WPC 480 Exam #2 UPDATED ACTUAL
Questions and CORRECT Answers
core competencies - CORRECT ANSWER -unique strengths, embedded deep within a
firm, that are critical to gaining and sustaining comp adv
resources - CORRECT ANSWER -any assets that a firm can draw on when formulating
and implementing a strategy
capabilities - CORRECT ANSWER -Organizational and managerial skills necessary to
orchestrate a diverse set of resources and deploy them strategically
activities - CORRECT ANSWER -distinct and fine-grained business processes that
enables firms to add incremental value by transforming inputs into goods and services
resource-based view - CORRECT ANSWER -a modelt hat sees certain types of resources
as key to superior firm performance
tangible resource - CORRECT ANSWER -resources that have physical attributes and thus
are visible
intangible resource - CORRECT ANSWER -resources that do not have physical attributes
and thus are invisible
valuable resource - CORRECT ANSWER -One of the four key criteria in the VRIO
framework. A resource is valuable if it helps a firm exploit an external opportunity or offset an
external threat
rare resource - CORRECT ANSWER -one of the four key criteria in the VRIO
framework. A resource is rare if the number of firms that possess it is less than the number of
firms it would require to reach a state of perfect competition
, costly-to-imitate resource - CORRECT ANSWER -one of the four key criteria in the
VRIO framework. A resource is costly to imitate if firms that do not possess the resource are
unable to develop or buy the resource at a comparable cost.
organized to capture value - CORRECT ANSWER -one of the four key criteria in the
VRIO framework. The characteristic of having in place an effective organizational structure,
processes, and systems to fully exploit the competitive potential of the firm's resources,
capabilities, and competencies.
Causal ambiguity - CORRECT ANSWER -A situation in which the cause and effect of a
phenomenon are not readily apparent.
Social complexity - CORRECT ANSWER -a situation in which different social and
business systems interact with one another
Intellectual property (IP) protection - CORRECT ANSWER -A critical intangible resource
that can provide a strong isolating mechanism, and thus help to sustain a competitive advantage
Core rigidity - CORRECT ANSWER -A former core competency that turned into a
liability because the firm failed to hone, refine, and upgrade the competency as the environment
changed
dynamic capabilities - CORRECT ANSWER -A firms ability to create, deploy, modify,
reconfigure, upgrade, or leverage its resources in its quest for competitive advantage
Dynamic capabilities perspective - CORRECT ANSWER -A model that emphasizes a
firms ability to modify and leverage its resources base in away that enables it to gain and sustain
competitive advantage in a constantly changing environment
Resource stocks - CORRECT ANSWER -The first current level of intangible resources
Questions and CORRECT Answers
core competencies - CORRECT ANSWER -unique strengths, embedded deep within a
firm, that are critical to gaining and sustaining comp adv
resources - CORRECT ANSWER -any assets that a firm can draw on when formulating
and implementing a strategy
capabilities - CORRECT ANSWER -Organizational and managerial skills necessary to
orchestrate a diverse set of resources and deploy them strategically
activities - CORRECT ANSWER -distinct and fine-grained business processes that
enables firms to add incremental value by transforming inputs into goods and services
resource-based view - CORRECT ANSWER -a modelt hat sees certain types of resources
as key to superior firm performance
tangible resource - CORRECT ANSWER -resources that have physical attributes and thus
are visible
intangible resource - CORRECT ANSWER -resources that do not have physical attributes
and thus are invisible
valuable resource - CORRECT ANSWER -One of the four key criteria in the VRIO
framework. A resource is valuable if it helps a firm exploit an external opportunity or offset an
external threat
rare resource - CORRECT ANSWER -one of the four key criteria in the VRIO
framework. A resource is rare if the number of firms that possess it is less than the number of
firms it would require to reach a state of perfect competition
, costly-to-imitate resource - CORRECT ANSWER -one of the four key criteria in the
VRIO framework. A resource is costly to imitate if firms that do not possess the resource are
unable to develop or buy the resource at a comparable cost.
organized to capture value - CORRECT ANSWER -one of the four key criteria in the
VRIO framework. The characteristic of having in place an effective organizational structure,
processes, and systems to fully exploit the competitive potential of the firm's resources,
capabilities, and competencies.
Causal ambiguity - CORRECT ANSWER -A situation in which the cause and effect of a
phenomenon are not readily apparent.
Social complexity - CORRECT ANSWER -a situation in which different social and
business systems interact with one another
Intellectual property (IP) protection - CORRECT ANSWER -A critical intangible resource
that can provide a strong isolating mechanism, and thus help to sustain a competitive advantage
Core rigidity - CORRECT ANSWER -A former core competency that turned into a
liability because the firm failed to hone, refine, and upgrade the competency as the environment
changed
dynamic capabilities - CORRECT ANSWER -A firms ability to create, deploy, modify,
reconfigure, upgrade, or leverage its resources in its quest for competitive advantage
Dynamic capabilities perspective - CORRECT ANSWER -A model that emphasizes a
firms ability to modify and leverage its resources base in away that enables it to gain and sustain
competitive advantage in a constantly changing environment
Resource stocks - CORRECT ANSWER -The first current level of intangible resources
