Question 1

Organizational culture is

Accepted Answer

A)  amorphous and changeable. 
B)  not easily imitable. 
C)  so difficult to analyze that most firms should choose to ignore it. 
D)  typically fragile in the face of changes in the external environment. 
A)  amorphous and changeable. 
B)  not easily imitable. 
C)  so difficult to analyze that most firms should choose to ignore it. 
D)  typically fragile in the face of changes in the external environment.

Question 2

____ is an example of a capability that is based in the functional area of distribution.

Accepted Answer

A)  Effective use of logistics management techniques 
B)  Effective control of inventories through point-of-purchase data collection 
C)  Effective organizational structure 
D)  Product and design quality 
A)  Effective use of logistics management techniques 
B)  Effective control of inventories through point-of-purchase data collection 
C)  Effective organizational structure 
D)  Product and design quality

Question 3

Which of the following is NOT an external event that reveals the "dark side" of core capabilities?

Accepted Answer

A)  A new competitor figures out a better way to serve the firm's customers. 
B)  New technologies emerge and replace those used by the firm. 
C)  A firm changes its focus to a new core competence. 
D)  Political or social events shift the foundation of current core capabilities. 
A)  A new competitor figures out a better way to serve the firm's customers. 
B)  New technologies emerge and replace those used by the firm. 
C)  A firm changes its focus to a new core competence. 
D)  Political or social events shift the foundation of current core capabilities.

Question 4

Which of the following is NOT required for a firm to achieve strategic competitiveness and earn above-average returns from its core competencies?

Accepted Answer

A)  Core competencies must be acquired. 
B)  Core competencies must be bundled. 
C)  Core competencies must be internationalized. 
D)  Core competencies must be leveraged. 
A)  Core competencies must be acquired. 
B)  Core competencies must be bundled. 
C)  Core competencies must be internationalized. 
D)  Core competencies must be leveraged.

Question 5

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.

Accepted Answer

A) True 
 B)False

Question 6

One benefit of outsourcing is that it allows a firm to focus on those few value chain activities where it can produce the greatest value.

Accepted Answer

A) True 
 B)False

Question 7

What are the differences between tangible and intangible resources? Which category of resources is more valuable to the firm?

Accepted Answer

Resources are either tangible or intangi

Question 8

Value is measured by the variable and fixed costs associated with the production and marketing of a particular product compared with the revenue and profits the product generates.

Accepted Answer

A) True 
 B)False

Question 9

Case Scenario 2: ERP Inc.
ERPI is a leading provider of enterprise integration software (EIS). EIS allows a firm to connect and integrate processes across all aspects of its business, regardless of where they are located around the world. ERPI is a product-focused company, whereas most competitors in its market space, like Oracle, operate as "solutions companies." Oracle and Microsoft have begun to devote considerable resources to the development of and acquisition of products to compete in the EIS space. Despite these recent threats, one benefit of its product-focused strategy is that ERPI's proprietary product is generally recognized as being 200% to 300% better than competitors' software. ERPI estimates it will take 2 to 3 years for competitors to develop the capabilities needed to bring a competing product to market. ERPI invests a considerable percentage of its profits in basic R&D to support its core products. As evidence of this, among its competitors the firm maintains the largest in-house programming staff dedicated solely to the development of advanced enterprise integration software. Installation and related consulting for EIS typically cost between $100 and $200 million, with the ERPI software component accounting for about 20% of the installed cost (the remaining 80% is spent on the actual installation, not counting the value of the customer's time). ERPI's target market consists of the world's largest manufacturing and industrial firms and it currently enjoys a 60 percent market share.
-(Refer to Case Scenario 2) Imagine that ERPI's historic growth strategy has focused on making one sale and then moving on to the next target company. After several years of building market share using this approach, what new resources has ERPI developed?

Accepted Answer

This question asks students to take a mo

Question 10

Capabilities of an organization emerge spontaneously through the interaction of tangible and intangible resources.

Accepted Answer

A) True 
 B)False

Question 11

Because the firm combines tangible and intangible resources to create capabilities,

Accepted Answer

A)  these capabilities are fragile and subject to sudden loss of value. 
B)  they are often based on developing, carrying, and exchanging information and knowledge through the firm's human capital. 
C)  they are easily transferred from one firm to another as employees change jobs. 
D)  these types of capabilities are considered primary activities in the value chain. 
A)  these capabilities are fragile and subject to sudden loss of value. 
B)  they are often based on developing, carrying, and exchanging information and knowledge through the firm's human capital. 
C)  they are easily transferred from one firm to another as employees change jobs. 
D)  these types of capabilities are considered primary activities in the value chain.

Question 12

Why is it important to prevent core competencies from becoming core rigidities?

Accepted Answer

All core competencies have the potential

Question 13

Southwest Airlines has a complex interrelationship between its culture and staff that adds value in ways that other airlines cannot (such as jokes on flights or the cooperation between gate personnel and pilots). These examples illustrate which of the following criteria for sustainable competitive advantage?

Accepted Answer

A)  valuable. 
B)  rare. 
C)  costly to imitate. 
D)  nonsubstitutable. 
A)  valuable. 
B)  rare. 
C)  costly to imitate. 
D)  nonsubstitutable.

Question 14

Every core competence is a capability and every capability is a core competence.

Accepted Answer

A) True 
 B)False

Question 15

The Chapter 3 Strategic Focus shows that inability to effectively use a firm's resources and capabilities can contribute to a CEO's short tenure as happened with Christina Norman, former CEO of the Oprah Winfrey Network (OWN).

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is NOT a factor affecting sustainability of a competitive advantage?

Accepted Answer

A)  The availability of substitutes for a firm's core competence. 
B)  The rate at which obsolescence of the core competence occurs because of environmental changes. 
C)  The imitability of a core competence. 
D)  The length of time the core competence has existed. 
A)  The availability of substitutes for a firm's core competence. 
B)  The rate at which obsolescence of the core competence occurs because of environmental changes. 
C)  The imitability of a core competence. 
D)  The length of time the core competence has existed.

Question 17

Case Scenario 3: B.B. Mangler.
B.B. Mangler is a top U.S. business-to-business distributor of maintenance, repair, and service equipment, components, and supplies such as compressors, motors, signs, lighting and welding equipment, and hand and power tools. Customers include contractors, service and maintenance shops, manufacturers, hotels, government, and health care and educational facilities. Mangler's industry is typically referred to as MRO, which is an acronym for maintenance, repair, and supplies. Mangler states its strategy as having the "capacity to quickly offer an unmatched breadth of lowest total cost MRO solutions to business." Mangler's GoMRO sourcing center for indirect spot buys locates products through its unique database of 8,000 suppliers and 5 million products. Mangler also dominates the North American market in terms of its sheer local physical presence. It has 388 physical branches in the U.S. largest cities, including Puerto Rico (90% of sales), 184 in Canada, and five in Mexico. This physical presence also has garnered them a reputation for excellent, dependable service in their target markets, which in turn translates into a vast and loyal clientele.
-(Refer to Case Scenario 3) Mangler's reputation among its customers is an example of

Accepted Answer

A)  a core competency 
B)  a capability 
C)  an intangible resource 
D)  a tangible resource 
A)  a core competency 
B)  a capability 
C)  an intangible resource 
D)  a tangible resource

Question 18

Firms achieve strategic competitiveness and earn above average returns by acquiring, bundling, and leveraging their resources for the purpose of taking advantage of opportunities in the external environment in ways that create value for customers.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A)  allows a firm to build a strong reputation. 
B)  gains the loyalty of shareholders. 
C)  increases human intellectual capacity. 
D)  allows for superior bundling of resources. 
A)  allows a firm to build a strong reputation. 
B)  gains the loyalty of shareholders. 
C)  increases human intellectual capacity. 
D)  allows for superior bundling of resources.

Question 20

The three conditions that characterize difficult managerial decisions concerning resources, capabilities, and core competencies are

Accepted Answer

A)  complexity, rarity, and human intellectual capital. 
B)  uncertainty, complexity, and intraorganizational conflicts. 
C)  imitability, complexity, and interorganizational conflicts. 
D)  imitability, comparability, and human intellectual capital. 
A)  complexity, rarity, and human intellectual capital. 
B)  uncertainty, complexity, and intraorganizational conflicts. 
C)  imitability, complexity, and interorganizational conflicts. 
D)  imitability, comparability, and human intellectual capital.

Organizational culture is

____ is an example of a capability that is based in the functional area of distribution.

Which of the following is NOT an external event that reveals the "dark side" of core capabilities?

Which of the following is NOT required for a firm to achieve strategic competitiveness and earn above-average returns from its core competencies?

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.

One benefit of outsourcing is that it allows a firm to focus on those few value chain activities where it can produce the greatest value.

What are the differences between tangible and intangible resources? Which category of resources is more valuable to the firm?

Value is measured by the variable and fixed costs associated with the production and marketing of a particular product compared with the revenue and profits the product generates.

Capabilities of an organization emerge spontaneously through the interaction of tangible and intangible resources.

Because the firm combines tangible and intangible resources to create capabilities,

Why is it important to prevent core competencies from becoming core rigidities?

Every core competence is a capability and every capability is a core competence.

The Chapter 3 Strategic Focus shows that inability to effectively use a firm's resources and capabilities can contribute to a CEO's short tenure as happened with Christina Norman, former CEO of the Oprah Winfrey Network (OWN).

Which of the following is NOT a factor affecting sustainability of a competitive advantage?

Firms achieve strategic competitiveness and earn above average returns by acquiring, bundling, and leveraging their resources for the purpose of taking advantage of opportunities in the external environment in ways that create value for customers.

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

The three conditions that characterize difficult managerial decisions concerning resources, capabilities, and core competencies are

Strategic Management and Strategic Competitiveness

The External Environment: Opportunities, Threats, Industry Competition, and Competitor Analysis

Business Level Strategy

Competitive Rivalry and Competitive Dynamics

Corporate-Level Strategy

Merger and Acquisition Strategies

International Strategy

Cooperative Strategy

Corporate Governance

Organizational Structure and Controls

Strategic Leadership

Strategic Entrepreneurship

Filters

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

Organizational culture is

____ is an example of a capability that is based in the functional area of distribution.

Which of the following is NOT an external event that reveals the "dark side" of core capabilities?

Which of the following is NOT required for a firm to achieve strategic competitiveness and earn above-average returns from its core competencies?

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.

One benefit of outsourcing is that it allows a firm to focus on those few value chain activities where it can produce the greatest value.

What are the differences between tangible and intangible resources? Which category of resources is more valuable to the firm?

Value is measured by the variable and fixed costs associated with the production and marketing of a particular product compared with the revenue and profits the product generates.

Capabilities of an organization emerge spontaneously through the interaction of tangible and intangible resources.

Because the firm combines tangible and intangible resources to create capabilities,

Why is it important to prevent core competencies from becoming core rigidities?

Every core competence is a capability and every capability is a core competence.

The Chapter 3 Strategic Focus shows that inability to effectively use a firm's resources and capabilities can contribute to a CEO's short tenure as happened with Christina Norman, former CEO of the Oprah Winfrey Network (OWN).

Which of the following is NOT a factor affecting sustainability of a competitive advantage?

Firms achieve strategic competitiveness and earn above average returns by acquiring, bundling, and leveraging their resources for the purpose of taking advantage of opportunities in the external environment in ways that create value for customers.

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

The three conditions that characterize difficult managerial decisions concerning resources, capabilities, and core competencies are

Strategic Management and Strategic Competitiveness

The External Environment: Opportunities, Threats, Industry Competition, and Competitor Analysis

Business Level Strategy

Competitive Rivalry and Competitive Dynamics

Corporate-Level Strategy

Merger and Acquisition Strategies

International Strategy

Cooperative Strategy

Corporate Governance

Organizational Structure and Controls

Strategic Leadership

Strategic Entrepreneurship

Filters