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

Chipotle linked fresh ingredients with the marketing and training of employees to build customer service as a capability.This example illustrates the way in which resources must be combined in order to form capabilities.

All of the following are true about the strategic decisions managers make about their firm's internal organization EXCEPT that they:

The PRQ chain of retail stores has achieved a high level of efficiency in its inventory control by collecting data at the point of purchase.This is an example of a capability in which specific functional area?

Why is trust necessary to build social capital?

Which of the following is NOT a component of internal analysis leading to competitive advantage?

Technology has made it more difficult for companies to find ways to develop competitive advantages.

Which of the following would be categorized as a value chain activity?

One capability that can be learned from failure is when to: As live streaming and downloading of digital content increased, a manufacturer of CD and DVD players experienced a downturn.The managers felt that the firm's capability in producing these players was a core competence.They increased their investment to improve the playback quality, add more playback features, and change the design of the players to make them more appealing to the eye.Even with these investments, the firm had to lower prices, and was still unable to maintain sales volume.Clearly, mistakes were made in managing the firm's resources.What should the firm have learned from this failure?

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.

The length of time a firm can expect to create value by using its core competencies is a function of how quickly competitors can successfully imitate a good, service, or process.

Outsourcing is the:

The trust that a firm has built between itself and its suppliers is an example of a costly-to-imitate capability that other firms cannot easily develop.