Question 1

Assume a firm's resources and capabilities are costly to imitate. This is because rival companies do not clearly understand the relationship between the resources and capabilities controlled by the firm. In this case, the firm's competitive advantage is protected against imitation by

Accepted Answer

A)  path dependence. 
B)  dependence complexity. 
C)  causal ambiguity. 
D)  social complexity.

Question 2

Dynamic strategic activity systems help a firm to maintain a competitive advantage for extended periods of time.

Accepted Answer

A) True 
 B)False

Question 3

In the context of SWOT analysis, which of the following best exemplifies a firm's external opportunity?

Accepted Answer

A)  an increase in its financial resources 
B)  an increase in its brand equity 
C)  an increase in its customers' disposable income 
D)  an increase in its employee productivity

Question 4

How does causal ambiguity act as an isolating mechanism for organizations?

Accepted Answer

A)  It makes it difficult for the competitors to understand why a company has been so successful. 
B)  It creates a situation in which different social and business systems interact with one another. 
C)  It makes it difficult for competitors to deploy their resources by creating ambiguity within their organizational structures. 
D)  It makes it difficult for competitors to imitate core competencies quickly due to time compression diseconomies.

Question 5

Cartech Inc. is a manufacturer of automobile parts, which it sells to retail auto supply stores. Its core competencies include superior design and engineering capabilities, as well as a highly integrated and efficient supply chain. To sustain its competitive advantage, Cartech should first

Accepted Answer

A)  seek to replicate its nearest competitor's competency in innovative marketing. 
B)  attempt to cut costs by replacing assembly line workers with robots. 
C)  upgrade its engineering department and improve its supply chain. 
D)  diversify its product offerings by developing parts for construction equipment.

Exam 4: Internal Analysis: Resources, Capabilities, and Core Competencies

Assume a firm's resources and capabilities are costly to imitate. This is because rival companies do not clearly understand the relationship between the resources and capabilities controlled by the firm. In this case, the firm's competitive advantage is protected against imitation by

Dynamic strategic activity systems help a firm to maintain a competitive advantage for extended periods of time.

In the context of SWOT analysis, which of the following best exemplifies a firm's external opportunity?

How does causal ambiguity act as an isolating mechanism for organizations?

Cartech Inc. is a manufacturer of automobile parts, which it sells to retail auto supply stores. Its core competencies include superior design and engineering capabilities, as well as a highly integrated and efficient supply chain. To sustain its competitive advantage, Cartech should first