Question 1

Due to resource immobility, a critical assumption in the resource-based model of a firm, the:

Accepted Answer

A)   competitive advantage of a firm exists for a short period of time.
B)   resource bundles of a firm can be easily imitated by competitors.
C)   resource differences between firms last for a long time.
D)   competencies and capabilities of all firms in an industry are similar.E) B) and D)
F) A) and D)

Question 2

How are the critical assumptions of the resource-based model of a firm fundamentally different from the way in which a firm is viewed in the perfectly competitive industry structure?

Accepted Answer

A)   In the resource-based model, resources are freely available and mobile, whereas in the perfectly competitive industry structure, resources are highly immobile.
B)   In perfect competition, it is extremely difficult to replicate the resource bundles of a firm, whereas in the resource-based model, it is extremely easy to imitate them.
C)   In perfect competition, all firms have access to the same capabilities, whereas in the resource-based model, resource differences exist between firms in the same industry.
D)   In the resource-based model, only physical assets of a firm are considered as resources, whereas in perfect competition, a firm's capabilities and competencies are also considered as resources.E) A) and D)
F) C) and D)

Question 3

Elaborate on social complexity as a barrier to imitation.

Accepted Answer

Social complexity describes situations i...

Question 4

Differentiate between a firm's resources and capabilities.

Accepted Answer

Resources are any assets that a firm can...

Question 5

To make the SWOT analysis an effective management tool, a strategist must first:

Accepted Answer

A)   distinguish a firm's resources, competencies, and capabilities from each other.
B)   separate a firm's primary activities from support activities.
C)   analyze the pros and cons of strategic options.
D)   scan a firm's internal and external environments.E) A) and C)
F) B) and D)

Question 6

Define the value chain.

Accepted Answer

The value chain describes the internal a...

Question 7

According to the _____, competitive advantage is the outflow of a firm's ability to modify and leverage its resource base in a way that enables it to gain and sustain competitive advantage in a constantly changing environment.

Accepted Answer

A)   value chain perspective
B)   two-factor theory
C)   expectancy theory
D)   dynamic capabilities perspectiveE) None of the above
F) All of the above

Question 8

_____ describes a situation in which the cause and effect of a phenomenon are not readily apparent.

Accepted Answer

A)   Resource immobility
B)   Causal ambiguity
C)   Resource heterogeneity
D)   Social complexityE) C) and D)
F) All of the above

Question 9

Path dependence rests on the notion that:

Accepted Answer

A)   time cannot be compressed at will.
B)   strategic decisions are easily reversible.
C)   rare resources can be built in a short period of time.
D)   competitive advantage can be sustained indefinitely.E) A) and B)
F) A) and D)

Question 10

To help a firm achieve a competitive advantage, each distinct activity performed in the value chain needs to:

Accepted Answer

A)   contribute to the firm's strategic position as either low-cost leader or differentiator.
B)   reduce the immobility and the heterogeneity of the firm's resources.
C)   create a static fit between the company's internal resources and the external environment.
D)   reduce the causal ambiguity and the social complexity of the firm's source of success.E) All of the above
F) A) and B)

Question 11

How do managers benefit from conducting a SWOT analysis?

Accepted Answer

A SWOT analysis allows managers to evalu...

Question 12

When the laptop market overtook the desktop market, Blue Tech Inc., a leader in desktop technology, was left at a competitive disadvantage.Later, Blue Tech Inc.'s management channeled all of the company's efforts and revenue to develop an efficient laptop from scratch in less than a year.However, the company failed because most of its competitors had already been in the laptop market for five years.Blue Tech Inc's models were inferior to the ones in the market.In this scenario, Blue Tech Inc.'s failure can be best attributed to:

Accepted Answer

A)   causal ambiguity.
B)   diseconomies of scope and scale.
C)   time compression diseconomies.
D)   social complexity.E) A) and C)
F) C) and D)

Question 13

When the knowledge of a valuable and rare resource diffuses throughout an industry, the:

Accepted Answer

A)   firms in the industry will be better positioned to achieve competitive parity.
B)   ability to sustain a competitive advantage will be restricted to one firm.
C)   mobility and homogeneity of the resource will decrease.
D)   structure of the industry will no longer be perfectly competitive.E) B) and D)
F) B) and C)

Question 14

Which of the following management tools will help determine whether a firm's resources, capabilities, and competencies are strengths or weaknesses?

Accepted Answer

A)   Porter's five forces analysis
B)   PESTEL analysis
C)   VRIO framework
D)   Ansoff's matrixE) All of the above
F) None of the above

Question 15

Differentiate resource stocks from resource flows with the help of the bathtub metaphor.

Accepted Answer

A helpful metaphor to explain the differ...

Question 16

When evaluating the sustainability of a firm's competitive advantage, which of the following statements is NOT true?

Accepted Answer

A)   The competitive advantage will not be sustainable if there are substitutes for the firm's core competence.
B)   If managed effectively, existing core competencies can help sustain the competitive advantage indefinitely.
C)   Social complexity often leads to a competitive advantage that is sustainable.
D)   When expectations of future resource value turn out to be accurate and can be repeated, then a sustained competitive advantage is realized.E) A) and C)
F) A) and B)

Question 17

_____ are best described as unique strengths, embedded deep within a firm, that allow a firm to differentiate its products and services from those of its rivals, creating higher value for the customer or offering products and services of comparable value at lower cost.

Accepted Answer

A)   Resource leverages
B)   Core competencies
C)   Capital gains
D)   Equity reservesE) A) and B)
F) A) and C)

Question 18

Although True Ion Inc.and One Electro Inc.operate in the same consumer electronic industry, True Ion Inc.has better sales and brand equity.This is attributed to True Ion Inc.'s commitment to innovation.The company has adequate financial and human capital to invest in research and development, an area where One Electro Inc.lacks.In this scenario, which of the following critical assumptions of the resource-based view of a firm has been illustrated?

Accepted Answer

A)   Resource equality
B)   Resource heterogeneity
C)   Resource mobility
D)   Resource maturityE) A) and B)
F) All of the above

Question 19

Organizational and managerial skills that find their expression in a company's structure, routines, and culture are referred to as _____.

Accepted Answer

A)   tangible resources
B)   reserves
C)   capital gains
D)   capabilitiesE) B) and C)
F) A) and C)

Question 20

What are dynamic capabilities?

Accepted Answer

Dynamic capabilities describe a firm's a...

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

How do managers benefit from conducting a SWOT analysis?

Correct Answer
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A SWOT analysis allows managers to evalu...
View Answer

Differentiate between a firm's resources and capabilities.

Correct Answer
verified
Resources are any assets that a firm can...
View Answer

Organizational and managerial skills that find their expression in a company's structure, routines, and culture are referred to as _____.

Correct Answer
verified

To make the SWOT analysis an effective management tool, a strategist must first:

Correct Answer
verified

To help a firm achieve a competitive advantage, each distinct activity performed in the value chain needs to:

Correct Answer
verified

Differentiate resource stocks from resource flows with the help of the bathtub metaphor.

Correct Answer
verified
A helpful metaphor to explain the differ...
View Answer

Define the value chain.

Correct Answer
verified
The value chain describes the internal a...
View Answer

Correct Answer
verified

Path dependence rests on the notion that:

Correct Answer
verified

How are the critical assumptions of the resource-based model of a firm fundamentally different from the way in which a firm is viewed in the perfectly competitive industry structure?

Correct Answer
verified

Elaborate on social complexity as a barrier to imitation.

Correct Answer
verified
Social complexity describes situations i...
View Answer

When the knowledge of a valuable and rare resource diffuses throughout an industry, the:

Correct Answer
verified

_____ are best described as unique strengths, embedded deep within a firm, that allow a firm to differentiate its products and services from those of its rivals, creating higher value for the customer or offering products and services of comparable value at lower cost.

Correct Answer
verified

When evaluating the sustainability of a firm's competitive advantage, which of the following statements is NOT true?

Correct Answer
verified

What are dynamic capabilities?

Correct Answer
verified
Dynamic capabilities describe a firm's a...
View Answer

Correct Answer
verified

According to the _____, competitive advantage is the outflow of a firm's ability to modify and leverage its resource base in a way that enables it to gain and sustain competitive advantage in a constantly changing environment.

Correct Answer
verified

Due to resource immobility, a critical assumption in the resource-based model of a firm, the:

Correct Answer
verified

Which of the following management tools will help determine whether a firm's resources, capabilities, and competencies are strengths or weaknesses?

Correct Answer
verified

_____ describes a situation in which the cause and effect of a phenomenon are not readily apparent.

Correct Answer
verified

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

How do managers benefit from conducting a SWOT analysis?

Correct AnswerverifiedA SWOT analysis allows managers to evalu...View AnswerShow Answer

Differentiate between a firm's resources and capabilities.

Correct AnswerverifiedResources are any assets that a firm can...View AnswerShow Answer

Organizational and managerial skills that find their expression in a company's structure, routines, and culture are referred to as _____.

Correct AnswerverifiedShow Answer

To make the SWOT analysis an effective management tool, a strategist must first:

Correct AnswerverifiedShow Answer

To help a firm achieve a competitive advantage, each distinct activity performed in the value chain needs to:

Correct AnswerverifiedShow Answer

Differentiate resource stocks from resource flows with the help of the bathtub metaphor.

Correct AnswerverifiedA helpful metaphor to explain the differ...View AnswerShow Answer

Define the value chain.

Correct AnswerverifiedThe value chain describes the internal a...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Path dependence rests on the notion that:

Correct AnswerverifiedShow Answer

How are the critical assumptions of the resource-based model of a firm fundamentally different from the way in which a firm is viewed in the perfectly competitive industry structure?

Correct AnswerverifiedShow Answer

Elaborate on social complexity as a barrier to imitation.

Correct AnswerverifiedSocial complexity describes situations i...View AnswerShow Answer

When the knowledge of a valuable and rare resource diffuses throughout an industry, the:

Correct AnswerverifiedShow Answer

_____ are best described as unique strengths, embedded deep within a firm, that allow a firm to differentiate its products and services from those of its rivals, creating higher value for the customer or offering products and services of comparable value at lower cost.

Correct AnswerverifiedShow Answer

When evaluating the sustainability of a firm's competitive advantage, which of the following statements is NOT true?

Correct AnswerverifiedShow Answer

What are dynamic capabilities?

Correct AnswerverifiedDynamic capabilities describe a firm's a...View AnswerShow Answer

Correct AnswerverifiedShow Answer

According to the _____, competitive advantage is the outflow of a firm's ability to modify and leverage its resource base in a way that enables it to gain and sustain competitive advantage in a constantly changing environment.

Correct AnswerverifiedShow Answer

Due to resource immobility, a critical assumption in the resource-based model of a firm, the:

Correct AnswerverifiedShow Answer

Which of the following management tools will help determine whether a firm's resources, capabilities, and competencies are strengths or weaknesses?

Correct AnswerverifiedShow Answer

_____ describes a situation in which the cause and effect of a phenomenon are not readily apparent.

Correct AnswerverifiedShow Answer

Correct Answer
verified
A SWOT analysis allows managers to evalu...
View Answer

Correct Answer
verified
Resources are any assets that a firm can...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A helpful metaphor to explain the differ...
View Answer

Correct Answer
verified
The value chain describes the internal a...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Social complexity describes situations i...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Dynamic capabilities describe a firm's a...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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