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

"Motivating, empowering, and retaining employees" is an example of a capability that resides within the human resources functional area.

Capabilities may be costly to imitate if firms have unique and valuable organizational cultures, are causally ambiguous, or are socially complex.

Analyzing the internal environment enables a firm to determine what it CAN DO by identifying resources, capabilities, and core competencies in the internal organization.

The capabilities used to create the sustainability/green initiatives at Walmart and Target are __________ but less likely to be __________.

A firm's core competencies, integrated with an understanding of the results of studying the conditions in the external environment, should:

In the airline industry, frequent flyer programs, ticket kiosks, and e-ticketing are all examples of capabilities that are __________ but no longer __________.

Charmed by Claire is a successful retail boutique that sells women's accessories.Claire, the owner/manager, knows that women have many options when buying jewelry.When customers enter her store, they are greeted by name and given prompt, friendly attention.Customers return to the store because the service is excellent.Claire says the most important decision she makes is hiring the best staff because customer service is vital to her business.Customer service is a(n):

An investor is considering buying a restaurant that has been in operation for a number of years.The restaurant has a highly regarded 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.Which of the following should the investor consider when making a decision?

Core competencies are capabilities that serve as a source of competitive advantage for a firm over its rivals.

__________are the source of a firm's __________, which are the source of the firm's __________.

A local restaurant, Farm Fresh Ingredients, has become highly successful through its menu, based solely on organically raised chicken and beef, and organic seasonal produce.It has opened new locations in other cities, and these new locations are becoming highly profitable.Farm Fresh can expect that, at best, its competitive advantage will be:

Firms that have strong positive relationships with suppliers and customers are said to have __________, an essential ingredient to creating value.

Creating value for customers is the source of above-average returns for a firm.

Valuable capabilities allow the firm to exploit strengths or neutralize weaknesses in the internal environment.

Many firms outsource the payroll function of paying employees to firms such as ADP.Payroll is a(n):

Compared to intangible resources, in terms of their value, tangible resources are __________ constrained because they are __________ to leverage.

Define capabilities and explain how they affect the firm's strategic success.

A firm should outsource only activities where it cannot create value or where it is at a substantial disadvantage compared to competitors.

A food bank in Florida was struggling to serve its customers.It asked Walmart for help.Walmart sent a team of managers who reorganized storage and transportation.The food bank was able to increase the number of clients served by tenfold.Walmart shared its expertise in:

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