Exam 1 MGNT 428 Connect Book

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

In addition to the static nature of the PESTEL, Porter's five forces, and strategic group mapping frameworks, what is their other shortcoming?

It does not help us understand why there are performance differences among firms in the same strategic group.

Which of the following statements about Airbnb is correct?

It handles more accommodations than the three biggest hotel chains combined.

Which statement best describes the rivalry among existing competitors in the airline industry?

It is intense due to the pressures created by industry forces.

Which of the following are approaches for answering the question "How to enter?" when a firm is considering entering an industry?

Leverage existing assets Reconfiguring value chains Establishing a niche

What is the result of low barriers to entry in the airline industry?

New airlines join the market from time to time.

______ describes a process in which the options one faces in the current situation are limited by decisions made in the past.

Path dependence

______ activities add value directly by transforming inputs into outputs as the firm moves a product or service horizontally along the internal value chain.

Primary

______ are the firm's level of investments to maintain or build a resource.

Resource flows

______ are the firm's current level of intangible resources.

Resource stocks

______ are any assets that a firm can draw on when formulating and implementing a strategy.

Resources

______ resources have physical attributes and are visible.

Tangible

What conclusions can be reached about the airline industry using the five forces framework?

The mega-airlines must constantly struggle to achieve consistent profitability. The supporting players, such as airports and aircraft suppliers, are quite profitable.

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.

True or false: The relative strengths of the five forces that shape competition are largely dependent on the context.

True

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

Isolating mechanisms are considered to be ______.

barriers to imitation

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

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? (Check all that apply.)

core competencies capabilities resources

Which of the following does the five forces model to help firms do?

determine the profit potential of different industries gain and sustain a competitive advantage

In the early 2000s, easy credit made real estate the investment of choice in the United States. By the end of the decade, however, a recession had set in, impacting almost all businesses in the country. This example shows that _____.

economic boom periods can overheat and lead to speculative bubbles

What are examples of intangible resource stock a company may have? (Check all that apply.)

engineering expertise reputation for quality dynamic capabilities

In the PESTEL model, political factors are those that relate to ______.

government bodies

What should a firm do in order to be organized to capture value? (Check all that apply.)

have good coordinating systems have a good organizational structure

Which of the following can help a firm extend its competitive advantage? (Check all that apply.)

intellectual property protection better expectations of future resource value path dependence

Which of the following are examples of economic factors in the firm's general environment? (Check all that apply.)

interest rates price stability growth rates

Managers have ______ direct influence over external forces in the firm's general environment than those in the firm's task environment.

less

When managers understand the forces in the external environment, they are better able to ______.

mitigate threats and leverage opportunities

In order to influence changes in their political environment, firms pursue ______.

nonmarket strategies

What might potential substitutes do to make themselves more attractive to customers?

offer a lower price offer a higher value proposition

Primary activities include which of the following? (Check all that apply.)

operations supply chain management

Marketing, sales, and distribution are ______ activities in a firm's value chain.

primary

Which of the following are employed as nonmarket strategies to influence government bodies? (Check all that apply.)

public relations lobbying litigation

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

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 resource-based view classifies all resources as ______.

tangible or intangible

A core competency can help a company achieve which of the following? (Check all that apply.)

to differentiate its products and services to create higher value for the consumer to offer products of comparable value at lower cost than rivals can

Which of the following is not considered an isolating mechanism?

uncertainty about future resource value

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

valuable

A perfectly competitive industry has ______ entry barriers and ______ small firms.

low; many

The ______ is a measure of the change in the amount of goods and services produced by a nation's economy.

economic growth rate

True or false: A competitive advantage is most often maintained indefinitely.

False

Which of the following are essential questions that strategic leaders need to consider to increase the probability of entering an industry successfully? (Check all that apply.)

Who are the players? When to enter? What type of entry should be made? How to enter?

The amount that savers are paid for use of their money and the amount that borrowers pay for that use is known as ______.

an interest rate

What are the characteristics of a strategic activity system as it applies to firms? (Check all that apply.)

It is socially complex. It consists of interconnected activities. It is causally ambiguous.

Time compression diseconomies occur when a firm ______.

attempts to reach an outcome in a reduced amount of time

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

According to the PESTEL model, which of the following are kinds of forces that exist in the general external environment? (Check all that apply.)

economic technological ecological

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

Managers are able to influence which of the following types of external forces? (Check all that apply.)

strategic group composition the structure of their industry