Chap 4

Capabilities include which of the following?

company's culture, orginizational skills, routines

______ has a greater chance of arising from intangible resources than from tangible resources.

competitive advantage

The resource-based model views resources as ______.

main driver of firm performance

______ describes a process in which the options one faces in the current situation are limited by decisions made in the past.

path dependence

______ suggests that sometimes even random events may have a large impacts on an outcome.

path dependence

A resource is ______ if the number of firms that possess it is less than the number of firms required to reach a state of perfect competition.

rare

Which of the following is true according to the assumption of resource heterogeneity?

Resource bundles vary from company to company.

"Time compression diseconomies" refers to the concept that

attempting to get a good outcome in less time tends to be ineffective

The organizational and managerial skills necessary to orchestrate a diverse set of resources and deploy them strategically are called

capabilities

Which of the following are situations in which a resource is considered valuable?

- helps increase economic value - helps firm exploit external opportunity

Which of the following can help a firm extend its competitive advantage?

- path dependence - better expectations of future resource value - intellectual property protection

Which of the following explains how dynamic capabilities are different from the resource-based view?

Dynamic capabilities deal with applying resources over time.

One of the most popular tools used by firms to evaluate their current situation and future prospects is the

SWOT analysis

Why is competitive advantage more likely to spring from intangible rather than tangible assets?

Tangible assets can be bought on the open market.

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 framework

Which of the following statements accurately brings out the distinction between a firm's resources and capabilities?

While resources reinforce core competencies, capabilities allow managers to orchestrate their core competencies.

A customized strategy that considers the unique resources of the company while considering the external environment creates

a strategic fit between them

In the dynamic capabilities perspective, competitive advantage derives from

actively modifying of the resource base

______ are the distinct and fine-grained business processes that enable firms to add incremental value by transforming inputs into goods and services.

activities

Time compression diseconomies occur when a firm

attempts to reach an outcome in a reduced amount of time

Isolating mechanisms are considered to be

barriers to imitation

If a firm's resource is valuable, rare, costly to imitate, and the firm is organized to exploit it, this resource is a

core competency

According to the VRIO framework, a rare resource is ______ if firms that do not possess the resource are unable to develop or buy the resource at a comparable cost.

costly to immitate

A firm's dynamic capabilities allow it to respond agilely to market changes, as well as to

create market changes

In the context of the SWOT matrix, which of the following best exemplifies an external opportunity for a firm?

decreasing government interference in the target market

Which of the following statements are true about the capabilities of a firm?

deployment of resources, managerial skills, orginizational skills

By definition, resource immobility suggest that resources are ______ to move from firm to firm.

difficult

The purpose of a SWOT analysis is to

form a strategy that is tailored to the firm's unique strengths and weaknesses and the opportunities and threats in its environment

If the problem with a business strategy results in causal ambiguity, managers will

have a difficult time developing a theory to deal with the problem

______ do not have physical attributes.

intangible resources

Core competencies of a business are generated by the interaction of

resource and capabilities

______ are the firm's level of investments to maintain or build a resource.

resource flow

______ refers to the idea that a firm is a bundle of resources and capabilities that is unique to the firm.

resource heterogenity

______ refers to the assumptions that resources tend to be "sticky" and do not move easily from firm to firm.

resource immobility

______ are any assets that a firm can draw on when formulating and implementing a strategy.

resources

______ describes a situation in which different social and business systems interact with each other.

social complexity

A firm trying to compete with the leading firm in a competitive industry can try to negate the leading firm's competitive advantage through which of the following?

substitution, direct immitation

______ resources have physical attributes and are visible.

tangible

In performing a SWOT analysis to generate insights from external and internal analysis, internal strengths and weaknesses can be determined by applying ______ and external strengths can be evaluated in part by applying ______.

the VRIO framework; PESTEL

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

valuable

For a firm to sustain any competitive advantage over time, the fit between its internal strengths and external environment needs to be

dynamic

The SWOT analysis should be used with caution because

opportunities can be threats and strengths can be weaknesses

______ activities add value directly by transforming inputs into outputs as the firm moves a product or service horizontally along the internal value chain.

primary

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?

resources, capabilities, core competencies

Which of the following is an example of a firm's capabilities?

skills involved in training and managing a workforce

The concept of social complexity suggests that

social and business systems that work for one firm may be hard to imitate because of complex interactions between these systems

While the ______ clarifies a firm's core competencies, the ______ helps leaders understand how competitive advantage arises from the firm's unique activities.

resource-based view; value chain perspective

Using the _______, managers can see how competitive advantage flows from a firm's distinct set of activities.

value chain analysis