chapter 4

Which of the following describes a situation in which firms acquire resources at a low cost, laying the foundation for a competitive advantage later? A)better expectations of future resource valueB)path dependence affecting current decisionsC)causal ambiguityD)social complexity

a

A resource-based view of a firm provides a model that systematically aids in identifying A)core rigidities.B)core competencies.C)competitive disadvantage.D)competitive parity.

b

According to an evaluation using the VRIO framework, Crocs Shoes was unable to sustain its competitive advantage primarily because its products were A)invaluable and common.B)easy to imitate.C)extremely rare.D)non-substitutable.

b

The competitive advantage that one firm has will be short-lived in an industry in which A)resource immobility is high.B)perfect competition exists.C)resource heterogeneity is high.D)capabilities of a firm are not easily replicable.

b

Frozen Gold is a fast-growing chain of ice cream shops. It has acquired an edge over its competitors through its ability to provide a wide array of unique flavors and a hip atmosphere in stores. This advantage of Frozen Gold best exemplifies a A)markup.B)resource flow.C)capital gain.D)core competency.

d

Accounting, human resources, and research and development (R&D) are examples of primary activities that add value directly to the value chain. ⊚ true ⊚ false

false

Intellectual property (IP) protections such as trademarks or patents are proven methods of establishing permanent barriers to imitation. ⊚true⊚false

false

According to the resource-based view, a firm's competitive advantage often stems from its A)intangible resources.B)tangible resources.C)dynamic strengths.D)external environment.

a

Which of the following below is NOT categorized as a primary activity on Porter's Value Chain? A)procurementB)operationsC)after sales serviceD)marketing and sales

a

Organizational and managerial skills that find their expression in a company's structure, routines, and culture are referred to as A)tangible resources.B)reserves.C)capital gains.D)capabilities.

d

Core competencies are derived from the combination of A)key strategic resources and a firm's capabilities.B)export barriers, trade barriers, and credit barriers faced recently by the company.C)tax policy changes driven by federal programs and R&D grants at the state level.D)knowledge brought in by new graduates and the mentoring they receive from existing employees

a

Dynamic capabilities are especially relevant for surviving and competing in markets that A)shift quickly.B)shift slowly.C)remain constant.D)remain unpredictable.

a

Firms that can employ and establish _________________, are more likely to protect their competitive advantage from being copied and/or eroding away. A)isolating mechanismsB)key human capitalC)cash equivalentsD)a strong competitor response

a

To help a firm achieve a competitive advantage, each distinct activity performed in the value chain needs to A) contribute to the firm's strategic position as either low-cost leader or differentiator. B) reduce the immobility and the heterogeneity of the firm's resources. C) create a static fit between the company's internal resources and the external environment. D) reduce the causal ambiguity and the social complexity of the firm's source of success.

a

________________ allow(s) a firm to differentiate its products and services from those of its rivals, creating higher value for the customer or offering products and services of comparable value at lower cost. A)Core competenciesB)StrengthsC)A value chainD)Competition

a

_____ describes a process in which the options one faces in a current situation are limited by decisions made in the past. A)Social complexityB)Path dependenceC)CannibalizationD)Causal ambiguity

b

Due to resource immobility, a critical assumption in the resource-based model of a firm, the A)competitive advantage of a firm exists for a short period of time.B)resource bundles of a firm can be easily imitated by competitors.C)resource differences between firms last for a long time.D)competencies and capabilities of all firms in an industry are similar.

c

Which of the following will most likely be considered as an airlines core competency? A) the airline's ability to navigate federal laws just like its competitors B) the airline's ability to partner at the same airports as their competitors C) the airline's ability to make its fleet more fuel efficient than their competitors D) the airline's ability to manufacture planes at a cost that is average in the industry

c

According to the value chain analysis, which of the following is a primary activity? A)research and developmentB)human resources managementC)accounting and financeD)marketing and sales

d

A firm's strategic resources and capabilities are the unique assets and skills it possesses. ⊚ true ⊚ false 12

true