09 May WHICH OF THE FOLLOWING VALUE CHAIN ACTIVITIES HELPS TO SUSTAIN A COMPETITIVE ADVANTAGE?
Practice Questions QUESTION 1 1. Why is accountability important in Strategic Alignment? a. To identify non-value adding resources b. To identify resources that are not part of a process c. To identify process participants d. To identify the process owner QUESTION 2 1. What is the difference between a primary process and a support process according to the value chain? a. The primary process involves no value creation the support process create all the value b. The support processes support outsourcing and offshoring and have nothing to do with primary processes c. The primary process involves value creation activities the support processes support primary activities d. None of the above QUESTION 3 1. Which of the following value chain activities helps to sustain a competitive advantage? a. Quality b. Service c. Lower switching costs d. All of the above QUESTION 4 1. Value chain analysis helps strategic alignment because: a. It helps to analyse strategic plans b. It helps to recognise distinct areas where outsourcing can be used c. It helps keep suppliers happy d. It helps to recognise strategically distinct areas for process improvement QUESTION 5 1. Which of the following is NOT a value chain support activity? a. Operations b. Human Resources c. Firm Infrastructure d. Procurement QUESTION 6 1. Which of the following is used to align strategic goals with processes through the use of ‘improvement’ indicators and measures? a. BPR b. ERP c. VCA d. TQM QUESTION 7 1. In strategic alignment why is it important to map out process functions? a. So we can clearly see the relationships between managers b. So we can clearly see the relationships between functions c. So we can identify reasons to reprimand operations managers d. None of the above QUESTION 8 1. From which of the following traditions do ERP systems stem from? a. OD and TQM b. OD and BPR c. TQM and BPR d. None of the above QUESTION 9 1. Vertical integration is ………………… a. Setting up a business overseas b. The process of acquiring and consolidating elements of a value chain to achieve more control c. The process of having suppliers provide goods and services that were previously provided internally d. Taking over or merge with another firm which is in the same industry QUESTION 10 1. The following are the main reasons for offshoring. Select the statement that is untrue. a. To increase control over suppliers b. To access lower labour costs c. To build robust value chain networks for global markets d. None of the above QUESTION 11 1. What is the purpose of ‘value chain analysis’? a. To analyse the fit between processes and management b. To analyse the fit between processes and outcomes c. To analyse the fit between processes and income d. To analyse the fit between processes and benchmarks QUESTION 12 1. Select the statement that is correct. a. ERP systems follow an Organisational Development logic b. ERP systems follow a TQM logic c. ERP systems follow a BPR logic d. All of the above QUESTION 13 1. How does the environment/context a business operates in affect its value creation activities? a. A business operates in a competitive environment this creates the need for differentiation of product b. A business operates in a competitive environment this creates the need for good support processes c. A business operates in a competitive environment this creates the need for a value chain d. All of the above QUESTION 14 1. Which of the following is NOT a value chain primary activity? a. Inbound Logistics b. Information Technology c. Service d. Marketing and Sales QUESTION 15 1. The term ‘strategic alignment’ means: a. Alignment of business processes with corporate objectives b. Alignment of business processes with support processes c. Alignment of business performance with the stock market d. Alignment of business processes with performance indicators QUESTION 16 1. Which of the following are most important for strategic alignment? a. Money and time b. People and processes c. People and Money d. Money and competitive advantage QUESTION 17 1. Firms using cost leadership strategy can achieve competitive advantage by: a. Focusing on cheap goods/services b. Focusing on goods/services with standard features and high production volumes c. Focussing on products/services perceived as higher quality than competition d. All of the above QUESTION 18 1. How does differentiation supports competitive advantage? a. By keeping away new entrants costs must be raised b. By increasing profits c. By minimising fixed costs d. By creating a unique value to customers QUESTION 19 1. As it relates to establishment of efficient processes an ERP system creates value for a corporation: a. To create more efficient processes b. To create more efficient processes and increase productivity gains c. To minimise competition d. To create more flexible process and maximise sales revenue QUESTION 20 1. What is Process-Oriented Organisational Design? a. A change in structure to improve process functionality b. A change in process to improve efficiency c. A change in outsourcing to offshoring d. A change in organisational culture
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