Question 1

Resources that are believed by management to be rare, durable, non-substitutable, non-tradable, and valuable are ________ resources.

Accepted Answer

A)  superb 
B)  superior 
C)  extraordinary 
D)  consequential 
A)  superb 
B)  superior 
C)  extraordinary 
D)  consequential C

Question 2

Causal ambiguity is a condition that exists when the link between a business's resources and its competitive advantage is known with certainty by managers or rivals.

Accepted Answer

A) True 
 B)False  False

Question 3

A resource that is perceived as rare can be just as powerful as a resource that is, in fact, rare.

Accepted Answer

A) True 
 B)False  True

Question 4

The legal means for protecting tangible and intangible assets through such things as patents, copyrights, and trademarks is called

Accepted Answer

A)  a knowledge "fort." 
B)  intellectual property protection. 
C)  the law of torts. 
D)  setting up knowledge guardians. 
A)  a knowledge "fort." 
B)  intellectual property protection. 
C)  the law of torts. 
D)  setting up knowledge guardians.

Question 5

Suppose that Caterpillar has invested in an extensive network of dealers and parts depots around the world to service its heavy equipment with the aim of making spare parts available within 48 hours or less when a piece of equipment breaks down. Komatsu, Caterpillar's rival, can reasonably substitute for this parts availability resource by

Accepted Answer

A)  building its own network of parts depots and equipment dealers. 
B)  making heavy equipment that simply never breaks down. 
C)  sending spare parts by way of overnight delivery from just one or a few parts depots. 
D)  including a complete package of spare parts with every piece of equipment that it sells. 
A)  building its own network of parts depots and equipment dealers. 
B)  making heavy equipment that simply never breaks down. 
C)  sending spare parts by way of overnight delivery from just one or a few parts depots. 
D)  including a complete package of spare parts with every piece of equipment that it sells.

Question 6

The tradability of a resource refers to its transferability or mobility among competitors.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following can make a resource difficult for competitors to imitate?

Accepted Answer

A)  intellectual property protection by patents or trademarks 
B)  routines or processes that are largely unobservable 
C)  the quick turnover of resources that creates a moving target 
D)  Both A and B above can make resource imitation difficult. 
A)  intellectual property protection by patents or trademarks 
B)  routines or processes that are largely unobservable 
C)  the quick turnover of resources that creates a moving target 
D)  Both A and B above can make resource imitation difficult.

Question 8

Ordinary resources are important only if they are built on a foundation of extraordinary resources and capabilities.

Accepted Answer

A) True 
 B)False

Question 9

An extraordinary resource must meet four out of the five VRIST criteria. It can then serve as the foundation for intermediate level capabilities.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is not one of the categories of resources that one might examine for its ability to provide a competitive advantage?

Accepted Answer

A)  knowledge 
B)  creative 
C)  human 
D)  technology 
A)  knowledge 
B)  creative 
C)  human 
D)  technology

Question 11

While a resource may not be rare or unique by objective measures, it may still be a source of a resource-based competitive advantage by the standard of rareness if it

Accepted Answer

A)  is perceived to be rare. 
B)  is managed exceedingly well. 
C)  can be hidden from rivals. 
D)  is used in a context in which it is valuable. 
A)  is perceived to be rare. 
B)  is managed exceedingly well. 
C)  can be hidden from rivals. 
D)  is used in a context in which it is valuable.

Question 12

In a resource-based analysis it is important that a firm's managers develop a list of resources and capabilities that includes only intangible resources that they suspect may be extraordinary.

Accepted Answer

A) True 
 B)False

Question 13

An industry analysis may show no unique market positions for firms in the industry so a firm's competitive advantage will depend on one or more idiosyncratic resources.

Accepted Answer

A) True 
 B)False

Question 14

In the VRIST framework a substitute for a resource is

Accepted Answer

A)  another resource that can provide comparable value-creating benefits. 
B)  a different product or service that serves the same function for a customer. 
C)  the same resource that has been developed contemporaneously by a competitor. 
D)  a resource that is deployed by the firm when the original resource is no longer available. 
A)  another resource that can provide comparable value-creating benefits. 
B)  a different product or service that serves the same function for a customer. 
C)  the same resource that has been developed contemporaneously by a competitor. 
D)  a resource that is deployed by the firm when the original resource is no longer available.

Question 15

For a resource-based analysis, it is best that the key decision makers in an organization develop a list of resources and capabilities.

Accepted Answer

A) True 
 B)False

Question 16

Answering the question "What is the cause of this outcome?" causes managers to think deeply about the resources and capabilities that are at the core of their company.

Accepted Answer

A) True 
 B)False

Question 17

Contrast ordinary and extraordinary resources. Provide an example of each.

Accepted Answer

A way to begin thinking about the variou

Question 18

Farmer John grows corn, a commodity. John also has an unparalleled ability to recognize good advertising when he sees it. This resource or capability is likely to be valuable to John in his farming business.

Accepted Answer

A) True 
 B)False

Question 19

________ and ________ are the foundations of superior performance.

Accepted Answer

A)  Resources; capabilities 
B)  Assets; capital structure 
C)  Government support; market power 
D)  Profits; market share 
A)  Resources; capabilities 
B)  Assets; capital structure 
C)  Government support; market power 
D)  Profits; market share

Question 20

Which criterion below characterizes a resource that is unique to a business and that cannot be appropriated by potential competitors?

Accepted Answer

A)  rare 
B)  non-tradable 
C)  non-substitutable 
D)  All of the above criteria should be met if a resource is to be unique and not appropriated by a competitor. 
A)  rare 
B)  non-tradable 
C)  non-substitutable 
D)  All of the above criteria should be met if a resource is to be unique and not appropriated by a competitor.

Resources that are believed by management to be rare, durable, non-substitutable, non-tradable, and valuable are ________ resources.

Causal ambiguity is a condition that exists when the link between a business's resources and its competitive advantage is known with certainty by managers or rivals.

A resource that is perceived as rare can be just as powerful as a resource that is, in fact, rare.

The legal means for protecting tangible and intangible assets through such things as patents, copyrights, and trademarks is called

The tradability of a resource refers to its transferability or mobility among competitors.

Which of the following can make a resource difficult for competitors to imitate?

Ordinary resources are important only if they are built on a foundation of extraordinary resources and capabilities.

An extraordinary resource must meet four out of the five VRIST criteria. It can then serve as the foundation for intermediate level capabilities.

Which of the following is not one of the categories of resources that one might examine for its ability to provide a competitive advantage?

While a resource may not be rare or unique by objective measures, it may still be a source of a resource-based competitive advantage by the standard of rareness if it

In a resource-based analysis it is important that a firm's managers develop a list of resources and capabilities that includes only intangible resources that they suspect may be extraordinary.

An industry analysis may show no unique market positions for firms in the industry so a firm's competitive advantage will depend on one or more idiosyncratic resources.

In the VRIST framework a substitute for a resource is

For a resource-based analysis, it is best that the key decision makers in an organization develop a list of resources and capabilities.

Answering the question "What is the cause of this outcome?" causes managers to think deeply about the resources and capabilities that are at the core of their company.

Contrast ordinary and extraordinary resources. Provide an example of each.

Farmer John grows corn, a commodity. John also has an unparalleled ability to recognize good advertising when he sees it. This resource or capability is likely to be valuable to John in his farming business.

and are the foundations of superior performance.

Which criterion below characterizes a resource that is unique to a business and that cannot be appropriated by potential competitors?

The Need for Strategy

Strategy and Performance

Strategic Direction: Vision and Mission

Industry and Competitive Analysis

Value Chain Analysis

Business-Level Strategy

Strategy Issues in Industries and Life Cycle Stages

Competitive Dynamics

Corporate Strategy

Strategy and Structure

Strategy Implementation: Control and Performance

Filters

Exam 6: Resource-Based Competitive Advantage

Resources that are believed by management to be rare, durable, non-substitutable, non-tradable, and valuable are ________ resources.

Causal ambiguity is a condition that exists when the link between a business's resources and its competitive advantage is known with certainty by managers or rivals.

A resource that is perceived as rare can be just as powerful as a resource that is, in fact, rare.

The legal means for protecting tangible and intangible assets through such things as patents, copyrights, and trademarks is called

The tradability of a resource refers to its transferability or mobility among competitors.

Which of the following can make a resource difficult for competitors to imitate?

Ordinary resources are important only if they are built on a foundation of extraordinary resources and capabilities.

An extraordinary resource must meet four out of the five VRIST criteria. It can then serve as the foundation for intermediate level capabilities.

Which of the following is not one of the categories of resources that one might examine for its ability to provide a competitive advantage?

While a resource may not be rare or unique by objective measures, it may still be a source of a resource-based competitive advantage by the standard of rareness if it

In a resource-based analysis it is important that a firm's managers develop a list of resources and capabilities that includes only intangible resources that they suspect may be extraordinary.

An industry analysis may show no unique market positions for firms in the industry so a firm's competitive advantage will depend on one or more idiosyncratic resources.

In the VRIST framework a substitute for a resource is

For a resource-based analysis, it is best that the key decision makers in an organization develop a list of resources and capabilities.

Answering the question "What is the cause of this outcome?" causes managers to think deeply about the resources and capabilities that are at the core of their company.

Contrast ordinary and extraordinary resources. Provide an example of each.

Farmer John grows corn, a commodity. John also has an unparalleled ability to recognize good advertising when he sees it. This resource or capability is likely to be valuable to John in his farming business.

________ and ________ are the foundations of superior performance.

Which criterion below characterizes a resource that is unique to a business and that cannot be appropriated by potential competitors?

The Need for Strategy

Strategy and Performance

Strategic Direction: Vision and Mission

Industry and Competitive Analysis

Value Chain Analysis

Business-Level Strategy

Strategy Issues in Industries and Life Cycle Stages

Competitive Dynamics

Corporate Strategy

Strategy and Structure

Strategy Implementation: Control and Performance

Filters

and are the foundations of superior performance.