78) According to Porter, the processes and systems in an organization pursuing differentiation strategy must ________ to avoid negative margins.
A) create sufficient value to cover their costs
B) provide products at lowest costs to customers
C) develop and adopt new technologies
D) increase procurement
79) Which of the following statements is true of business processes?
A) If a value chain's margin is negative, the value should be decreased.
B) Value chain activities differ based on the business processes being used.
C) If a value chain's margin is negative, the costs of the value chain should be increased.
D) The processes implementing a value chain must create sufficient value to cover their costs.
80) Business processes implement value chains or portions of value chains.
81) Each value chain is supported by one or more business processes.
82) Value chain activities are not dependent on the competitive strategies used by organizations.
83) Two companies with the same value chain activities will have the same business processes.
84) If a value chain's margin is negative, the company must reduce the cost of the value chain.
85) What is the criterion on which business processes should run?
86) Which of the following is a product implementation principle of competitive advantage?
A) raise barriers to market entry
B) enhance existing products or services
C) establish alliances with other organizations
D) lock in customers and buyers
87) Which of the following strategies is also called establishing high switching costs?
A) increasing production
B) locking in suppliers
C) reducing output
D) locking in customers