MGMT 498 Chap 4
Which of the following best describes the core competency of the Five Guys Burgers and Fries company?
Making high-quality burgers without limiting costs
______ describes a process in which the options one faces in the current situation are limited by decisions made in the past.
Path dependence
______ suggests that sometimes even random events may have a large impacts on an outcome.
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 current level of intangible resources.
Resource stocks
______ is a framework that allows mangers to synthesize insights obtained from internal and external analysis.
SWOT analysis
______ describes a situation in which different social and business systems interact with each other.
Social complexity
_______ describes a situation in which different social and business systems interact with each other.
Social complexity
True or false: According to the resource-based model, a firm is assumed to be a unique bundle of resources, capabilities, and competencies.
True
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
The value chain describes ______ of a firm.
internal activities
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 are situations in which a resource is considered valuable? (Check all that apply.)
-The resource helps a firm exploit an external opportunity. -The resource helps the firm increase its economic value creation (V-C).
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
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.
The VRIO framework is used to evaluate a firm's resources. VRIO is an acronym for which of the following? (Check all that apply.)
-Rare -Imitate -Valuable
What should a firm do in order to be organized to capture value? (Check all that apply.)
-have good coordinating systems -have good organizational structure
Which of the following are examples of resources for a firm? (Check all that apply.)
-intellectual property -cash -buildings
Which of the following can help a firm extend its competitive advantage? (Check all that apply.)
-intellectual property protection -path dependence -better expectations of future resource value
The resource-based view classifies all resources as ______.
Tangible or intangible
Unlike capabilities, resources can be both ______.
Tangible or intangible
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
"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
A(n) ______ is a unique strength, embedded deep within a firm, that is critical to gaining and sustaining competitive advantage.
core competency
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
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
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
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.
increases
Marketing, sales, and distribution are ______ activities in a firm's value chain.
primary
Core competencies of a business are generated by the interaction of ______.
resources and capabilities
The interaction of the many individual systems in the operation of a company often leads to causal ambiguity because of ______.
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 framework; PESTEL
The resource-based model views resources as ______.
the main driver of firm performance
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 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
______ describes a situation where the cause and effect of a phenomenon are not readily apparent.
Causal ambiguity
_______ describes a situation where the cause and effect of a phenomenon are not readily apparent.
Causal ambiguity
True or false: A competitive advantage is most often maintained for very long periods of time.
False
Intellectual property protection and social complexity are examples of mechanisms, which help a firm sustain a competitive advantage.
isolating
What are examples of intangible resource stock a company may have? (Check all that apply.)
-reputation for quality -engineering expertise -dynamic capabilities
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.)
-resources -core competencies -capabilities
A firm's attempts to shorten the length of time a process takes, may lead to disappointing outcomes because of ______.
time compression diseconomies
A customized strategy that considers the unique resources of the company while considering the external environment creates ______.
a strategic fit between them
Which of the following identifies the resources that can lead to a competitive advantage?
VRIO framework
Cowgirl Boots, inexpensive leather boots for women, are selling at record-high numbers. The CEO of the company, however, cannot figure out why. Was it caused by the company's recent advertisement campaign or the newly reduced price of the boots or some other unknown factor? Based on this information, what concept describes the CEO's confusion regarding Cowgirl Boots' recent success?
causal ambiguity
Primary activities include which of the following? (Check all that apply.)
-operations -supply chain management