Chapter 02 - Master Test Bank
a unique centralized web-based system that cuts the design and production process by at least two years, thus providing customer value. This is an example of a(n) a. point of similarity. innovation-oriented mission. action program. operational goal implementation. competency. Answer: e Page(s): 35 LO: 2-4 AACSB: Analytic QD: Hard Rationale: Competencies are an organization's special capabilities, including skills, technology, and resources that distinguish it from other organizations and provide customer value, like Mercedes-Benz’s central web-based design system here.
2-176 COMPETENCIES
APPLICATION
Evergreen Air Center is the world’s biggest parking lot for unwanted aircraft. Airlines pay a monthly fee from $750 to $5,000 to mothball their unneeded airplanes at this site. Its location is on 1,600 acres of Arizona desert near Tucson. The Southwest climate of dry, warm air serves as a cheap and effective airplane preservative against rust. Evergreen’s location is a(n) a. competency. sustainable advantage. competitive identity. core benefit proposition. innovative distinction. Answer: a
Page(s): 35
LO: 2-4
AACSB: Analytic
QD: Hard
Rationale: Competences are an organization’s special capabilities (in this case, the climate gives it the capabilities to preserve planes cheaply and efficiently) that distinguish it from other organizations and provide customer value to the airlines, like Evergreen’s unique location here.
2-177 COMPETITIVE ADVANTAGE
KNOWLEDGE
A competitive advantage refers to the cluster of benefits that an organization promises customers to satisfy their needs. those characteristics of a product that make it superior to competitive substitutes. a unique strength relative to competitors that provides superior returns, often based on quality, time, cost, or innovation. actions taken by a firm with the sole intent of putting a competitor out of business. the added value given to a product beyond the functional benefits provided. Answer: c Page(s): 35 LO: 2-4 AACSB: Analytic Rationale: Text term definition—competitive advantage.
QD: Easy
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