Exam 3: The Internal Organization: Resources, Capabilities, Core Competencies, and Competitive Advantages

One reason executive judgment can be a particularly important source of competitive advantage is that judgment

The need to meet quarterly earnings numbers disciplines managers to exercise judgment and to make strategic decisions that are best for the long-run performance of the firm.

Decisions about the firms internal environment involve

The more core competencies a firm has, the more likely it is to generate a sustained competitive advantage.

Older employees are less valuable resources to firms than younger employees, because the older employees have lower stocks of knowledge. Consequently, employee reductions should begin with early retirement inducements.

Costly-to-imitate capabilities are those which other firms cannot easily develop as they have no strategic equivalent.

Although an organization's good reputation is a valuable resource that takes years of superior marketplace competence to achieve, it is not a good basis for building a competitive advantage because it can be destroyed almost instantly by bad publicity.

A company can earn above-average returns only when the value it creates is less than the costs incurred to create that value.

Ultimately, the cause of all core capabilities becoming core rigidities is

Regardless of the industry, the most valuable links on a firm's value chain will likely be

The owner of a store retailing fine quality fabrics for home-sewers bewails the fact that few young women know how to do fine tailoring, much less simple dressmaking. Many potential customers are unable to appreciate the premium quality of the fabrics available and are deterred by the high prices, as well as the complexity of fine sewing. In the past, the store had a strong demand for fabrics, large classes for women learning the fine points of sewing, and a reputation for excellent service and technical advice. Now the store is earning lower-than-average returns. This case is an example of

The proper matching of what a firm can do with what it might do allows the firm to

All of the following are tangible resources EXCEPT

A financial management firm has existed for over 70 years. Some of its original clients' grandchildren are now clients of the firm themselves. The partners and staff of the firm have spent most or all of their careers with the firm. Many have even married into each other's families. This firm has capabilities that would be costly to imitate because of its

Describe a value chain analysis. How does a value chain analysis help a firm gain competitive advantage?

An investor is considering buying a restaurant that has been in operation for a number of years. The restaurant has a highly-reputed chef, and many long-term kitchen and wait staff who work together smoothly. It has a reputation for dishes of consistently high quality and an appealing dining atmosphere.

The Internet has changed many aspects of the value chain for a broad range of firms.

Which of the following best describes the effects of 3M's investments in Six Sigma initiatives?

ACME Corp. is a leading provider of radios to the commercial market. Its products all rely on printed circuit board technology. ACME has protected its market leadership with continued advancements in this technology which it patents. A competitor has developed a radio for this market with equal performance but uses a software-based solution instead of circuit boards. ACME's technology leadership fails which capability test?

A person who has made a successful decision when no obviously correct model or rule is available or when relevant data are unreliable or incomplete has exercised