MAN 4720, Exam 1, Chapter 4

24. A customized strategy that considers the unique resources of the company while considering the external environment creates a. A strategic fit between company's internal resources and the external environment b. A value chain c. Diseconomies of scope d. Diseconomies of scale

a. A strategic fit between company's internal resources and the external environment

7. _______ describe a firm's ability to create, deploy, modify, reconfigure, upgrade, or leverage its resources in its quest for competitive advantage a. Dynamic capabilities b. Strategic misfits c. Changing values d. Planned emergence

a. Dynamic capabilities

38. If a firm neglects its current core competencies, such neglect may lead to all of the following, EXCEPT a. A possible decline in market share compared to the competitors b. A guaranteed sustained competitive advantage c. Competitors developing equivalent or superior skills d. Competitors potentially outperforming the firm by creating competitive advantage

b. A guaranteed sustained competitive advantage

8. _______ are the distinct and fine-grained business process that enable firms to add incremental value by transforming inputs into goods and services a. Capabilities b. Activities c. Core competencies d. Resources

b. Activities

13. By definition, resource immobility suggest that resources are _____ to move from firm to firm a. Impossible b. Difficult c. Readily available d. Easy

b. Difficult

5. According to the dynamic capabilities perspective, competitive advantage stems from a firms ability to a. Explore and create the primary and secondary value systems b. Form critical assumptions about the life cycle of the firm c. Agilely transform its resources base d. Remain in stable markets and avoid changing ones

c. Agilely transform its resources base

10. _______ are organizational and managerial skills necessary to orchestrate a diverse set of resources and deploy them strategically a. Activities b. Core competencies c. Capabilities d. Resources

c. Capabilities

32. The concept of social complexity suggests that a. Social and business systems that work in one firm tend to work in another as long as they can be identified as the basis for competitive advantage b. Decisions made in the past affect present decision-making c. Social and business systems that work in one firm may be hard to imitate due to the complex interactions between these systems d. Certain phenomena occur for reasons that are not clear

c. Social and business systems that work in one firm may be hard to imitate due to the complex interactions between these systems

21. Research and development, information systems, and human resources are examples of ______ activities a. Primary b. Value c. Support d. Assessed

c. Support

2. The ____ view provides a model that sees certain types of resources as key to superior firm performance a. Capability-based b. Competency-based c. Resource-based d. Activity-based

d. Activity-based

25. According to the VRIO framework, to fully exploit the competitive potential of its resources, capabilities, and competencies, a firm must ____ a. Have a lot of cash on hand b. Pay special attention to its main competitor c. Temporarily ignore its organizational design d. Be organized to capture value

d. Be organized to capture value

33. Groupon's ________ was temporary since its resource was neither rare nor costly to imitate a. Core competency b. Resource heterogeneity c. Resource immobility d. Competitive advantage

d. Competitive advantage

6. 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 gain and sustain competitive advantage a. Value chain b. Resource flows c. Resource-based d. Dynamic capabilities

d. Dynamic capabilities

27. The purpose of a SWOT analysis is to a. Assess if employees are preforming their jobs correctly using an evaluation of their strengths and weaknesses b. Deliver value-added resources in a socially complex environment c. Adapt to planned emergence and scenario planning d. Form a strategy that is tailored to the firm's unique strengths and weaknesses and the opportunities and threats in its environment

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

36. Using the "resource-based view" helps firms a. Discourage the formation of labor unions b. Train employees effectively c. Understand the industry structure d. Gain or maintain competitive advantage

d. Gain or maintain competitive advantage

18. ________ refers to the idea that a firm is a bundle of resources and capabilities that is unique to the firm a. The critical assumption b. Resource homogeneity c. Unique differentiation d. Resource heterogeneity

d. Resource heterogeneity

20. _______ suggests that sometimes even random events may have a large impact on an outcome a. Path dependence b. Agency theory c. The VRIO framework d. Upper-echelons theory

a. Path dependence

35. While the ________ clarifies a firm's core competencies, the ______ helps leaders understand how competitive advantage arises from the firm's unique activities a. Resource-based view; value chain perspective b. Resource-based view; upper-echelons theory c. Value chain perspective; resource-based view d. Upper-echelons theory; value chain perspective

a. Resource-based view; value chain perspective

22. Which of the following identifies the resources that can lead to a competitive advantage? a. VRIO framework b. PESTEL c. Resource heterogeneity d. Value chain

a. VRIO framework

23. The _______ describes the internal activities a firm engages in when transforming inputs into outputs a. Value chain b. Primary chain c. Complementary chain d. Supply chain

a. Value chain

11. _______ describes a process in which the options one faces in the current situation are limited by decisions made in the past a. Resource allocation b. Path dependence c. Social complexity d. VRIO framework

b. Path dependence

1. True or False: Core competencies allow a firm to distinguish itself from other firms that provide products or services a. False b. True

b. True

17. The ________ is a theoretical model that explains and predicts what resource attributes underpin competitive advantage a. SWOT analysis b. VRIO framework c. Value chain d. Dynamic capabilities perspective

b. VRIO framework

15. According to the VRIO framework, a rare source is _______ if firms that do not possess the resource are unable to develop or buy the resource at a comparable cost a. Organized to capture value b. East to imitate c. Costly to imitate d. Not costly to imitate

c. Costly to imitate

19. IBM's success navigating the ever-changing world of computer technology is due to its a. Social complexity b. Path dependence c. Dynamic capabilities d. Ability to directly imitate other companies

c. Dynamic capabilities

37. _______ are the firm's current level of intangible resource a. Resource flows b. Dynamic capabilities c. Tangible expectation d. Resource stocks

d. Resource stocks

16. ______ describes a situation in which different social and business systems interact with each other a. Planned emergence b. Causal ambiguity c. Path dependence d. Social complexity

d. Social complexity

30. Which of the following is not considered an isolating mechanism? a. Casual ambiguity b. Path dependency c. Better expectation of future resource value d. Uncertainty about future resource value e. Social complexity

d. Uncertainty about future resource value

3. Resource _____ and resource ______ are the key assumptions behind the resource-based view of the firm a. Homogeneity; immobility b. Heterogeneity; mobility c. Heterogeneity; immobility d. Homogeneity; mobility

c. Heterogeneity; immobility

28. _______ activities add value directly by transforming inputs into outputs as the firm moves a product or service horizontally along the internal value chain a. Complementary b. Value c. Primary d. Resource

c. Primary

31. One of the most popular tools used to evaluate their current situation and future prospects is the a. VRIO framework b. Value chain analysis c. SWOT analysis d. Dynamic capabilities perspective

c. SWOT analysis

12. "Time compression diseconomies" refers to the concept that a. Attempting to get a good outcome in less time tens to be ineffective b. Barriers to imitation may prevent other firms from competing away a firm's competitive advantage c. Options one faces in the current situation are limited by past decisions d. Some phenomena do not have a clear cause or effect

a. Attempting to get a good outcome in less time tens to be ineffective

29. 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 customers enjoy the new tack truck because almost all taco ingredients are locally sourced. Javier decides to add locally sourced ingredients to his menu. This is an example of a. Direct limitation b. A value chain c. Resource immobility d. Substitution

a. Direct limitation

4. True or false: A competitive advantage can be maintained forever a. False b. True

a. False

9. A firm's culture, brand equity, and intellectual property are examples of a. Intangible resources b. Tangible resources c. Defined resources d. Ill-defined resources

a. Intangible resources

34. The SWOT analysis should be used with caution because a. Opportunities can be threats and strengths can be weaknesses b. Strengths are often viewed as weaknesses c. Resource stocks are occasionally confused with resource flows d. It is increasingly outdated in today's economy

a. Opportunities can be threats and strengths can be weaknesses

14. ______ describes a situation where the cause and effect of a phenomenon are not readily apparent a. Planned emergence b. Path dependence c. Causal ambiguity d. Competitive parity

c. Causal ambiguity

26. All of the following are examples of activities that create value, except: a. Invoicing a customer b. Making a physical delivery of a product c. Closely monitoring the firm's stock price d. Taking an order from a customer

c. Closely monitoring the firm's stock price