BP4

___ 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

______ 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

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

Resource bundles vary from company to company.

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

Resource flows

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

Resource heterogeneity

______ are the firm's current level of intangible resources.

Resource stocks

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

Resources

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

SWOT analysis

______ is a framework that allows mangers to synthesize insights obtained from internal and external analysis.

SWOT analysis

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

Social complexity

____ resources have physical attributes and are visible.

Tangible

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

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 framework

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

VRIO framework

Capabilities include which of the following?

a company's organizational structure a company's culture a company's routines

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

a strategic fit between them

In order to be successful, a firm must have a resource that is valuable, rare, costly to imitate, and the firm must ___

be organized to capture value

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 imitate

Which isolating mechanism is set up to legally prevent companies from copying products that give a firm a competitive advantage?

intellectual property protection

The value chain describes ______ of a firm.

internal activities

When strategizing about possible competitive advantages, a major advantage of the SWOT analysis is that it allows managers to simultaneously consider ______.

internal and external factors

Intellectual property protection and social complexity are examples of_________ mechanisms, which help a firm sustain a competitive advantage.

isolating or isolation

The SWOT analysis should be used with caution because ______.

opportunities can be threats and strengths can be weaknesses

The culture of Zappos is hard to imitate because it consists of numerous, diverse interactions among its employees, processes, procedures, and norms, that create which of the following?

social complexity

The resource-based view classifies all resources as ___

tangible or intangible

True or false: A competitive advantage is most often maintained indefinitely.

False

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

____ do not have physical attributes.

Intangible resources

What are the characteristics of a strategic activity system as it applies to firms?

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

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

Making high-quality burgers without limiting costs

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

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?

They include organizational skills. They include managerial skills. They concern the deployment of resources.

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

"Time compression diseconomies" refers to the concept that ______.

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

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

isolating mechanisms are considered to be ____

barriers to imitation

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

better expectations of future resource value path dependence intellectual property protection

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 resources core competencies

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

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

core competency

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

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

What are examples of intangible resource stock a company may have?

dynamic capabilities engineering expertise reputation for quality

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

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

have a good organizational structure have good coordinating systems

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

heterogeneity; immobility

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

increases

In contrast to primary activities, support activities add value ______, but are necessary to sustain primary activities.

indirectly

A firm's culture, brand equity, and intellectual property are examples of ______.

intangible resources

Marketing, sales, and distribution are ______ activities in a firm's value chain.

primary

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

According to the VRIO framework, in order for a firm to gain a temporary competitive advantage, a resource must be at least both __

rare and valuable

According to the VRIO framework, in order for a firm to gain a temporary competitive advantage, a resource must be at least both ___

rare and valuable

Core competencies of a business are generated by the interaction of

resources and capabilities

Core competencies of a business are generated by the interaction of _____

resources and capabilities

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

The interaction of the many individual systems in the operation of a company often leads to causal ambiguity because of __

social complexity

Primary activities include which of the following?

supply chain management operations

Research and development, information systems and human resources are examples of ______ activities.

support

In order to avoid making costly mistakes due to the potential shortcomings of the SWOT analysis, a manager should ______.

take results from the SWOT analysis with "a grain of salt"

Capital, land, buildings, and plants are examples of ______ resources.

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

The resource-based model views resources as _____

the main driver of firm performance

How are intangible resource stocks acquired?

through investments over time in intangible resources

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

time compression diseconomies

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 create higher value for the consumer to differentiate its products and services

Which of the following are intangible resources that can be protected as intellectual property?

trade secrets copyrights trademarks

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

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 value chain concept is applicable primarily to high-tech firms in rapidly changing environments.

False

Unlike capabilities, resources can be both ______.

tangible and intangible