BCOR 2304 Strategy and Entrepreneurship (Chapter 3)

Which of the following reduces profit margins for air carriers?

Large corporate customers contracting with the U.S. airline industry

Core competencies of a business are generated by the interaction of ______.

resources and capabilities

The cost advantages that a firm obtains by increasing output, such as by spreading fixed costs over more units, are called economies of ______

scale

The resource-based view classifies all resources as ______.

tangible or intangible

The risk that potential competitors will enter the industry is known as the ______.

threat of entry

A core competency can help a company achieve which of the following?

to offer products of comparable value at lower cost than rivals can to differentiate its products and services to create higher value for the consumer

Which of the following is not considered an isolating mechanism?

uncertainty about future resource value

______ factors result from the processes and actions of government bodies that influence the decisions and behavior of firms.

Political

A resource is considered ______ if it helps a firm to deal with an external threat.

valuable

Which of the following were resources and capabilities that helped Five Guys gain a competitive advantage and develop into a successful restaurant chain?

Focusing on such details as store layout and design Carefully choosing the supplier of the potatoes for their fries

Which of the following helped Airbnb develop a successful business in the peer-to-peer rental space?

Fortuitous timing that led to growing demand Ensuring a smooth transaction between hosts and guests Presenting a well-designed website

Which of the following are examples of economies of scale?

Having more negotiating power vis-à-vis suppliers Spreading fixed costs over more units

Which of the following are examples of resources for a firm?

intellectual property buildings cash

Exit barriers, strategic commitments, and competitive industry structure are important factors in determining the _____________.

intensity of rivalry

The relationship between the natural environment and business organizations can best be described as ______.

interdependent

Managers have ______ direct influence over external forces in the firm's general environment than those in the firm's task environment.

less

Which of the following are examples of economic factors in the firm's general environment?

price stability interest rates growth rates

True or False: According to the resource-based model, a firm is assumed to be a unique bundle of resources, capabilities, and competencies.

True

True or False: Sociocultural factors are constantly in flux and also differ across groups.

True

The ______ is a theoretical model that explains and predicts what resource attributes underpin competitive advantage. It identifies which types of resources are key to firm performance.

VRIO

Which of the following are characteristics of a monopolistically competitive industry?

a differentiated product obstacles to entry the ability to raise prices for differentiated products

An industry analysis provides which of the following?

a rigorous way of identifying the industry's profit potential insight into a firm's strategic position within an industry the level of profitability that can be expected for the average firm in the industry

What do the best firms in an industry seek to identify and manage on an ongoing basis as sources to respond to their external environment?

capabilities core competencies resources

The external forces called technological factors ______.

capture the application of knowledge to create new process and products

Which of the following help determine competitive industry structure?

firms' degree of pricing power height of entry barriers size and number of competitors

What should a firm do in order to be organized to capture value?

have a rare and valuable resource have a good organizational structure have good coordinating systems