Quiz 1

1. Which of the following is an example of a strength?

a. Existence of international markets

b. Increasing interest rates

c. Effective supply-chain management

d. Top-management turnover

e. Monitoring a key competitor

2. Which of the following is not one of the criteria that distinguish a capability from a

core competence?

a. Is it valuable?

b. Is it supported by top management?

c. Is it rare?

d. Is it costly to imitate?

e. Is it nonsubstitutable?

3. Only core competences provide a sustainable competitive advantage.

a. True

b. False

4. Abell’s Scheme, originally conceived to help define a mission of a corporation, can

also be used to look for opportunities.

c. True

d. False

5. Which of the following is not a bona fide opportunity (product-market issue)?

a. Sell existing products to China

b. Modify the design of an auto to attract younger buyers

c. Make more money through cost reduction

d. Create an innovative product for existing customers

e. Continue producing products for current customers

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