man4723 chapter 3 learnsmart

The resource-based view of the firm combines which of the following perspectives?

The company's internal analysis An external analysis of the industry and its competitive environment

Which type of analysis views the organization as a sequential process of value-creating activities?

Value-chain

True or false: The value-chain concept does not apply to service organizations.

False

Which of the following actions should firms take to build sustainability capabilities in both primary and support activities in the value chain?

Finance Marketing Procurement Research and development

______ is a technique for measuring the performance of a firm according to its balance sheet, income statement, and market valuation.

Financial ratio analysis

______ consists of activities that support the entire value chain and not individual activities.

General administration

Which of the following statements about the firm's innovation and learning perspective are correct?

Human capital, information capital and organization capital are critical to this perspective. Managers must make frequent changes to existing products and introduce new products. The criteria for success are constantly changing due to rapid changes.

_______ consists of activities involving recruiting, hiring, training, development, and compensating personnel.

Human resources management

______ resources are organizational assets that are difficult to identify and account for and are typically embedded in unique routines and practices.

Intangible

Which of the following are ways that resource inimitability (difficulty to imitate) is a key to value creation?

It constrains competition. It makes profits more likely to be sustainable.

______ activities are associated with purchases of products and services by end users and the inducements used to get them to make purchases.

Marketing and sales

______ are the competencies and skills that a firm employs to transform inputs into outputs.

Organizational capabilities

______ is collecting, storing, and distributing products or services to buyers.

Outbound logistics

______ is a characteristic of resources that is developed and/or accumulated through a unique series of events.

Path dependency

______ is the first source of resource inimitability due to being inherently difficult to copy.

Physical uniqueness

Support activities add value by themselves or through their relationships with which kinds of activities?

Primary and other support activities

______ refers to the function of purchasing inputs used in the firm's value chain.

Procurement

Which of the following are examples of support activities?

Procurement Human Resources management General administration

Which of the following processes are included in inbound logistics?

Returns to suppliers Warehousing Material handling

JIT has helped companies like Dell to do which of the following?

Decrease the time it takes to deliver products to customers Decrease storage costs, since parts arrive only hours before needed

Which of the following are examples of organizational capabilities?

Designing products that customers want. Offering stellar customer service. Being innovative.

Which of the following is the greatest limitation of the balanced scorecard?

Treating the balanced scorecard as a quick fix.

Which of the following describe activities associated with the technology development support function?

developing technologies that train personnel research and development activities that lead to new products developing a company-wide Intranet

Resources are only rare when other companies ______.

do not possess the same valuable resource

True or false: The only thing a firm needs to achieve a sustainable competitive advantage is a resource that is difficult to imitate.

false

The ______ perspective measures a firm's monetary performance to see how well strategy implementation and execution are contributing to bottom-line improvement.

financial

Resources are valuable only when they enable a firm to ______.

formulate and implement strategies that improve its efficiency or effectiveness

Which of the following are examples of organizational capabilities?

having strong product development capabilities flexible manufacturing providing outstanding customer service

Which of the following are among the primary activities of a firm's value chains?

inbound and outbound logistics operations service marketing and sales

Just-in-time (JIT) inventory systems are designed to help companies with their ______.

inbound logistics

______ is associated with receiving, storing, and distributing product inputs.

inbound logistics

Human resource management's activities include which of the following?

negotiations with labor unions training employees hiring engineers and forklift operators

Resources must have ______ strategically equivalent and valuable substitutes in order to be a source of sustainable competitive advantage.

no

Typically, resources ______.

on their own do not yield a competitive advantage

General administration is often seen ______.

only as overhead

______ includes all activities associated with transforming inputs into the final product.

operations

Which of the following are examples of resource characteristics that are inimitable due to causal ambiguity?

organizational capabilities that involve complex social interactions that make up a company's culture processes that are difficult for outsiders to understand

Which of the following are examples of socially complex resources?

organizational culture interpersonal relationships among managers reputation with suppliers and customers

Which of the following are marketing and sales activities?

pricing products advertising

A firm can substitute one resource for another by doing which activity?

substituting a similar resource

Strategic resources must meet four criteria in order for them to provide a firm with the potential for a ______ competitive advantage.

sustainable

Resources that are valuable, rare, difficult to imitate, and do not have substitutes provide a firm with a ______.

sustainable competitive advantage

Resources that competitors can easily imitate generate ______.

temporary value

______ is a method of evaluating a firm's performance using performance measures from four perspectives: customer, internal, innovation and learning, and financial.

Balanced scorecard

Which of the following are examples of tangible resources?

cash equipment

Which of the following are the key categories of customer concerns?

time and quality performance and service cost of the good or service

Which of the following processes are associated with outbound logistics?

warehousing order processing delivery vehicle operation

______ is a characteristic of a firm's resources that is costly to imitate because a competitor cannot determine what the resource is and/or how it can be re-created.

Causal ambiguity

Which of the following help to explain the extent to which employees and managers may be able to obtain a proportionately high level of generated profits?

Employee exit cost Employee replacement cost Employee bargaining power Manager bargaining power

Which of the following statements about using the balanced scorecard method of evaluating a firm's performance are true?

It includes financial and customer satisfaction measures. It provides managers with a fast but comprehensive view of the business. It takes into account organizational innovation and learning perspective.

______ is a characteristic of a firm's resources that is costly to imitate because the social engineering required is beyond the capability of competitors.

Social complexity

______ resources are organizational assets that include physical and financial assets and are relatively easy to identify.

Tangible

______ includes activities that are associated with the development of new knowledge that is applied to the firm's operations.

Technology development

Which of the following are reasons why competitors have difficulty imitating resources that were developed over time?

They cannot go out and buy these resources quickly and easily. Their uniqueness is due in part to all that happened along the path of development.

Which of the following statements describe the relationships among value-chain activities?

They are interrelationships among activities within the firm. They are relationships among activities within the firm and other stakeholders.

Which of the following are examples of physical uniqueness?

a beach resort location on a one-of-a-kind island a company's mineral rights patented products that cannot be copied

Which of the following describe the two forms that resource substitutability may take?

a substitute that is a similar resource that enables the firm to implement the same strategy a substitute that is a very different resource that becomes a strategic substitute because it provides the same end result differently

Which attributes must a resource have to provide a firm with a sustainable competitive advantage?

ability to exploit opportunities be rare among competitors have no substitutes

Which attributes must a resource have to provide a firm with a sustainable competitive advantage?

ability to exploit opportunities have no substitutes be rare among competitors

Valuable resources can be a source of competitive ______.

advantage

Rather than analyzing its finances in isolation, a firm should make use of ______.

reference points

Which of the following are among the five types of financial ratios that are used to analyze a firm's performance?

asset management ratio short-term and long-term solvency measures profitability and market value ratios

When employees are essential to a firm's unique capabilities, they will earn higher wages and also have more ______.

bargaining power

The stakeholder view takes a(n) ______ approach than the financial ratio analysis in evaluating the firm.

broader

Internal business perspective measures should focus on the ______ processes that have the greatest effect on customer satisfaction.

business

Two valuable firm resources are strategically equivalent (substitutes) when each ______.

can be exploited separately to implement the same strategies

The ______ perspective provides a measure of firm performance that indicates how well firms are satisfying customer expectations.

customer

A firm's expanded value chain includes ______.

customers

When addressing the value-chain concept, it is important to focus on the interrelationship between the organization and its most important stakeholders, which are ______.

customers

The ______ perspective measures how well a firm is changing its product and service offerings to adapt to changes in the internal and external environments.

innovation and learning

The ______ perspective involves measures of firm performance that indicate how well a firm's internal processes, decisions, and actions are contributing to customer satisfaction.

internal business

According to value-chain analysis, a firm ______.

is profitable when the value it receives exceeds total costs

Which of the following should be included as reference points so that a firm's financial position is in the proper context for analysis?

key competitor comparisons comparisons with industry norms historical comparisons

Procurement activities include the purchase of which of the following?

machinery raw materials office equipment

Operations includes which of the following activities?

machining packaging testing

Which of the following are potential limitations of using the balanced scorecard approach?

poor alignment with individuals' scorecards lack of long term senior management commitment poor execution of the approach

______ activities are the sequential activities of the value chain that refer to the physical creation of the product or service, its sale and transfer to the buyer, and its service after sale.

primary

Which of the following are examples of organizational capabilities?

providing outstanding customer service flexible manufacturing having strong product development capabilities

Resources that not many firms possess are known as ______ resources.

rare

Which of the following are service activities?

repair installation training

The ______ view of the firm states that a firm's competitive advantages are due to its endowment of strategic resources that are valuable, rare, costly to imitate, and costly to substitute.

resource-based

Competitive advantages are created and sustained through having ______.

resources that are valuable, rare, and hard to duplicate and substitute

______ includes the actions associated with providing assistance to enhance or maintain the value of the product.

service

Which of the following are typical financial goals?

shareholder value profitability growth

Two approaches to evaluate firm performance include which of the following?

stakeholder view (balance scorecard) financial ratio analysis

Match each type of resource with an appropriate example

tangible- accounts receivable intangible- experience of employees organizational capability- outstanding customer service

Examples of intangible resources include which of the following?

technical and scientific skills the experience and capabilities of employees the company's brand name

Which of the following are included in a firm's intangible resources?

the firm's culture brand name and reputation technical expertise

The application of value-chain activities is easily applied to service organizations when one understands ______.

the focus is on adding value for customers