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

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By emphasizing core competencies when formulating strategies,companies learn to compete primarily on the basis of

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may exist among managers making decisions as well as among those affected by the decisions.

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

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______are the source of a firm's______,which are the source of the firm's

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Any core competency has the potential to lose its value-creating ability.

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Describe the importance of internal analysis to the strategic success of the firm. Should not-for-profit organizations perform internal analysis? Why or Why not?

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Judgment is the capacity for making a successful decision when

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Creating customer value is the source of the firm's potential to earn above-average returns.

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

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Understanding how to leverage the firm's unique bundle of resources and capabilities is a key outcome decision makers seek when analyzing the internal organization.

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______can be viewed as the capacity to take action.

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Value consists of

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Technology is a critical resource for helping organizations learn how to continually innovate.

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

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

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GE's brand name is a tangible source of competitive advantage for the company.

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Interpersonal relationships,trust,friendships,and a firm's reputation are all examples of complex social phenomena that make capabilities easy to imitate.

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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.

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Tangible resources include

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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

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