Question 1

Under the value chain concept only primary activities add incremental value.

Accepted Answer

A) True 
 B)False

Question 2

When a firm combines __________ and ___________ it builds core competencies.

Accepted Answer

A)  resources; capabilities 
B)  activities; processes 
C)  capabilities; skills 
D)  knowledge; information

Question 3

Which of the following is true when it comes to a firm's capabilities:

Accepted Answer

A)  They are the organizational and managerial skills within a firm. 
B)  They are found in the firm's structure, routines and processes. 
C)  They are used to deploy a firm's resources to orchestrate core competencies. 
D)  All of these

Question 4

All of the following are tangible resources EXCEPT:

Accepted Answer

A)  Production equipment 
B)  Distribution centers 
C)  A firm's reputation 
D)  A firm's headquarters building

Question 5

Which framework can managers use to determine whether firm resources and capabilities are internal strengths or weaknesses?

Accepted Answer

A)  The VRIO framework. 
B)  The PESTEL analysis 
C)  The five forces model 
D)  Support activities

Question 6

Strategic activity systems that are socially complex are:

Accepted Answer

A)  Tangible resources 
B)  Difficult to imitate 
C)  Challenging to leverage 
D)  Customer oriented

Question 7

If a manager is listing out resources which can be used to drive competitive advantage which item below would NOT be on the list:

Accepted Answer

A)  The buildings 
B)  The economy 
C)  The equipment 
D)  The intellectual property

Question 8

Unique strengths that are embedded deep within a firm that allow a firm to differentiate itself and create higher value for customers is a:

Accepted Answer

A)  Competitive advantage 
B)  Core competency 
C)  Resource competency 
D)  Value chain

Question 9

Which framework most easily allows for the combination of both internal and external factors in the analysis of a firm's competitive advantage?

Accepted Answer

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

Question 10

A risk to a firm that believes that its resources are costly to imitate is:

Accepted Answer

A)  Rivals may employ substitution and work-around the original design. 
B)  Due to the dynamic nature of competition, all resources eventually get imitated. 
C)  A firm's products or services are shielded behind social complexity. 
D)  Resources that are costly to imitate are based on casual ambiguity.

Question 11

If the firm is not organized to capture the value from its resources it will not profit from the investment in the resources.In the 1980's Xerox's Palo Alto Research Center (PARC)developed many of the foundations for the ___________ industry.Yet these valuable and rare innovations were commercialized by other firms.

Accepted Answer

A)  Photo copying 
B)  Transportation 
C)  Desktop computing 
D)  Music

Question 12

Explain the difference between resource stocks and resource flows.

Accepted Answer

The answer of Explain the difference between resource stocks and...

Question 13

Strategy Highlight 4.2 discusses how IBM was able to rebound because CEO Lou Gerstner refocused the company on satisfying market needs through IT services as opposed to mainframe and mini-computers.This strategic highlight shows that IBM's current success is partially based on:

Accepted Answer

A)  Creating a new strategic fit for IBM through the utilization of static capabilities. 
B)  Utilizing the resources of the mainframe hardware business. 
C)  Creating a new strategic fit for IBM through the utilization of dynamic capabilities. 
D)  The power of its brand equity.

Question 14

Knowledge diffusion can make a resource less rare.

Accepted Answer

A) True 
 B)False

Question 15

Both Honda and Sony took many decades to build their core competencies and these competencies are based primarily by decisions made in the past.This process is called:

Accepted Answer

A)  Path dependence 
B)  Dependence complexity 
C)  Causal dependence 
D)  Path immobility

Question 16

___________ refer to a firm's ability to reconfigure resources and create external market changes.

Accepted Answer

A)  Dynamic equilibrium 
B)  Dynamic capabilities 
C)  Dynamic complexity 
D)  Dynamic programming

Question 17

If Sony and Microsoft develop the same customer knowledge base and create gaming products that provide the same customer appeal as Nintendo then:

Accepted Answer

A)  Sony and Microsoft will have a VRIO resource. 
B)  Nintendo will have a resource that is valuable but no longer rare. 
C)  Nintendo will still have a VRIO resource. 
D)  Nintendo will have a resource that is rare but no longer valuable.

Question 18

How do dynamic capabilities enhance a firm's competitive advantage?

Accepted Answer

The answer of How do dynamic capabilities enhance a firm's...

Question 19

Under the VRIO framework,direct imitation is a bigger threat to a firm's competitive advantage than is the threat of substitution.

Accepted Answer

A) True 
 B)False

Question 20

There are two critical assumptions underpinning the resource-based model of competitive advantage.One of these is resource immobility.Briefly explain what this means.Provide one example of an immobile resource.

Accepted Answer

The answer of There are two critical assumptions underpinning the...

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

Under the value chain concept only primary activities add incremental value.

When a firm combines and _ it builds core competencies.

Which of the following is true when it comes to a firm's capabilities:

All of the following are tangible resources EXCEPT:

Which framework can managers use to determine whether firm resources and capabilities are internal strengths or weaknesses?

Strategic activity systems that are socially complex are:

If a manager is listing out resources which can be used to drive competitive advantage which item below would NOT be on the list:

Unique strengths that are embedded deep within a firm that allow a firm to differentiate itself and create higher value for customers is a:

Which framework most easily allows for the combination of both internal and external factors in the analysis of a firm's competitive advantage?

A risk to a firm that believes that its resources are costly to imitate is:

Explain the difference between resource stocks and resource flows.

Strategy Highlight 4.2 discusses how IBM was able to rebound because CEO Lou Gerstner refocused the company on satisfying market needs through IT services as opposed to mainframe and mini-computers.This strategic highlight shows that IBM's current success is partially based on:

Knowledge diffusion can make a resource less rare.

Both Honda and Sony took many decades to build their core competencies and these competencies are based primarily by decisions made in the past.This process is called:

___________ refer to a firm's ability to reconfigure resources and create external market changes.

If Sony and Microsoft develop the same customer knowledge base and create gaming products that provide the same customer appeal as Nintendo then:

How do dynamic capabilities enhance a firm's competitive advantage?

Under the VRIO framework,direct imitation is a bigger threat to a firm's competitive advantage than is the threat of substitution.

There are two critical assumptions underpinning the resource-based model of competitive advantage.One of these is resource immobility.Briefly explain what this means.Provide one example of an immobile resource.