Chapter 4- Policy
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 inexpensive burgers that are very flavorful Making quality burgers as part of a full-menu offering Making burgers with minimal wait time and cost
Making high-quality burgers without limiting costs
Primary activities include which of the following? Multiple select question. operations research and development human resources supply chain management
Operations supply chain management
______ 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. Value Primary Resource Complementary
Primary
Which of the following is true according to the assumption of resource heterogeneity? Multiple choice question. 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. Each firm deals with a unique set of external influences.
Resource bundles vary from company to company.
______ 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
______ are the firm's level of investments to maintain or build a resource. Multiple choice question. Resource value Resource complements Resource stocks Resource flows
Resource flows
______ are any assets that a firm can draw on when formulating and implementing a strategy. Multiple choice question. Capabilities Activities Competencies Resources
Resources
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
dentify the framework that allows managers to synthesize insights obtained from internal and external analysis. Multiple choice question. The resource-based view VRIO framework Value chain analysis SWOT analysis
SWOT analysis
______ describes a situation in which different social and business systems interact with each other. Multiple choice question. Social complexity Path dependence Causal ambiguity Planned emergence
Social complexity
Capital, land, buildings, and plants are examples of ______ resources. Multiple choice question. component tangible assumed intangible
Tangible
______ resources have physical attributes and are visible. Multiple choice question. Critical Tangible Component Intangible
Tangible
According to the resource-based model, a firm is assumed to be a unique bundle of resources, capabilities, and competencies. True false
True
VRIO resources can lay the foundation of a competitive advantage, no competitive advantage can be sustained indefinitely. True false
True
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. SWOT analysis VRIO framework dynamic capabilities perspective value chain
VRIO framework
Capabilities include which of the following? Multiple select question. a company's routines a company's financial statements a company's culture a company's organizational structure
a company's routines a company's culture a company's organizational structure
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. easy to imitate not costly to imitate costly to imitate organized to capture value
costly to imitate
A firm's culture, brand equity, and intellectual property are examples of ______. Multiple choice question. defined resources tangible resources intangible resources ill-defined resources
intangible resources
Which isolating mechanism is set up to legally prevent companies from copying products that give a firm a competitive advantage? Multiple choice question. path dependence causal ambiguity intellectual property protection social complexity
intellectual property protection
The value chain describes ______ of a firm. Multiple choice question. internal activities internal competencies the external environment the relationship between resources and the external environment
internal activities
When strategizing about possible competitive advantages, a major advantage of the SWOT analysis is that it allows managers to simultaneously consider ______. Multiple choice question. all competitors at once domestic and international issues affecting the firm internal and external factors implicit and explicit resources
internal and external factors
Strategic leaders use internal and external analyses in tandem to create a customized fit between a company's ______. Multiple choice question. primary and secondary value chain activities economic and technological environment management and labor internal resources and external 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
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 rare and intangible common and competitive valuable and intangible
rare and valuable
The resource-based view classifies all resources as ______. Multiple choice question. low cost or high cost tangible or intangible capital or labor domestic or foreign
tangible or intangible
What does the concept of resource heterogeneity imply? Multiple choice question. that each firm has different resources that firms all have resources that are "sticky" or hard to transfer that each firm has the same resources that different firms value different things
that each firm has different resources
____ describes a process in which the options one faces in the current situation are limited by decisions made in the past. Multiple choice question. Path dependence VRIO framework Resource allocation Social complexity
Path dependence
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. Focusing on such details as store layout and design Preparing and freezing meat paddies at a centrally located site Carefully choosing the supplier of the potatoes for their fries Never using the highest-priced vendor for a product
Focusing on such details as store layout and design Carefully choosing the supplier of the potatoes for their fries
The VRIO framework is used to evaluate a firm's resources. VRIO is an acronym for which of the following? Multiple select question. Imitate Original Rare Valuable
Imitate Rare Valuable
______ do not have physical attributes. Multiple choice question. Intangible resources Assumed resources Component resources Tangible resources
Intangible resources
What are the characteristics of a strategic activity system as it applies to firms? Multiple select question. It weakens competitive advantage. It is socially complex. It is causally ambiguous. It consists of interconnected activities.
It is socially complex. It is causally ambiguous. It consists of interconnected activities.
Which of the following are situations in which a resource is considered valuable? Multiple select question. The resource helps the firm produce tangible, not intangible competencies. The resource helps the firm increase its economic value creation (V-C). The resource is both heterogeneous and immobile. 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.
Which of the following statements are true about the capabilities of a firm? Multiple select question. They include managerial skills. They concern the deployment of resources. They include organizational skills. They include intellectual property.
They include managerial skills. They concern the deployment of resources. They include organizational skills.
Which of the following statements are true about the capabilities of a firm? Multiple select question. They include managerial skills. They include intellectual property. They concern the deployment of resources. They include organizational skills.
They include managerial skills. They concern the deployment of resources. They include organizational skills.
"Time compression diseconomies" refers to the concept that ______. Multiple choice question. 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 some phenomena do not have a clear cause or effect
attempting to get a good outcome in less time tends to be ineffective
Isolating mechanisms are considered to be ______. Multiple choice question. barriers to imitation ways to wipe away a competitive advantage barriers to entry something that weakens the industry
barriers to imitation
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 be organized to capture value identify support activities be mobile and virtual in its value chain
be organized to capture value
Which of the following are examples of resources for a firm? Multiple select question. buildings legal liabilities intellectual property cash
buildings intellectual property cash
The organizational and managerial skills necessary to orchestrate a diverse set of resources and deploy them strategically are called _____. Multiple choice question. core competencies capabilities resources activities
capabilities
Which of the following are intangible resources that can be protected as intellectual property? Multiple select question. copyrights trademarks generic formulas trade secrets
copyrights trademarks trade secrets
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. core competencies capabilities internal weaknesses resources
core competencies capabilities resources
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. internal weaknesses core competencies resources capabilities
core competencies resources capabilities
A(n) ______ is a unique strength, embedded deep within a firm, that is critical to gaining and sustaining competitive advantage. Multiple choice question. capability resource core competency activity
core competency
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. supportive component valued service core competency planned emergent
core competency
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. not costly to imitate organized to capture value costly to imitate easy to imitate
costly to imitate
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. causal ambiguous dynamic tangible compressed
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 a value chain dynamic capabilities core rigidities
dynamic capabilities
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 dynamic capabilities a value chain
dynamic capabilities
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 know to treat the problem as a transient issue need training to communicate more clearly be able to apply an isolating mechanism for competitive advantage
have a difficult time developing a theory to deal with the problem
What should a firm do in order to be organized to capture value? Multiple select question. have a good organizational structure have good coordinating systems have a rare and valuable resource have CEOs with forward-thinking vision
have a good organizational structure have good coordinating systems have a rare and valuable resource
Resource ______ and resource ______ are the key assumptions behind the resource-based model of the firm. Multiple choice question. homogeneity; mobility heterogeneity; mobility heterogeneity; immobility homogeneity; immobility
heterogeneity; immobility
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
In contrast to primary activities, support activities add value ______, but are necessary to sustain primary activities. Multiple choice question. informally directly spontaneously indirectly
indirectly
The SWOT analysis should be used with caution because ______. Multiple choice question. it is increasingly outdated in today's economy resource stocks are occasionally confused with resource flows opportunities can be threats and strengths can be weaknesses strengths are often viewed as weaknesses
opportunities can be threats and strengths can be weaknesses
Accounting and finance are ______ activities in a firm's value chain. Multiple choice question. secondary ambiguous primary support
primary
Marketing, sales, and distribution are ______ activities in a firm's value chain. Multiple choice question. support primary ambiguous secondary
primary
Marketing, sales, and distribution are ______ activities in a firm's value chain. Multiple choice question. support primary secondary ambiguous
primary
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. immobile rare heterogeneous. visible
rare
The core competencies of a business are generated by the interaction of Blank______. Multiple choice question. resources and capabilities capabilities and management resources and ownership ownership and management
resources and capabilities
The concept of social complexity suggests that ______. Multiple choice question. 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 decisions made in the past affect present decision-making 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 causal complexity social complexity social ambiguity
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. isolating mechanisms intangible resources path dependence social complexity
social complexity
Accounting and finance are ______ activities in a firm's value chain. Multiple choice question. primary secondary ambiguous support
support
Research and development, information systems and human resources are examples of ______ activities. Multiple choice question. support assessed primary value
support
Research and development, information systems and human resources are examples of ______ activities. Multiple choice question. support value assessed primary
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 if no other analysis is available use the SWOT analysis only once a year take results from the SWOT analysis with "a grain of salt" avoid using the SWOT altogether
take results from the SWOT analysis with "a grain of salt"
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. the VRIO framework; PESTEL Porter's five forces; PESTEL Porter's five forces: the VRIO framework PESTEL; the VRIO framework
the VRIO framework; PESTEL
The resource-based model views resources as ______. Multiple choice question. the main driver of firm performance the intangible asset the critical assumption to resource immobility threats to competitors
the main driver of firm performance
The resource-based model views resources as ______. Multiple choice question. the main driver of firm performance the intangible asset threats to competitors the critical assumption to resource immobility
the main driver of firm performance
How are intangible resource stocks acquired? Multiple choice question. through decreasing development of tangible resources through developing tangible resources through investments over time in intangible resources through financial returns on assets
through investments over time in intangible resources
A core competency can help a company achieve which of the following? Multiple select question. to create higher value for the consumer to differentiate its products and services to reduce the wages of its employees to offer products of comparable value at lower cost than rivals can
to create higher value for the consumer to differentiate its products and services to offer products of comparable value at lower cost than rivals can
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
true
VRIO resources can lay the foundation of a competitive advantage, no competitive advantage can be sustained indefinitely. True false question.TrueFalse
true
A resource is considered ______ if it helps a firm to deal with an external threat. Multiple choice question. easily imitated valuable dynamic commonplace
valuable
True or false: The value chain concept is applicable primarily to high-tech firms in rapidly changing environments. True false question.TrueFalse
False
__ suggests that sometimes even random events may have a large impacts on an outcome. Multiple choice question. The VRIO framework Upper-echelons theory Path dependence Agency theory
Path dependence
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.TrueFalse
True
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. causal ambiguity path dependence time compression diseconomies social complexity
causal ambiguity
Which of the following can help a firm extend its competitive advantage? Multiple select question. resource stocks and flows intellectual property protection depletion of tangible and intangible resources path dependence better expectations of future resource value
intellectual property protection path dependence better expectations of future resource value
A firm's attempts to shorten the length of time a process takes, may lead to disappointing outcomes because of ______. Multiple choice question. social complexity path dependence diseconomies time compression diseconomies causal ambiguity
time compression diseconomies
