SmartBook Assignment Wk 1 - Practice: Ch. 4, Internal Analysis

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

SWOT analysis

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

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

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

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

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

Which of the following is not considered an isolating mechanism?

uncertainty about future resource value

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

Blank 1: isolating or isolation

describes a situation where the cause and effect of a phenomenon are not readily apparent.

Causal ambiguity

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

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

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

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

Rare Imitate Valuable

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) ______ 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 ______.

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

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

dynamic capabilities reputation for quality engineering expertise

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

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

heterogeneity; immobility

Which of the following are examples of resources for a firm?

intellectual property buildings cash

The value chain describes ______ of a firm.

internal activities

Strategic leaders use internal and external analyses in tandem to create a customized fit between a company's ______.

internal resources and external environment

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

resources and capabilities

Unlike capabilities, resources can be both ______.

tangible and intangible

The resource-based view classifies all resources as ______.

tangible or intangible

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

a strategic fit between them

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

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

The ______ describes the internal activities a firm engages in when transforming inputs into outputs.

value chain