Question 1

Path-dependent means that a company's capabilities today are the result of its history.

Accepted Answer

A) True 
 B)False  True

Question 2

The internal environment

Accepted Answer

A) is the structure inside an industry. 
B) has become less important as an explanation of firms' profitability. 
C) is how a firm's resources and capabilities are deployed to deliver its business strategy. 
D) can safely be left to the HR Department to manage. 
A) is the structure inside an industry. 
B) has become less important as an explanation of firms' profitability. 
C) is how a firm's resources and capabilities are deployed to deliver its business strategy. 
D) can safely be left to the HR Department to manage. C

Question 3

The final appraisal of the strengths and weaknesses of a firm's resources & capabilities

Accepted Answer

A) is a quantitative appraisal by an objective outside body. 
B) requires insight and understanding of a firm's industry, and its position within the industry. 
C) requires artistic flair and creative questioning. 
D) requires detailed knowledge of business strategy theory, and all its intellectual roots. 
A) is a quantitative appraisal by an objective outside body. 
B) requires insight and understanding of a firm's industry, and its position within the industry. 
C) requires artistic flair and creative questioning. 
D) requires detailed knowledge of business strategy theory, and all its intellectual roots. B

Question 4

Superior capabilities are often traced to staff skills and efforts

Accepted Answer

A) so pay is key: pay the highest rates and the best talents will walk into your firm. 
B) you need to pay a good market rate to attract and retain top talent. 
C) having the right corporate culture and being set the right challenges motivates good staff. 
D) b and c. 
A) so pay is key: pay the highest rates and the best talents will walk into your firm. 
B) you need to pay a good market rate to attract and retain top talent. 
C) having the right corporate culture and being set the right challenges motivates good staff. 
D) b and c.

Question 5

An experienced manager's knowledge is path-dependent.

Accepted Answer

A) True 
 B)False

Question 6

Remedying strategic weaknesses in capabilities is likely to take several years.

Accepted Answer

A) True 
 B)False

Question 7

Some firms introduce products into specific countries in a sequence The more a company outsources its value chain activities to a network of alliance partners, the more it needs to develop

Accepted Answer

A) new products. 
B) innovation. 
C) human resource skills. 
D) systems integration capability. 
A) new products. 
B) innovation. 
C) human resource skills. 
D) systems integration capability.

Question 8

When firms develop organizational routines they are

Accepted Answer

A) seeking to liven up boring production manuals. 
B) learning by doing. 
C) in the mature stage of an industry's life cycle. 
D) in the declining stage of an industry's life cycle. 
A) seeking to liven up boring production manuals. 
B) learning by doing. 
C) in the mature stage of an industry's life cycle. 
D) in the declining stage of an industry's life cycle.

Question 9

Core rigidities can

Accepted Answer

A) and must be eliminated by a new CEO. 
B) develop over long periods. 
C) inhibit firms' ability to develop new capabilities. 
D) b and c. 
A) and must be eliminated by a new CEO. 
B) develop over long periods. 
C) inhibit firms' ability to develop new capabilities. 
D) b and c.

Question 10

Path dependence is

Accepted Answer

A) where you are today, with all your knowledge, being a result of how you got here. 
B) the opposite: you could have got to today's position a hundred different ways. 
C) total reliance on one's own history. 
D) a way of planning the careers of future CEOs. 
A) where you are today, with all your knowledge, being a result of how you got here. 
B) the opposite: you could have got to today's position a hundred different ways. 
C) total reliance on one's own history. 
D) a way of planning the careers of future CEOs.

Question 11

Porter's firm value chain can be used to

Accepted Answer

A) estimate the value added at each stage of a good's production and distribution. 
B) show the after-tax profit generated by each part of the firm. 
C) show the pre-tax profit generated by each part of the firm. 
D) map out a firm's main activities into threshold and distinctive capabilities. 
A) estimate the value added at each stage of a good's production and distribution. 
B) show the after-tax profit generated by each part of the firm. 
C) show the pre-tax profit generated by each part of the firm. 
D) map out a firm's main activities into threshold and distinctive capabilities.

Question 12

Because marketing is a threshold capability for Hyundai,

Accepted Answer

A) they learned all the vital lessons early on. 
B) to counter their earlier poor image they have had to catch up to their rivals' capabilities. 
C) they do not need to pay it significant attention. 
D) they now excel at marketing. 
A) they learned all the vital lessons early on. 
B) to counter their earlier poor image they have had to catch up to their rivals' capabilities. 
C) they do not need to pay it significant attention. 
D) they now excel at marketing.

Question 13

Threshold capabilities enable a firm to do what every firm in its industry must do. Distinctive competences

Accepted Answer

A) describe those things that an organization does particularly well relative to its competitors. 
B) are its unique selling point. 
C) are those product features that stop non-customers from buying the product. 
D) are captured in logos, trademarks etc. 
A) describe those things that an organization does particularly well relative to its competitors. 
B) are its unique selling point. 
C) are those product features that stop non-customers from buying the product. 
D) are captured in logos, trademarks etc.

Question 14

Superior capabilities can be acquired and owned by astute firms.

Accepted Answer

A) True 
 B)False

Question 15

Hyundai overcame the most difficult competitive advantages held by the incumbent automakers by

Accepted Answer

A) recruiting experts from other auto companies. 
B) benchmarking the key capabilities needed to succeed, then making clear commitments to achieve them. 
C) making long-term financial and business commitments to the auto industry. 
D) all of the above. 
A) recruiting experts from other auto companies. 
B) benchmarking the key capabilities needed to succeed, then making clear commitments to achieve them. 
C) making long-term financial and business commitments to the auto industry. 
D) all of the above.

Question 16

BMW's core competence is its ability to integrate

Accepted Answer

A) world-class engineering, design excellence, and effective marketing. 
B) world-class engineering, design excellence, and knowledge of global markets. 
C) world-class engineering, design excellence, and products for every luxury market. 
D) world-class products, design excellence, and products for every luxury market. 
A) world-class engineering, design excellence, and effective marketing. 
B) world-class engineering, design excellence, and knowledge of global markets. 
C) world-class engineering, design excellence, and products for every luxury market. 
D) world-class products, design excellence, and products for every luxury market.

Question 17

Human resources are always listed on a firm's balance sheet.

Accepted Answer

A) True 
 B)False

Question 18

It is vital for a business strategist to distinguish between a firm's resources and its capabilities.

Accepted Answer

A) True 
 B)False

Question 19

Companies' "book values" are generally much less than their stock market valuations because

Accepted Answer

A) auditors tend to err on the conservative side. 
B) accountants are generally required by accounting standards to ignore the value of brands and all other reputational assets. 
C) to be on the safe side accountants tend to undervalue brand values. 
D) accountants and marketing experts have different methods of valuing brands. 
A) auditors tend to err on the conservative side. 
B) accountants are generally required by accounting standards to ignore the value of brands and all other reputational assets. 
C) to be on the safe side accountants tend to undervalue brand values. 
D) accountants and marketing experts have different methods of valuing brands.

Question 20

Industry attractiveness is now more important in explaining firms' profitability than competitive advantage.

Accepted Answer

A) True 
 B)False

Path-dependent means that a company's capabilities today are the result of its history.

The internal environment

The final appraisal of the strengths and weaknesses of a firm's resources & capabilities

Superior capabilities are often traced to staff skills and efforts

An experienced manager's knowledge is path-dependent.

Remedying strategic weaknesses in capabilities is likely to take several years.

Some firms introduce products into specific countries in a sequence The more a company outsources its value chain activities to a network of alliance partners, the more it needs to develop

When firms develop organizational routines they are

Core rigidities can

Path dependence is

Porter's firm value chain can be used to

Because marketing is a threshold capability for Hyundai,

Threshold capabilities enable a firm to do what every firm in its industry must do. Distinctive competences

Superior capabilities can be acquired and owned by astute firms.

Hyundai overcame the most difficult competitive advantages held by the incumbent automakers by

BMW's core competence is its ability to integrate

Human resources are always listed on a firm's balance sheet.

It is vital for a business strategist to distinguish between a firm's resources and its capabilities.

Companies' "book values" are generally much less than their stock market valuations because

Industry attractiveness is now more important in explaining firms' profitability than competitive advantage.

The Concept of Stategy

Industry Analysis

The Nature and Sources of Competitive

Industry Evolution and Strategic Change

Technology-Based Industries and the Management of Innovation

Corporate Stategy

Realizing Stategy

Global Strategies and the Multinational Corporation

Corporate Responsibility

Filters

Exam 3: Resources and Capabilities

Path-dependent means that a company's capabilities today are the result of its history.

The internal environment

The final appraisal of the strengths and weaknesses of a firm's resources & capabilities

Superior capabilities are often traced to staff skills and efforts

An experienced manager's knowledge is path-dependent.

Remedying strategic weaknesses in capabilities is likely to take several years.

Some firms introduce products into specific countries in a sequence The more a company outsources its value chain activities to a network of alliance partners, the more it needs to develop

When firms develop organizational routines they are

Core rigidities can

Path dependence is

Porter's firm value chain can be used to

Because marketing is a threshold capability for Hyundai,

Threshold capabilities enable a firm to do what every firm in its industry must do. Distinctive competences

Superior capabilities can be acquired and owned by astute firms.

Hyundai overcame the most difficult competitive advantages held by the incumbent automakers by

BMW's core competence is its ability to integrate

Human resources are always listed on a firm's balance sheet.

It is vital for a business strategist to distinguish between a firm's resources and its capabilities.

Companies' "book values" are generally much less than their stock market valuations because

Industry attractiveness is now more important in explaining firms' profitability than competitive advantage.

The Concept of Stategy

Industry Analysis

The Nature and Sources of Competitive

Industry Evolution and Strategic Change

Technology-Based Industries and the Management of Innovation

Corporate Stategy

Realizing Stategy

Global Strategies and the Multinational Corporation

Corporate Responsibility

Filters