Ch 4 (R9) Strategic Management

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 ______. Multiple choice question. Porter's five forces: the VRIO framework the VRIO framework; PESTEL PESTEL; the VRIO framework Porter's five forces; PESTEL

the VRIO framework; PESTEL

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

the main driver of firm performance

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

Path dependence

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

internal resources and external environment

When strategizing about possible competitive advantages, a major advantage of the SWOT analysis is that it allows managers to simultaneously consider ______. Multiple choice question. domestic and international issues affecting the firm all competitors at once implicit and explicit resources internal and external factors

internal and external factors

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

primary

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 valuable valuable and intangible common and competitive rare and intangible

rare and valuable

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

resources and capabilities

The concept of social complexity suggests that ______. Multiple choice question. certain phenomena occur for reasons that are not clear 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

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 complexity social complexity causal ambiguity social ambiguity

social complexity

Primary activities include which of the following? (Check all that apply.) Multiple select question. supply chain management research and development operations human resources

supply chain management operations

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

through investments over time in intangible resources

A firm's attempts to shorten the length of time a process takes, may lead to disappointing outcomes because of ______. Multiple choice question. time compression diseconomies social complexity path dependence diseconomies causal ambiguity

time compression diseconomies

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

Resource bundles vary from company to company.

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

Isolating mechanisms are considered to be ______.

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. temporarily ignore its organizational design pay special attention to its main competitor be organized to capture value have a lot of cash on hand

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. identify primary activities identify support activities be organized to capture value be mobile and virtual in its value chain

be organized to capture value

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

What should a firm do in order to be organized to capture value? (Check all that apply.) Multiple select question. have a rare and valuable resource have good coordinating systems have a good organizational structure have CEOs with forward-thinking vision

have good coordinating systems have a good organizational structure

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

heterogeneity; immobility

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

intellectual property buildings cash

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

intellectual property protection

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. heterogeneous. rare visible immobile

rare

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 path dependence intangible resources

social complexity

Accounting and finance are ______ activities in a firm's value chain. Multiple choice question. primary support secondary ambiguous

support

In order to avoid making costly mistakes due to the potential shortcomings of the SWOT analysis, a manager should ______. Multiple choice question. use the SWOT analysis only once a year take results from the SWOT analysis with "a grain of salt" use the SWOT analysis only if no other analysis is available avoid using the SWOT altogether

take results from the SWOT analysis with "a grain of salt"

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

value chain

______ are the firm's current level of intangible resources. Multiple choice question. Tangible expectations Dynamic capabilities Resource flows Resource stocks

Resource stocks

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

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. valued service planned emergent supportive component core competency

core competency

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

intellectual property protection better expectations of future resource value path dependence

The organizational and managerial skills necessary to orchestrate a diverse set of resources and deploy them strategically are called _____. Multiple choice question. activities capabilities resources core competencies

capabilities

Cowgirl Boots, inexpensive leather boots for women, are selling at record-high numbers. The CEO of the company, however, cannot figure out why. Was it caused by the company's recent advertisement campaign or the newly reduced price of the boots or some other unknown factor? Based on this information, what concept describes the CEO's confusion regarding Cowgirl Boots' recent success? Multiple choice question. path dependence causal ambiguity social complexity time compression diseconomies

causal ambiguity

The SWOT analysis should be used with caution because ______. Multiple choice question. resource stocks are occasionally confused with resource flows strengths are often viewed as weaknesses it is increasingly outdated in today's economy opportunities can be threats and strengths can be weaknesses

opportunities can be threats and strengths can be weaknesses

______ 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. Resource Value Primary Complementary

Primary

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.)

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

______ describes a situation where the cause and effect of a phenomenon are not readily apparent. Multiple choice question. Competitive parity Causal ambiguity Planned emergence Path dependence

Causal ambiguity

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

SWOT analysis

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

Social complexity

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

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

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 false question. True False

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

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

VRIO framework

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

attempts to reach an outcome in a reduced amount of time

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

core competency

What are examples of intangible resource stock a company may have?

dynamic capabilities engineering expertise reputation for quality

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

The value chain describes ______ of a firm. Multiple choice question. the external environment internal competencies internal activities the relationship between resources and the external environment

internal activities

The resource-based view classifies all resources as ______. Multiple choice question. low cost or high cost capital or labor domestic or foreign tangible or intangible

tangible or intangible

A core competency can help a company achieve which of the following? (Check all that apply.) Multiple select question. to offer products of comparable value at lower cost than rivals can to differentiate its products and services to reduce the wages of its employees to create higher value for the consumer

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

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

trademarks trade secrets copyright

Which of the following is not considered an isolating mechanism? Multiple choice question. causal ambiguity uncertainty about future resource value social complexity path dependency better expectations of future resource value

uncertainty about future resource value

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

valuable

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

False

"Time compression diseconomies" refers to the concept that ______. Multiple choice question. some phenomena do not have a clear cause or effect 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 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

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?

core competencies resources capabilities

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. tangible dynamic compressed causal ambiguous

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

dynamic capabilities

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

False

Strategic fit ______ the likelihood that a firm is able to gain a competitive advantage. Multiple choice question. makes impossible increases does not impact decreases

Increases

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

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

Which of the following best describes the core competency of the Five Guys Burgers and Fries company? Multiple choice question. Making inexpensive burgers that are very flavorful Making burgers with minimal wait time and cost Making high-quality burgers without limiting costs 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. VRIO framework Social complexity Resource allocation Path dependence

Path dependence

______ refers to the idea that a firm is a bundle of resources and capabilities that is unique to the firm. Multiple choice question. Resource heterogeneity Unique differentiation The critical assumption Resource homogeneity

Resource heterogeneity