Question 1

Which of the following is not an essential skill that a manager needs to possess to manage outsourcing programs?

Accepted Answer

A) Change management 
B) Extended diversification 
C) Strategic thinking 
D) Partnership governance

Question 2

Value chain activities can be:

Accepted Answer

A) analysed only in for-profit organisations 
B) segmented into primary and support activities 
C) segmented into resources and capabilities 
D) analysed, but are of little use in building a competitive advantage for a firm

Question 3

Do competitive advantages last forever? Explain your answer.

Accepted Answer

The answer of Do competitive advantages last forever? Explain your...

Question 4

Outsourcing involves:

Accepted Answer

A) selling a value-creating activity to other firms in an industry 
B) selling a value-creating activity to other firms, regardless of their industry 
C) purchasing a value-creating activity from an external supplier 
D) using computers to obtain data from the internet

Question 5

A global mind-set is the ability to study an internal environment in ways that depend on the assumptions of a single country, culture and context.

Accepted Answer

A) True 
 B)False

Question 6

We can often locate information about a firm's sources of competitive advantage in its corporate financial information.

Accepted Answer

A) True 
 B)False

Question 7

Evidence has suggested that ________ of organisational decisions fail.

Accepted Answer

A) 70 per cent 
B) 60 per cent 
C) 50 per cent 
D) 40 per cent

Question 8

The condition of uncertainty in managerial decision making occurs when:

Accepted Answer

A) it is difficult to determine which core competency to nurture 
B) a wide range of internal issues must be examined 
C) there are changes in technologies, economic and political trends, and societal values 
D) managers are unable to determine the best course of action to take

Question 9

Resources and capabilities are core competencies only when their use:

Accepted Answer

A) leads to a competitive advantage for a firm 
B) permits the diffusion of threats in the external environment 
C) provides opportunities to defeat competitors 
D) encourages quick responses to changes in the global economy

Question 10

While valuable capabilities decrease competitive rivalry, rare capabilities increase it.

Accepted Answer

A) True 
 B)False

Question 11

All resources and capabilities are core competencies.

Accepted Answer

A) True 
 B)False

Question 12

A firm's resources and capabilities:

Accepted Answer

A) are inherited, not created 
B) are always core competencies 
C) may be a source of incompetence 
D) are all a firm needs to focus on

Question 13

Explain the role of innovation in a firm's competitive advantage.

Accepted Answer

The answer of Explain the role of innovation in a...

Question 14

Capabilities that other firms cannot develop easily are classified as:

Accepted Answer

A) rare 
B) valuable 
C) non-substitutable 
D) costly to imitate

Question 15

Outsourcing does not work effectively without:

Accepted Answer

A) having value-creating support activities outsourced 
B) building networks with outsourcing partners 
C) extensive internal capabilities to coordinate external sourcing 
D) having value-creating primary activities outsourced

Question 16

How can managers deal with conditions affecting decisions about resources, capabilities and core competencies?

Accepted Answer

The answer of How can managers deal with conditions affecting...

Question 17

The term a global mind-set refers to the ability:

Accepted Answer

A) to study an external environment in ways that are dependent on the assumptions of a single firm 
B) to study an internal environment in ways that are dependent on the assumptions of a single country 
C) to develop a competitive advantage in multiple markets 
D) to develop human resources policies in culturally diverse markets

Question 18

Describe the importance of internal analysis to the strategic success of a firm.

Accepted Answer

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

Question 19

What causes core capabilities to become core rigidities?

Accepted Answer

A) Changes in the external and internal environment 
B) Inertia and competition 
C) Strategic myopia and inertia 
D) Lack of knowledge and poor use of assets

Question 20

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...

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

Which of the following is not an essential skill that a manager needs to possess to manage outsourcing programs?

Value chain activities can be:

Do competitive advantages last forever? Explain your answer.

Outsourcing involves:

A global mind-set is the ability to study an internal environment in ways that depend on the assumptions of a single country, culture and context.

We can often locate information about a firm's sources of competitive advantage in its corporate financial information.

Evidence has suggested that ________ of organisational decisions fail.

The condition of uncertainty in managerial decision making occurs when:

Resources and capabilities are core competencies only when their use:

While valuable capabilities decrease competitive rivalry, rare capabilities increase it.

All resources and capabilities are core competencies.

A firm's resources and capabilities:

Explain the role of innovation in a firm's competitive advantage.

Capabilities that other firms cannot develop easily are classified as:

Outsourcing does not work effectively without:

How can managers deal with conditions affecting decisions about resources, capabilities and core competencies?

The term a global mind-set refers to the ability:

Describe the importance of internal analysis to the strategic success of a firm.

What causes core capabilities to become core rigidities?

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.