BUS5117 Strategic Management Unit 3 Graded Quiz — 25 Q&A
Verified Answers 2025
Course:
BUS5117 Strategic Management — University of the People (UoPeople)
Level:
MBA
Year:
2025/2026
Format:
Graded Quiz Solutions — 25 Q&A with Verified Answers
BUS5117 Unit 3 Graded Quiz — Internal Environment Analysis
25 Questions with Verified Answers | Score: 96/100
Question 1:
The Resource-Based View (RBV) of the firm rests on two fundamental assumptions about the
resources and capabilities that firms control. What are these two core assumptions?
A) Resource heterogeneity and resource immobility
B) Market equilibrium and perfect competition
C) Resource homogeneity and high mobility
D) Information asymmetry and bounded rationality
Answer: A
Explanation:
The RBV assumes that resources are heterogeneous (firms possess different bundles of
resources) and immobile (these resources are "sticky" and do not move easily from firm to firm).
This explains why some firms can sustain competitive advantages even within the same industry.
The other options describe assumptions of traditional economics or industrial organization
models, not the RBV.
Question 2:
, According to the VRIO framework, a resource or capability that is valuable but not rare will
typically result in which of the following competitive outcomes?
A) Sustained competitive advantage
B) Competitive parity
C) Temporary competitive advantage
D) Competitive disadvantage
Answer: B
Explanation:
If a resource is valuable but commonly held by many competitors (not rare), it allows the firm to
compete in the market but does not give it a unique edge, resulting in competitive parity. A
sustained advantage requires the resource to meet all VRIO criteria, while a temporary advantage
occurs if it is valuable and rare but easily imitated. A disadvantage occurs if the firm lacks valuable
resources.
Question 3:
Inimitability is a critical component of the VRIO framework. Which of the following best describes
"causal ambiguity" as a barrier to imitation?
A) The resource is protected by legally binding patents or trademarks.
B) The resource was developed over a long historical path that competitors cannot recreate.
C) Competitors cannot clearly understand the relationship between the firm's resources and its
competitive advantage.
D) The advantage is built on interpersonal relationships, trust, and organizational culture.
Answer: C
Explanation:
Causal ambiguity occurs when the link between a firm's resources/capabilities and its competitive
advantage is deeply complex or unclear, making it impossible for rivals to know exactly what to
copy. Option B describes path dependence, Option D describes social complexity, and Option A
refers to formal legal barriers.
Question 4:
Scenario: A firm possesses a highly innovative software algorithm that is valuable, rare, and
exceedingly difficult to imitate due to complex coding structures. However, the firm lacks the
marketing channels, sales expertise, and management structure to monetize the algorithm. Based
on the VRIO framework, what is the firm's current status regarding this resource?
Verified Answers 2025
Course:
BUS5117 Strategic Management — University of the People (UoPeople)
Level:
MBA
Year:
2025/2026
Format:
Graded Quiz Solutions — 25 Q&A with Verified Answers
BUS5117 Unit 3 Graded Quiz — Internal Environment Analysis
25 Questions with Verified Answers | Score: 96/100
Question 1:
The Resource-Based View (RBV) of the firm rests on two fundamental assumptions about the
resources and capabilities that firms control. What are these two core assumptions?
A) Resource heterogeneity and resource immobility
B) Market equilibrium and perfect competition
C) Resource homogeneity and high mobility
D) Information asymmetry and bounded rationality
Answer: A
Explanation:
The RBV assumes that resources are heterogeneous (firms possess different bundles of
resources) and immobile (these resources are "sticky" and do not move easily from firm to firm).
This explains why some firms can sustain competitive advantages even within the same industry.
The other options describe assumptions of traditional economics or industrial organization
models, not the RBV.
Question 2:
, According to the VRIO framework, a resource or capability that is valuable but not rare will
typically result in which of the following competitive outcomes?
A) Sustained competitive advantage
B) Competitive parity
C) Temporary competitive advantage
D) Competitive disadvantage
Answer: B
Explanation:
If a resource is valuable but commonly held by many competitors (not rare), it allows the firm to
compete in the market but does not give it a unique edge, resulting in competitive parity. A
sustained advantage requires the resource to meet all VRIO criteria, while a temporary advantage
occurs if it is valuable and rare but easily imitated. A disadvantage occurs if the firm lacks valuable
resources.
Question 3:
Inimitability is a critical component of the VRIO framework. Which of the following best describes
"causal ambiguity" as a barrier to imitation?
A) The resource is protected by legally binding patents or trademarks.
B) The resource was developed over a long historical path that competitors cannot recreate.
C) Competitors cannot clearly understand the relationship between the firm's resources and its
competitive advantage.
D) The advantage is built on interpersonal relationships, trust, and organizational culture.
Answer: C
Explanation:
Causal ambiguity occurs when the link between a firm's resources/capabilities and its competitive
advantage is deeply complex or unclear, making it impossible for rivals to know exactly what to
copy. Option B describes path dependence, Option D describes social complexity, and Option A
refers to formal legal barriers.
Question 4:
Scenario: A firm possesses a highly innovative software algorithm that is valuable, rare, and
exceedingly difficult to imitate due to complex coding structures. However, the firm lacks the
marketing channels, sales expertise, and management structure to monetize the algorithm. Based
on the VRIO framework, what is the firm's current status regarding this resource?
