Exam 3: Internal Analysis: Strengths, Weaknesses, and 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?

Resources that create _____ can be defined as those that create economic value for a firm.

Define capabilities and briefly describe the two types of capabilities.

Which of the following is a disadvantage of the value chain process?

Define resources.

The procedures, processes, or routines for delivering value to customers, employees, suppliers, or investors most accurately define the term _____.

Procedures, processes, and routines that continuously expand existing resources or improve operating capabilities most accurately define the term _____.

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?

A firm's advantage becomes stronger if it develops _____, processes that are designed to continuously expand existing resources or to improve or modify operating capabilities.

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 _____.

Bertha, a business analyst, wants to analyze Shop Wise Inc., a software company.She wants to know how the company, supplying its products and services for over a decade, still maintains competitive advantage over other companies.She does the analysis simply by walking around the company and taking notes.She even tries out one of the company's software programs and finds it useful.This scenario illustrates the use of _____.

LittleHut Inc., an international food company, has a number of resources to its credit.Over the years, the company has acquired factories, machinery, in-depth knowledge, and a stable reputation.The elements mentioned in this scenario can be best categorized as LittleHut Inc.'s _____.

Rize Inc.has been running efficiently as a real estate organization for 25 years.It has consistently provided customer satisfaction by maintaining a customer-friendly culture in the organization.Their competitors have not been able to replicate Rize's services.This has helped then generate and hold on to profits accrued by its vast and rare resource pool.This is an example of _____.

State the difference between operating capabilities and dynamic capabilities.

Which of the following statements is true of a value chain?

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?

ZipTag Inc.is an online company that allows venders of varied products to display their products to prospective buyers.This company has been providing service to both customers and sellers and has established itself in the market as a credible company to conduct business with.This has caused more dealers to display their products in ZipTag as they trust that the company will provide the necessary advertising to pull in prospective customers.This is an example of a _____.

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.?

Walter Evans, the founder of IronRod Shipping Industry, in order to manage his company more efficiently, suggested using the company diamond model to help counter the fierce competition in the market.Walter believes that this is a successful model and that it would open new doors into the line of systematic and efficient work processes.He believes the model to be an all-purpose solution whether it is in terms of managing resources, prioritizing work, or acknowledging capabilities.Which of the following would strengthen Walter's suggestion to adopt the company diamond method?

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?