Exam 3: Leveraging Resources and Capabilities

Most goods and services are produced through a chain of vertical activities which add value.

Valuable, rare, but imitable resources/capabilities may provide temporary competitive advantage.

In SWOT analysis, the industry view focuses on SW: Strengths and Weaknesses.

If Company A and Company B both have valuable assets that are identical, the text indicates that in order for A to gain a competitive advantage over B, A must: a. Use its assets differently. b. Find some basis for suing B. c. Get out of its existing business. d. Increase its quantity of those assets. e. All of the above.

All of the following are arguments used by proponents of offshoring except: a. It creates enormous value for firms and economies. b. Western firms are able to tap into low-cost and high-quality labor. c. Firms can focus on their core capabilities. d. For every dollar spent by US firms on India, the U.S. obtains $1.13. e. It is not true that some US employees may lose their jobs.