Wk 2 - Practice: Ch. 4, Internal Analysis [due Day 5]

______ describes a process in which the options one faces in the current situation are limited by decisions made in the past.

Path dependence

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

Resource flows

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

Resources

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

SWOT analysis

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

VRIO framework

The value chain describes ______ of a firm.

internal activities

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

time compression diseconomies

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

Imitate. Valuable. Rare.

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

It is socially complex. It consists of interconnected activities. 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

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

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

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

Isolating mechanisms are considered to be ______.

barriers to imitation

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

cash. intellectual property. buildings.

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

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

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

reputation for quality. engineering expertise. dynamic capabilities.

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

resources and capabilities

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?

resources. core competencies. capabilities.

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

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

to differentiate its products and services. to offer products of comparable value at lower cost than rivals can. to create higher value for the consumer.

Which of the following is not considered an isolating mechanism?

uncertainty about future resource value

Which of the following were resources and capabilities that helped Five Guys gain a competitive advantage and develop into a successful restaurant chain?

Carefully choosing the supplier of the potatoes for their fries. Focusing on such details as store layout and design.

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

internal resources and external environment

The resource-based view classifies all resources as ______.

tangible or intangible

___ suggests that sometimes even random events may have a large impacts on an outcome.

Path dependence

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

value chain