Chapter 4 LearnSmart

Dynamic capabilities are most relevant in __. -international markets -stable markets -changing markets -virtual markets

changing markets

Core __ are generated by the interaction of resources and capabilities.

competencies

Groupon's __ was temporary since its resource was neither rare nor costly to imitate. -competitive advantage -resource heterogeneity -core competency -resource immobility

competitive advantage

Enterprise Machinists is always improving upon its core competencies by training its machinists constantly so that they are equipped to deal with technological changes and advancements. Based on this information, this is an example of which concept? -core rigidities -dynamic capabilities -a value chain -causal ambiguity

dynamic capabilities

An early decision in the development of a firm, such as where the firm is established, can eventually have a major influence on final outcomes. This effect is referred to as __ dependence.

path

The firm's internal activities to transform inputs into outputs consist of __ activities, which add value directly, and __ activities, which add value indirectly.

primary; support

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. -immobile -rare -visible -heterogeneous

rare

What can cause an outflow of resources from a firm? (Check all that apply.) -turnover of employees -forgetting knowledge -retention of employees -continuous investments

-turnover of employees -forgetting knowledge

"Time compression diseconomies" refers to the concept that __. -barriers to imitation may prevent other firms from competing away a firm's competitive advantage -options one faces in the current situation are limited by past decisions -some phenomena do not have a clear cause of effect -attempting to get a good outcome in less time tends to be ineffective

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

Which of the following can help a firm extend its competitive advantage (Check all that apply.) -path dependence -causal ambiguity -better expectations of future resource value -depletion of tangible and intangible resources -resource stocks and flows

-better expectations of future resource value -path dependence -causal ambiguity

A firm trying to compete with the leading firm in a competitive industry can try to negate the leading firm's competitive advantage through __. (Check all that apply.) -direct imitation -engaging in perfect competition -substitution -value-added resources

-direct imitation -substitution

What should a firm do in order to be organized to capture value? (Check all that apply.) -have a good organizational structure -have a rare and valuable resource -have good coordinating systems -have CEOs with forward-thinking vision

-have a good organizational structure -have good coordinating systems

Competitive advantage is gained in the value chain through which of the following types of activities? (Check all that apply.) -primary -establishing -goal -support

-primary -support

Primary activities include which of the following? (Check all that apply.) -research and development -supply chain management -operations -human resources

-supply chain management -operations

A resource is considered valuable in which of the following situations? (Check all that apply.) -the resource helps a firm exploit an external opportunity -the resource is both heterogeneous and immobile -the resource helps the firm product tangible, but not intangible competencies -the resource helps the firm increase its economic value creation (V-C)

-the resource helps a firm exploit an external opportunity -the resource helps the firm increase its economic value creation (V-C)

Which of the following statements are true about the capabilities of a firm? (Check all that apply.) -they included organizational skills -they include intellectual property -they concern the deployment of resources -they include managerial skills

-they included organizational skills -they concern the deployment of resources -they include managerial skills

A core competency can help a company achieve which of the following? (Check all that apply.) -to create higher value for the consumer -to differentiate its products and services -to reduce the wages of its employees -to offer products of comparable value at lower cost than rivals can

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

T/F: Core competencies allow a firm to distinguish itself from other firms that provide similar products or services.

True

Which of the following identifies the resources that can lead to a competitive advantage? -VIRO framework -value chain -PESTEL -resource heterogeneity

VIRO framework

If a firm neglects its current core competencies, such neglect may lead to all of the following, except __. -competitors developing equivalent or superior skills -competitors potentially outperforming the firm by creating competitive advantage -a guaranteed sustained competitive advantage -a possible decline in market share compared to the competitors

a guaranteed sustained competitive advantage

__ are the distinct and fine-grained business processes that enable firms to add incremental value by transforming inputs into goods and services. -core competencies -capabilities -activities -resources

activites

If a firm's resource is valuable, rare, costly to imitate, and the firm is organized to exploit it, this resource is __. -supportive component -core competency -valued service -planned emergent

core competency

The __ perspective is a model that emphasizes a firm's ability to modify and leverage its resource base in a way that enables it to gain and sustain competitive advantage. -resource-based -dynamic capabilities -value chain -resource flows

dynamic capabilities

If the problem with a business strategy results in causal ambiguity, managers will __. -need training to communicate more clearly -be able to apply an isolating mechanism for competitive advantage -have a difficult time developing a theory to deal with the problem -know to treat the problem as a transient issue

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

Strong resource flows __ a firm's resource stocks. -destroy -have no impact on -increase -decrease

increase

In contrast to primary activities, support activities add value __, but are necessary to sustain primary activities. -directly -indirectly -spontaneously -informally

indirectly

__ resources take a long time for a firm to build. -homogeneous -tangible -intangible -heterogeneous

intangible

Dynamic capabilities can be described as a(n) __. -tangible resource -immobile resource -intangible resource -heterogeneous resource

intangible resource

According to the __-based view, firms are a distinctive collection of resources, capabilities, and competencies.

resource

The culture of Zappos is hard to imitate because it consists of numerous, diverse interactions among its employees, processes, procedures, and norms, which creates which of the following? -causal complexity -social complexity -social ambiguity -causal ambiguity

social complexity

__ describes a situation in which different social and business systems interact with each other. -planned emergence -path dependence -social complexity -causal ambiguity

social complexity

Capital, land, building, and plants are examples of __ resources. -assumed -component -tangible -intangible

tangible

Unlike capabilities, resources can be both __. -difficult to access and inexpensive -tangible and intangible -easy to access and useful -tangible and expensive

tangible and intangible

What does the concept of resource heterogeneity imply? -that different firms value different things -that each firm has different resources -that each firm has the same resources -that firms all have resources that are "sticky" or hard to transfer

that each firm has different resources

Which of the following is not considered an isolating mechanism? -better expectations of future resource value -path dependency -causal ambiguity -social complexity -uncertainty about future resource value

uncertainty about future resource value

The __ describes the internal activities a firm engages in when transforming inputs into outputs. -supply chain -complementary chain -value chain -primary chain

value chain

According to the value chain perspective, __ are located in the network that connects different, but related activities within a firm. -information systems -core competencies -tangible resources -marketing and sales

core competencies

Better expectations of future resource value __ a firm's competitive advantage. -never have an impact on -negatively impact -have no immediate impact on -positively impact

positively impact

__ refers to the assumptions that resources tend to be "sticky" and do not move easily from firm to firm. -resource allocation -resource mobility -resource immobility -resource homogeneity

resource immobility

__ are the firm's current level of intangible resources. -dynamic capabilities -resource stocks -tangible expectations -resource flows

resource stocks

According to the __ view of a firm, "resources" are defined as any asset, capability, or competency that a firm can draw upon when formulating and implementing strategy. -value chain -resource-based -network -knowledge-based

resource-based

The __ view provides a model that sees certain types of resources as key to superior firm performance. -capability-based -competency-based -activity-based -resource-based

resource-based

Cowgirl Boots, inexpensive leather boots for women, are selling at record-high numbers. The CEO of the company, however, cannot out why. Was it caused by the company's recent advertisement campaign or the newly reduced price of the boots or some other unknown factor? Based on this information, what concept describes the CEO's confusion regarding Cowgirl Boots' recent success? -path dependence -social complexity -time compression diseconomies -causal ambiguity

causal ambiguity

Understanding the cause and effect of a strategy may help managers avoid __. -path dependence -causal ambiguity -social complexity -time compression diseconomies

causal ambiguity

In the resource-based model, __ is possible if all firms have access to the same resources and capabilities, which means that any competitive advantage acquired by a firm will be brief. -monopolistic -monopoly -oligopoly -perfect competition

perfect competition

A firm's culture, brand equity, and intellectual property are examples of __. -tangible resources -ill-defined resources -defined resources -intangible resources

intangible resources