Question 1

The value of tangible assets, such as the firm's borrowing capacity and its physical plant, is high because these assets can be easily leveraged to derive additional value.

Accepted Answer

A) True 
 B)False

Question 2

A veterinary practice has added a pet boarding and grooming facility.Most of the practice's competitors also provide these services.The veterinary practice is gaining competitive:

Accepted Answer

A)  advantage. 
B)  parity. 
C)  disadvantage. 
D)  neutrality.

Question 3

A major U.S.manufacturer of children's toys believes its main competitive advantage lies in its continuing development of innovative toys and games.The company is facing increasing competition on price, and it is strongly considering outsourcing to offshore firms as a means of reducing costs.The LAST function this firm should consider outsourcing is:

Accepted Answer

A)  operations. 
B)  research and development. 
C)  supply-chain management. 
D)  distribution.

Question 4

The challenge and difficulty of making effective decisions are implied by preliminary evidence suggesting that __________ of organizational decisions fail.

Accepted Answer

A)  one-fourth 
B)  one-fifth 
C)  one-tenth 
D)  one-half

Question 5

Value consists of a product's:

Accepted Answer

A)  proprietary characteristics and attributes for which customers are willing to pay. 
B)  performance characteristics and attributes for which customers are willing to pay. 
C)  proprietary characteristics and attributes for which customers consider paying. 
D)  performance characteristics and attributes for which customers consider paying.

Question 6

Costly-to-imitate capabilities can emerge for all of the following reasons EXCEPT:

Accepted Answer

A)  lack of scientific transference. 
B)  social complexity. 
C)  unique historical conditions. 
D)  causal ambiguity.

Question 7

Innovation, consumer understanding, brand-building, go-to-market, and scale are activities that P&G performs well and are examples of the company's:

Accepted Answer

A)  tangible resources. 
B)  intangible resources. 
C)  core competencies. 
D)  capabilities.

Question 8

The best way to understand the relationship between resources, capabilities, and core competencies is to recognize that resources are the source of capabilities.Some capabilities lead to the development of core competencies and these, in turn, may lead to competitive advantages.

Accepted Answer

A) True 
 B)False

Question 9

Apple has combined some of its tangible resources (such as financial resources and research laboratories) and intangible resources (such as scientists, engineers, and organizational routines) to complete research and development tasks to create a capability in R&D.

Accepted Answer

A) True 
 B)False

Question 10

Describe the four specific criteria that managers can use to decide which of their firm's capabilities have the potential to create a sustainable competitive advantage.

Accepted Answer

The answer of Describe the four specific criteria that managers...

Question 11

It is increasingly difficult for a firm to develop and sustain a competitive advantage because of the effects of globalization and:

Accepted Answer

A)  the rapid development of the Internet's capabilities. 
B)  extensive use of outsourcing within the borders of the United States. 
C)  the declining number of inventions and patents developed by U.S.citizens. 
D)  the simultaneous erosion of the U.S.work ethic and the U.S.education system.

Question 12

Interpersonal relationships, trust, friendships among managers and between managers and employees, and a firm's reputation with suppliers and customers are all examples of complex social phenomena that make capabilities easy to imitate.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is true about outsourcing?

Accepted Answer

A)  Outsourcing limits a firm's flexibility and requires minimal coordination. 
B)  Outsourcing allows firms to concentrate on those areas in which they can create value. 
C)  Outsourcing strengthens the creative and innovative functions within the firm. 
D)  Outsourcing is effective only when it includes all support activities.

Question 14

By emphasizing core competencies when selecting and implementing strategies, companies learn to compete primarily on the basis of:

Accepted Answer

A)  intangible resources. 
B)  their primary activities. 
C)  firm-specific differences. 
D)  efficiency of production.

Question 15

Tangible resources include:

Accepted Answer

A)  assets that are people-dependent, such as know-how. 
B)  assets that can be observed and quantified. 
C)  organizational culture. 
D)  a firm's reputation.

Question 16

Which of the following is NOT a reputational resource?

Accepted Answer

A)  Customers' opinions that the firm's products are high quality 
B)  Employees' opinions of their supervisors' fairness 
C)  Suppliers' opinions that the firm pays its bills in a timely manner 
D)  Customers' opinions that using the firm's products makes them attractive

Question 17

Although an organization's good reputation is a valuable resource that takes years of superior marketplace competence to achieve, it is not a good basis for building a competitive advantage because it can be destroyed almost instantly by bad publicity.

Accepted Answer

A) True 
 B)False

Question 18

Tools such as __________ help the firm focus on its core competencies as the source of its competitive advantages.

Accepted Answer

A)  marketing 
B)  manufacturing 
C)  outsourcing 
D)  imitation

Question 19

Value chain activities are the:

Accepted Answer

A)  activities or tasks most likely to be imitated by competitors. 
B)  activities or tasks the firm completes in order to produce products and then sell, distribute, and service those products in ways that create value for customers. 
C)  activities or tasks the firm completes to support the work being done to produce, sell, distribute, and service the products the firm is producing. 
D)  activities or tasks most crucial to implementing the firm's business strategy.

Question 20

Value chain analysis is a tool used to:

Accepted Answer

A)  analyze a firm's external environment for value-creating opportunities. 
B)  analyze a firm's value chain activities and support functions in isolation from its competitors' value chain. 
C)  understand the parts of the firm's operation that create value and those that do not. 
D)  identify the firm's core competencies in each of the primary activities of the firm.

Exam 3: The Internal Organization: Resources, Capabilities, Core Competencies, and Competitive Advantages

The value of tangible assets, such as the firm's borrowing capacity and its physical plant, is high because these assets can be easily leveraged to derive additional value.

A veterinary practice has added a pet boarding and grooming facility.Most of the practice's competitors also provide these services.The veterinary practice is gaining competitive:

The challenge and difficulty of making effective decisions are implied by preliminary evidence suggesting that __________ of organizational decisions fail.

Value consists of a product's:

Costly-to-imitate capabilities can emerge for all of the following reasons EXCEPT:

Innovation, consumer understanding, brand-building, go-to-market, and scale are activities that P&G performs well and are examples of the company's:

The best way to understand the relationship between resources, capabilities, and core competencies is to recognize that resources are the source of capabilities.Some capabilities lead to the development of core competencies and these, in turn, may lead to competitive advantages.

Apple has combined some of its tangible resources (such as financial resources and research laboratories) and intangible resources (such as scientists, engineers, and organizational routines) to complete research and development tasks to create a capability in R&D.

Describe the four specific criteria that managers can use to decide which of their firm's capabilities have the potential to create a sustainable competitive advantage.

It is increasingly difficult for a firm to develop and sustain a competitive advantage because of the effects of globalization and:

Interpersonal relationships, trust, friendships among managers and between managers and employees, and a firm's reputation with suppliers and customers are all examples of complex social phenomena that make capabilities easy to imitate.

Which of the following is true about outsourcing?

By emphasizing core competencies when selecting and implementing strategies, companies learn to compete primarily on the basis of:

Tangible resources include:

Which of the following is NOT a reputational resource?

Although an organization's good reputation is a valuable resource that takes years of superior marketplace competence to achieve, it is not a good basis for building a competitive advantage because it can be destroyed almost instantly by bad publicity.

Tools such as __________ help the firm focus on its core competencies as the source of its competitive advantages.

Value chain activities are the:

Value chain analysis is a tool used to: