Book questions - Chapter 4

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

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

causal ambiguity

All of the following are examples of activities that create value, except closely monitoring the firm's stock price making a physical delivery of a product invoicing a customer taking an order from a customer

closely monitoring the firm's stock price

Core ______ are generated by the interaction of resources and capabilities

competencies

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? a value chain dynamic capabilities core rigidities causal ambiguity

dynamic capabalities

primary activities include which of the following? supply chain managemetn research and development operations human resources

supply chain managemetn operations

Accounting and finance are _____ activities in a firm's value cahin

support

Unlike capabilities, resources can be both both

tangible and intangible

which of the following can help a firm extend its competitive advantage? -causal ambiguity -path dependence -depletion of tangible and intangible resources -resource stocks and flows -better expectations of future resource value

-causal ambiguity -path dependence -better expectations of future resource value

What should a firm do in order to be organized to capture value? -have a good organizational structure -have CEOs with forward-thinking vision have a good coordinating systems -have a rare and valuable resource

-have a good organizational structure -have a good coordinating systems

What does the concept of resource heterogeneity imply? -that firms all have resources that are "sticky" or hard to transfer -that each firm has different resources -that different firms value different things -that each firm has the same resources

-that each firm has different resources

Which of the following are true about the capabilities of a firm? -they include organizational skills -they include intellectual property -they concern the deplyoment of resources -they include managerial skills

-they include organizational skills -they concern the deplyoment of resources -they include managerial skills

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

Imitate Rare Valuable

In performing a SWOT analysis to generate insights from extenral and internal analysis, internal strengths and weaknesses can be determined by applying ________and external strengths can be evaluated in part by applying_______.

THE VRIO frameowkr, PESETL

"Time compression diseconomies" refers to the concept that _______. attempting to get a good outcome is less time tends to be ineffective barriers to imitation may prevent other firms from competing away a firm's competitive advantage some phenomena do not have a clear cause of effect options one faces in the current situation are limited by past decision

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

Strategic fit _________the likelihood that a firm is able to gain a competitive advantage. increases makes impossible does not impact decrease i

increases

The value chain describes ________ of a firm. the external environment the relationship between resources and the external environment internal activities internal competencies

internal activities

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

isolating

An early decision in the development of a firm, such as where the firm is established, can eventually have a major influence on final outcomes. This effect is referred to as ______ dependance

path

The firm's internal activities to transform inputs into output consist of ________________ activities which add value directly and ____ activities which add value indirectly

primary, support

according to the ________- based view, firms are distinctive collection of resources, capabilities, and competencies

resource

What does the concept resource immobility imply? resource diffeences between firms can last a longt ime that each fimr has the same resoruces that it is difficult to reproduce the set of resources that a firm lacks in comparison to another fimr that different firms value different things

resource differences between firms can last a long time that it is difficult to reproduce the set of resources that a firm lacks in comparison to another firm

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 create higher value for the consumer -to differentiate its products and services -to reduce the wages of its employees

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