Question 1

The key to achieving competitiveness, earning above-average returns, and remaining ahead of competitors in the long run is to manage current core competencies:

Accepted Answer

A)  in a way that uniquely bundles and leverages the firm's existing resources. 
B)  while simultaneously developing new ones. 
C)  and imitate the core competencies of successful competitors. 
D)  in order to preserve and enhance them against the firm's competitors.

Question 2

Marin Industries is a U.S.company.It is exploring the possibility of offshoring in order to create value.Which of the following activities would be an example of offshoring?

Accepted Answer

A)  Building a manufacturing plant in South America 
B)  Contracting with an Asian company to provide technical support 
C)  Purchasing a competitor in the UK 
D)  Selling its products in Europe

Question 3

Compared to tangible resources, intangible resources are __________ and __________.

Accepted Answer

A)  less visible; more difficult to copy 
B)  less visible; less difficult to copy 
C)  more visible; more difficult to copy 
D)  more visible; less difficult to copy

Question 4

Capabilities of an organization emerge spontaneously through the interaction of tangible and intangible resources.

Accepted Answer

A) True 
 B)False

Question 5

__________ can be viewed as the capacity to take action.

Accepted Answer

A)  Strategic assets 
B)  Human capital 
C)  Core competencies 
D)  Functional capabilities

Question 6

Southwest Airlines has a complex interrelationship between its culture and staff that adds value in ways that other airlines cannot, such as jokes on flights or the cooperation between gate personnel and pilots.These examples illustrate which of the following criteria for sustainable competitive advantage?

Accepted Answer

A)  Valuable 
B)  Rare 
C)  Costly to imitate 
D)  Nonsubstitutable

Question 7

Resources, capabilities, and core competencies are the foundation of competitive advantage.

Accepted Answer

A) True 
 B)False

Question 8

Firms that achieve competitive parity can expect to:

Accepted Answer

A)  earn below-average returns. 
B)  earn average returns. 
C)  earn above-average returns. 
D)  initially earn above-average returns, declining to average returns.

Question 9

Apex Auto Repair has a thriving business based on its reputation for high-quality work, honesty, and skilled employees.For continued long-term success, Apex's owner should:

Accepted Answer

A)  concentrate on maintaining Apex's current core competencies. 
B)  focus on developing Apex's future competitive advantages. 
C)  place more emphasis on tangible resources, which are less vulnerable to obsolescence than intangible resources. 
D)  recognize that core competencies derived from human resources are more subject to becoming core rigidities than are core competencies based on other types of resources.

Question 10

Describe the importance of internal analysis to the strategic success of a firm.Should not-for-profit organizations perform internal analyses? Why or why not?

Accepted Answer

The answer of Describe the importance of internal analysis to...

Question 11

What is value? Why is it important?

Accepted Answer

The answer of What is value? Why is it important?...

Question 12

Firms should never outsource a primary activity because of the danger of the activity being imitated by rivals.

Accepted Answer

A) True 
 B)False

Question 13

Firms achieve strategic competitiveness and earn above-average returns by acquiring, bundling, and leveraging their resources for the purpose of taking advantage of opportunities in the external environment in ways that create value for customers.

Accepted Answer

A) True 
 B)False

Question 14

The corporate research division of Siemens files, on average, 25 patents a day.The patents are a(n) __________ resource.

Accepted Answer

A)  financial 
B)  organizational 
C)  physical 
D)  technological

Question 15

The three conditions that characterize difficult managerial decisions concerning resources, capabilities, and core competencies are:

Accepted Answer

A)  complexity, rarity, and human intellectual capital. 
B)  uncertainty, complexity, and intraorganizational conflicts. 
C)  imitability, complexity, and interorganizational conflicts. 
D)  imitability, comparability, and human intellectual capital.

Question 16

Define outsourcing.Why would an organization want to outsource?

Accepted Answer

The answer of Define outsourcing.Why would an organization want to...

Question 17

__________ is an example of a capability that is based in the functional area of distribution.

Accepted Answer

A)  Effective use of logistics management techniques 
B)  Effective control of inventories through point-of-purchase data collection 
C)  Effective organizational structure 
D)  Product and design quality

Question 18

Firms should seek to continually develop new core competencies because all core competencies guarantee above-average profit.

Accepted Answer

A) True 
 B)False

Question 19

The Obama administration expressed a desire to eliminate coal as an energy source, and introduced regulations to drive the coal industry out of business.The Trump administration eased regulations on the coal industry, but also took steps to encourage the development of other forms of energy.In light of this changing regulatory environment, decision makers in the energy industry are most affected by what condition?

Accepted Answer

A)  Uncertainty 
B)  Complexity 
C)  Intraorganizational conflict 
D)  Interorganizational conflict

Question 20

At a technology firm, human capital would be critical to forming and using the firm's capabilities in customer relationships, scientific and research skills, and technical skills in hardware, software, and services.

Accepted Answer

A) True 
 B)False

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

The key to achieving competitiveness, earning above-average returns, and remaining ahead of competitors in the long run is to manage current core competencies:

Marin Industries is a U.S.company.It is exploring the possibility of offshoring in order to create value.Which of the following activities would be an example of offshoring?

Compared to tangible resources, intangible resources are and .

Capabilities of an organization emerge spontaneously through the interaction of tangible and intangible resources.

__________ can be viewed as the capacity to take action.

Resources, capabilities, and core competencies are the foundation of competitive advantage.

Firms that achieve competitive parity can expect to:

Apex Auto Repair has a thriving business based on its reputation for high-quality work, honesty, and skilled employees.For continued long-term success, Apex's owner should:

Describe the importance of internal analysis to the strategic success of a firm.Should not-for-profit organizations perform internal analyses? Why or why not?

What is value? Why is it important?

Firms should never outsource a primary activity because of the danger of the activity being imitated by rivals.

Firms achieve strategic competitiveness and earn above-average returns by acquiring, bundling, and leveraging their resources for the purpose of taking advantage of opportunities in the external environment in ways that create value for customers.

The corporate research division of Siemens files, on average, 25 patents a day.The patents are a(n) __________ resource.

The three conditions that characterize difficult managerial decisions concerning resources, capabilities, and core competencies are:

Define outsourcing.Why would an organization want to outsource?

__________ is an example of a capability that is based in the functional area of distribution.

Firms should seek to continually develop new core competencies because all core competencies guarantee above-average profit.

At a technology firm, human capital would be critical to forming and using the firm's capabilities in customer relationships, scientific and research skills, and technical skills in hardware, software, and services.