LearnSmart Chapter 4 Assignment

______ are the firm's level of investments to maintain or build a resource. Multiple choice question. Resource stocks Resource complements Resource value Resource flows

Resource flows

___ comes from the insight that bundles of resources, capabilities, and competencies differ across firms.

Resource heterogeneity

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

True

Which isolating mechanism is set up to legally prevent companies from copying products that give a firm a competitive advantage? Multiple choice question. social complexity intellectual property protection path dependence causal ambiguity

intellectual property protection

A resource is considered ______ if it helps a firm to deal with an external threat. Multiple choice question. valuable commonplace easily imitated dynamic

valuable

True or false: Core competencies should be continuously improved so that the firm can acquire or maintain a competitive advantage.

True

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

True

Which of the following identifies the resources that can lead to a competitive advantage? Multiple choice question. PESTEL resource heterogeneity VRIO framework value chain

VRIO framework

For a firm to sustain any competitive advantage over time, the fit between its internal strengths and external environment needs to be ______. Multiple choice question. compressed tangible causal ambiguous dynamic

dynamic

One of the most popular tools used by firms to evaluate their current situation and future prospects is the ______. Multiple choice question. value chain analysis VRIO framework SWOT analysis dynamic capabilities perspective

SWOT analysis

Select all that apply 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? Multiple select question. capabilities resources internal weaknesses core competencies

capabilities resources core competencies

Understanding the cause and effect of a strategy may help managers avoid ______.

causal ambiguity

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

False. The value chain concept can be applied to basically any firm.

______ do not have physical attributes.

Intangible resources

In which of the following ways did Apple stand to benefit from its 2014 acquisition of Dr. Dre's Beats Electronics? - It was acquiring some of the coolness factor associated with the Beats brand. - It was acquiring the headphone brand with the best sound quality. - It was acquiring the highest-fidelity technology for making sound recordings. - It was increasing its music downloading business in place of music streaming.

It was acquiring some of the coolness factor associated with the Beats brand.

Marketing, sales, and distribution are ______ activities in a firm's value chain. Multiple choice question. ambiguous secondary primary support

primary

The ______ describes the internal activities a firm engages in when transforming inputs into outputs. Multiple choice question. supply chain complementary chain primary chain value chain

value chain

Select all that apply Which insights gained from a SWOT analysis could lead McDonald's to open new restaurants in China? Multiple select question. Increasing popularity of easy-to-prepare grocery items in China Growth in emerging economies and market share decline in developed economies. Increasing wages in China McDonalds' financial strength and brand name.

-Growth in emerging economies and market share decline in developed economies. -McDonalds' financial strength and brand name.

In the dynamic capabilities perspective, competitive advantage derives from ______. Multiple choice question. advantages that flow from market forces static resource advantages actively modifying of the resource base a mix of isolating mechanisms

actively modifying of the resource base

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. Multiple choice question. VRIO framework dynamic capabilities perspective value chain SWOT analysis

VRIO framework

A firm's dynamic capabilities allow it to respond agilely to market changes, as well as to ______. Multiple choice question. create market changes make resources less "sticky transfer social complexity from one firm to another avoid causal ambiguity

create market changes

The core competencies of a business are generated by the interaction of ______. Multiple choice question. resources and ownership capabilities and management ownership and management resources and capabilities

resources and capabilities

The resource-based view classifies all resources as ______.

tangible or intangible

Which of the following is true according to the assumption of resource heterogeneity? Multiple choice question. Companies should focus on duplicating the resources bundles of successful firms. Firm resource differences tend to last for a long time. Each firm deals with a unique set of external influences. Resource bundles vary from company to company.

Resource bundles vary from company to company.

______ describes a situation in which different social and business systems interact with each other. Multiple choice question. Path dependence Planned emergence Causal ambiguity Social complexity

Social complexity

Groupon's initial success was largely due to the company's ______. Multiple choice question. ability to discourage potential competitors from entering this business superior technological expertise low profit margin per Groupon sold first mover advantage

first mover advantage

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

True

Select all that apply Which of the following are intangible resources that can be protected as intellectual property? Multiple select question. trade secrets trademarks generic formulas copyrights

trade secrets trademarks copyrights

According to the VRIO framework, in order for a firm to gain a temporary competitive advantage, a resource must be at least both ______. Multiple choice question. rare and intangible rare and valuable common and competitive valuable and intangible

rare and valuable

Which isolating mechanism provides a competitive advantage for a successful company when the source of that company's success is difficult to specify? Multiple choice question. intellectual property protection better expectations of future resource value causal ambiguity path dependence

causal ambiguity

Groupon's ______ was temporary since its resource was neither rare nor costly to imitate. Multiple choice question. core competency resource immobility competitive advantage resource heterogeneity

competitive advantage

According to the value chain perspective, ______ are located in the network that connects different, but related activities within a firm. Multiple choice question. tangible resources core competencies information systems marketing and sales

core competencies

A(n) ______ is a unique strength, embedded deep within a firm, that is critical to gaining and sustaining competitive advantage. Multiple choice question. resource core competency activity capability

core competency

The concept of social complexity suggests that ______. Multiple choice question. decisions made in the past affect present decision-making social and business systems that work for one firm tend to work in another as long as they can be identified as the basis for competitive advantage social and business systems that work for one firm may be hard to imitate because of complex interactions between these systems certain phenomena occur for reasons that are not clear

social and business systems that work for one firm may be hard to imitate because of complex interactions between these systems

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? Multiple choice question. causal ambiguity social ambiguity social complexity causal complexity

social complexity

The interaction of the many individual systems in the operation of a company often leads to causal ambiguity because of ______. Multiple choice question. social complexity isolating mechanisms intangible resources path dependence

social complexity

______ resources have physical attributes and are visible.

Tangible

Select all that apply Which of the following are considered resources under the resource-based view of the firm? Multiple select question. Luck Capabilities Competencies Assets

- Capabilities - Competencies - Assets

Select all that apply Which of the following are situations in which a resource is considered valuable? Multiple select question. The resource is both heterogeneous and immobile. The resource helps a firm exploit an external opportunity. The resource helps the firm produce tangible, not intangible competencies. The resource helps the firm increase its economic value creation (V-C).

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

Select all that apply Which of the following were resources and capabilities that helped Five Guys gain a competitive advantage and develop into a successful restaurant chain? Multiple select question. Carefully choosing the supplier of the potatoes for their fries Focusing on such details as store layout and design Preparing and freezing meat paddies at a centrally located site Never using the highest-priced vendor for a product

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

Select all that apply Which of the following are examples of resources for a firm? Multiple select question. legal liabilities cash buildings intellectual property

- cash - buildings - intellectual property

The resource-based model views resources as ______. Multiple choice question. the critical assumption to resource immobility the main driver of firm performance the intangible asset threats to competitors

the main driver of firm performance

How are intangible resource stocks acquired? Multiple choice question. through developing tangible resources through financial returns on assets through decreasing development of tangible resources through investments over time in intangible resources

through investments over time in intangible resources

Select all that apply Which of the following can help a firm extend its competitive advantage? Multiple select question. better expectations of future resource value resource stocks and flows depletion of tangible and intangible resources intellectual property protection path dependence

- better expectations of future resource value - intellectual property protection - path dependence

Select all that apply Which of the following are examples of business activities? Multiple select question. invoicing customers resource immobility delivery of products order taking

- invoicing customers - delivery of products - order taking

Select all that apply What are actions that strategic leaders of a company can take to increase their firm's intangible resource stocks? Multiple select question. retain key employees make ongoing investments in company resources promote in-house recertification programs limit internal changes to external demands

- retain key employees - make ongoing investments in company resources - promote in-house recertification programs

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? Multiple select question. substitution engaging in perfect competition value-added resources direct imitation

- substitution - direct imitation

Select all that apply What does the concept of resource immobility imply? Multiple select question. that resource differences between firms can last a long time that different firms value different things that reproducing the set resources from another company is difficult that each firm has the same resources

- that resource differences between firms can last a long time - that reproducing the set resources from another company is difficult

Select all that apply What can cause an outflow of intangible resource stocks from a firm? Multiple select question. turnover of employees forgetting knowledge organizational learning continuous investments

- turnover of employees - forgetting knowledge

Select all that apply In a highly competitive industry, what are the likely consequences of a firm neglecting its current core competencies? Multiple select question. Competitors will gradually lose cost competitiveness. Competitors will outperform the firm by creating competitive advantage. Competitors will develop equivalent or superior skills. Competitors will gain market share.

-Competitors will outperform the firm by creating competitive advantage. -Competitors will develop equivalent or superior skills. -Competitors will gain market share.

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

Causal ambiguity

______ has a greater chance of arising from intangible resources than from tangible resources.

Competitive advantage

Select all that apply Competitive advantage is gained in the value chain through which of the following types of activities? Multiple select question. establishing primary goal support

- primary - support

Select all that apply A core competency can help a company achieve which of the following? Multiple select question. 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 to reduce the wages of its employees

- 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

Research and development, information systems and human resources are examples of ______ activities. Multiple choice question. support value primary assessed

support

In which of the following ways did Apple stand to benefit from its 2014 acquisition of Dr. Dre's Beats Electronics? Multiple choice question. It was increasing its music downloading business in place of music streaming. It was acquiring the highest-fidelity technology for making sound recordings. It was acquiring the headphone brand with the best sound quality. It was acquiring some of the coolness factor associated with the Beats brand.

It was acquiring some of the coolness factor associated with the Beats brand.

Which of the following best describes the core competency of the Five Guys Burgers and Fries company? Multiple choice question. Making high-quality burgers without limiting costs Making burgers with minimal wait time and cost Making inexpensive burgers that are very flavorful Making quality burgers as part of a full-menu offering

Making high-quality burgers without limiting costs

______ describes a process in which the options one faces in the current situation are limited by decisions made in the past. Multiple choice question. Social complexity VRIO framework Resource allocation Path dependence

Path dependence

______ suggests that sometimes even random events may have a large impacts on an outcome. Multiple choice question. The VRIO framework Path dependence Agency theory Upper-echelons theory

Path dependence

______ suggests that sometimes even random events may have a large impacts on an outcome. Multiple choice question. Upper-echelons theory Path dependence Agency theory The VRIO framework

Path dependence

Why is competitive advantage more likely to spring from intangible rather than tangible assets? Multiple choice question. Assets, such as brand names, quickly peak in value. Tangible assets can be bought on the open market. Intangible assets depreciate more rapidly. Intangible assets cannot be valued in monetary terms.

Tangible assets can be bought on the open market.

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

Capabilities include which of the following? Multiple select question. a company's organizational structure a company's financial statements a company's routines a company's culture

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

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. Multiple choice question. visible immobile rare heterogeneous.

rare

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. Multiple choice question. oligopoly perfect competition monopoly monopolistic competition

perfect competition

Strategic leaders use internal and external analyses in tandem to create a customized fit between a company's ______. Multiple choice question. internal resources and external environment management and labor primary and secondary value chain activities economic and technological environment

internal resources and external environment

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

isolating

Which of the following can help a firm extend its competitive advantage? Multiple select question. path dependence resource stocks and flows better expectations of future resource value intellectual property protection depletion of tangible and intangible resources

path dependence better expectations of future resource value intellectual property protection

Better expectations of future resource value ______ a firm's competitive advantage. Multiple choice question. never have an impact on positively impact negatively impact have no immediate impact on

positively impact

Select all that apply In which of the following ways did Dr. Dre build the coolness factor of Beats headphones as a core competency? (Check all that apply.) Multiple select question. by rejecting all paid advertising in favor of word-of-mouth marketing for the headphones by getting endorsements for the headphones from popular athletes by using his fame as a music producer to promote the headphones by creating custom headphones that were worn publicly by musician celebrities

-by getting endorsements for the headphones from popular athletes -by using his fame as a music producer to promote the headphones -by creating custom headphones that were worn publicly by musician celebrities

______ has a greater chance of arising from intangible resources than from tangible resources. Multiple choice question. Resource mobility Critical assumptions Competitive advantage Resource homogeneity

Competitive advantage

The internal activities of a firm that for transforming inputs into outputs consist of ______activities, which add value directly, and _____ activities, which add value indirectly.

Primary ; support

______ activities add value directly by transforming inputs into outputs as the firm moves a product or service horizontally along the internal value chain. Multiple choice question. Primary Value Resource Complementary

Primary

Dynamic capabilities are most relevant in ______. Multiple choice question. stable markets international markets virtual markets changing markets

changing markets

What are the distinct and fine-grained business processes that enable firms to add incremental value by transforming inputs into goods and services? Multiple choice question. capabilities core competencies resources activities

activities

If a firm's resource is valuable, rare, costly to imitate, and the firm is organized to exploit it, this resource is a ______. Multiple choice question. planned emergent

core competency

If the problem with a business strategy results in causal ambiguity, managers will ______. Multiple choice question. have a difficult time developing a theory to deal with the problem need training to communicate more clearly know to treat the problem as a transient issue be able to apply an isolating mechanism for competitive advantage

have a difficult time developing a theory to deal with the problem

Select all that apply Which of the following statements are true about the capabilities of a firm? Multiple select question. They include intellectual property. They include organizational skills. They concern the deployment of resources. They include managerial skills.

- They include organizational skills. - They concern the deployment of resources. - They include managerial skills.

In contrast to primary activities, support activities add value _____, but are necessary to sustain primary activities. Multiple choice question. indirectly informally directly spontaneously

indirectly

Select all that apply What are the characteristics of a strategic activity system as it applies to firms? Multiple select question. It is socially complex. It is causally ambiguous. It consists of interconnected activities. It weakens competitive advantage.

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

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? Multiple choice question. core rigidities dynamic capabilities causal ambiguity a value chain

dynamic capabilities

The ______ perspective is a model that emphasizes a firm's ability to modify and leverage its resource base in a way that enables it to sustain competitive advantage in a constantly changing environment. Multiple choice question. dynamic capabilities resource flows resource-based value chain

dynamic capabilities

The purpose of a SWOT analysis is to ______. Multiple choice question. deliver value-added resources in a socially complex environment adapt to planned emergence and scenario planning assess if employees are performing their jobs correctly using an evaluation of their strengths and weaknesses form a strategy that is tailored to the firm's unique strengths and weaknesses and the opportunities and threats in its environment

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 ______. Multiple choice question. gain or maintain competitive advantage discourage the formation of labor unions train employees effectively understand the industry structure

gain or maintain competitive advantage

Resource ______ and resource ______ are the key assumptions behind the resource-based model of the firm. Multiple choice question. homogeneity; immobility heterogeneity; immobility homogeneity; mobility heterogeneity; mobility

heterogeneity; immobility

A firm's culture, brand equity, and intellectual property are examples of ______. Multiple choice question. ill-defined resources tangible resources defined resources intangible resources

intangible resources

While the ______ clarifies a firm's core competencies, the ______ helps leaders understand how competitive advantage arises from the firm's unique activities. Multiple choice question. value chain perspective; resource-based view resource-based view; upper-echelons theory resource-based view; value chain perspective upper-echelons theory; value chain perspective

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? Multiple choice question. core strengths isolating mechanisms value chains resources

resources

Capital, land, buildings, and plants are examples of ______ resources. Multiple choice question. component intangible assumed tangible

tangible

Unlike capabilities, resources can be both ______. Multiple choice question. easy to access and useful tangible and expensive tangible and intangible difficult to access and inexpensive

tangible and intangible

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

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

Time compression diseconomies occur when a firm ______. Multiple choice question. attempts to reach an outcome in a reduced amount of time uses automation that slows the rate at which equipment operators need to make decisions mismatches labor and R&D resources tries to shorten the accounting period for production units

attempts to reach an outcome in a reduced amount of time

Isolating mechanisms are considered to be ______. Multiple choice question. barriers to imitation something that weakens the industry barriers to entry ways to wipe away a competitive advantage

barriers to imitation

According to the VRIO framework, to fully exploit the competitive potential of its resources, capabilities, and competencies, a firm must ______. Multiple choice question. have a lot of cash on hand pay special attention to its main competitor temporarily ignore its organizational design be organized to capture value

be organized to capture value

In order to be successful, a firm must have a resource that is valuable, rare, costly to imitate, and the firm must ______. Multiple choice question. be mobile and virtual in its value chain identify primary activities be organized to capture value identify support activities

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? Multiple choice question. better expectations of future resource value intellectual property protection path dependence causal ambiguity

better expectations of future resource value

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. Multiple choice question. organized to capture value costly to imitate not costly to imitate easy to imitate

costly to imitate

By definition, resource immobility suggests that resources are ______ to move from firm to firm. Multiple choice question. impossible difficult readily available easy

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 ______. Multiple choice question. substitution a value chain direct imitation resource immobility

direct imitation