Question 1

An organization's exploitative capabilities incorporate all of the dimensions of its value-adding processes.

Accepted Answer

A) True 
 B)False  True

Question 2

Why is it easier for a new entrant to imitate value-chain activities?

Accepted Answer

A new entrant has more flexibility than an established competitor to imitate successful value-chain configuration. The new firm has not already made commitments and investments to another value-chain configuration. So, they are better positioned to imitate a successful configuration and even make improvements on that model.

Question 3

Examples of differentiated resources include land, debt financing, and unskilled labor.

Accepted Answer

A) True 
 B)False  False

Question 4

A manager decides that certain activities are best performed by people outside the firm. This is known as ________.

Accepted Answer

A)  divesting 
B)  competing 
C)  outsourcing 
D)  resourcing 
A)  divesting 
B)  competing 
C)  outsourcing 
D)  resourcing

Question 5

Making imitation by other companies difficult helps a company protect its advantage.

Accepted Answer

A) True 
 B)False

Question 6

The Extended DuPont analysis arrives at a firm's return on ________.

Accepted Answer

A)  equity 
B)  investment 
C)  capital 
D)  losses 
A)  equity 
B)  investment 
C)  capital 
D)  losses

Question 7

Developing value-chain activities and configuring them so they are integrally related and not easily imitated is the key to the value-chain approach to competitive advantage.

Accepted Answer

A) True 
 B)False

Question 8

Three of the listed criteria appear to be common among successful outsourcing arrangements. Which is not common?

Accepted Answer

A)  quality assurance is outsourced 
B)  commitment of time and effort 
C)  partners are treated as partners 
D)  middle management is involved 
A)  quality assurance is outsourced 
B)  commitment of time and effort 
C)  partners are treated as partners 
D)  middle management is involved

Question 9

A complementary relationship between tangible resources and capabilities gives a firm a competitive advantage.

Accepted Answer

A) True 
 B)False

Question 10

If a firm outsources its marketing or distribution function, it may lose access to the knowledge of customer ________ that inspired its early product breakthroughs.

Accepted Answer

A)  education 
B)  socioeconomics 
C)  demographics 
D)  preferences 
A)  education 
B)  socioeconomics 
C)  demographics 
D)  preferences

Question 11

Because middle management ranks are typically more diverse in terms of ethnicity, gender, experience, and geography, this group has the potential to be more ________ than senior management.

Accepted Answer

A)  forward thinking 
B)  charismatic 
C)  entrepreneurial 
D)  reflective 
A)  forward thinking 
B)  charismatic 
C)  entrepreneurial 
D)  reflective

Question 12

The role of managers is so critical that some experts include managerial human capital among a firm's ________.

Accepted Answer

A)  liabilities 
B)  resources 
C)  static capabilities 
D)  financial assets 
A)  liabilities 
B)  resources 
C)  static capabilities 
D)  financial assets

Question 13

Accumulating resources is a dynamic process.

Accepted Answer

A) True 
 B)False

Question 14

Wal-Mart's management of logistics signifies an important intangible resource.

Accepted Answer

A) True 
 B)False

Question 15

Wal-Mart has gained a competitive advantage by locating stores in rural markets.

Accepted Answer

A) True 
 B)False

Question 16

What causes a resource or capability to be valuable?

Accepted Answer

A resource or capability is va

Question 17

Some experts suggest that firms should not even own resources that do not meet the VRINE criteria. Which of the following is not a rationale for this argument?

Accepted Answer

A)  Owning these resources may put the firm at a competitive disadvantage. 
B)  The capital tied up in these resources could be redistributed to shareholders. 
C)  These resources are usually more expensive to acquire. 
D)  The capital invested in these resources could be reinvested in other resources. 
A)  Owning these resources may put the firm at a competitive disadvantage. 
B)  The capital tied up in these resources could be redistributed to shareholders. 
C)  These resources are usually more expensive to acquire. 
D)  The capital invested in these resources could be reinvested in other resources.

Question 18

Resources are the inputs that firms use to create goods or services.

Accepted Answer

A) True 
 B)False

Question 19

In order to gain a sustainable competitive advantage, firms must both control and ________ resources and capabilities, according to the VRINE model.

Accepted Answer

A)  exploit 
B)  value 
C)  imitate 
D)  develop 
A)  exploit 
B)  value 
C)  imitate 
D)  develop

Question 20

Rebundling resources and capabilities can be accomplished through alliances and acquisitions.

Accepted Answer

A) True 
 B)False

An organization's exploitative capabilities incorporate all of the dimensions of its value-adding processes.

Why is it easier for a new entrant to imitate value-chain activities?

Examples of differentiated resources include land, debt financing, and unskilled labor.

A manager decides that certain activities are best performed by people outside the firm. This is known as ________.

Making imitation by other companies difficult helps a company protect its advantage.

The Extended DuPont analysis arrives at a firm's return on ________.

Developing value-chain activities and configuring them so they are integrally related and not easily imitated is the key to the value-chain approach to competitive advantage.

Three of the listed criteria appear to be common among successful outsourcing arrangements. Which is not common?

A complementary relationship between tangible resources and capabilities gives a firm a competitive advantage.

If a firm outsources its marketing or distribution function, it may lose access to the knowledge of customer ________ that inspired its early product breakthroughs.

Because middle management ranks are typically more diverse in terms of ethnicity, gender, experience, and geography, this group has the potential to be more ________ than senior management.

The role of managers is so critical that some experts include managerial human capital among a firm's ________.

Accumulating resources is a dynamic process.

Wal-Mart's management of logistics signifies an important intangible resource.

Wal-Mart has gained a competitive advantage by locating stores in rural markets.

What causes a resource or capability to be valuable?

Some experts suggest that firms should not even own resources that do not meet the VRINE criteria. Which of the following is not a rationale for this argument?

Resources are the inputs that firms use to create goods or services.

In order to gain a sustainable competitive advantage, firms must both control and ________ resources and capabilities, according to the VRINE model.

Rebundling resources and capabilities can be accomplished through alliances and acquisitions.

Introducing Strategic Management

Leading Strategically Through Effective Vision and Mission

Exploring the External Environment: Macro Industry and Dynamics

Creating Business Strategies

Crafting Business Strategy of Dynamic Contexts

Developing Corporate Strategy

Looking at International Strategies

Understanding Alliances and Cooperative Strategies

Studying Merges and Acquisitions

Organizational Structure, Systems, and Processes

Considering New Ventures and Corporate Renewal

Corporate Governance in the Twenty-First Century

Filters

Exam 3: Examining the Internal Environment: Resources

An organization's exploitative capabilities incorporate all of the dimensions of its value-adding processes.

Why is it easier for a new entrant to imitate value-chain activities?

Examples of differentiated resources include land, debt financing, and unskilled labor.

A manager decides that certain activities are best performed by people outside the firm. This is known as ________.

Making imitation by other companies difficult helps a company protect its advantage.

The Extended DuPont analysis arrives at a firm's return on ________.

Developing value-chain activities and configuring them so they are integrally related and not easily imitated is the key to the value-chain approach to competitive advantage.

Three of the listed criteria appear to be common among successful outsourcing arrangements. Which is not common?

A complementary relationship between tangible resources and capabilities gives a firm a competitive advantage.

If a firm outsources its marketing or distribution function, it may lose access to the knowledge of customer ________ that inspired its early product breakthroughs.

Because middle management ranks are typically more diverse in terms of ethnicity, gender, experience, and geography, this group has the potential to be more ________ than senior management.

The role of managers is so critical that some experts include managerial human capital among a firm's ________.

Accumulating resources is a dynamic process.

Wal-Mart's management of logistics signifies an important intangible resource.

Wal-Mart has gained a competitive advantage by locating stores in rural markets.

What causes a resource or capability to be valuable?

Some experts suggest that firms should not even own resources that do not meet the VRINE criteria. Which of the following is not a rationale for this argument?

Resources are the inputs that firms use to create goods or services.

In order to gain a sustainable competitive advantage, firms must both control and ________ resources and capabilities, according to the VRINE model.

Rebundling resources and capabilities can be accomplished through alliances and acquisitions.

Introducing Strategic Management

Leading Strategically Through Effective Vision and Mission

Exploring the External Environment: Macro Industry and Dynamics

Creating Business Strategies

Crafting Business Strategy of Dynamic Contexts

Developing Corporate Strategy

Looking at International Strategies

Understanding Alliances and Cooperative Strategies

Studying Merges and Acquisitions

Organizational Structure, Systems, and Processes

Considering New Ventures and Corporate Renewal

Corporate Governance in the Twenty-First Century

Filters