Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
Chapter 06 - Internal Analysis
Chapter 06
Internal Analysis
Multiple Choice Questions
1. (p. 148) The tendency to accept the status quo and disregard signals that change is needed is
called:
2. (p. 149) SWOT analysis's value and continued use is found in its:
3. (p. 149) What have strategists sought in frameworks besides SWOT for conducting internal
analysis?
4. (p. 149) A good fit maximizes a firm’s _________ and minimizes its ________.
5. (p. 149) SWOT analysis is based on the assumption that an effective strategy derives from a
sound “fit” between a firm’s _________ and its ________.
6. (p. 155) _______ views a firm as a sequential process of value-creating activities.
7. (p. 149) Common to all the approaches to internal analysis is:
8. (p. 149) ________ is a historically popular technique through which managers create a quick
overview of a company's strategic situation—it is based on achieving a sound fit between
internal resources and the external situation.
9. (p. 150) A(n) ________ is a major favorable situation in a firm's environment.
10. (p. 151) A(n) ______ is a major unfavorable situation in a firm's environment.
11. (p. 150) Which of the following is NOT an example of an opportunity for the firm?
12. (p. 151) A(n) ______ is a resource or capability controlled by or available to a firm that gives
it an advantage relative to its competitors in meeting the needs of the customers it serves.
13. (p. 151) A(n) _______ is a limitation or deficiency in one or more of a firm's resources or
capabilities relative to its competitors that creates a disadvantage in effectively meeting
customer needs.
14. (p. 151) Consider e-Pixels, a company that produces miniature digital video cameras that
feature easy downloads and uplinks to computers. Which of the following represents a
potential strength for the firm?
15. (p. 153) According to a SWOT analysis diagram, what strategy does Cell 1 support?
16. (p. 153) The cells on the left side of the SWOT diagram are both characterized by:
17. (p. 153) Which cell in the SWOT analysis diagram is the most favorable situation?
18. (p. 153) ________ represents the least favorable situation, with the firm facing major
environmental threats from a weak resource position.
19. (p. 153) Which cell supports a turnaround-oriented strategy?
20. (p. 153) Which of the following describes the situation for a firm in Cell 2?
21. (p. 153) In the SWOT analysis diagram, which cell presents the least favorable situation?
22. (p. 154) What makes SWOT analysis susceptible to key limitations?
23. (p. 154) One of the limitations of the SWOT analysis is that it can ______ internal strengths
and ______ external threats.
24. (p. 154) One of the limitations of the SWOT analysis is that it can be _______.
25. (p. 154) Critics of ______ warn that it is a one-time view of a changing, or moving, situation.
26. (p. 154) One of the limitations of the SWOT analysis is that it can ______ internal strengths
and ______ external threats.
27. (p. 154) A strength is _______ a source of competitive advantage.
28. (p. 155) Which of the following statements is true?
29. (p. 155) A perspective in which business is seen as a chain of activities that transforms inputs
into outputs that customers value is called:
30. (p. 155) Which of the following is NOT an example of a basic source from which customer
value is derived?
31. (p. 155) Value chain analysis takes a:
32. (p. 155) Which method of internal analysis disaggregates the business into sets of activities
that occur within the business, starting with inputs and finishing with the firm's products and
after-service sales?
33. (p. 155) VCA disaggregates the business into a set of activities that occur
34. (p. 155) In the value chain framework, there are ____ primary and ____ support activities.
35. (p. 156) Which of the following is an example of a primary activity in the typical firm?
36. (p. 156) Which of the following is an example of support activities in the typical firm?
37. (p. 156) Those activities in a firm that are involved in the physical creation of the product,
marketing and transfer to the buyer and after-sales support are called:
38. (p. 157) The initial step in value chain analysis is to:
39. (p. 158) In VCA, which method of cost accounting is preferred?
40. (p. 159) Which of the following is usually true about a firm's value chain?
41. (p. 161) Which of the following considerations is critical at the examination stage of the
value chain analysis?
42. (p. 161) It is especially important that managers take into account their level of ________
when comparing their cost structure for activities on their value chain with those of key
competitors.
43. (p. 155) _____ is an internal analysis technique wherein strategists examine customers’
needs, company offerings, and competitors’ offerings to more clearly articulate what their
company’s competitive advantage is and how it differs from those of competitors.
44. (p. 163) The _______ underlying premise is that firms differ in fundamental ways because
each firm possesses a unique “bundle” of resources.
45. (p. 163) The _______ is a new perspective on understanding a firm's success based on how
well the firm uses its internal resources.
46. (p. 163) What is the underlying premise of the resource-based view?
47. (p. 164) Which of the following is NOT a basic resource for any firm?
48. (p. 164) A capability or skill that a firm emphasizes and excels in doing while in pursuit of
its overall mission is called a
