428 Chap4

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

SWOT

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

SWOT

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

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 ______.

VRIO; PESTEL

VIRO framework

Value, Rarity, Imitability, Organization

path dependence

a situation in which the options one faces in the current situation are limited by decisions made in the past

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

a strategic fit between them

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

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

internal and external forces

The resource-based view classifies all resources as ______.

tangible or intangible

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

value chain

support activities

-R&D -info services -HR -accounting and finance -firm infrastructure like processes, policies, and procedures

What should a firm do in order to be organized to capture value? (Check all that apply.)

-have a good organizational structure-have good coordinating systems

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

Which of the following are situations in which a resource is considered valuable? (Check all that apply.)

The resource helps the firm increase its economic value creation (V-C). The resource helps a firm exploit an external opportunity.

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

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

According to the VRIO framework, to fully exploit the competitive potential of its resources, capabilities, and competencies, a firm must ______.

be organized to capture value

Which of the following can help a firm extend its competitive advantage? (Check all that apply.)

better expectations of future resource value intellectual property protection path dependence

Which of the following are examples of resources for a firm? (Check all that apply.)

buildings cash intellectual property

tangible

capable of being touched; real, concrete

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

casual 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

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? (Check all that apply.)

engineering expertise reputation for quality dynamic capabilities

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

false

True or false: The value chain concept is applicable primarily to high-tech firms in rapidly changing environments.

false

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

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

increase

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

path dependence

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

______ 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

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

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

social complexity

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

support

The resource-based model views resources as ______.

the main driver of firm perfoemance

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

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

true

intangible

unable to be touched or grasped; not having physical presence

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

valuable

A core competency can help a company achieve which of the following? (Check all that apply.)

-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 are intangible resources that can be protected as intellectual property?

-trade secrets -trademarks -copyrights

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

isolating mechanisms

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

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

Which of the following is an isolating mechanism?

-social complexity -casual ambiguity -path dependency -better expectations of future resource value

Primary activities include which of the following? (Check all that apply.)

-supply chain -operations -distribution -marketing and sales -after-sales service

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 were resources and capabilities that helped Five Guys gain a competitive advantage and develop into a successful restaurant chain? (Check all that apply.)

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