INB Chapter 4

1. JB and Sons is a firm that has valuable, rare, and hard-to-imitate capabilities that are organizationally embedded and exploited. JB and Sons can expect _____ firm performance.

- Persistently Above average

1. Valuable and rare resources and capabilities can be a source of competitive advantage

- only if competitors have a difficult time imitating them

1. A small Austrian fishery firm wanted to expand into a new region of the country, but was in competition with a bigger, more established firm. The smaller firm, however, was successful in developing and maintaining key political relationships and were ultimately granted the necessary government permits. Which of the following was key to the smaller firm's success?

-Ambidexterity

1. Years & Years Group is a luxury fashion house. It has no shortage of competitors, but it has valuable, rare, and hard-to-imitate resources and capabilities. This will lead to _____.

-Competitive advantage

Which of the following statements is true of the resource-based view of global business?

-It concentrates on a firm's internal strengths and weaknesses.

1. Which of the following statements is true of captive sourcing?

-It means setting up subsidiaries to perform in-house work in foreign locations.

1. If managers find that their firm's particular activity is unsatisfactory, which of the following is a remedy for the situation?

-Using a decision model.

1. helps managers make decisions on what capabilities to focus on in-house and what to outsource.

-Value chain analysis

Lavalle is a movie studio in New Jersey. Its components include photography crews, musicians, singers, makeup artists, animation specialists, and managers on the business side. These components are called

-complementary assets

_____ is a process of market competition through which unique products that command high prices and high margins gradually lose their ability to do so, thus becoming

Commoditization

1. Offshoring, also known as international outsourcing, has proven to be a long term benefit to Western firms and economies.

False

1. he employees at GinesCorp. are tangible assets.

False

Which of the following assets is DIFFICULT to imitate?

Intangible assets

Which of the following statements is true of benchmarking?

It is a process in SWOT analysis.

Which of the following statements is true of onshoring

It means outsourcing to a domestic firm.

1. Critics of ______ make the political argument that many large firms in developed economies are unethical and are interested only in the cheapest and most exploitable labor. Not only is work commoditized, but people are also degraded as tradable commodities that can be jettisoned.

Offshoring

1. refers to the socially elaborate ways of organizing typical of many firms.

Social complexity

1. A leading tool in global business is SWOT analysis. It determines a firm's:

Strengths, weakness, opportunities, and threats

1. Which of the following is an implication for action based on the resource-based view of management?

Students need to make themselves into "untouchables" whose jobs cannot be easily outsourced.

1. Which of the following statements is true of tangible resources?

They are organized as financial, physical, technological, and organizational resources.

Which of the following best defines capabilities?

They are the tangible and intangible assets a firm uses to choose and implement -its strategies.

1. Which of the following statements is true of intangible resources?

They include human, innovation, and reputational resources.

1. SlimJims Inc. is an organization that possess strong capabilities in upstream activities, such as design, and downstream activities, such as marketing. It has given manufacturing contracts to suppliers in low-cost countries. This is an example of outsourcing.

True

1. According to the resource-based view of management, an implication for action is that managers need to build firm strengths based on the

VRIO framework

1. A _____ is a series of activities used in the production of goods and services that make a product or service more valuable.

Value chain

1. A _____ engages managers to ascertain a firm's strengths and weaknesses on an activity-by-activity basis, relative to rivals.

Value chain analysis

1. According to the resource-based view of management, an implication for action is that _____ though important, is not likely to be a successful strategy.

benchmarking

1. A "LEGO" view of a firm:

fails to realize that social capital associated with complex relationships and knowledge permeating many firms can be a source of competitive advantage.

1. Intangible assets can be broadly organized in four categories-financial, physical, technological, and organizational resources and capabilities.

false

The reputation that a firm gets based on positive press is an example of a tangible asset.

false

1. In the context of the VRIO framework, the question of _____ is a reminder of the cliché: If everyone has it, an individual cannot make money from it.

rarity

1. is moving formerly offshored activities back to the home country of the focal firm

reshoring

1. are the tangible and intangible assets a firm uses to choose and implement its strategies.

resources

enables firms to anticipate future needs and move early to identify, develop, and leverage resources and capabilities for future competition.

strategic foresight

1. The employees at Leo Corp. are _____ assets. They help the firm gain a competitive advantage.

tangible

Which of the following assets is EASY to imitate?

tangible assets

1. The debate on offshoring is a relevant part of the larger debate on globalization and directly affects your future as a manager, a consumer, and a citizen

true

1. Valuable but common resources and capabilities will lead to competitive parity but not an advantage.

true

1. Valuable, rare, and hard-to-imitate resources determine the success and failure of firms around the globe.

true

A value chain analysis tells us how a bundle of resources and capabilities come together to add value.

true

Ambidexterity is known as the ability to use one's two hands equally well, but in the management literature it describes capabilities to simultaneously deal with paradoxes.

true

Only value-adding resources can lead to competitive advantage, whereas non-value-adding capabilities may lead to competitive disadvantage.

true

Successful firms such as Apple do not know exactly what contributes to its success, and different managers of the same firm may have a different list, usually suggesting that it is many things in combination.

true

The driving force behind the recent outsourcing of service activities such as IT, HR, and logistics is that many firms, which used to view certain activities as a very special part of their industries, now believe that these activities have relatively generic attributes that can be shared across industries.

true