Chapter 4: Leveraging Resources and Capabilities

If firms are unable to get rid of non-value-adding assets, they are most likely to _____. a. suffer from below-average performance b. have only temporary competitive advantage c. to increase the number of employees d. become successful

A

In the context of management literature, which of the following statements is true of ambidexterity? a. It describes capabilities to simultaneously deal with paradoxes. b. It refers to the socially complex ways of organizing typical of many firms. c. It is the difficulty of identifying the causal determinants of successful firm performance. d. It leads to competitive parity but not an advantage.

A

Using the VRIO framework, a _____ is most likely to help managers make decisions on what capabilities to focus on in-house and what to outsource. a. value chain analysis b. discourse analysis c. static analysis d. sociological analysis

A

Which of the following implications is suggested by the resource-based view for managers' success in global business? a. Managers need to build firm strengths based on the VRIO framework. b. Imitation and benchmarking are important and successful strategies. c. Managers need to build up resources and capabilities for internal competition. d. Managers should create jobs that can be easily outsourced.

A

Which of the following is an example of a tangible resource? a. a firm's stock holdings b. a firm's reputation c. a firm's employees d. the training and development of an expatriate manager

A

Which of the following statements is most likely to be true of best-performing firms globally? a. They often create new ways of adding value. b. They create competitive advantage by meticulously replicating every resource possessed by winning firms. c. They relentlessly benchmark the best in the industry to create a sustainable competitive advantage. d. They build common capabilities that are easy to imitate.

A

Which of the following statements is true of a SWOT analysis? a. It identifies a firm's strengths, weaknesses, opportunities, and threats. b. It deals with external opportunities and threats, constrained solely by formal rules of the game. c. It concentrates exclusively on a firm's internal strengths and weaknesses. d. It is concerned with a firm's capacity to dynamically deploy resources, constrained solely by informal rules of the game.

A

Which of the following statements is true of a value chain analysis? a. It forces managers to think about firm resources and capabilities at an activity-based level. b. It identifies a firm's strengths, weaknesses, opportunities, and threats. c. It deals with external opportunities and threats, constrained by formal rules of the game. d. It consists of only one set of primary activities.

A

Which of the following statements is true of tangible resources? a. They are observable. b. They include reputational resources and capabilities. c. They include human and innovational resources. d. They are hard to quantify.

A

Which of the following statements is true of the "LEGO" view of a firm? a. It fails to realize that social capital associated with complex relationships and knowledge permeating many firms can be a source of competitive advantage. b. It states that in order to attain competitive advantage, market-based and nonmarket- based (political) capabilities need to complement each other c. It is another way of saying "casual ambiguity" d. It is a term used to describe a firm's ambidexterity

A

Which of the following statements is true of valuable and rare resources and capabilities that are easy to imitate? a. They will provide temporary competitive advantage. b. They will provide competitive parity but not competitive advantage. c. They will lead to below-average firm performance. d. They will lead to persistently above-average firm performance.

A

_____ is examining whether a firm has the resources and the capabilities to perform a particular activity in a manner superior to competitors. a. Benchmarking b. Commoditization c. Reshoring d. Ambidexterity

A

A firm's valuable but common resources and capabilities are most likely to lead to: a. competitive advantage. b. competitive parity. c. above-average performance. d. extinction.

B

In the context of the resource-based view, which of the following is least likely to be a successful strategy in global business? a. Assessing how one's resources and capabilities compare with those of their rivals b. Imitating or benchmarking the best in the industry relentlessly c. Building firm strength based on VRIO framework d. Using a value chain analysis to make decisions on what capabilities to focus on in-house and what to outsource

B

Which of the following best defines resources? a. They are the key to examine whether a firm has capabilities to perform a particular activity in a manner superior to competitors. b. They are the tangible and intangible assets a firm uses to choose and implement its strategies. c. They refer to the socially complex ways of organizing typical of many firms. d. They refer to the difficulty of identifying the causal determinants of successful firm performance.

B

Which of the following determines the success and failure of firms around the globe? a. Non-value-adding capabilities b. Valuable, rare, and hard-to-imitate resources c. Easily imitable capabilities d. Easily substitutable and imitable resources

B

Which of the following is an example of offshoring? a. Dell producing computer components in Michigan b. Apple using low cost workers in India for IT customer service c. General Motors' in house production of auto parts d. Detroit automakers bringing jobs back to Michigan from Mexico

B

_____ refers to the difficulty of identifying the causal determinants of successful firm performance. a. Social complexity b. Causal ambiguity c. Ambidexterity d. Causal resolution

B

A firm recognizes that one of their in house activities is gaining a high degree of commoditization on the world market. They should: a. work in house and globally to reduce commoditization b. continue operations as normal c. consider outsourcing d. add proprietary value to the service by any means necessary

C

According to the VRIO framework, if a firm has a resource or capability that is valuable, rare, and costly or difficult to imitate, yet is not gaining a sustained competitive advantage, then it is likely that the firm: a. is utilizing ambidexterity to its advantage b. has a high degree of casual ambiguity c. is not properly organized d. is suffering from competitive parity

C

The "LEGO" view of a firm in which the firm can be assembled from modules of technology and people fails to realize that: a. benchmarking can be a source of competitive advantage. b. commoditization can be a source of competitive advantage. c. social complexity can be a source of competitive advantage. d. the substitutability of resources can be a source of competitive advantage

C

Which of the following is a feature of a value chain analysis? a. It concentrates on a firm's internal strengths and weaknesses. b. It identifies a firm's opportunities and threats. c. It consists of primary activities and support activities. d. It deals with external opportunities, enabled by formal rules of the game.

C

Which of the following is a reason why imitation is difficult? a. Social complexity b. Ambidexterity c. Causal ambiguity d. Offshoring

C

Which of the following statements best defines complementary assets? a. They are the resources and capabilities that a firm's competitor has to perform a particular activity in a superior manner. b. They are the intangible assets that drain a firm's capital resources. c. They are the tangible assets that drain a firm's capital resources. d. They are the combination of numerous resources and assets that enable a firm to gain a competitive advantage.

C

Which of the following statements in true of outsourcing? a. It is the process of acquiring necessary capabilities and resources in-house. b. It involves the difficulty of identifying the actual cause of a firm's successful performance. c. It involves turning over an activity to an outside supplier that will perform it on behalf of the focal firm. d. It involves moving formerly offshored activities back to the home country of the focal firm

C

A successful Brazilian agricultural firm wants to expand into a new region of the country, but after spending millions of dollars to develop the region, failed to get proper permits from the government and were unsuccessful with their expansion. This is an example of a firm failure in: a. causal ambiguity b. commoditization c. social complexity d. ambidexterity

D

Critics of offshoring argue that: a. Offshoring produces a net positive result for the economies of developing nations. b. Large firms in developed economies use increasingly ethical means to gain labor overseas and employees are considered valuable assets to the firm. c. Most of jobs that are sent to developing nations are in manufacturing, resulting in a net loss of manufacturing jobs for the developed country. d. Native White collar workers in high-end areas such as design, R&D, and IT/ BPO are losing jobs, resulting in a negative net impact on the developed economy.

D

Harpin Co. has valuable, rare, and hard-to-imitate capabilities that are organizationally embedded and exploited. Harpin Co. can expect _____ firm performance. a. below average b. average c. above average d. persistently above average

D

In emerging economies, _____ to manage both market forces and government forces simultaneously—as a bundle of complementary resources—is key to navigate the competitive waters. a. causal ambiguity b. commoditization c. social complexity d. ambidexterity

D

In the context of a VRIO framework, _____ can lead to competitive advantage. a. only substitutable resources b. only imitable resources c. only easily available resources d. only value-adding resources

D

What question do managers ask during the first stage of SWOT analysis? a. "Is this activity valuable, rare, and difficult to imitate?" b. "What is the best location for offshoring?" c. "Do we have the resources and capabilities that add value in a way better than rivals do?" d. "Do we really need to perform this activity in-house?"

D

Which of the following statements is true of complementary assets? a. They lead to competitive parity but not competitive advantage. b. They are unnecessary resources for a firm. c. They include only innovation. d. They enable a firm to gain a competitive advantage.

D

Which of the following statements is true of intangible resources? a. They are observable and quantifiable. b. They include technological and organizational resources and capabilities. c. They include financial and physical resources. d. They are hard to observe and more difficult to quantify.

D

Which of the following statements is true of offshoring? a. It means moving outsourced activities back to the home country. b. It means setting up subsidiaries abroad. c. It means outsourcing to a domestic firm. d. It means outsourcing to an international firm.

D

_____ are the tangible and intangible assets a firm uses to choose and implement its strategies. a. Complementary assets b. Commodities c. Value chains d. Capabilities

D

_____ refers to how firms overcome cultural differences and are organized as one corporate entity and achieve corporate goals. a. Benchmarking b. Commoditization c. Causal ambiguity d. Social complexity

D

______ enables firms to anticipate future needs and move early to identify, develop, and leverage resources and capabilities for future competition. a. Social complexity b. Valuable, rare, and hard-to-imitate resources c. Easily imitable capabilities d. Strategic foresight

D