21) With respect to the core business processes, the __ is considered to be all the activities involved in defining target markets and prospecting for new customers.
a. customer equity process
b. customer relationship management process
c. customer acquisition process
d. fulfillment management process
e. customer prospecting process
22) A good way to describe the __ would be discuss all the activities involved in building deeper understanding, relationships, and offerings to individual customers.
a. customer relationship management process
b. customer acquisition process
c. customer prospecting process
d. customer equity process
e. customer fulfillment management process
23) Apex Corporation is known in its industry being “best of class” in terms of costs and performance. Your firm could probably use Apex Corporation as a
a. benchmark.
b. target.
c. competitor to beat.
d. sounding board for ideas.
e. future supplier.
24) Lee Wong has been put in charge of gathering marketing intelligence, disseminating it within his organization, and eventually directing action on the information. Which of the following core business processes most closely matches with the task that Mr. Wong has been given?
a. customer acquisition process
b. market sensing process
c. fulfillment management process
d. new offering realization process
e. customer relationship management process
25) Another way to describe a value delivery network (partnering with specific suppliers and distributors) is to call it a
a. cabal.
b. domestic power centre.
c. supply chain.
d. teamwork group.
e. link to relationships.
26) The key to utilizing organizational core competencies is to __ that make up the essence of the business.
a. own all intermediaries who come in contact with your goods and services
b. own and nurture the resources and competencies
c. emphasize global promotions
d. make the competencies pay for themselves
e. segment workforces
27) We can say that a __ has three characteristics: (1) It is a source of competitive advantage in that it makes a significant contribution to perceived customer benefits, (2) it has applications in a wide variety of markets, and (3) it is difficult for competitors to imitate.
a. core technology
b. winning strategy
c. strategic business unit
d. business strategy
e. core competency
28) Core competencies tend to refer to areas of special technical and production expertise, whereas __ tend to describe excellence in broader business processes.
a. distinctive capabilities
b. core business values
c. mission statements
d. value statements
e. process benchmarks
29) A clear, thoughtful mission statement provides employees with a shared sense of purpose, _, and opportunity.
a. profitability
b. target market feasibility
c. vision
d. direction
e. quality products
30) Competitors find it hard to imitate companies such as WestJet Airlines, Dell, or IKEA because they are unable to copy their
a. logistics system.
b. pricing policies.
c. activity systems.
d. distribution strategy.
e. product innovations.
The Correct Answer and Explanation is :
21) The correct answer is: c. customer acquisition process
The customer acquisition process refers to the activities related to defining target markets, identifying potential customers, and attracting them to the business. It involves the development of strategies to reach new customers and convert prospects into actual customers. The process includes activities like market segmentation, targeting, and positioning to effectively reach and acquire new customers.
22) The correct answer is: a. customer relationship management process
The customer relationship management (CRM) process focuses on building and maintaining long-term relationships with customers. This involves managing interactions with customers to understand their needs better, offer personalized services, and foster loyalty. Through CRM, businesses develop deeper insights into individual customers, improving customer satisfaction and retention. It emphasizes ongoing engagement rather than just acquiring new customers.
23) The correct answer is: a. benchmark
In business, a “benchmark” is a standard or reference point used to measure and compare the performance of a company or its products. Apex Corporation, being recognized for its excellence in costs and performance, can serve as a benchmark against which other companies can assess their own practices, processes, and performance levels to improve competitiveness and efficiency.
24) The correct answer is: b. market sensing process
The market sensing process involves gathering, analyzing, and disseminating market intelligence to inform decision-making within an organization. Lee Wong’s task of gathering and disseminating marketing intelligence aligns with this process, which helps businesses understand market trends, customer preferences, and competitive dynamics.
25) The correct answer is: c. supply chain
A value delivery network, which includes suppliers and distributors working together to deliver products or services, is often referred to as a “supply chain.” The supply chain includes all the activities and organizations involved in producing and delivering goods, from raw materials to the final consumer. It is an interconnected network that ensures products reach the market efficiently.
26) The correct answer is: b. own and nurture the resources and competencies
Organizational core competencies refer to the unique strengths and capabilities that give a company a competitive advantage. To leverage core competencies, companies must invest in and nurture these resources, whether through technology, skills, or other critical areas. This ensures that competencies remain relevant and valuable, contributing to long-term success.
27) The correct answer is: e. core competency
A core competency is a distinctive strength or capability that provides a competitive advantage. The three characteristics of core competencies include: contributing significantly to customer benefits, being applicable across various markets, and being difficult for competitors to replicate. Core competencies can be technological, operational, or related to customer relationships, and they often set companies apart from their competitors.
28) The correct answer is: a. distinctive capabilities
While core competencies refer to specialized technical and production expertise, “distinctive capabilities” refer to broader business excellence, including business processes, that give a company a competitive edge. These capabilities may not be related to a specific product or service but instead focus on how a business manages its operations, culture, and customer relationships.
29) The correct answer is: d. direction
A well-defined mission statement provides employees with a clear sense of purpose, direction, and alignment. It helps them understand the company’s objectives, values, and goals, guiding their actions and decisions. A mission statement is crucial for ensuring that everyone within the organization works toward common goals.
30) The correct answer is: c. activity systems
Companies like WestJet Airlines, Dell, and IKEA are hard to imitate because of their unique “activity systems.” These systems encompass the entire range of activities, processes, and practices that companies employ to create value. Their integrated, well-coordinated systems—such as supply chain management, customer service, and product offerings—are difficult for competitors to replicate fully.
Conclusion: These questions and answers reflect core business concepts related to processes, strategies, and competitive advantages. Each of these processes, from customer acquisition to market sensing, helps companies streamline their operations and foster long-term success.