Chapter 4 - Internal Analysis
The value chain concept is applicable primarily to high-tech firms in rapidly changing environments.
False
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
Isolating mechanisms are considered to be ______.
barriers to imitation
Strategic leaders use internal and external analyses in tandem to create a customized fit between a company's ______.
internal resources and external environment
Which of the following is not considered an isolating mechanism?
uncertainty about future resource value
______ are the distinct and fine-grained business processes that enable firms to add incremental value by transforming inputs into goods and services.
Activities
Strategic fit ______ the likelihood that a firm is able to gain a competitive advantage.
increases
Intellectual property protection and social complexity are examples of ____ mechanisms, which help a firm sustain a competitive advantage.
isolating
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
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 ______.
the VRIO framwork; PESTEL
A competitive advantage is most often maintained indefinitely.
False
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
______ activities add value directly by transforming inputs into outputs as the firm moves a product or service horizontally along the internal value chain.
Primary
______ is a framework that allows mangers to synthesize insights obtained from internal and external analysis.
SWOT Analysis
True or false: To maintain a competitive advantage, a strategic activity system needs to change over time.
True
What insights gained from a SWOT analysis would lead McDonald's to consider developing healthier food items for its menu?
a growing health consciousness among customers
The purpose of a SWOT analysis is to ______.
form a strategy that is tailored to the firm's unique strengths and weaknesses and the opportunities and threats in its environment
Using the "resource-based view" helps firms ______.
gain or maintain competitive advantage
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