428 Chap4
One of the most popular tools used by firms to evaluate their current situation and future prospects is the ______.
SWOT
______ is a framework that allows mangers to synthesize insights obtained from internal and external analysis.
SWOT
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.
VRIO framework
Which of the following identifies the resources that can lead to a competitive advantage?
VRIO framework
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 ______.
VRIO; PESTEL
VIRO framework
Value, Rarity, Imitability, Organization
path dependence
a situation in which the options one faces in the current situation are limited by decisions made in the past
A customized strategy that considers the unique resources of the company while considering the external environment creates ______.
a strategic fit between them
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.
costly to imitate
Which isolating mechanism is set up to legally prevent companies from copying products that give a firm a competitive advantage?
intellectual property protection
When strategizing about possible competitive advantages, a major advantage of the SWOT analysis is that it allows managers to simultaneously consider ______.
internal and external forces
The resource-based view classifies all resources as ______.
tangible or intangible
The ______ describes the internal activities a firm engages in when transforming inputs into outputs.
value chain
support activities
-R&D -info services -HR -accounting and finance -firm infrastructure like processes, policies, and procedures
What should a firm do in order to be organized to capture value? (Check all that apply.)
-have a good organizational structure-have good coordinating systems
What are the characteristics of a strategic activity system as it applies to firms?
It consists of interconnected activities. It is socially complex. It is causally ambiguous.
Which of the following best describes the core competency of the Five Guys Burgers and Fries company?
Making high-quality burgers without limiting costs
Which of the following are situations in which a resource is considered valuable? (Check all that apply.)
The resource helps the firm increase its economic value creation (V-C). The resource helps a firm exploit an external opportunity.
"Time compression diseconomies" refers to the concept that ______.
attempting to get a good outcome in less time tends to be ineffective
According to the VRIO framework, to fully exploit the competitive potential of its resources, capabilities, and competencies, a firm must ______.
be organized to capture value
Which of the following can help a firm extend its competitive advantage? (Check all that apply.)
better expectations of future resource value intellectual property protection path dependence
Which of the following are examples of resources for a firm? (Check all that apply.)
buildings cash intellectual property
tangible
capable of being touched; real, concrete
______ describes a situation where the cause and effect of a phenomenon are not readily apparent.
casual ambiguity
A(n) ______ is a unique strength, embedded deep within a firm, that is critical to gaining and sustaining competitive advantage.
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 ______.
core competency
For a firm to sustain any competitive advantage over time, the fit between its internal strengths and external environment needs to be ______.
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?
dynamic capabilities
What are examples of intangible resource stock a company may have? (Check all that apply.)
engineering expertise reputation for quality dynamic capabilities
True or false: A competitive advantage is most often maintained indefinitely.
false
True or false: The value chain concept is applicable primarily to high-tech firms in rapidly changing environments.
false
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
Resource ______ and resource ______ are the key assumptions behind the resource-based model of the firm.
heterogeneity; immobility
Strategic fit ______ the likelihood that a firm is able to gain a competitive advantage.
increase
______ suggests that sometimes even random events may have a large impacts on an outcome.
path dependence
Marketing, sales, and distribution are ______ activities in a firm's value chain.
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.
rare
According to the VRIO framework, in order for a firm to gain a temporary competitive advantage, a resource must be at least both ______.
rare and valuable
______ are the firm's level of investments to maintain or build a resource.
resource flows
______ are any assets that a firm can draw on when formulating and implementing a strategy.
resources
Core competencies of a business are generated by the interaction of ______.
resources and capabilities
The concept of social complexity suggests that ______.
social and business systems that work for one firm may be hard to imitate because of complex interactions between these systems
The interaction of the many individual systems in the operation of a company often leads to causal ambiguity because of ______.
social complexity
______ describes a situation in which different social and business systems interact with each other.
social complexity
Research and development, information systems and human resources are examples of ______ activities.
support
The resource-based model views resources as ______.
the main driver of firm perfoemance
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
True or false: According to the resource-based model, a firm is assumed to be a unique bundle of resources, capabilities, and competencies.
true
intangible
unable to be touched or grasped; not having physical presence
A resource is considered ______ if it helps a firm to deal with an external threat.
valuable
A core competency can help a company achieve which of the following? (Check all that apply.)
-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
Which of the following are intangible resources that can be protected as intellectual property?
-trade secrets -trademarks -copyrights
Intellectual property protection and social complexity are examples of ________________, which help a firm sustain a competitive advantage.
isolating mechanisms
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?
social complexity
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?
-resources-core competencies-capabilities
Which of the following is an isolating mechanism?
-social complexity -casual ambiguity -path dependency -better expectations of future resource value
Primary activities include which of the following? (Check all that apply.)
-supply chain -operations -distribution -marketing and sales -after-sales service
A firm's attempts to shorten the length of time a process takes, may lead to disappointing outcomes because of ______.
time compression diseconomies
Which of the following were resources and capabilities that helped Five Guys gain a competitive advantage and develop into a successful restaurant chain? (Check all that apply.)
-Focusing on such details as store layout and design-Carefully choosing the supplier of the potatoes for their fries
