Question 1

In the context of SWOT analysis, which of the following best exemplifies a firm's internal weakness?

Accepted Answer

A)  Fall in the purchasing power of the firm's customers 
B)  Increased competition in the industry where the firm operates 
C)  Irregularity in the raw materials supply throughout the industry 
D)  Decline in the firm's market share 
A)  Fall in the purchasing power of the firm's customers 
B)  Increased competition in the industry where the firm operates 
C)  Irregularity in the raw materials supply throughout the industry 
D)  Decline in the firm's market share

Question 2

Even though many valuable, rare, and inimitable resources were generated at Xerox's Palo Alto Research Center (PARC), the management at Xerox's headquarters failed to gain a competitive advantage by exploiting the breakthroughs in computing software and hardware.What is the most likely implication of this example?

Accepted Answer

A)  It is advisable to outsource research and development functions. 
B)  Competitive advantage cannot be gained through unrelated diversification. 
C)  A firm must be effectively organized to capture value. 
D)  It is better to build competitive advantage on tangible assets rather than intangible assets. 
A)  It is advisable to outsource research and development functions. 
B)  Competitive advantage cannot be gained through unrelated diversification. 
C)  A firm must be effectively organized to capture value. 
D)  It is better to build competitive advantage on tangible assets rather than intangible assets.

Question 3

True Autos Inc.has been trying to directly copy the strategies of Red Autos Inc.Even though it is evident that Red Auto's Inc.'s success comes from its just-in-time inventory system, True Auto's Inc.has not been able to effectively apply the system in the same way.This is because the organizational structures, employees, cultures, and the overall business systems of both the companies vary from each other.Which of the following barriers to imitation does this scenario best illustrate?

Accepted Answer

A)  Path dependence 
B)  Social complexity 
C)  Resource mobility 
D)  Resource homogeneity 
A)  Path dependence 
B)  Social complexity 
C)  Resource mobility 
D)  Resource homogeneity

Question 4

Elaborate on time compression diseconomies.

Accepted Answer

Path dependence rests on the notion that

Question 5

Sarah has recently started a restaurant in a commercial area where there are many other established restaurants and popular fast food chains.Sarah owns the plot on which her restaurant is located and this makes her cost of operations lower than the competitors.This factor allows her to offer her products at a competitive price.Sarah has also invested a huge amount on the interiors of the restaurant and in equipping the kitchen with the latest appliances used by her competitors.In this scenario, which of the following is the most valuable resource for Sarah's business?

Accepted Answer

A)  The investments made by Sarah on the restaurant's interiors 
B)  The latest kitchen equipment that is at par with the restaurant's competitors 
C)  The restaurant's late entry into the market 
D)  The land owned by Sarah, which reduces cost of operations 
A)  The investments made by Sarah on the restaurant's interiors 
B)  The latest kitchen equipment that is at par with the restaurant's competitors 
C)  The restaurant's late entry into the market 
D)  The land owned by Sarah, which reduces cost of operations

Question 6

Creating resources that meet the VRIO criteria is strategically important to a firm because it:

Accepted Answer

A)  helps the firm curb its resource heterogeneity and resource immobility. 
B)  facilitates greater knowledge diffusion in the industry. 
C)  leads to competitive parity within the industry. 
D)  helps the firm to gain and sustain a competitive advantage. 
A)  helps the firm curb its resource heterogeneity and resource immobility. 
B)  facilitates greater knowledge diffusion in the industry. 
C)  leads to competitive parity within the industry. 
D)  helps the firm to gain and sustain a competitive advantage.

Question 7

Differentiate resource stocks from resource flows.

Accepted Answer

Resource stocks are a firm's current lev

Question 8

Onyxo Inc., a consumer electronics company, is the leading manufacturer of LCD televisions.LCD technology has been its core competency and the company holds 80 percent shares in that market.However, Onyxo Inc.'s competitors have now moved on to advance technologies like LED and 3D televisions.According to the dynamic capabilities perspective, what should Onyxo Inc.do?

Accepted Answer

A)  Onyxo Inc. should start working on LED and 3D television technologies to adapt its core competency to suit the external environment. 
B)  Onyxo Inc. should stick to its existing core competency, that is LCD technology, as it is the best in that segment. 
C)  Onyxo Inc. should take proactive steps to reduce the causal ambiguity and socially complexity of its core competency. 
D)  Onyxo Inc. should work on enhancing the mobility of its core competency. 
A)  Onyxo Inc. should start working on LED and 3D television technologies to adapt its core competency to suit the external environment. 
B)  Onyxo Inc. should stick to its existing core competency, that is LCD technology, as it is the best in that segment. 
C)  Onyxo Inc. should take proactive steps to reduce the causal ambiguity and socially complexity of its core competency. 
D)  Onyxo Inc. should work on enhancing the mobility of its core competency.

Question 9

Jeremy a manager at a multinational organization is trying to carefully scan and link the firm's internal environment to its external environment.The insights from this analysis will allow him to effectively leverage the company's internal strengths to exploit external opportunities, while mitigating internal weaknesses and external threats.In this scenario, which of the following managerial tools is Jeremy employing?

Accepted Answer

A)  Blake Mouton managerial grid 
B)  Ansoff's matrix 
C)  BCG analysis 
D)  SWOT analysis 
A)  Blake Mouton managerial grid 
B)  Ansoff's matrix 
C)  BCG analysis 
D)  SWOT analysis

Question 10

Onyx Tech Inc.'s competency in designing and manufacturing efficient microprocessors has made its laptops the most advanced computers in the market.This competency, along with the just-in-time manufacturing system, has enabled Onyx Tech Inc.to increase its profitability by lowering its production costs.Thus, Onyx's competency in designing and manufacturing microprocessors will be considered a(n)_____ resource in the VRIO framework.

Accepted Answer

A)  valuable 
B)  inexhaustible 
C)  tangible 
D)  perishable 
A)  valuable 
B)  inexhaustible 
C)  tangible 
D)  perishable

Question 11

In the context of SWOT analysis, a firm can develop an offensive strategic option primarily by:

Accepted Answer

A)  combining an internal weakness with an external threat. 
B)  leveraging its internal strengths to minimize external threats. 
C)  leveraging an external opportunity to overcome an internal threat. 
D)  using its internal strengths to exploit external opportunities. 
A)  combining an internal weakness with an external threat. 
B)  leveraging its internal strengths to minimize external threats. 
C)  leveraging an external opportunity to overcome an internal threat. 
D)  using its internal strengths to exploit external opportunities.

Question 12

With regard to the VRIO framework, Crocs Shoes was unable to sustain its competitive advantage primarily because its products were:

Accepted Answer

A)  invaluable and common. 
B)  easy to imitate. 
C)  extremely expensive. 
D)  non-substitutable. 
A)  invaluable and common. 
B)  easy to imitate. 
C)  extremely expensive. 
D)  non-substitutable.

Question 13

As a result of _____, a critical assumption in the resource-based model of a firm, the resource differences that exist between firms are difficult to replicate.

Accepted Answer

A)  resource immobility 
B)  resource homogeneity 
C)  resource perishability 
D)  resource equality 
A)  resource immobility 
B)  resource homogeneity 
C)  resource perishability 
D)  resource equality

Question 14

How do firms benefit from value chain analysis?

Accepted Answer

A careful analysis of the value chain al

Question 15

A critical assumption in the resource-based model of a firm is resource heterogeneity.Elaborate on this statement.

Accepted Answer

In the resource-based view, a firm is as

Question 16

In the context of the SWOT matrix, which of the following best exemplifies a firm's internal strength?

Accepted Answer

A)  Increase in a firm's customer loyalty 
B)  Growth in the size of the market in which a firm operates 
C)  Rise in the income of the demographic segment to which a firm caters 
D)  Loss of a competitor's reputation 
A)  Increase in a firm's customer loyalty 
B)  Growth in the size of the market in which a firm operates 
C)  Rise in the income of the demographic segment to which a firm caters 
D)  Loss of a competitor's reputation

Question 17

_____ are barriers to imitation that prevent rivals from competing away the advantage a firm may enjoy.

Accepted Answer

A)  Embargoes 
B)  Cartel arrangements 
C)  Isolating mechanisms 
D)  Market niches 
A)  Embargoes 
B)  Cartel arrangements 
C)  Isolating mechanisms 
D)  Market niches

Question 18

Coral Think Inc.is a new company in the publishing industry.It has raised sufficient capital from multiple sources.It is planning to use its capital to purchase certain assets.Which of the following assets will be the most difficult for Coral Think Inc.to acquire using its capital?

Accepted Answer

A)  Inventory 
B)  Tools and equipment 
C)  Land and building 
D)  Brand name 
A)  Inventory 
B)  Tools and equipment 
C)  Land and building 
D)  Brand name

Question 19

Competitors have found it extremely difficult to imitate Gene Electronics Inc.'s valuable resources, capabilities, or competencies.This is primarily because the source for the company's success has been unclear.The competitors are uncertain if Gene Electronics Inc.'s success is due to its strong leadership, the skills of its research and development team, or the timing of the company' s product introductions.Gene Electronics Inc.has been protected from losing its competitive advantage as a result of _____.

Accepted Answer

A)  time compression diseconomies 
B)  resource homogeneity 
C)  causal ambiguity 
D)  path dependence 
A)  time compression diseconomies 
B)  resource homogeneity 
C)  causal ambiguity 
D)  path dependence

Question 20

How do firms benefit from their dynamic capabilities?

Accepted Answer

Dynamic capabilities are essential to mo

In the context of SWOT analysis, which of the following best exemplifies a firm's internal weakness?

Elaborate on time compression diseconomies.

Creating resources that meet the VRIO criteria is strategically important to a firm because it:

Differentiate resource stocks from resource flows.

In the context of SWOT analysis, a firm can develop an offensive strategic option primarily by:

With regard to the VRIO framework, Crocs Shoes was unable to sustain its competitive advantage primarily because its products were:

As a result of _____, a critical assumption in the resource-based model of a firm, the resource differences that exist between firms are difficult to replicate.

How do firms benefit from value chain analysis?

A critical assumption in the resource-based model of a firm is resource heterogeneity.Elaborate on this statement.

In the context of the SWOT matrix, which of the following best exemplifies a firm's internal strength?

_____ are barriers to imitation that prevent rivals from competing away the advantage a firm may enjoy.

Coral Think Inc.is a new company in the publishing industry.It has raised sufficient capital from multiple sources.It is planning to use its capital to purchase certain assets.Which of the following assets will be the most difficult for Coral Think Inc.to acquire using its capital?

How do firms benefit from their dynamic capabilities?

What Is Strategy

Strategic Leadership: Managing the Strategy Process

External Analysis: Industry Structure, Competitive Forces, and Strategic Groups

Competitive Advantage, Firm Performance, and Business Models

Business Strategy: Differentiation, Cost Leadership, and Blue Oceans

Business Strategy: Innovation, Entrepreneurship, and Platforms

Corporate Strategy: Vertical Integration and Diversification

Corporate Strategy: Strategic Alliances, Mergers and Acquisitions

Global Strategy: Competing Around the World

Organizational Design: Structure, Culture, and Control

Corporate Governance and Business Ethics

Filters

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

In the context of SWOT analysis, which of the following best exemplifies a firm's internal weakness?

Elaborate on time compression diseconomies.

Creating resources that meet the VRIO criteria is strategically important to a firm because it:

Differentiate resource stocks from resource flows.

In the context of SWOT analysis, a firm can develop an offensive strategic option primarily by:

With regard to the VRIO framework, Crocs Shoes was unable to sustain its competitive advantage primarily because its products were:

As a result of _____, a critical assumption in the resource-based model of a firm, the resource differences that exist between firms are difficult to replicate.

How do firms benefit from value chain analysis?

A critical assumption in the resource-based model of a firm is resource heterogeneity.Elaborate on this statement.

In the context of the SWOT matrix, which of the following best exemplifies a firm's internal strength?

_____ are barriers to imitation that prevent rivals from competing away the advantage a firm may enjoy.

Coral Think Inc.is a new company in the publishing industry.It has raised sufficient capital from multiple sources.It is planning to use its capital to purchase certain assets.Which of the following assets will be the most difficult for Coral Think Inc.to acquire using its capital?

How do firms benefit from their dynamic capabilities?

What Is Strategy

Strategic Leadership: Managing the Strategy Process

External Analysis: Industry Structure, Competitive Forces, and Strategic Groups

Competitive Advantage, Firm Performance, and Business Models

Business Strategy: Differentiation, Cost Leadership, and Blue Oceans

Business Strategy: Innovation, Entrepreneurship, and Platforms

Corporate Strategy: Vertical Integration and Diversification

Corporate Strategy: Strategic Alliances, Mergers and Acquisitions

Global Strategy: Competing Around the World

Organizational Design: Structure, Culture, and Control

Corporate Governance and Business Ethics

Filters