Question 1

Resource stocks are important to a firm because they are tangible and can be converted into capital quickly.

Accepted Answer

A) True 
 B)False

Question 2

_________ implies that for a given business activity,some firms may be more skilled than others in accomplishing it.

Accepted Answer

A)  Resource homogeneity 
B)  Resource mobility 
C)  Resource heterogeneity 
D)  Resource immobility

Question 3

When a firm is conceptualized as a network of socially complex,interconnected activities it is referred to as being:

Accepted Answer

A)  A value oriented system 
B)  A strategic activity system 
C)  An adaptive organization 
D)  A firm with high resource utilization

Question 4

The purpose of a firm's ___________ is to add additional value through primary and support activities that competitors cannot easily replicate.

Accepted Answer

A)  VRIO network 
B)  Resource network 
C)  Value chain 
D)  Strategic chain

Question 5

One of the assumptions under the resource-based model made about Southwest Airlines is that SWA has been able to sustain a competitive advantage because its resources and capabilities are difficult to imitate and do not easily leave the firm.What is this assumption called?

Accepted Answer

A)  Intangible immobility 
B)  Resource immobility 
C)  Managerial mobility 
D)  Resource ambiguity

Question 6

Which of the following statements regarding the resource-based view is accurate?

Accepted Answer

A)  Resources and capabilities are very similar across firms within the same industry 
B)  Resource heterogeneity and resource immobility are two critical assumptions that strategists must keep in mind. 
C)  Resource immobility dictates that that resources are difficult to redeploy within the firm 
D)  Resource heterogeneity is in reference to tangible assets.

Question 7

Toyota lost its competitive advantage when lean manufacturing became an industry standard as other firms learned about,and utilized this manufacturing process.These firms learned about lean manufacturing due to:

Accepted Answer

A)  Resource heterogeneity 
B)  Knowledge diffusion 
C)  Resource immobility 
D)  Dynamic mobility

Question 8

Crocs Shoes lost its competitive advantage because patents did not protect the firm from direct imitation.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is NOT a criterion for a strategically important resource?

Accepted Answer

A)  Difficult to imitate 
B)  Not everyone has it 
C)  Valuable 
D)  Tangible

Question 10

Intangible firm resources such as brand equity and corporate culture can be analyzed by what method?

Accepted Answer

A)  Benchmarking 
B)  Resource stocks and resource flows 
C)  Activities and incremental outputs 
D)  A PESTEL analysis

Question 11

The fact that the U.S.still uses a system of measurement from the 1820's instead of the metric system and is at a disadvantage in certain cross-border transactions and negotiations demonstrates that:

Accepted Answer

A)  Mistakes made early on have a negligible effect on final outcomes. 
B)  Path dependence has limited influence on final outcomes 
C)  Time cannot be compressed at will 
D)  Path dependence can affect the ability to remain competitive.

Question 12

According to Strategy Highlight 4.3,Microsoft's eventual industry dominance is largely credited to:

Accepted Answer

A)  The lucky break that Bill Gates got when starting Microsoft leveraged into a highly effective strategy. 
B)  Microsoft's financial resources and market position during the time of market entry. 
C)  The attractiveness of the computing industry. 
D)  The ability of Microsoft to continuously innovate which is a rare resource in the computing industry.

Question 13

Under the VRIO framework,it is important to develop as many core competencies as possible because it allows the firm to compete in many markets simultaneously.

Accepted Answer

A) True 
 B)False

Question 14

The general lesson from the Ch.4 Opening Case on Circuit City is the importance of ______________ to a firm when it is attempting to gain and sustain competitive advantages.

Accepted Answer

A)  tangible resources 
B)  core competencies 
C)  the economy 
D)  socio-cultural factors

Question 15

Define core competency.

Accepted Answer

The answer of Define core competency....

Question 16

When firm has resources and capabilities that are valuable and rare only,then it has:

Accepted Answer

A)  Competitive ambiguity 
B)  Competitive parity 
C)  Sustained competitive advantage 
D)  By definition, temporary competitive advantage

Question 17

Using strategic activity systems a competitor can observe 25 activities of Firm A If Firm B decides to imitate Firm A with a 90% accuracy rate, the probability of copying the whole system of 25 activities yields only a 7% accuracy rate.Which framework below is most effective at demonstrating the difficulty of imitating a firm with 25 interconnected activities?

Accepted Answer

A)  Strategic activity system 
B)  VRIO framework 
C)  Value chain analysis 
D)  SWOT analysis

Question 18

Chapter 4 details actions that Vanguard took after 1997 to add customer segmentation as a new core activity because it was unable to provide quality service to targeted customer segments at the lowest possible cost.By changing its _______________ Vanguard was able to adapt to changing market conditions and sustain its competitive advantage in the investment industry.

Accepted Answer

A)  Technological system 
B)  Strategic activity system 
C)  Organizational system 
D)  Market segmentation system

Question 19

If a firm's resources and capabilities are costly to imitate because imitating firms do not understand the relationship between the resources and capabilities controlled by the firm.This firm's competitive advantage is protected from imitation by ________________.

Accepted Answer

A)  Path dependence 
B)  Dependence complexity 
C)  Causal ambiguity 
D)  Social complexity

Question 20

A firm's superior performance in the marketplace affords it the luxury of

Accepted Answer

A)  a majority of market share 
B)  a higher value on the PESTEL scale 
C)  reinvesting retained earnings back into the firm's capabilities and resources 
D)  consolidation of core competencies

Exam 4: Internal Analysis: Resources, Capabilities, and Activities

Resource stocks are important to a firm because they are tangible and can be converted into capital quickly.

_________ implies that for a given business activity,some firms may be more skilled than others in accomplishing it.

When a firm is conceptualized as a network of socially complex,interconnected activities it is referred to as being:

The purpose of a firm's ___________ is to add additional value through primary and support activities that competitors cannot easily replicate.

One of the assumptions under the resource-based model made about Southwest Airlines is that SWA has been able to sustain a competitive advantage because its resources and capabilities are difficult to imitate and do not easily leave the firm.What is this assumption called?

Which of the following statements regarding the resource-based view is accurate?

Toyota lost its competitive advantage when lean manufacturing became an industry standard as other firms learned about,and utilized this manufacturing process.These firms learned about lean manufacturing due to:

Crocs Shoes lost its competitive advantage because patents did not protect the firm from direct imitation.

Which of the following is NOT a criterion for a strategically important resource?

Intangible firm resources such as brand equity and corporate culture can be analyzed by what method?

The fact that the U.S.still uses a system of measurement from the 1820's instead of the metric system and is at a disadvantage in certain cross-border transactions and negotiations demonstrates that:

According to Strategy Highlight 4.3,Microsoft's eventual industry dominance is largely credited to:

Under the VRIO framework,it is important to develop as many core competencies as possible because it allows the firm to compete in many markets simultaneously.

The general lesson from the Ch.4 Opening Case on Circuit City is the importance of ______________ to a firm when it is attempting to gain and sustain competitive advantages.

Define core competency.

When firm has resources and capabilities that are valuable and rare only,then it has:

If a firm's resources and capabilities are costly to imitate because imitating firms do not understand the relationship between the resources and capabilities controlled by the firm.This firm's competitive advantage is protected from imitation by ________________.

A firm's superior performance in the marketplace affords it the luxury of