BCOR 460 Chap 4

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

Valuable

Which of the following are considered resources under the resource-based view of the firm?

- Competencies - Assets - Capabilities

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

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

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

- Valuable - Imitate - Rare

Capabilities include which of the following?

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

Which of the following are examples of business activities?

- delivery of products - invoicing customers - order taking

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

- have good coordinating systems - have a rare and valuable resource - have a good organizational structure

What are the two types of value chains?

- industry value chains - firm value chains

Which are examples of activities that create value?

- making a physical delivery of a product - taking an order from a customer - invoicing a customer

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 two types of value chains are ________ value chains, which are vertical value chains, and ______ value chains, which are horizontal value chains.

Industry; Firm

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

Susan is a consultant for a grocery store chain that wants to open several new stores in the St. Louis area. She has selected several sites for the company to consider based in part on projected population growth near those sites. What isolating mechanism does this best illustrate?

better expectations of future resource value

The organizational and managerial skills necessary to orchestrate a diverse set of resources and deploy them strategically are called ______.

capabilities

According to the value chain perspective, ______ are located in the network that connects different, but related activities within a firm.

core competencies

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

By definition, resource immobility suggests that resources are ______ to move from firm to firm.

difficult

Javier, the owner of Javier's Tacos, has noticed that residents of his town are flocking to a new taco truck in increasing numbers. After doing some research, Javier learns that consumers enjoy the food truck because almost all the taco ingredients are locally sourced. Javier decides to add locally sourced ingredients to his menu. This is an example of ______.

direct imitation

Groupon's initial success was largely due to the company's ______.

first mover advantage

Using the "resource-based view" helps firms ______.

gain or maintain competitive advantage

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

intangible resources

The value chain describes ______ of a firm.

internal activities

In the resource-based model, ______ is possible if all firms have access to the same resources and capabilities, which means that any competitive advantage acquired by a firm will be brief.

perfect competition

Better expectations of future resource value ______ a firm's competitive advantage.

positively impact

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

What critical assumption comes from the insight that bundles of resources differ across firms?

resource heterogeneity

While the ______ clarifies a firm's core competencies, the ______ helps leaders understand how competitive advantage arises from the firm's unique activities.

resource-based view; value chain perspective

According to the resource-based view of a firm, what are defined as any asset, capability, or competency that a firm can draw upon when formulating and implementing strategy?

resources

The core competencies of a business are generated by the interaction of ______.

resources and capabilities

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

tangible

Unlike capabilities, resources can be both ______

tangible and intangible

What does the concept of resource heterogeneity imply?

that each firm has different resources

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

true

A firm trying to compete with the leading firm in a competitive industry can try to negate the leading firm's competitive advantage through which of the following?

- Substitution - Direct Imitation

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.

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

Resource bundles vary from company to company.

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

VRIO resources can lay the foundation of a competitive advantage, no competitive advantage can be sustained indefinitely.

True

What are the distinct and fine-grained business processes that enable firms to add incremental value by transforming inputs into goods and services?

activities

Time compression diseconomies occur when a firm ______.

attempts to reach an outcome in a reduced amount of time