Exam 4: Internal Analysis: Resources, Capabilities, and Core Competencies

A firm's resource is most likely to be an internal strength and a core competency when the resource is:

Which of the following statements accurately describes a firm's resource flow?

The critical assumptions of the resource-based model of a firm are fundamentally different from the way in which a firm is viewed in the perfectly competitive industry structure.Elaborate on this statement.

Elaborate on the drawback of SWOT analysis with the help of an example.

Which of the following is an example of a firm's resources?

_____ allows managers to synthesize insights obtained from an internal analysis of a company's strengths and weaknesses with those from an analysis of external opportunities and threats.

The "diagonal assembly system" was a production system pioneered by the automobile company Mova.During the period when diagonal assembly system was a rare resource, Mova was able to gain a temporary competitive advantage.Once competitors became aware of this unique competency and started applying it as an industry standard, Mova was unable to sustain its competitive advantage.This loss of Mova's competitive advantage can be attributed to _____.

The resource-based view of a firm assumes that the:

In the context of the resource-based model of competitive advantage, if a successful firm exhibits resource immobility it means that the:

Brown Foods Inc., a leading chocolate producer, anticipated that the prices of cocoa beans would double in less than three years.This would disrupt the availability of cocoa in the industry.Thus, Brown Foods Inc.decided to purchase cocoa plantations in Ghana.As predicted, the prices of cocoa increased twofold.Because of the company-owned cocoa plantations, Brown Foods Inc.was able to sustain its competitive advantage in turbulent times.Which of the following isolating mechanisms does this scenario best illustrate?

Briefly describe the VRIO framework.

Gene Craft Inc.is the market leader in the pharmaceutical industry.Though most of its resources are common to those of its competitors, a few rare resources have helped the company gain and sustain a competitive advantage.Which of the following assets of Gene Craft Inc.is most likely to be considered a rare resource that is best contributing to its competitive advantage?

Given the accelerated pace of technological change, in combination with deregulation, globalization, and demographic shifts, a firm will only be successful today if its:

Provide examples of the secondary activities in a firm's value chain.

Mova Electronics, a leading pager manufacturer, recently declared itself bankrupt.This was attributed to a decision the company made in the past.While most of Mova's competitors were shifting their research focus toward cell phones, Mova invested most of its retained earnings on improvising its pagers.Once the pager market drastically declined, Mova Electronics was unable to capitalize on the new technology.Which of the following does this scenario best illustrate?

Otion Inc.is a relatively new firm in the consumer electronics industry.The company's primary objective is to become the market leader in less than 5 years, for which it has to gain and sustain a competitive advantage.In the context of the VRIO framework, which of the following resources should Otion Inc.primarily focus on to achieve its objective?

True Moto Corp.(TMC)is a leading automobile company.The company has been able to sustain its competitive advantage primarily due to its high quality and efficient electric motors.Most of its competitors have failed to develop similar electric motors at a reasonable price.Which of the following resource attributes listed in the VRIO framework has helped TMC sustain its competitive advantage?

A firm will fail to create a sustained competitive advantage when the:

Describe the core competencies of any three successful companies in today's business environment.

Dandelions Max is a consumer electronics company.It has acquired an edge over its competitors through its ability to provide breakthrough technology at the lowest price in the market.This advantage of Dandelions Max best exemplifies a _____.