Question 1

A resource or capability is considered ________ if it protects the firm from market uncertainties.

Accepted Answer

A)  rare 
B)  valuable 
C)  distinctive 
D)  exploitable 
A)  rare 
B)  valuable 
C)  distinctive 
D)  exploitable

Question 2

Stocks of resources and capabilities are created over time through divestments.

Accepted Answer

A) True 
 B)False

Question 3

Reconfiguring resources and capabilities is a static process.

Accepted Answer

A) True 
 B)False

Question 4

The process of resource accumulation is similar to the static possession of stocks of resources and capabilities.

Accepted Answer

A) True 
 B)False

Question 5

Causal ambiguity is a condition where a resource is considered valuable and rare because it is difficult to identify and understand.

Accepted Answer

A) True 
 B)False

Question 6

A firm's stock of resources and capabilities is what a firm possesses at any given time.

Accepted Answer

A) True 
 B)False

Question 7

Net profit margin is defined as net profits divided by total ________.

Accepted Answer

A)  inventory value 
B)  costs 
C)  sales 
D)  depreciation 
A)  inventory value 
B)  costs 
C)  sales 
D)  depreciation

Question 8

McDonalds' intangible real estate gives it a competitive advantage.

Accepted Answer

A) True 
 B)False

Question 9

Competitors who get to market later must settle for lower prices because ________.

Accepted Answer

A)  technology has changed 
B)  there are fewer resources available 
C)  there are more customers 
D)  prices have fallen 
A)  technology has changed 
B)  there are fewer resources available 
C)  there are more customers 
D)  prices have fallen

Question 10

Tangible resources include knowledge, culture, and patents.

Accepted Answer

A) True 
 B)False

Question 11

Exploitable resources can contribute to competitive advantage.

Accepted Answer

A) True 
 B)False

Question 12

How could managers increase the value of an intangible resource such as a patent?

Accepted Answer

Continual investment may augment the val

Question 13

One of the most fundamental tradeoffs managers make today is whether to ________ a historically integral value-chain activity.

Accepted Answer

A)  sell 
B)  acquire 
C)  outsource 
D)  expand 
A)  sell 
B)  acquire 
C)  outsource 
D)  expand

Question 14

It is more difficult for a new company to imitate the industry leader than for an older, established one.

Accepted Answer

A) True 
 B)False

Question 15

Stock can be reduced by all but which of the following?

Accepted Answer

A)  sustained investment 
B)  divestiture of business units 
C)  loss of key personnel 
D)  shifts in the competitive environment 
A)  sustained investment 
B)  divestiture of business units 
C)  loss of key personnel 
D)  shifts in the competitive environment

Question 16

There are certain generic resources available that any firm could acquire.

Accepted Answer

A) True 
 B)False

Question 17

Firms can use value-chain activities to create value by either finding better ways to perform the same activities or by ________.

Accepted Answer

A)  integrating new activities into the chain 
B)  finding different ways to perform the same activities 
C)  aligning with other firms to merge activities 
D)  changing activities to match what competitors are doing 
A)  integrating new activities into the chain 
B)  finding different ways to perform the same activities 
C)  aligning with other firms to merge activities 
D)  changing activities to match what competitors are doing

Question 18

The most clear-cut cause of resources and capabilities being difficult to substitute is ________.

Accepted Answer

A)  property rights 
B)  replication 
C)  inimitability 
D)  distinctive competencies 
A)  property rights 
B)  replication 
C)  inimitability 
D)  distinctive competencies

Question 19

Managers act as ________ when they put into motion the processes that use the firm's resources and capabilities.

Accepted Answer

A)  entrepreneurs 
B)  decision agents 
C)  communicators 
D)  psychoanalysts 
A)  entrepreneurs 
B)  decision agents 
C)  communicators 
D)  psychoanalysts

Question 20

What are resources? What are the two types of resources?

Accepted Answer

Resources are the inputs used

A resource or capability is considered ________ if it protects the firm from market uncertainties.

Stocks of resources and capabilities are created over time through divestments.

Reconfiguring resources and capabilities is a static process.

The process of resource accumulation is similar to the static possession of stocks of resources and capabilities.

Causal ambiguity is a condition where a resource is considered valuable and rare because it is difficult to identify and understand.

A firm's stock of resources and capabilities is what a firm possesses at any given time.

Net profit margin is defined as net profits divided by total ________.

McDonalds' intangible real estate gives it a competitive advantage.

Competitors who get to market later must settle for lower prices because ________.

Tangible resources include knowledge, culture, and patents.

Exploitable resources can contribute to competitive advantage.

How could managers increase the value of an intangible resource such as a patent?

One of the most fundamental tradeoffs managers make today is whether to ________ a historically integral value-chain activity.

It is more difficult for a new company to imitate the industry leader than for an older, established one.

Stock can be reduced by all but which of the following?

There are certain generic resources available that any firm could acquire.

Firms can use value-chain activities to create value by either finding better ways to perform the same activities or by ________.

The most clear-cut cause of resources and capabilities being difficult to substitute is ________.

Managers act as ________ when they put into motion the processes that use the firm's resources and capabilities.

What are resources? What are the two types of resources?

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

A resource or capability is considered ________ if it protects the firm from market uncertainties.

Stocks of resources and capabilities are created over time through divestments.

Reconfiguring resources and capabilities is a static process.

The process of resource accumulation is similar to the static possession of stocks of resources and capabilities.

Causal ambiguity is a condition where a resource is considered valuable and rare because it is difficult to identify and understand.

A firm's stock of resources and capabilities is what a firm possesses at any given time.

Net profit margin is defined as net profits divided by total ________.

McDonalds' intangible real estate gives it a competitive advantage.

Competitors who get to market later must settle for lower prices because ________.

Tangible resources include knowledge, culture, and patents.

Exploitable resources can contribute to competitive advantage.

How could managers increase the value of an intangible resource such as a patent?

One of the most fundamental tradeoffs managers make today is whether to ________ a historically integral value-chain activity.

It is more difficult for a new company to imitate the industry leader than for an older, established one.

Stock can be reduced by all but which of the following?

There are certain generic resources available that any firm could acquire.

Firms can use value-chain activities to create value by either finding better ways to perform the same activities or by ________.

The most clear-cut cause of resources and capabilities being difficult to substitute is ________.

Managers act as ________ when they put into motion the processes that use the firm's resources and capabilities.

What are resources? What are the two types of resources?

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