Question 1

Sources of strategic resource immobility between firms include:

Accepted Answer

A) Geographical immobility, willingness of suppliers to deliver from external factor markets, and corporate culture 
B) Corporate culture, organizational structure, and asset mass efficiencies 
C) Asset mass efficiencies, time compression diseconomies, and imperfect information 
D) Geographical immobility, imperfect information, and organizational capabilities. 
A) Geographical immobility, willingness of suppliers to deliver from external factor markets, and corporate culture 
B) Corporate culture, organizational structure, and asset mass efficiencies 
C) Asset mass efficiencies, time compression diseconomies, and imperfect information 
D) Geographical immobility, imperfect information, and organizational capabilities.

Question 2

Organizational capability, distinctive competence, and core competence are similar terms, relating to a firm's capacity to achieve competitive advantage.

Accepted Answer

A) True 
 B)False

Question 3

Benchmarking typically involves a subjective comparison of firm's resources and capabilities with those of competitors.

Accepted Answer

A) True 
 B)False

Question 4

The existence of a competitive advantage through resources and competencies is linked to:

Accepted Answer

A) The ratio between the value and the cost of these resources and competencies 
B) The scarcity and relevance of these resources and more importantly that of their derived competences 
C) The durability and transferability of these resources and competencies 
D) The difficulty of acquiring these resources and competencies externally or building them in-house 
A) The ratio between the value and the cost of these resources and competencies 
B) The scarcity and relevance of these resources and more importantly that of their derived competences 
C) The durability and transferability of these resources and competencies 
D) The difficulty of acquiring these resources and competencies externally or building them in-house

Question 5

The key to success is:

Accepted Answer

A) Having a clear understanding of a firm's strengths and weaknesses and in particular to base strategy on the exploitation of key strengths. 
B) Having a strong main core competence that a firm may rely upon to build its strategy 
C) Being well-placed to exploit a monopoly position 
D) Having key strengths based on low cost. 
A) Having a clear understanding of a firm's strengths and weaknesses and in particular to base strategy on the exploitation of key strengths. 
B) Having a strong main core competence that a firm may rely upon to build its strategy 
C) Being well-placed to exploit a monopoly position 
D) Having key strengths based on low cost.

Question 6

Human resources are included as part of a firm's strategic resources because:

Accepted Answer

A) The firm owns its employees 
B) The firm does not own its employees 
C) Employees can be used by management as a productive (intangible) asset. 
D) "Resource" is part of their name 
A) The firm owns its employees 
B) The firm does not own its employees 
C) Employees can be used by management as a productive (intangible) asset. 
D) "Resource" is part of their name

Question 7

One implication of the resource-based perspective is that:

Accepted Answer

A) Firms tend to adopt similar or close strategies 
B) Firms focus on being different from competitors in ways which matter to their competitiveness and to customers 
C) Firms focus on building a stronger portfolio of capabilities than the average portfolio of their rivals 
D) Firms focus on understanding their resources and capabilities in regards to their weaknesses 
A) Firms tend to adopt similar or close strategies 
B) Firms focus on being different from competitors in ways which matter to their competitiveness and to customers 
C) Firms focus on building a stronger portfolio of capabilities than the average portfolio of their rivals 
D) Firms focus on understanding their resources and capabilities in regards to their weaknesses

Question 8

The analysis of a firm's principal functions and Porter's value chain are two approaches that can be used to identify a firm's capabilities.

Accepted Answer

A) True 
 B)False

Question 9

Resource and capability appraisal is:

Accepted Answer

A) A fixed process which must be adhered to 
B) For developing strategy implications 
C) Mainly to do with managing key weaknesses 
D) Largely a stand.alone process, which in itself should be made routine and thus become a capability in its own right. 
A) A fixed process which must be adhered to 
B) For developing strategy implications 
C) Mainly to do with managing key weaknesses 
D) Largely a stand.alone process, which in itself should be made routine and thus become a capability in its own right.

Question 10

Establishing an inventory of a firm's capabilities turns out to be:

Accepted Answer

A) Surprisingly hard, requiring understanding and insight 
B) Difficult 
C) Quite easy with the appropriate tools 
D) Almost impossible even with the appropriate tools 
A) Surprisingly hard, requiring understanding and insight 
B) Difficult 
C) Quite easy with the appropriate tools 
D) Almost impossible even with the appropriate tools

Question 11

Distinctive competences are:

Accepted Answer

A) The same concept as organizational capabilities 
B) Those competences which are easy to identify. 
C) The same as core competences 
D) Those things which an organisation does particularly well relative to competitors, whereas core competences are fundamental to a firm's performance 
A) The same concept as organizational capabilities 
B) Those competences which are easy to identify. 
C) The same as core competences 
D) Those things which an organisation does particularly well relative to competitors, whereas core competences are fundamental to a firm's performance

Question 12

Establishing an inventory of a firm's resources from the Annual Corporate Report is:

Accepted Answer

A) Difficult, especially because the intangible resources are not generally shown as assets. 
B) Easy - they're all listed there 
C) No good since the Corporate Report relates to the past, not the present. 
D) Irrelevant to the topic 
A) Difficult, especially because the intangible resources are not generally shown as assets. 
B) Easy - they're all listed there 
C) No good since the Corporate Report relates to the past, not the present. 
D) Irrelevant to the topic

Question 13

Given a rapid rate of change in the external environment, the organization, its resources, and competencies present a more stable base from which to consider strategy.

Accepted Answer

A) True 
 B)False

Question 14

The first step of capability management is:

Accepted Answer

A) To identify the key resources and capabilities 
B) To assess a firm's strengths and weaknesses 
C) To assess resources and capability of importance in regards to a firm's rivals and its corporate governance 
D) A fiction because it is an iterative process with no specific first step. 
A) To identify the key resources and capabilities 
B) To assess a firm's strengths and weaknesses 
C) To assess resources and capability of importance in regards to a firm's rivals and its corporate governance 
D) A fiction because it is an iterative process with no specific first step.

Question 15

The resource-based view focuses on:

Accepted Answer

A) The interface between corporate strategy and business strategy 
B) The interface between strategy and the resources of a firm 
C) The interface between strategy and the internal environment of a firm 
D) The interface between resources and capabilities within a firm 
A) The interface between corporate strategy and business strategy 
B) The interface between strategy and the resources of a firm 
C) The interface between strategy and the internal environment of a firm 
D) The interface between resources and capabilities within a firm

Question 16

Although capability levels vary from one firm to another:

Accepted Answer

A) Every firm has specific capabilities not possessed by any other firm. 
B) Every firm has a specific organizational structure 
C) Every profitable firm has some activity where it excels or has the potential to excel 
D) Ultimately, it's the size of the firm which matters most. 
A) Every firm has specific capabilities not possessed by any other firm. 
B) Every firm has a specific organizational structure 
C) Every profitable firm has some activity where it excels or has the potential to excel 
D) Ultimately, it's the size of the firm which matters most.

Question 17

The most important resources and capabilities are those which both give the firm a strength versus competitors, and which relate strongly to key success factors

Accepted Answer

A) True 
 B)False

Question 18

The value of a firm's human plus intangible resources can be seen as the difference between its market capitalisation and the fair value of its tangible assets. The human plus intangible assets are then typically worth much more than the tangible assets.

Accepted Answer

A) True 
 B)False

Question 19

The perceived importance of resources and capabilities to firms' strategies became prominent because:

Accepted Answer

A) Top managers have understood the importance of competitive advantages from major academic papers published at the time. 
B) The general environment has become more unstable and the structure of industries has evolved towards simultaneously more cooperation and more competition 
C) The planning school of strategy has been heavily criticized and planning departments in large firms have almost disappeared 
D) It became increasingly apparent that competitive advantage was more important to profit generation than mere characteristics of the industry as a whole. 
A) Top managers have understood the importance of competitive advantages from major academic papers published at the time. 
B) The general environment has become more unstable and the structure of industries has evolved towards simultaneously more cooperation and more competition 
C) The planning school of strategy has been heavily criticized and planning departments in large firms have almost disappeared 
D) It became increasingly apparent that competitive advantage was more important to profit generation than mere characteristics of the industry as a whole.

Question 20

In exploring how to create more value from tangible assets, two questions must be addressed:

Accepted Answer

A) Can a firm save money on these assets by changing the depreciation policy, and how can it delay replacing them? 
B) How can a firm reduce cost/unit of output on underutilized assets, and/or how can it redeploy them more profitably? 
C) How can a firm beat its rivals regarding these assets, and how can it build a better reputation in regards to its external environment? 
D) How can a firm acquire more efficient assets from external markets, or how can it build these assets in-house? 
A) Can a firm save money on these assets by changing the depreciation policy, and how can it delay replacing them? 
B) How can a firm reduce cost/unit of output on underutilized assets, and/or how can it redeploy them more profitably? 
C) How can a firm beat its rivals regarding these assets, and how can it build a better reputation in regards to its external environment? 
D) How can a firm acquire more efficient assets from external markets, or how can it build these assets in-house?

Sources of strategic resource immobility between firms include:

Organizational capability, distinctive competence, and core competence are similar terms, relating to a firm's capacity to achieve competitive advantage.

Benchmarking typically involves a subjective comparison of firm's resources and capabilities with those of competitors.

The existence of a competitive advantage through resources and competencies is linked to:

The key to success is:

Human resources are included as part of a firm's strategic resources because:

One implication of the resource-based perspective is that:

The analysis of a firm's principal functions and Porter's value chain are two approaches that can be used to identify a firm's capabilities.

Resource and capability appraisal is:

Establishing an inventory of a firm's capabilities turns out to be:

Distinctive competences are:

Establishing an inventory of a firm's resources from the Annual Corporate Report is:

Given a rapid rate of change in the external environment, the organization, its resources, and competencies present a more stable base from which to consider strategy.

The first step of capability management is:

The resource-based view focuses on:

Although capability levels vary from one firm to another:

The most important resources and capabilities are those which both give the firm a strength versus competitors, and which relate strongly to key success factors

The value of a firm's human plus intangible resources can be seen as the difference between its market capitalisation and the fair value of its tangible assets. The human plus intangible assets are then typically worth much more than the tangible assets.

The perceived importance of resources and capabilities to firms' strategies became prominent because:

In exploring how to create more value from tangible assets, two questions must be addressed:

The Concept of Strategy

Goals, Values and Performance

Industry Analysis: the Fundamentals

Further Topics in Industry and Competitive Analysis

Developing Resources and Capabilities

Organization Structure and Management Systems: the Fundamentals of Strategy Implementation

The Nature and Sources of Competitive Advantage

Cost Advantage

Differentiation Advantage

Industry Evolution and Strategic Change

Technology-Based Industries and the Management of Innovation

Competitive Advantage in Mature Industries

Vertical Integration and the Scope of the Firm

Global Strategies and the Multinational Corporation

Diversification Strategy

Implementing Corporate Strategy: Management of the Multibusiness Firm

Current Trends in Strategic Management

Filters

Exam 5: Analyzing Resources and Capabilities

Sources of strategic resource immobility between firms include:

Organizational capability, distinctive competence, and core competence are similar terms, relating to a firm's capacity to achieve competitive advantage.

Benchmarking typically involves a subjective comparison of firm's resources and capabilities with those of competitors.

The existence of a competitive advantage through resources and competencies is linked to:

The key to success is:

Human resources are included as part of a firm's strategic resources because:

One implication of the resource-based perspective is that:

The analysis of a firm's principal functions and Porter's value chain are two approaches that can be used to identify a firm's capabilities.

Resource and capability appraisal is:

Establishing an inventory of a firm's capabilities turns out to be:

Distinctive competences are:

Establishing an inventory of a firm's resources from the Annual Corporate Report is:

Given a rapid rate of change in the external environment, the organization, its resources, and competencies present a more stable base from which to consider strategy.

The first step of capability management is:

The resource-based view focuses on:

Although capability levels vary from one firm to another:

The most important resources and capabilities are those which both give the firm a strength versus competitors, and which relate strongly to key success factors

The value of a firm's human plus intangible resources can be seen as the difference between its market capitalisation and the fair value of its tangible assets. The human plus intangible assets are then typically worth much more than the tangible assets.

The perceived importance of resources and capabilities to firms' strategies became prominent because:

In exploring how to create more value from tangible assets, two questions must be addressed:

The Concept of Strategy

Goals, Values and Performance

Industry Analysis: the Fundamentals

Further Topics in Industry and Competitive Analysis

Developing Resources and Capabilities

Organization Structure and Management Systems: the Fundamentals of Strategy Implementation

The Nature and Sources of Competitive Advantage

Cost Advantage

Differentiation Advantage

Industry Evolution and Strategic Change

Technology-Based Industries and the Management of Innovation

Competitive Advantage in Mature Industries

Vertical Integration and the Scope of the Firm

Global Strategies and the Multinational Corporation

Diversification Strategy

Implementing Corporate Strategy: Management of the Multibusiness Firm

Current Trends in Strategic Management

Filters