Question 1

Firms should seek to continually develop new core competencies because all core competencies have limited life spans.

Accepted Answer

A) True 
 B)False

Question 2

According to the resource-based view of the firm:

Accepted Answer

A)  Organizational resources include physical resources such as plants 
B)  One of the most important roles of strategic managers is to manage resources so as to produce a sustainable competitive advantage 
C)  Organizational resources include organizational culture 
D)  All of the above 
A)  Organizational resources include physical resources such as plants 
B)  One of the most important roles of strategic managers is to manage resources so as to produce a sustainable competitive advantage 
C)  Organizational resources include organizational culture 
D)  All of the above

Question 3

Which of the following is a potential drawback of value chain analysis?

Accepted Answer

A)  It offers a heavily market-based view 
B)  It depends on information systems to provide useful data 
C)  It requires managers to set aside time from their regular duties to examine data 
D)  It requires thorough knowledge of financial ratios if it is to be done right 
A)  It offers a heavily market-based view 
B)  It depends on information systems to provide useful data 
C)  It requires managers to set aside time from their regular duties to examine data 
D)  It requires thorough knowledge of financial ratios if it is to be done right

Question 4

Intangible resources include such things as the skills of the founders of a company,the organization's culture,and relationships with key suppliers.

Accepted Answer

A) True 
 B)False

Question 5

Imitation is not likely to be a successful strategy.

Accepted Answer

A) True 
 B)False

Question 6

Explain the value chain and how it can be used to help firms develop competitive advantages.

Accepted Answer

.The value chain divides organizational

Question 7

Briefly describe the steps involved in a resource-based analysis.

Accepted Answer

.The first step requires key decision ma

Question 8

Value chain analysis is a tool used to:

Accepted Answer

A)  Analyze a firm's external environment for value-creating opportunities 
B)  Analyze a firm's primary and support activity in isolation from influences of the external environment 
C)  Understand the parts of the firm's operation that create value and those that do not 
D)  Identify the firm's core competencies in each of the primary activities of the firm 
A)  Analyze a firm's external environment for value-creating opportunities 
B)  Analyze a firm's primary and support activity in isolation from influences of the external environment 
C)  Understand the parts of the firm's operation that create value and those that do not 
D)  Identify the firm's core competencies in each of the primary activities of the firm

Question 9

The more core competencies a firm has,the more likely it is to generate a sustained competitive advantage.

Accepted Answer

A) True 
 B)False

Question 10

Tacit knowledge is probably the most _________ resource.

Accepted Answer

A)  Valuable 
B)  Unique 
C)  Hard-to-imitate 
D)  All of the above 
A)  Valuable 
B)  Unique 
C)  Hard-to-imitate 
D)  All of the above

Question 11

A capability is a set of tightly integrated activities,organizational skills,and internally developed routines that relies on ordinary resources. Combining resources into activities eliminates the requirement that they be extraordinary to produce superior performance.

Accepted Answer

A) True 
 B)False

Question 12

The logic of the resource-based view is relatively static.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

The resource-based model assumes that if firms have resources that are rare or costly to imitate,this is sufficient to form a basis for competitive advantage.

Accepted Answer

A) True 
 B)False

Question 15

A realized competitive advantage becomes sustainable when:

Accepted Answer

A)  It is unique, valuable, and based on strong financial resources 
B)  It involves all of the functional areas of the organization 
C)  It is based on physical assets rather than knowledge 
D)  It is based on a resource or capability that is difficult to imitate by competitors and there is no readily available substitute 
A)  It is unique, valuable, and based on strong financial resources 
B)  It involves all of the functional areas of the organization 
C)  It is based on physical assets rather than knowledge 
D)  It is based on a resource or capability that is difficult to imitate by competitors and there is no readily available substitute

Question 16

The resource-based model of the firm argues that:

Accepted Answer

A)  All resources have the potential to be the basis of sustainable competitive advantage 
B)  Resources alone can be a source of sustainable competitive advantage 
C)  The key to competitive success is the structure of the industry in which the firm competes 
D)  Resources that are valuable, rare, costly to imitate, and non-substitutable form the basis of a firm's core competencies 
A)  All resources have the potential to be the basis of sustainable competitive advantage 
B)  Resources alone can be a source of sustainable competitive advantage 
C)  The key to competitive success is the structure of the industry in which the firm competes 
D)  Resources that are valuable, rare, costly to imitate, and non-substitutable form the basis of a firm's core competencies

Question 17

Causal ambiguity refers to the difficulty of identifying the outcomes of causal determinants.

Accepted Answer

A) True 
 B)False

Question 18

Briefly describe the steps to be taken when performing a value chain analysis. Don't merely list them; be sure to explain each step.

Accepted Answer

.There are three steps to a value chain

Question 19

When the link between a company's resources and its competitive advantage is poorly understood a state of ________ exists.

Accepted Answer

A)  Causal ambiguity 
B)  Market uncertainty 
C)  Poor management 
D)  Strategic uncertainty 
A)  Causal ambiguity 
B)  Market uncertainty 
C)  Poor management 
D)  Strategic uncertainty

Question 20

A sustained competitive advantage can last since not all advantages eventually erode.

Accepted Answer

A) True 
 B)False

Firms should seek to continually develop new core competencies because all core competencies have limited life spans.

According to the resource-based view of the firm:

Which of the following is a potential drawback of value chain analysis?

Intangible resources include such things as the skills of the founders of a company,the organization's culture,and relationships with key suppliers.

Imitation is not likely to be a successful strategy.

Explain the value chain and how it can be used to help firms develop competitive advantages.

Briefly describe the steps involved in a resource-based analysis.

Value chain analysis is a tool used to:

The more core competencies a firm has,the more likely it is to generate a sustained competitive advantage.

Tacit knowledge is probably the most _________ resource.

A capability is a set of tightly integrated activities,organizational skills,and internally developed routines that relies on ordinary resources. Combining resources into activities eliminates the requirement that they be extraordinary to produce superior performance.

The logic of the resource-based view is relatively static.

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

The resource-based model assumes that if firms have resources that are rare or costly to imitate,this is sufficient to form a basis for competitive advantage.

A realized competitive advantage becomes sustainable when:

The resource-based model of the firm argues that:

Causal ambiguity refers to the difficulty of identifying the outcomes of causal determinants.

Briefly describe the steps to be taken when performing a value chain analysis. Don't merely list them; be sure to explain each step.

When the link between a company's resources and its competitive advantage is poorly understood a state of ________ exists.

A sustained competitive advantage can last since not all advantages eventually erode.

What is Strategy

Strategic Objectives

Governance,Ethics & Corporate Social Responsibility in Strategy

Culture and Strategy

The External Environment

Business-Level Strategy

Corporate-Level Strategy

International Strategy

Competitive Rivalry & Competitive Dynamics

Strategic Leadership

Strategic Failure and Turnaround

Strategic Change

Strategic Implementation

Organizational Structure and Controls

Strategic Entrepreneurship

Filters

Exam 5: The Internal Environment

Firms should seek to continually develop new core competencies because all core competencies have limited life spans.

According to the resource-based view of the firm:

Which of the following is a potential drawback of value chain analysis?

Intangible resources include such things as the skills of the founders of a company,the organization's culture,and relationships with key suppliers.

Imitation is not likely to be a successful strategy.

Explain the value chain and how it can be used to help firms develop competitive advantages.

Briefly describe the steps involved in a resource-based analysis.

Value chain analysis is a tool used to:

The more core competencies a firm has,the more likely it is to generate a sustained competitive advantage.

Tacit knowledge is probably the most _________ resource.

A capability is a set of tightly integrated activities,organizational skills,and internally developed routines that relies on ordinary resources. Combining resources into activities eliminates the requirement that they be extraordinary to produce superior performance.

The logic of the resource-based view is relatively static.

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

The resource-based model assumes that if firms have resources that are rare or costly to imitate,this is sufficient to form a basis for competitive advantage.

A realized competitive advantage becomes sustainable when:

The resource-based model of the firm argues that:

Causal ambiguity refers to the difficulty of identifying the outcomes of causal determinants.

Briefly describe the steps to be taken when performing a value chain analysis. Don't merely list them; be sure to explain each step.

When the link between a company's resources and its competitive advantage is poorly understood a state of ________ exists.

A sustained competitive advantage can last since not all advantages eventually erode.

What is Strategy

Strategic Objectives

Governance,Ethics & Corporate Social Responsibility in Strategy

Culture and Strategy

The External Environment

Business-Level Strategy

Corporate-Level Strategy

International Strategy

Competitive Rivalry & Competitive Dynamics

Strategic Leadership

Strategic Failure and Turnaround

Strategic Change

Strategic Implementation

Organizational Structure and Controls

Strategic Entrepreneurship

Filters