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

The value of tangible assets, such as the firm's borrowing capacity and its physical plant, is high because these assets can be easily leveraged to derive additional value.

A veterinary practice has added a pet boarding and grooming facility.Most of the practice's competitors also provide these services.The veterinary practice is gaining competitive:

A major U.S.manufacturer of children's toys believes its main competitive advantage lies in its continuing development of innovative toys and games.The company is facing increasing competition on price, and it is strongly considering outsourcing to offshore firms as a means of reducing costs.The LAST function this firm should consider outsourcing is:

The challenge and difficulty of making effective decisions are implied by preliminary evidence suggesting that __________ of organizational decisions fail.

Value consists of a product's:

Costly-to-imitate capabilities can emerge for all of the following reasons EXCEPT:

Innovation, consumer understanding, brand-building, go-to-market, and scale are activities that P&G performs well and are examples of the company's:

The best way to understand the relationship between resources, capabilities, and core competencies is to recognize that resources are the source of capabilities.Some capabilities lead to the development of core competencies and these, in turn, may lead to competitive advantages.

Apple has combined some of its tangible resources (such as financial resources and research laboratories) and intangible resources (such as scientists, engineers, and organizational routines) to complete research and development tasks to create a capability in R&D.

Describe the four specific criteria that managers can use to decide which of their firm's capabilities have the potential to create a sustainable competitive advantage.

It is increasingly difficult for a firm to develop and sustain a competitive advantage because of the effects of globalization and:

Interpersonal relationships, trust, friendships among managers and between managers and employees, and a firm's reputation with suppliers and customers are all examples of complex social phenomena that make capabilities easy to imitate.

Which of the following is true about outsourcing?

By emphasizing core competencies when selecting and implementing strategies, companies learn to compete primarily on the basis of:

Tangible resources include:

Which of the following is NOT a reputational resource?

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.

Tools such as __________ help the firm focus on its core competencies as the source of its competitive advantages.

Value chain activities are the:

Value chain analysis is a tool used to: