2/24/2014

www.csun.edu/~vcact00f/497CapStone/SampleQuestions/CH3_Sample Questions.htm

Sample Chapter 3 Multiple Choice Identify the choice that best completes the statement or answers the question. ____ 1. The proper matching of what a firm can do with what it might do a. balances the internal characteristics of the firm with the characteristics of the external environment. b. overcomes the rigidity and inertia resulting from a history of success. c. yields insights the firm requires to select its strategy. d. develops core competencies based on human knowledge.

____ a. b. c. d.

2. The Chapter 3 Strategic Focus on P&G illustrates that the company uses its capabilities and core competencies to grow through mergers. organically. through cooperative relationships. through acquisitions.

____ 3. Firms that achieve competitive parity can expect to a. earn below-average returns. b. earn average returns. c. earn above-average returns. d. initially earn above-average returns, declining to average returns.

____

a. b. c. d.

4. A local restaurant, Farm Fresh Ingredients, has become highly successful through its menu based solely on organically-raised chicken, beef, and organic seasonal produce. It has opened new locations in other cities, and these new locations are becoming highly profitable. Farm Fresh can expect that, at best, its competitive advantage will be permanent. sustainable. temporary. defensible.

____

5. It is possible that Borders core competencies of store locations and a

1/2

http://www.csun.edu/~vcact00f/497CapStone/SampleQuestions/CH3_Sample%20Questions.htm

2/24/2014

www.csun.edu/~vcact00f/497CapStone/SampleQuestions/CH3_Sample Questions.htm

a. b. c. d.

desirable physical environment for customers became core rigidities eventually leading to the filing of bankruptcy as a result of changing political events. changing social events. a new technology emerging and changing customer shopping patterns . failure to accurately analyze the value chain.

http://www.csun.edu/~vcact00f/497CapStone/SampleQuestions/CH3_Sample%20Questions.htm

2/2