INB 300 Chapter 4

Which of the following assets is difficult to imitate?

Intangible assets

Which of the following statements is true of the resource-based view of global business?

It concentrates on a firm's internal strengths and weaknesses.

Which of the following statements is true of a VRIO framework?

It focuses on value, rarity, imitability, and organizational aspects of resources and capabilities.

Which of the following statements is true of benchmarking?

It is a process in SWOT analysis.

Which of the following statements is true of onshoring?

It means outsourcing to a domestic firm.

Which of the following statements is true of captive sourcing?

It means setting up subsidiaries to perform in-house work in foreign locations.

Which of the following is an implication for action based on the resource-based view of management?

Students need to make themselves into "untouchables" whose jobs cannot be easily outsourced.

Which of the following assets is easy to imitate?

Tangible assets

Which of the following statements is true of tangible resources?

They are organized as financial, physical, technological, and organizational resources.

Which of the following best defines capabilities?

They are the tangible and intangible assets a firm uses to choose and implement its strategies.

Which of the following statements is true of non-value adding capabilities?

They can lead to competitive disadvantage.

Which of the following statements is true of intangible resources?

They include human, innovation, and reputational resources.

If managers find that their firm's particular activity is unsatisfactory, which of the following is a remedy for the situation?

Using a decision model

According to the resource-based view of management, an implication for action is that managers need to build firm strengths based on the _____.

VIRO framework

Managers attempt, via the _____, to distinguish resources and capabilities that are valuable, rare, hard-to-imitate, and organizationally embedded from those that do not share these attributes.

VRIO framework

According to the resource-based view of management, an implication for action is that _____ though important, is not likely to be a successful strategy.

benchmarking

Which of the following terms is also known as foreign direct investment?

captive sourcing

_____ is a process of market competition through which unique products that command high prices and high margins gradually lose their ability to do so, thus becoming commodities.

commoditization

Years & Years Group is a luxury fashion house. It has no shortage of competitors, but it has valuable, rare, and hard-to-imitate resources and capabilities. This will lead to _____.

competitive disadvantage

Lavalle is a movie studio in New Jersey. Its components include photography crews, musicians, singers, makeup artists, animation specialists, and managers on the business side. These components are called _____.

complementary assets

The employees at GinesCorp. are tangible assets.

false

Intangible assets can be broadly organized in four categories—financial, physical, technological, and organizational resources and capabilities.

false

ShawnGraphy is a photography studio. The photography crew, makeup artists, and managers on the business side are the studio's tangible assets.

false

The employees at Leo Corp. are _____ assets. They help the firm gain a competitive advantage.

intangible

Valuable and rare resources and capabilities can be a source of competitive advantage:

only if competitors have a difficult time imitating them.

In the context of the VRIO framework, the question of _____ is a reminder of the cliché: If everyone has it, an individual cannot make money from it.

rarity

_____ is moving formerly offshored activities back to the home country of the focal firm.

reshoring

_____ are the tangible and intangible assets a firm uses to choose and implement its strategies.

resources

_____ refers to the socially elaborate ways of organizing typical of many firms.

social complexity

A leading tool in global business is SWOT analysis. It determines a firm's:

strengths, weaknesses, opportunities, and threats.

A value chain analysis tells us how a bundle of resources and capabilities come together to add value.

true

Ambidexterity is known as the ability to use one's two hands equally well, but in the management literature it describes capabilities to simultaneously deal with paradoxes.

true

Only value-adding resources can lead to competitive advantage, whereas non-value-adding capabilities may lead to competitive disadvantage.

true

SlimJims Inc. is an organization that possess strong capabilities in upstream activities, such as design, and downstream activities, such as marketing. It has given manufacturing contracts to suppliers in low-cost countries. This is an example of outsourcing.

true

The institution-based view of global business deals with the external opportunities and threats, whereas the resource-based view concentrates on a firm's internal strengths and weaknesses.

true

Valuable but common resources and capabilities will lead to competitive parity but not an advantage.

true

Valuable, rare, and hard-to-imitate resources determine the success and failure of firms around the globe.

true

A _____ is a series of activities used in the production of goods and services that make a product or service more valuable.

value chain

A _____ engages managers to ascertain a firm's strengths and weaknesses on an activity-by-activity basis, relative to rivals.

value chain analysis

_____ helps managers make decisions on what capabilities to focus on in-house and what to outsource.

value chain analysis