MGMT 434 Learnsmart Quiz 4

If the problem with a business strategy results in causal ambiguity, managers will _______.

have a difficult time developing a theory to deal with the problem.

Intellectual property protection and social complexity are examples of _________ mechanisms, which help a firm sustain a competitive advantage.

isolating

How are intangible resource stocks acquired?

through investments over time in intangible resources

The organizational and managerial skills necessary to orchestrate a diverse set of resources and deploy them strategically are called __________.

capabilities

(T/F) A competitive advantage can be maintained forever

False

_________ is a framework that allows managers to synthesize insights obtained from internal and external analysis.

SWOT analysis

Groupon's _______ was temporary since its resource was neither rare nor costly to imitate.

competitive advantage

___________ has a greater chance of arising from intangible resources than from tangible resources.

competitive advantage

According to the VRIO framwork, a rare resource is _________ if firms that do not possess the resource are unable to develop or buy the resource at a comparable cost.

costly to imitate

A firm's dynamic capabilities allow it to respond agilely to market changes, as well as to ___________.

create market changes

By definition, resource immobility suggest that resources are _________ to move from firm to firm.

difficult

According to the ______ -based view, firms are a distinctive collection of resources, capabilities, and competencies

resource

_________ refers to the idea that a firm is a bundle of resources and capabilities that is unique to the firm.

resource heterogenity

According to the ___________ view of a firm, "resources" are defined as any asset, capability, or competency that a firm can draw upon when formulating and implementing strategy.

resource-based.

__________ are any assets that a firm can draw on when formulating and implementing a stragey.

resources

The cultures of Zappos is hard to imitate because it consists of numerous, diverse interactions among its employees, processes, procedures, and norms, that create what?

social complexity

The interaction of the many individual systems in the operation of a company often leads to causal ambiguity because of _________.

social complexity

A firm trying to compete with the leading firm in a competitive industry can try to negate the leading firm's competitive advantage through which of the following?

substitution and direct imitation

Primary activities include...

supply chain management and operation (among others)

Accounting and finance are __________ activities in a firm's value chain.

support

In order to avoid making costly mistakes due to the potential shortcomings of the SWOT analysis, a manger should ________.

take results from the SWOT analysis with a "grain of salt"

Capital, land, buildings, and plants are examples of ___________ resources.

tangible

The resource-based view classifies all resources as _________.

tangible or intangible

A resource is considered ___________ if it helps a firm to deal with an external threat.

valuable

The _____________ describes the internal activities a firm engages in when transforming inputs into outputs.

value chain

A core competency can help a company achieve which of the following? 1. to create higher value for the consumer 2. to differentiate its products and services 3. to reduce the wages of its employees 4. to offer products of comparable value at lower cost than rivals can

1, 2, and 4

What situations would make a resource be considered valuable?

1. The resource helps the firm increase its economic value creation (V-C) 2. The resource helps a firm exploit an external opportunity.

What statements are true about the capabilities of a firm?

1. They include organizational skills. 2. They concern the deployment of resources. 3. They include managerial skills.

In the resource-based model, _________ is possible if all firms have access to the same resources and capabilities, which means that any competitive advantage acquired by a firm will be brief.

perfect competition

The ___________ is a theoretical model that explains and predicts what resource attributes underpin competitive advantage.

VIRO framework

In the dynamic capabilities perspective, competitive advantage derives from ______.

actively modifying of the resource base

According to the dynamic capabilities perspective, competitive advantage stems from a firm's ability to ______.

agilely transform its resource base

According to the dynamic capabilities perspective, competitive advantage stems from a firm's ability to _________.

agilely transform its resource base

"Time compression diseconomies" refers to the concept that _________.

attempting to get a good outcome in less time time tends to be ineffective

Isolating mechanisms are considered to be ________.

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 ________.

be organized to capture value

In which ways did Dr. Dre build the coolness factor of Beats headphones as a core competency?

by creating custom headphones that were worn publicly by musician celebrities, by using his fame as a music producer to promote the headphones, and by getting endorsements from popular athletes

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 ....

dynamic capabilities

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 sustain competitive advantage in a constantly changing environment.

dynamic capabilities

Groupon's initial success was largely due to the company's ________

first mover advantage

Strong resource flows __________ a firm's resource stocks.

increase

A firm's culture, brand equity, and intellectual property are examples of _________.

intangible resources

When strategizing about possible competitive advantages, a major advantage of the SWOT analysis is that it allows managers to simultaneously consider __________.

internal and external factors

What are some examples of business activities?

order taking, delivery of products, and invoicing customers

___________ suggest that sometimes even random events may have a large impact on an outcome

path dependence

Better expectations of future resource value _________ a firm's competitive advantage.

positively impact

The internal activities of a firm that for transforming inputs into outputs consist of ________ activities, which add value directly, and _________ activities, which add value indirectly.

primary; support

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.

rare

Understanding the cause and effect of a strategy may help managers avoid _________.

causal ambiguity