Deck 3: Leveraging Resources and Capabilities

Question 1

On any given activity, one of the four choices for managers in terms of modes and locations includes inshoring.

Answer 1

True

Question 2

In SWOT analysis, the resource view focuses on OT: Opportunities and Threats.

Answer 2

False

Question 3

Tightly bundled resources/capabilities may be a disadvantage in high velocity environments.

Answer 3

True

Question 4

A SWOT analysis engages managers to ascertain a firm's strengths and weaknesses on an activity-by-activity basis.

Question 5

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

Question 6

Critics suggest that the resource-based view should eliminate dynamic capabilities.
a. True

Question 7

The Closing Case describes the admiration on the part of firms in developed nations for companies from emerging economies who copy products and processes from companies in developed nations.

Question 8

Imitation is not likely to be a successful strategy.

Question 9

How a firm performs different value-adding activities relative to rivals determines the scope of a firm.

Question 10

Intangible resources and capabilities are assets that are more easily quantified.

Question 11

The logic of the resource-based view is relatively static.

Question 12

Resource-based theorists readily admit that "the source of sustainable competitive advantage is likely to be found in different places at different points in time in different industries."

Question 13

The chapter indicates that Toyota is an example of causal ambiguity.

Question 14

IBM is an example of how capabilities may cease to add value and instead become core rigidities.

Question 15

A sustained competitive advantage can last since not all advantages eventually erode.

Question 16

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

Question 17

It is easier to imitate intangible resources/capabilities than tangible ones.

Question 18

Causal ambiguity refers to the difficulty of identifying the outcomes of causal determinants.

Question 19

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

Question 20

Many multinationals consist of many people scattered in many different countries. As a result, their invisible relationships do not add value.

Question 21

Tacit knowledge is probably the most _________ resource.
a. Valuable
b. Unique
c. Hard-to-imitate
d. Organizationally complex resource
e. All of the above

Question 22

Taking advantage of strengths embodied in resources/capabilities and overcoming weaknesses deals with which fundamental question?
a. Why do firms differ?
b. What determines the scope of the firm?
c. How do firms behave?
d. What determines the international success and failure of firms?
e. All of the above.

Question 23

Recent aspects of outsourcing include all of the following except:
a. "Business process outsourcing" BPO).
b. High-end services to countries led by India.
c. Digitization and commoditization of service work.
d. As stated by the text, the outsourcing of services is definitely a long-term benefit.
e. Increases due to the Internet and the reduction of international communication costs.

Question 24

According to the text, which of the following are intangible resources and capabilities?
a. Trade secrets.
b. Organizational.
c. Formal structures.
d. All of the above.
e. None of the above.

Question 25

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.

Question 26

Which of the following is better performed in-house instead of being outsourced?
a. An activity with a high degree of industry commonality.
b. A high degree of commoditization.
c. An industry-specific and firm-specific proprietary) activity.
d. All of the above.
e. None of the above.

Question 27

Academic research has found support for ______________effects on firm performance.
a. Resource-based
b. Industry-based
c. Complementary specific collective
d. All of the above
e. None of the above

Question 28

The VRIO framework does not include capabilities and resources that are:
a. Valuable.
b. Rare.
c. Imitable.
d. Organizationally embedded.
e. All of the above.

Question 29

Traditional resource-based view:
a. Overemphasizes leveraging existing resources/capabilities.
b. Underemphasizes developing new resources/capabilities.
c. Both of the above.
d. Underemphasizes leveraging existing resources/capabilities.
e. Overemphasizes developing new resources/capabilities.

Question 30

Which of the following are not involved in hypercompetition?
a. A shortened window during which a firm may command competitive advantage.
b. Dynamic maneuvering.
c. Unleashing a series of small, unpredictable, but powerful actions.
d. Slowing the pace of change.
e. Attempts to erode rivals' competitive advantage.

Question 31

International outsourcing involves:
a. Offshoring.
b. Inshoring.
c. A and B above.
d. Captive sourcing.
e. None of the above.

Question 32

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.

Question 33

Recent research suggests that capabilities in very dynamic high-velocity industries such as IT) involve all of the following except:
a. Simple not complicated).
b. Experiential not analytic).
c. Iterative not linear processes).
d. Involve "learning by doing."
e. "Learning before doing."

Question 34

Critics of outsourcing agree that MNEs and their outsourcing can be praised for which of the following?
a. Not exploiting cheap labor.
b. Not treating people as "tradable commodities" that can be jettisoned.
c. Not destroying jobs destroying jobs at home.
d. Protecting customer privacy.
e. None of the above.

Question 35

Critics of offshoring make all of the following arguments except:
a. If even core functions like engineering, R&D, manufacturing, and marketing can-and often should-be moved outside the country, what is left of the firm?
b. Critics argue such offshoring nurtures rivals.
c. Offshoring increasingly results in job losses in high-end areas such as design, R&D, and IT/BPO.
d. Many large US firms claim that they are "global companies" but they seem to be bound by "American values."
e. In some cases, it undermines national security.

Question 36

Examining whether a firm has resources and capabilities to perform a particular activity in a manner superior to competitors is known as _________ in SWOT analysis.
a. Parity
b. Competition
c. Benchmarking
d. Deskmarking
e. Standardization

Question 37

Ways to imitate include:
a. Direct duplication.
b. Substitution.
c. A and B above.
d. Innovation.
e. None of the above.

Question 38

A firm's__________ are its tangible and intangible assets a firm uses to choose and implement its strategies.
a. Resources
b. Dynamic capabilities
c. Core competencies
d. Net worth
e. None of the above

Question 39

In the Opening case, which of the following attributes describe IBM?
a. Innovative culture
b. Commitment to customer relationships
c. Willingness to change
d. Strong leadership team
e. All of the above.

Question 40

Having valuable, but common resources/capabilities leads to:
a. Competitive parity.
b. Competitive advantage.
c. Competitive disparity.
d. Competitive disadvantage.
e. Lack of competition.

Question 41

What do you think about the use of offshoring by MNEs? Is it a threat to jobs in the U.S.? Has it benefited MNEs and other countries more than the U.S.?

Question 42

How has offshoring contributed to complex supply-chain management? What are some examples?

Question 43

As you read through the text, you may be looking for secrets of success in doing business globally. This chapter gives IBM as an example of a firm that has been very successful. What did it say about the problem of identifying the reason for IBM's success? If the reason for success cannot be determined, should we abandon any attempt to develop a rational strategy and simply depend on luck?

Question 44

How is it possible for a strength to become a weakness? How does IBM illustrate that possibility?

Question 45

What is the relationship of benchmarking to the Value Chain? Any cautions in benchmarking?