Exam 3: Internal Analysis: Resources and Competitive Advantage

When completing the internal analysis process, a company must first develop an understanding of the role that resources have in determining competitive advantage then analyze the sources of competitive advantage to determine profitability.

The Big Mac, the McFlurry and the McDonald's logo are all examples of the organizational architecture of the McDonald's company.

Which of the following support activities in the value chain controls the transmission of physical materials through the value chain, from procurement through production and into distribution?

Using the value chain model, which of the following primary activities is performed after the production phase, as inputs are transformed into outputs?

Which of the following correctly describes the difference between product and process innovation?

The VRIO model is designed to help companies assess the quality of their resources and identify sources of competitive advantage.

If a company's profitability is higher than the average profitability of all companies in its industry, it has a competitive advantage.

The term value chain refers to the idea that a company is:

Internal analysis, coupled with an analysis of the company's external environment, gives managers the information they need to choose the strategy that will enable their company to attain a sustained competitive advantage.

Evaluate and comment on this statement: "No competitive advantage lasts forever."

When Rollie's Car Wash began to lose business to rivals, Rollie read publications for car-wash owners to learn the best practices in the industry. Then he implemented the best practices. Rollie is using which of the following to improve his car wash?

Intellectual property protections, including patents, trademarks and copyrights, typically provide a barrier to imitation.

At Adam's bicycle repair shop, the primary value-chain activity of production occurs each time a customer's bicycle is repaired.

Which of the following statements about the impact of high product quality on competitive advantage is true?

Nene works in a factory where she picks crab meat from crabs. She is paid per day based upon the number of pounds of crab meat that she picks. Nene's daily number of pounds of crab meat can be referred to as her productivity.

A resource is inimitable if competitors can copy it easily.

Donna can make a chair for $100; she charges customers $150 to buy the chair, and customers perceive that the chair is worth $225. In this case, the consumer surplus is:

The quality of resources, especially the quality of advanced factors of production, is not a determinate of whether a company is effective in transforming inputs into outputs.

Which of the following is a reason for the higher barrier to imitation for a company's that possesses rare and valuable process knowledge?

The importance of reliability in building competitive advantage has increased dramatically over the past several decades.