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 revenue potential. b. legal responsibility c..cost advantage d. cost overrun. a. 42. In value chain analysis, the third step choice made by a firm to emphasize its strong research and development reputation is an example of: tleadership. d. innovative design. low cost manufacturing price leadership b. a. cost C. 43. In regard to critical success factors, which one of the following would not be considered a financial measure of success? cash flow b. brand growth c. sales growth d. eanings growth a. 44. In regard to critical success factors, which one of the following would not be considered a non-financial customer measure of success? education b. customer satisfaction customer service C. a. d. 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? high product quality d., market share cycle time Yield c. a. 46. Which of the following financial critical success factors is measured by earnings from operations? profitability sales liquidity d. flexibility C. a. b. 47. Many firms are finding it is difficult to compete successfully on cost on O leadership or differentiation alone, and they must, in fact, compete both: cost and price design and functionality cost and design b. price and functionality c. a. d