HMD 454 FINAL EXAM CHAPTER 4

in order for a firm to be able to 'capture value' it must be organized to, among other thing,

- exploit the competitive potential of the firms resources

The purpose of a SWOT analysis is to:

- form a strategy that is tailored to the unique needs of company

which of the following is not considered an example of isolating mechanisms:

- high volatility of future resource value

A resource is considered rare:

- if one or a few firms can perform the capability in the same unique way

when strategizing about possible competitive advantages a major advantages of the SWOT analysis is that it allows managers to simultaneously consider:

- internal and external factors

the aim of a firms strategic choice is to :

- pursue competitive advantage and improved profit

what two assumptions are critical behind the resource-based view of the firm?

- resource heterogeneity - resource immobility

intangible resources are built through:

- continuous investments - experience over time

a firm trying to compete with the leading firm in a competitive industry can try to negate the leading firm competitive advantage by?

- direct imitation - substitution

SWOT analysis is a widely used management framework that:

- should be used with caution bc strengths can turn into weakness, and an opportunity can be a threat

time compression diseconomies refers to the concept that:

- time cannot be compressed at will, and when attempting to do so, the results are often inferior

activities enable firms to add value by:

- transferring inputs into good and services

The VIRO framework means?

- valuable, rare, costly to imitate, and organized

Capabilities find their expression within all of the following except;

- a company's financial statements

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

- better expectations of future resource value - path dependence - casual ambiguity - social complexity

casual ambiguity suggests that managers must have a strong understanding of:

- causes of superior and inferior performance

according to the dynamic capabilities, perspectives, competitive advantages comes from;

- constantly changing the firms resource base

dynamic capabilities are most relevant in:

- constantly shifting markets

Competitive advantage

Is more likely to spring from intangible resources rather than tangible resources

strategic fit ____the likelihood that a firm is able to gain a competitive advantage

increases

Dynamic capabilities describe

a firms ability to create and leverage its resource to gain competitive advantage.

Path dependence describes:

a process in which options are limited by decisions made in the past

Casual ambiguity describes

a situation where the cause and effect are not readily apparent

Primary activities

add value directly while support activities add value indirectly

Resource stocks

are the firms current level of intangible resources

resource flow :

are the firms level of investment to maintain or build resource

When the perceived value of a product inc. the firms probability___

increases

Resources can be

cash buildings, or intellectual properties

resources and capabilities

core competencies are created through the interplay

a resource is ____ if firms are unable to develop or buy the resource at a reasonable price

costly to imitate

Social Complexity describes situation in which

different social and business systems interact with each other

A core competency

is the unique strength of a firm that allow it to differentiate its products and create value for consumers

The resource-based model views resources as:

key to superior firm performance

Resource heterogeneity

means that bundles of resources and capabilities differ across firms.

generally speaking, the ____ resources more broadly than previous defines

resource- based view defines

By definition, rsource immobility suggest that ____ from firm to firm

resources do not move easily

the reason that any advantage is ____ in perfect competition is that firms have access to ____ resources

short-lived; the same

research and development, operations management and HR ____are activities

support

capital, land, buildings, and plants are examples of:

tangible resources

Primary activities are those activities

that ass value directly by transforming inputs into outputs

value chain describes

the internal activities a firm engages in when transforming inputs into outputs

t/f core competencies need to be refined and upgraded in order to increase the probability that they will continue to lead to competitive advantages

true

t/f core competencies that are not continually nourished will eventually lose their ability to yield a competitive advantage

true

Dynamic capabilities are

intangible

a firms culture, brand , equity, and intellectual property are examples of?

intangible resources