Exam 3: Internal Analysis: Strengths, Weaknesses, and Competitive Advantage

Annabey Inc.,a small candy manufacturing company established in 1937,now has several large units that sell unique flavors of candies and assorted chocolates.When the company started out in 1937,it initially experienced slow growth as it was selling brand new products in the market,but later on,their sales picked up at a drastic speed when customers decided to try their products.The CEO of Annabey credits its growth to all the customers who love their candies and chocolates.Which of the following factors of inimitability is best reflected in this scenario?

What is an asset and how does it create an economic value to an organization?

Define resources.

Erik,the CEO of Indigo Inc.wants to improve the efficiency and effectiveness of his company.In order to do this,he lists out the assets of Indigo and the knowledge that the company has acquired over the years.Erik also analyzes the company's processes and its overall culture.The factor of production that Erik is studying can be best categorized as:

Define rarity and explain how it creates competitive advantage.

Kleo wants to start his own textile business.He believes that the best way to pull customers into buying his product is to be the first to create lightweight woolen jackets that would keep an individual warm and would also look good on the person.He decides to set up his store in the small town of Marida,which has a rough wintery season almost throughout the year.Kleo believes that he will be able to achieve plenty of profits with this idea with a commodity that is a needed all throughout the year.Which of the following statements strengthen Kleo's idea?

A survey is conducted among the customers of a supermarket chain.This survey reveals that the majority of these customers prefer to buy Lia,a brand of soap,because they feel that the company Lia Products Inc.has created a product that is of worth to the customers.The reason for the customers' preference is because the company constantly delivers what it promises.In this scenario,the factor that has made the brand of soap named Lia popular among these customers can be best categorized as _____.

The exclusive sofa company,Seaterz Inc.,has the best resources in terms of equipment,employees,infrastructure,and technology.Yet,it is not able to keep pace with its competitor SoftSofa Corp.After extensive analyses,the CEO of Seaterz stated the reason for their limitation.He stated that their company did not have a definite administrative system to audit and retain the profits created by the employees.Which of the following statements can be inferred about Seaterz Inc.from this scenario?

Neptune LLC is a company that manufactures electronic products.Its employees are given specific guidelines regarding the resources and capabilities that they should invest their company's money and time in.The employees are expected to follow these guidelines during Neptune's lean as well as peak seasons.Which of the following terms best reflects the guidelines that the employees of Neptune LLC are expected to follow?

A resource creates _____ if its contributions allow a company to produce a product or service that is of worth to end users.

Define capabilities and briefly describe the two types of capabilities.

TumbleDry Inc.,a washing machine company,has been able to make minimal profits in the market.However,TumbleDry has not been able to come up with any product innovations that are unique and hard to imitate.This scenario best exemplifies _____.

If a project requires a $20 million investment a year for the next two years,time compression diseconomies mean that you can't get the same results by spending $40 million in one year.MediCure Corp.is a pharmaceutical company that invested $30 million during the last financial year on research.The CEO of its rival company,PolyMed Inc.,decides to spend $60 million on the research during the next year in order to exceed the findings of MediCure.However,PolyMed fails to get the same results.Which of the following best reflects the factor that acted as a barrier to imitation for PolyMed Inc.?

Michelle,the CEO of Nariko Jets,an airlines company,stated that she owes the credit of her professional success to the time spent as a volunteer at a homeless shelter and her passion for artwork.She said that she learned to never stop dreaming from her work as a volunteer.Nariko Jets,according to Michelle,was the result of her combined efforts at life lessons that she learnt at the homeless shelter and her paintings which provided her the inspiration to help create passenger and jet airlines that would make travel easier and comfortable.Her competitors have always envied her success.Which of the following factors of inimitability is best reflected in this scenario?

The CEO of Saturn Interiors Corp.,an interior designing company,stated in an interview that he credits the company's success to the scenic environment that the company is located in.The employees of Saturn Interiors are inspired by the beauty of nature and that helps them create perfectly aesthetic homes for their customers.A similar company named Virgo Designs LLC had also started up in the same location and around the same time as Saturn Interiors.However,this company was unable to provide the same services to its customers even though the management hoped to do what Saturn Interiors did.It was later found that the employees of Saturn Interiors were trained in a specific way,and the culture of the company was very different from the way Virgo Designs functioned.Which of the following factors of inimitability does Saturn Interiors Corp.,have?

UniFront Corp.,a telecommunications company,has launched a new limited edition smartphone called zNINE that has advanced technology features and is built using high-grade material.The company has made only 99 of these zNINE cellphones and customers are ready to pay more than what the cellphone is worth because it is so limited in number.This scenario can be best categorized as an example of _____.

Pinto's Home Bakes is a 64-year-old company established in the year 1950.The company has been providing freshly baked breads and pastries daily for many years and has created a high reputation for itself.Its customers have always been satisfied with its timely service and delivery.The customers of Pinto's Home Bakes state that they prefer to go this deli because the products it delivers are never stale and have a unique flavor.Which of the following has Pinto's Home Bakes created for its customers?

Speed Express,a courier company,proves to be a definite challenge to its competitors.The technology,personnel,services,and organizational structure of the company are intricately bound together to create a system that is widely appreciated by its customers.Speed Express has state-of-the-art facilities for its transportation,delivery,or packaging operations.Speed Express also has a range of travelling bags and brand of wrist watches.The company's success rests on the complex interplay between all of its functions,products,and operations.Customers remain loyal to the company and prefer it over other brands and services.Which of the following factors of inimitability does Speed Express have?

Differentiate between explicit knowledge and tacit knowledge.

A company named Runathon Inc.had opened its store that displayed only shoe brands.The employees at the store were very service-oriented,and attended their customers and solved their queries efficiently.Runathon also had a special team of experts who advised customers on the type of shoe to choose for a particular sport.Few years later,another company called FitRight Corp.opened its store right opposite Runathon.Although FitRight had shoe brands,trekking gear,and sportswear displayed in its store,it was not able to attain the profits that Runathon did because its salespeople were not as experienced and learned as Runathon.Which of the following factors of inimitability did Runathon Inc.have?