Question 1

If a firm offers a service that is valuable, rare, and costly to imitate, but a substitute exists for the service, the firm will:

Accepted Answer

A)  achieve competitive parity. 
B)  have a competitive disadvantage. 
C)  have a temporary competitive advantage. 
D)  gain a sustainable competitive advantage.

Question 2

Value chain activities in the value chain create value, whereas support functions generate costs.

Accepted Answer

A) True 
 B)False

Question 3

Value chain activities include all of the following EXCEPT:

Accepted Answer

A)  supply-chain management. 
B)  operations. 
C)  management information systems. 
D)  distribution.

Question 4

In the airline industry, frequent-flyer programs, ticket kiosks, and e-ticketing are all examples of capabilities that are ______ but no longer _____.

Accepted Answer

A)  rare; valuable 
B)  valuable; rare 
C)  socially complex; rare 
D)  valuable; causally ambiguous

Question 5

Two concerns about outsourcing are the potential loss of a firm's innovative ability and the loss of jobs within companies that decide to outsource some of their work.

Accepted Answer

A) True 
 B)False

Question 6

Understanding how to leverage the firm's unique bundle of resources and capabilities is a key outcome decision makers seek when analyzing the internal organization.

Accepted Answer

A) True 
 B)False

Question 7

______ are the source of a firm's ______, which are the source of the firm's ______.

Accepted Answer

A)  Resources; capabilities; core competencies 
B)  Capabilities; resources; core competencies 
C)  Capabilities; resources; above-average returns 
D)  Core competencies; resources; competitive advantage

Question 8

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 the firm as a terrible place to work 
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 9

Amazon is building a new distribution facility in Robbinsville, New Jersey.  It is immediately off the exit of a major road.  This is an example of a(n) ______ resource.

Accepted Answer

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

Question 10

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 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

A company can earn above-average returns only when the value it creates is less than the costs incurred to create that value.

Accepted Answer

A) True 
 B)False

Question 13

The ______ are those with the potential to be formed into core competencies as the foundation for creating value.

Accepted Answer

A)  "most" knowledge resources 
B)  "most" capabilities 
C)  "right" resources 
D)  "dark side" resources

Question 14

"Motivating, empowering, and retaining employees" is an example of a capability that resides within the human resources functional area.

Accepted Answer

A) True 
 B)False

Question 15

All of the following are tangible resources EXCEPT:

Accepted Answer

A)  production equipment. 
B)  distribution centers. 
C)  a firm's reputation. 
D)  formal reporting structures.

Question 16

Many firms outsource the payroll function of paying employees to firms such as ADP.  Payroll is a(n):

Accepted Answer

A)  value-chain activity. 
B)  operation function. 
C)  support function. 
D)  supply-chain function.

Question 17

The capabilities used to create the sustainability/green initiatives at Walmart and Target are ______ but less likely to be ______.

Accepted Answer

A)  rare; valuable 
B)  valuable; rare 
C)  socially complex; rare 
D)  valuable; causally ambiguous

Question 18

One capability that can be learned from failure is when to:

Accepted Answer

A)  repeat with a modification. 
B)  add more resources. 
C)  dig in. 
D)  quit.

Question 19

Valuable capabilities:

Accepted Answer

A)  allow the firm to exploit opportunities in its external environment. 
B)  allow the firm to neutralize threats in its internal environment. 
C)  allow the firm to exploit opportunities or neutralize threats in its external environment. 
D)  allow the firm to neutralize opportunities in its internal environment.

Question 20

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.

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

If a firm offers a service that is valuable, rare, and costly to imitate, but a substitute exists for the service, the firm will:

Value chain activities in the value chain create value, whereas support functions generate costs.

Value chain activities include all of the following EXCEPT:

In the airline industry, frequent-flyer programs, ticket kiosks, and e-ticketing are all examples of capabilities that are __ but no longer _.

Two concerns about outsourcing are the potential loss of a firm's innovative ability and the loss of jobs within companies that decide to outsource some of their work.

Understanding how to leverage the firm's unique bundle of resources and capabilities is a key outcome decision makers seek when analyzing the internal organization.

are the source of a firm's , which are the source of the firm's __.

Which of the following is NOT a reputational resource?

Amazon is building a new distribution facility in Robbinsville, New Jersey. It is immediately off the exit of a major road. This is an example of a(n) ______ resource.

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

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

A company can earn above-average returns only when the value it creates is less than the costs incurred to create that value.

The ______ are those with the potential to be formed into core competencies as the foundation for creating value.

"Motivating, empowering, and retaining employees" is an example of a capability that resides within the human resources functional area.

All of the following are tangible resources EXCEPT:

Many firms outsource the payroll function of paying employees to firms such as ADP. Payroll is a(n) :

The capabilities used to create the sustainability/green initiatives at Walmart and Target are but less likely to be .

One capability that can be learned from failure is when to:

Valuable capabilities:

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