96 Chapter 4 41. The second step in value chain analysis is to identify the cost driver(s) at each value activity. The objective of the second step is to identify activities where the firm has a current or future: a. revenue potential. b. legal responsibility c cost advantage d. cost overrun. 42. In value chain analysis, the third step choice made by a firm to emphasize ts strong research and development reputation is an example of: low cost manufacturing b. price leadership c. Cost leadership. d. innovative design a. 43. In regard to critical success factors, which one of the following would not be considered a financial measure of success? a. cash flow b. brand growth c. sales growth d. earnings growth 44. In regard to critical success factors, which one of the following would not be considered a non-financial customer measure of success? a. education c. customer satisfaction d. customer service b. on-time delivery 45. In regard to critical success factors, which one of the following would not be considered a non-financial internal business process measure of success? a. cycle time b. Yield c. high product quality d.. market share 46. Which of the following financial critical success factors is measured by earnings from operations? a. profitability b. sales c. liquidity d. flexibility 47. Many firms are finding it is difficult to compete successfully on cost leadership or differentiation alone, and they must, in fact, compete on both: cost and price d. design and functionality cost and design b. price and functionality c. a