For a Company to Translate Its Performance of Value Chain

question 33

Multiple Choice

For a company to translate its performance of value chain activities into competitive advantage, it must

• A) undertake ongoing and persistent efforts to be cost-efficient and develop differentiation advantages.
• B) have more core competencies than rivals.
• C) have at least three distinctive competencies.
• D) have competencies that allow it to produce the highest-quality product in the industry.
• E) have more competitive assets than competitive liabilities.

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Definitions:

Countercyclical Stock

Shares of companies that tend to perform well during economic downturns because they offer goods or services that remain in demand.

Portfolio Weight

The percentage composition of a particular holding or investment relative to the total value of the portfolio.

Expected Return

The forecasted amount of profit or loss an investment is projected to generate, expressed as a percentage of the total invested capital.

Portfolio Weight

The percentage composition of a particular holding in relation to the total value of the portfolio, used to assess diversification and risk.