “the best practice” when both cost and effectiveness are taken into account is

resource cost mapping.competitive strength analysis.activity-based costing.SWOT analysis.benchmarking.

4. Which of the following is not pertinent in identifying a company’s present strategy?

The key functional strategies (R&D, supply chain management, production, sales and marketing, HR, and finance) a company is employingThe strategic role of its collaborative partnerships and strategic alliances with others Management’s planned, proactive moves to outcompete rivals (via better product design, improved quality or service, wider product lines, and so on)Moves to respond and react to changing conditions in the macro-environment and in industry and competitive conditionsThe company’s mission, strategic objectives, and financial objectives

5. Calculating competitive strength ratings for a company and its rivals using the industry's most telling measures of competitive strength or weakness

pinpoints which industry rivals are most insulated from the industry's driving forces.is a way of determining which competitor has the biggest overall competitive advantage in the marketplace and which competitor is faced with the biggest overall competitive disadvantage.is the most reliable indicator of which industry member has the lowest overall costs and is the low-cost leader.is a powerful way of revealing which competitors are in the best and worst strategic groups.is the most reliable indicator of which industry member has the highest overall product quality.

6. Determining whether a company's prices and costs are competitive

typically involves the use of activity-based cost accounting.requires looking at the costs of a company’s competitively relevant suppliers and forward channel allies (distributors/dealers).involves the use of benchmarking the costs in a company’s value chain system (the costs of its suppliers, its internally performed activities, the costs of its distributors/dealers) against the costs of the value chain systems employed by rival firms.requires considering the costs of a company’s internally performed activities. All of these.

7. The difference between a company competence and a core competence is that

a company competence represents real proficiency in performing an internal activity whereas a core competence is a competitively relevant activity which a firm performs better than other internal activities.a company competence is a competitively relevant activity which a firm performs especially well relative to other internal activities, whereas a core competence is an activity that a company has learned to perform proficiently.a company competence refers to a company's strongest resource whereas a core competence refers to a company's lowest-cost and most efficiently performed value chain activity.a core competence usually resides in a company's technology and physical assets whereas a company competence usually resides in a company's human assets and intellectual capital.a company competence refers to a company's best-executed functional strategy and a core competence refers to a company's best-executed business strategy.

8. In a weighted competitive strength analysis, each strength measure is assigned a weight based on

its percentage share of total industry revenues.its percentage share of total industry profits.the importance of each competitive strength measure in building a sustainable competitive advantage.what it takes to provide better analytical balance between the companies with high ratings and the companies with low ratings and thus get the sum of the weights to add up to 1.0. its perceived importance in determining a company’s competitive success in the marketplace.

9. The external market opportunities which are most relevant to a company are the ones that

match up well with the firm's financial resources and competitive capabilities, offer the best growth and profitability, and present the most potential for competitive advantage.help defend against the external threats to its well-being. correct its internal weaknesses and resource deficiencies.reinforce its overall business strategy.increase market share.

10. Benchmarking involves

checking whether a company has achieved more of its financial and strategic objectives over the past five years relative to the other firms it is in direct competition with.comparing how different companies perform various value chain activities and then making cross-company comparisons of the costs of these activities.comparing the best practices in one industry against the best practices in another industry.studying whether a company's resource strengths are more/less powerful than the resource strengths of rival companies.studying how a company's competitive capabilities stack up against the competitive capabilities of selected companies known to have world class competitive capabilities.

11. Activity-based cost accounting is used to

None of the above accurately describes what activity-based costing is about. determine the costs of each primary and support activity comprising a company’s value chain and thereby reveal the nature and make-up of a company’s internal cost structure.determine the costs of each strategic action a company initiates.determine whether the value chains of rival companies are similar or different.benchmark the costs of primary value chain activities against the costs of the support value chain activities.

12. The three steps of SWOT analysis are

pinpointing the company’s competitive assets, pinpointing its competitive deficiencies, and determining whether it enjoys a competitive advantage. matching the company’s strategy to its resource strengths, correcting the company’s important resource weaknesses, and identifying the company’s best market opportunities.identifying the company’s resource strengths and weaknesses and its opportunities and threats, drawing conclusions about the company’s overall situation, and translating the conclusions into strategic actions to improve the company’s strategy.benchmarking the company’s strengths and weaknesses against those of key rivals, identifying its market opportunities and the external threats it faces, and determining the company’s potential for establishing a competitive advantage over rivals.determining whether the company has more competitive assets than competitive liabilities, determining whether the company has good market opportunities, and evaluating the seriousness of the threats to the company’s future profitability.

13. A company's resource strengths are important because

they represent its competitive assets and are big determinants of its competitiveness and ability to succeed in the marketplace.they pave the way for establishing a low-cost advantage over rivals.they provide extra organizational muscle in turning a core competence into a key success factor.they provide extra muscle in helping lengthen the company’s value chain.they give it competitive protection against the industry's driving forces.

14. Identifying the strategy-related issues and problems that company managers need to address and resolve entails

drawing on the evaluations of the company’s own resources, internal circumstances, and competitiveness.developing a “worry list” of “how to…,” “whether to….,” and “what to do about…..”locking in on what challenges/obstacles/roadblocks the company has to overcome in order to be financially and competitively successful in the years ahead.All of the above.drawing on what was learned from having analyzed the company’s industry and competitive environment.

15. To build a competitive advantage by out-managing rivals in performing value chain activities, a company must

develop resources strengths that will enable it to pursue the industry's most attractive opportunities.position itself in the industry’s more favorably situated strategic group.eliminate its resource weaknesses. outsource most all of its value chain activities to world-class vendors and suppliers.develop core competencies and maybe a distinctive competence that rivals don’t have or can’t quite match and that are instrumental in helping it deliver attractive value to customers or else be more cost efficient in how it performs value chain activities such that it has a low-cost advantage.

16. Which one of the following provides the most accurate picture of whether a company is cost competitive with its rivals?

Costs in the value chains of a company’s distributors and retail dealers forward channel alliesCosts in the value chains of the company’s suppliersWhether the company has a longer or shorter value chain than its close rivalsHow the costs of the company’s internally performed activities (its own value chain) compare against the costs of the internally-performed activities of rival companiesThe costs of a company’s internally performed activities, costs in the value chains of both the company’s suppliers and forward channel allies, and how all these costs compare against the costs that make up the value chain systems employed by rival firms

17. The best quantitative evidence of whether a company's present strategy is working well is

whether the company is in the industry's best strategic group.the caliber of results the strategy is producing, specifically whether the company is achieving its financial and strategic objectives and whether it is an above-average industry performer.whether the company is in the Fortune 500. whether the company has more competitive assets than it does competitive liabilities.whether the company has a shorter value chain than close rivals.

18. The spotlight in analyzing a company’s resources, internal circumstances, and competitiveness includes such questions/concerns as

whether the company's key success factors are more dominant than the key success factors of close rivals.whether the company has the industry's most efficient and effective value chain.what are the company’s resource strengths and weaknesses and its external opportunities and threats.what new acquisitions the company would be well advised to make in order to strengthen its financial performance and overall balance sheet position.whether the company's present strategy is better than the strategies of its closest rivals based on such performance measures as earnings per share, ROE, dividend payout ratio, and average annual increase in the common stock price.

19. A company's value chain identifies

the primary activities it performs in creating value for its customers and the related support activities.the competencies and competitive capabilities that underpin its efforts to create value for customers and shareholders.the activities it performs in transforming its competencies into distinctive competencies.the steps it goes through to convert its net income into value for shareholders.the series of steps it takes to get a product from the raw materials stage into the hands of end-users.

20. Which one of the following is not part of conducting a SWOT analysis?

Identifying a company’s resource strengths and competitive capabilitiesBenchmarking the company's resource strengths and competitive capabilities against industry key success factorsIdentifying a company’s market opportunitiesTranslating the results of the analysis into actions for improving the company’s strategy and market positionDrawing conclusions about the company’s overall business situation—what is attractive and what is unattractive about the company’s circumstances?

21. When a company performs a particular competitively important activity truly well in comparison to its competitors, it is said to have

a key success factor. a core competence.a distinctive competence.a strategic resource.a company competence.

22. Which of the following is not accurate as concerns the task of identifying the strategic issues and problems that merit front-burner managerial attention?

It entails drawing on the results and conclusions from evaluating the company’s own resources and competitive positionDeveloping a list of what issues and problems that managements needs to address (and to resolve) should always precede deciding upon a strategy and what actions to take to improve the company’s position and prospects.Identifying the strategic issues and problems that the company faces is the first thing that company managers need to do before starting to analyze the company’s internal and external environment.It entails developing a “worry list” of “how to…,” “whether to….,” and “what to do about…..”It entails drawing upon the results and conclusions from analyzing the company’s external environment

23. Two analytical tools useful in determining whether a company’s prices and costs are competitive are

competitive position assessment and competitive strength assessment.driving forces analysis and SWOT analysis. value chain analysis and benchmarking.SWOT analysis and key success factor analysis.SWOT analysis and benchmarking.

24. A core competence

adds to a company's arsenal of competitive capabilities and competitive assets and is a genuine resource strength.is a competitively relevant activity which a firm performs especially well in comparison to the other activities it performs.is typically knowledge-based, residing in a company's intellectual capital and not in its tangible physical assets on the balance sheet.All of the above.is often grounded in cross-department combinations of knowledge and expertise.

25. The best example of a company strength is

having more built-in key success factors than rivals. having higher earnings per share and a higher return on shareholders’ equity investment than key rivals.being totally self-sufficient such that the company does not have to rely in any way on key suppliers, partnerships with outsiders, or strategic alliances.having proven technological expertise and ability to churn out new and improved products on a regular basis.having a larger number of competitive assets than competitive liabilities.

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25 Questions

❤ If you liked Fatskills, consider supporting us by checking out The Life Manuals You Never Got.

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All trademarks, logos and brand names are the property of their respective owners. All company, product and service names used in this website are for identification purposes only. Use of these names, trademarks and brands does not imply endorsement.

About | Explore | User Guide | Topics | Subjects | Doubt Solver | Career Aptitude Test | Answers | Free Tools | What Should We Know?
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Without work one finishes nothing. - Ralph Waldo Emerson
© 2026 Fatskills.com