Chapter 4 - Internal Analysis

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

False

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

Isolating mechanisms are considered to be ______.

barriers to imitation

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

internal resources and external environment

Which of the following is not considered an isolating mechanism?

uncertainty about future resource value

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

Activities

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

increases

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

isolating

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

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 framwork; PESTEL

A competitive advantage is most often maintained indefinitely.

False

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

______ activities add value directly by transforming inputs into outputs as the firm moves a product or service horizontally along the internal value chain.

Primary

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

SWOT Analysis

True or false: To maintain a competitive advantage, a strategic activity system needs to change over time.

True

What insights gained from a SWOT analysis would lead McDonald's to consider developing healthier food items for its menu?

a growing health consciousness among customers

The purpose of a SWOT analysis is to ______.

form a strategy that is tailored to the firm's unique strengths and weaknesses and the opportunities and threats in its environment

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

gain or maintain competitive advantage

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


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