WPC 480 Chapter 3 Exam Questions With 100% Correct Answers.

WPC 480 Chapter 3 Exam Questions With 100% Correct Answers. A firm should study its internal organization as part of the strategic management process because - answerit provides the insights the firm requires to match what the firm can do with what the firm might do when formulating strategies. An internal analysis is important because: - answernot all strategies will work for all firms; successful strategies must be aligned with a company's strengths. A software company that is seeking a sustained competitive advantage will constantly be facing obsolescence because of environmental change. To generate a sustained competitive advantage, this company must: - answerbe continually building its technological capabilities to develop new skills as technology advances so that it can offer constant upgrades to meet customers' needs. If a start-up U.S.-based automobile parts supplier were to apply a global mind-set to its internal analysis, it would: - answerstudy all of its internal resources with an understanding of which capabilities offer value to meet the needs of U.S., Japanese, European, and Korean automakers. Value is measured by: - answera product's performance characteristics and by its attributes for which customers are willing to pay. Which of the following might be a definition for a value-generating activity? - answerThe core competencies that a company holds that make it possible for it to serve customers in a different way from its competitors An intangible resource is one that is: - answerRooted deeply in the company history, is gathered over time, and is difficult for competitors to analyze or imitate Which of the following would be considered an example of a tangible resource? - answerA network of distribution centers in strategic locations around the world Capabilities are the: - answercombination of tangible and intangible resources to complete the organizational tasks required to produce, distribute, and service the goods or services for customers Capabilities develop into core competencies that can serve as the source of competitive advantage when: - answeremployees, or human capital, integrate them and deploy them to deliver value to customers. A hospital system operates 22 physicians' offices, five skilled nursing facilities, and two hospitals. The system employs more than 500 people directly and is affiliated with more than 100 additional physicians. The system offers a wide breadth of medical services, including all of the major specialties. The system was recently recognized as the top cardiac hospital in the state. Which of the following represents the company's capabilities? - answerIts complete list of medical services An industrial fabrication firm has purchased a facility capable of housing large-scale projects— as long as 120 feet. The firm could develop this tangible resource into a capability by - answeremploying engineers who can design large projects and welders who have expertise in these projects. A resource or capability can be classified as a core competency that can be a source for a sustainable competitive advantage if: - answerit is different and better than the way a competitor is executing the same capability. A capability is nonsubstitutable when: - answerIt does not have strategic equivalents. A company owns a patent, with six more years of protection, on a prescription medication that is used by people around the world. This resource is: - answerRare and valuable Which of the following capabilities meets the criteria for being a core competency, in that it is rare, valuable, costly to imitate, and nonsubstitutable? - answerCompany history and brand A capability can be considered costly to imitate when - answerit is developed because of unique historical conditions. A company is analyzing its value chain to discover its value-creating activities. While formulating its strategy, the firm will: - answerconsider the operational functions and support functions to determine which activities contribute the greatest value in the product or service being sold to customers. Outsourcing is the: - answerpurchase of a value-creating activity or support function activity from an external supplier. An attorney has grown his law firm, gaining new clients in two diverse areas—estate law and immigration law. He's not sure which specialty will become his focus in the long run. At the same time, he believes he has enough work to support hiring a paralegal. However, he is having trouble hiring a paralegal who can manage both types of clients. He was able to find a freelance paralegal referral service that connects attorneys to paralegals who have experience in a variety of specialties. He might consider outsourcing through the referral service because: - answerit provides him with the flexibility to gain capabilities to serve both types of clients without making a long-term investment A nonprofit organization is focused on providing mental health services to the homeless in its geographic area. It serves people by ensuring they receive the public assistance they are eligible for and then connects them with care providers that have expertise working with transient patients. The company's primary expenses are the salary and benefits for its staff of social