Question 1

Organizational culture is an important resource for most business enterprises because:

Accepted Answer

A) It help employees to understand one another 
B) It has a powerful motivating effect 
C) It influences the capabilities a business develops and how these capabilities are exercised 
D) It shapes a business's vision 
A) It help employees to understand one another 
B) It has a powerful motivating effect 
C) It influences the capabilities a business develops and how these capabilities are exercised 
D) It shapes a business's vision C

Question 2

David's victory of over Goliath (as portrayed in The Bible)demonstrates the importance of aligning strategy with one's resources and capabilities.

Accepted Answer

A) True 
 B)False  True

Question 3

The ability of established firms to reconfigure their resources and capabilities around new technologies means that,typically,disruptive technologies are pioneered by established rather than new firms.

Accepted Answer

A) True 
 B)False  False

Question 4

For most organizations,geographical location should be regarded as:

Accepted Answer

A) A resource whose characteristics can be an important source of competitive advantage 
B) A formerly-important resource which is becoming increasingly irrelevant in a digital world 
C) An organizational characteristic,not a resource 
D) A source of competitive advantage only if it offers access to an industry ecosystem such as Silicon Valley for IT firms and New York for advertising firms 
A) A resource whose characteristics can be an important source of competitive advantage 
B) A formerly-important resource which is becoming increasingly irrelevant in a digital world 
C) An organizational characteristic,not a resource 
D) A source of competitive advantage only if it offers access to an industry ecosystem such as Silicon Valley for IT firms and New York for advertising firms

Question 5

The profits arising from market power are called monopoly rents,whereas those arising from superior resources are Ricardian rents

Accepted Answer

A) True 
 B)False

Question 6

There are two types of economic rent (pure profit):

Accepted Answer

A) Monopoly rent and Ricardian rent 
B) Market power and competitive advantage 
C) Monopoly rent and quasi rent 
D) Cost advantage and differentiation advantage 
A) Monopoly rent and Ricardian rent 
B) Market power and competitive advantage 
C) Monopoly rent and quasi rent 
D) Cost advantage and differentiation advantage

Question 7

The resource-based approach to strategy implies that strategic management is more about exploiting distinctive differences rather than trying to emulate other companies.

Accepted Answer

A) True 
 B)False

Question 8

Intangible resources tend to be more valuable than tangible resources because:

Accepted Answer

A) They are easier to acquire 
B) They are cheaper to acquire 
C) They are more likely to provide sustainable competitive advantage 
D) All of the above 
A) They are easier to acquire 
B) They are cheaper to acquire 
C) They are more likely to provide sustainable competitive advantage 
D) All of the above

Question 9

For a resource or capability to be a source of competitive advantage,two conditions must be present: scarcity and relevance

Accepted Answer

A) True 
 B)False

Question 10

Corporate balance sheets do not include human resources (since these are not owned by the firm),apart from this major exception,balance sheets offer a comprehensive picture of a firm's resources.

Accepted Answer

A) True 
 B)False

Question 11

The trend among companies to "hire for attitude;train for skills" is the result of research identifying that the importance of psychological and social aptitudes in determining superior work performance.

Accepted Answer

A) True 
 B)False

Question 12

When a firm identifies a resource or capability that is a key weakness,the strategic response should be to upgrade that resource or capability through investment.

Accepted Answer

A) True 
 B)False

Question 13

Porter's value chain is useful tool for understanding the sequence of activities that a firm performs but is of limited value in mapping a firm's resources and capabilities.

Accepted Answer

A) True 
 B)False

Question 14

When a firm's capabilities are based upon team effort rather than the skills of star employees the returns from those capabilities accrue to employees rather than to shareholders.

Accepted Answer

A) True 
 B)False

Question 15

One implication of the resource-based perspective is that:

Accepted Answer

A) Firms tend to adopt similar or close strategies 
B) Aligning strategies with resources and capabilities implies that firms emphasize their differences rather than their similarities 
C) Firms focus on building a stronger portfolio of capabilities than their rivals 
D) Firms focus on reducing their vulnerability by eliminating their weaknesses 
A) Firms tend to adopt similar or close strategies 
B) Aligning strategies with resources and capabilities implies that firms emphasize their differences rather than their similarities 
C) Firms focus on building a stronger portfolio of capabilities than their rivals 
D) Firms focus on reducing their vulnerability by eliminating their weaknesses

Question 16

According to Prahalad and Hamel,a company's core competences are those capabilities that are fundamental to its strategy and to its performance.

Accepted Answer

A) True 
 B)False

Question 17

Superior capability need to be based upon superior resources.

Accepted Answer

A) True 
 B)False

Question 18

The difficulties faced by Eastman Kodak,Smith Corona.and Olivetti in adapting to radical technological change within their markets point to:

Accepted Answer

A) The failure of senior managers to understand the implications of new technologies. 
B) The power of digital technology as a force for creative destruction 
C) The need for firms to devote more resources to technological forecasting 
D) The difficulties established firms experience in building the new capabilities 
A) The failure of senior managers to understand the implications of new technologies. 
B) The power of digital technology as a force for creative destruction 
C) The need for firms to devote more resources to technological forecasting 
D) The difficulties established firms experience in building the new capabilities

Question 19

"Organizational capability" and "organizational competence" refer to two concepts which,although related,are different.

Accepted Answer

A) True 
 B)False

Question 20

Firm's with outstanding capabilities are typically those which:

Accepted Answer

A) Possess the best resources 
B) Have developed their organizational routines over the longest periods of time 
C) Are able to integrate their resources most effectively 
D) Have the most effective leaders. 
A) Possess the best resources 
B) Have developed their organizational routines over the longest periods of time 
C) Are able to integrate their resources most effectively 
D) Have the most effective leaders.

Organizational culture is an important resource for most business enterprises because:

David's victory of over Goliath (as portrayed in The Bible)demonstrates the importance of aligning strategy with one's resources and capabilities.

The ability of established firms to reconfigure their resources and capabilities around new technologies means that,typically,disruptive technologies are pioneered by established rather than new firms.

For most organizations,geographical location should be regarded as:

The profits arising from market power are called monopoly rents,whereas those arising from superior resources are Ricardian rents

There are two types of economic rent (pure profit):

The resource-based approach to strategy implies that strategic management is more about exploiting distinctive differences rather than trying to emulate other companies.

Intangible resources tend to be more valuable than tangible resources because:

For a resource or capability to be a source of competitive advantage,two conditions must be present: scarcity and relevance

Corporate balance sheets do not include human resources (since these are not owned by the firm),apart from this major exception,balance sheets offer a comprehensive picture of a firm's resources.

The trend among companies to "hire for attitude;train for skills" is the result of research identifying that the importance of psychological and social aptitudes in determining superior work performance.

When a firm identifies a resource or capability that is a key weakness,the strategic response should be to upgrade that resource or capability through investment.

Porter's value chain is useful tool for understanding the sequence of activities that a firm performs but is of limited value in mapping a firm's resources and capabilities.

When a firm's capabilities are based upon team effort rather than the skills of star employees the returns from those capabilities accrue to employees rather than to shareholders.

One implication of the resource-based perspective is that:

According to Prahalad and Hamel,a company's core competences are those capabilities that are fundamental to its strategy and to its performance.

Superior capability need to be based upon superior resources.

The difficulties faced by Eastman Kodak,Smith Corona.and Olivetti in adapting to radical technological change within their markets point to:

"Organizational capability" and "organizational competence" refer to two concepts which,although related,are different.

Firm's with outstanding capabilities are typically those which:

The Concept of Strategy

Goals, Values, and Performance

Industry Analysis: the Fundamentals

Further Topics in Industry and Competitive Analysis

A : The Sources and Dimensions of Competitive Advantage

B :The Sources and Dimensions of Competitive Advantage

Industry Evolution and Strategic Change

Technology-Based Industries and the Management of Innovation

Vertical Integration and the Scope of the Firm

Global Strategy and the Multinational Corporation

Diversification Strategy

Implementing Corporate Strategy: Managing the Multibusiness Firm

External Growth Strategies: Mergers, Acquisitions, and Alliances

Current Trends in Strategic Management

Filters

Exam 5: Analyzing Resources and Capabilities

Organizational culture is an important resource for most business enterprises because:

David's victory of over Goliath (as portrayed in The Bible)demonstrates the importance of aligning strategy with one's resources and capabilities.

The ability of established firms to reconfigure their resources and capabilities around new technologies means that,typically,disruptive technologies are pioneered by established rather than new firms.

For most organizations,geographical location should be regarded as:

The profits arising from market power are called monopoly rents,whereas those arising from superior resources are Ricardian rents

There are two types of economic rent (pure profit):

The resource-based approach to strategy implies that strategic management is more about exploiting distinctive differences rather than trying to emulate other companies.

Intangible resources tend to be more valuable than tangible resources because:

For a resource or capability to be a source of competitive advantage,two conditions must be present: scarcity and relevance

Corporate balance sheets do not include human resources (since these are not owned by the firm),apart from this major exception,balance sheets offer a comprehensive picture of a firm's resources.

The trend among companies to "hire for attitude;train for skills" is the result of research identifying that the importance of psychological and social aptitudes in determining superior work performance.

When a firm identifies a resource or capability that is a key weakness,the strategic response should be to upgrade that resource or capability through investment.

Porter's value chain is useful tool for understanding the sequence of activities that a firm performs but is of limited value in mapping a firm's resources and capabilities.

When a firm's capabilities are based upon team effort rather than the skills of star employees the returns from those capabilities accrue to employees rather than to shareholders.

One implication of the resource-based perspective is that:

According to Prahalad and Hamel,a company's core competences are those capabilities that are fundamental to its strategy and to its performance.

Superior capability need to be based upon superior resources.

The difficulties faced by Eastman Kodak,Smith Corona.and Olivetti in adapting to radical technological change within their markets point to:

"Organizational capability" and "organizational competence" refer to two concepts which,although related,are different.

Firm's with outstanding capabilities are typically those which:

The Concept of Strategy

Goals, Values, and Performance

Industry Analysis: the Fundamentals

Further Topics in Industry and Competitive Analysis

A : The Sources and Dimensions of Competitive Advantage

B :The Sources and Dimensions of Competitive Advantage

Industry Evolution and Strategic Change

Technology-Based Industries and the Management of Innovation

Vertical Integration and the Scope of the Firm

Global Strategy and the Multinational Corporation

Diversification Strategy

Implementing Corporate Strategy: Managing the Multibusiness Firm

External Growth Strategies: Mergers, Acquisitions, and Alliances

Current Trends in Strategic Management

Filters