Page 167 - BA1 Integrated Workbook STUDENT 2018

Answers to supplementary objective test questions

CHAPTER 5 – INTERNAL ENVIRONMENTAL ANALYSIS

5.1 A, C

The ability to sell at low prices (due to internal efficiencies) is a core
competence of the business – it’s an ‘order winner’ that is hard for PBB’s rivals
to copy and that gives it an edge in its market.

It is also a CSF as it is clearly something that PBB has to do well at in order to
continue to grow successfully in the market.

Note that it cannot be an objective or KPI as there are no targets set that meet
the SMART criteria.

5.2 B

By definition.

5.3 A

The company is succeeding because of its ability to source the goods it needs
from key suppliers. This is likely to be classified as procurement. Note that
inbound logistics refers to the handling and storage of the inputs (i.e. the tea) –
not the purchasing of it.

5.4 C

The fact that warehousing and delivery to customers is outsourced covers
inbound and outbound logistics. The advertising is contracted to a third party,
which relates to the marketing and sales function. Customer complaints
handling (service) is also outsourced.

This seems to only leave operations (the making of TDD’s clothing) out of the
primary activities as an activity which is kept in-house.

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