MGT498 - Strategic Management

Identify the framework that allows managers to synthesize insights obtained from internal and external analysis.

SWOT analysis

______ 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 firm's network of interconnected activities is referred to a strategic activity system because activities that are interconnected are very difficult for competitors to copy effectively.

True

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

True

Select all that apply The VRIO framework is used to evaluate a firm's resources. VRIO is an acronym for which of the following?

Rare Valuable Imitate

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

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

Which of the following is not considered an isolating mechanism?

uncertainty about future resource value

Select all that apply Which of the following are examples of resources for a firm?

buildings intellectual property cash

The resource-based model views resources as Blank______.

the main driver of firm performance

The two types of value chains are value chains, which are vertical value chains, and value chains, which are horizontal value chains.

1: industry 2: firm

Select all that apply 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

Select all that apply What are the characteristics of a strategic activity system as it applies to firms?

It consists of interconnected activities. It is socially complex. It is causally ambiguous.

Which of the following best describes the core competency of the Five Guys Burgers and Fries company?

Making high-quality burgers without limiting costs

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

Resource flows

Which of the following identifies the resources that can lead to a competitive advantage?

VRIO framework

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

a strategic fit between them

Time compression diseconomies occur when a firm Blank______.

attempts to reach an outcome in a reduced amount of time

Isolating mechanisms are considered to be Blank______.

barriers to imitation

Cowgirl Boots, inexpensive leather boots for women, are selling at record-high numbers. The CEO of the company, however, cannot figure 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?

causal ambiguity

Select all that apply 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?

core competencies capabilities resources

A(n) Blank______ is a unique strength, embedded deep within a firm, that is critical to gaining and sustaining competitive advantage.

core competency

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

dynamic

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?

dynamic capabilities

Select all that apply What are examples of intangible resource stock a company may have?

engineering expertise dynamic capabilities reputation for quality

The purpose of a SWOT analysis is to Blank______.

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 Blank______.

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

Resource Blank______ and resource Blank______ are the key assumptions behind the resource-based model of the firm.

heterogeneity; immobility

Strategic fit Blank______ the likelihood that a firm is able to gain a competitive advantage.

increases

Select all that apply What are the two types of value chains?

industry value chains firm value chains

The core competencies of a business are generated by the interaction of Blank______.

resources and capabilities

Unlike capabilities, resources can be both Blank______.

tangible and intangible

The resource-based view classifies all resources as Blank______.

tangible or intangible

A firm's attempts to shorten the length of time a process takes, may lead to disappointing outcomes because of Blank______.

time compression diseconomies