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

Apple has combined some of its tangible resources (such as financial resources and research laboratories) and intangible resources (such as scientists, engineers, and organizational routines) to create a capability in R&D that creates a core competence in innovation.

All of the following are true about the strategic decisions managers make about their firm's internal organization EXCEPT that:

McDonald's culture, with an emphasis on cleanliness, consistency, service, and the training that reinforces the value of these characteristics, illustrates which of the following criteria for sustainable competitive advantage?

Which of the following is a true statement about capabilities?

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

Capabilities are usually developed separately from specific functional areas such as manufacturing, R&D, and marketing.

Firms achieve strategic competitiveness and earn above-average returns by acquiring, bundling, and leveraging their resources for the purpose of taking advantage of opportunities in the external environment in ways that create value for customers.

What are the differences between tangible and intangible resources? Which category of resources is more valuable to the firm?

Innovation, consumer understanding, brand-building, go-to-market, and scale are activities that P&G performs well and are examples of the company's:

Why is it important to identify internal strengths and weaknesses?

Describe an organization with which you are familiar.  Does it have a sustainable competitive advantage?

Define capabilities and how they affect the firm's strategic success.

Describe a value chain analysis. How does a value chain analysis help a firm gain competitive advantage?