Exam 3: Resources and Capabilities

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

Many multinationals consist of many people scattered in many different countries. As a result, their invisible relationships do not add value.

Critics of offshoring make all of the following arguments except: a. If even core functions like engineering, R&D, manufacturing, and marketing can-and often should-be moved outside the country, what is left of the firm? b. Critics argue such offshoring nurtures rivals. c. Offshoring increasingly results in job losses in high-end areas such as design, R&D, and IT/BPO. d. Many large US firms claim that they are "global companies" but they seem to be bound by "American values." e. In some cases, it undermines national security.

As you read through the text, you may be looking for secrets of success in doing business globally. This chapter gives IBM as an example of a firm that has been very successful. What did it say about the problem of identifying the reason for IBM's success? If the reason for success cannot be determined, should we abandon any attempt to develop a rational strategy and simply depend on luck?

Recent research suggests that capabilities in very dynamic high-velocity industries (such as IT) involve all of the following except: a. Simple (not complicated). b. Experiential (not analytic). c. Iterative (not linear processes). d. Involve "learning by doing." e. "Learning before doing."