Porter's Value Chain Analysis in Business Strategy

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What is the primary purpose of conducting a SWOT analysis in an organization?

To identify opportunities to increase sales
To develop a business strategy for entering new markets
To evaluate an organization's strengths, weaknesses, opportunities, and threats (correct)
To measure the impact of first-mover advantage on market share

What is a key characteristic of a competitive advantage?

It is a key factor in achieving a first-mover advantage
It is a product or service that an organization's customers place a greater value on than similar offerings from a competitor (correct)
It is a strength that is identified through a SWOT analysis
It is a product or service that is unique to the organization

In Porter's Five Forces analysis, what does a weak force indicate?

Increases competition or lots of competitors
No impact on competition
Neutral competition
Decreases competition or few competitors (correct)

What is the primary goal of Porter's Three Generic Strategies?

To choose a business focus (B) Signup and view all the answers

What is the primary goal of a business strategy?

To achieve a specific set of goals or objectives (B) Signup and view all the answers

What is the purpose of the five forces model in evaluating business strategies?

To evaluate the attractiveness of an industry (C) Signup and view all the answers

According to Porter's Five Forces, what does buyer power refer to?

The power of buyers in a market (D) Signup and view all the answers

What is the purpose of performing a Porter's Five Forces analysis in the airline industry?

To understand the competitive landscape of the airline industry (C) Signup and view all the answers

What is buyer power, according to the five forces model?

The ability of buyers to affect the price of an item (A) Signup and view all the answers

Which of Porter's Five Forces refers to the ease of entry into a market?

Threat of new entrants (B) Signup and view all the answers

What is the primary benefit of achieving a first-mover advantage?

Significantly impacting market share (A) Signup and view all the answers

What is the primary focus of Porter's Five Forces analysis?

Analyzing the external environment of a company (C) Signup and view all the answers

What is the primary focus of value chain analysis?

Viewing a firm as a series of business processes that each add value to the product or service (C) Signup and view all the answers

Which of the following is NOT a primary value activity in the value chain?

Human resource management (A) Signup and view all the answers

What is the primary purpose of the 'Service' value activity in the value chain?

To provide customer support (D) Signup and view all the answers

Which of the following support value activities is responsible for applying MIS to processes to add value?

Technology development (B) Signup and view all the answers

What is the relationship between the value chain and Porter's Five Forces Model?

The value chain and Porter's Five Forces Model are two separate strategic tools (C) Signup and view all the answers

What is the benefit of using value chain analysis to identify areas for improvement?

It helps firms to identify areas for innovation and opportunity (B) Signup and view all the answers