SEVI 3013 CHAPTER 3 EXAM
QUESTIONS AND ANSWERS
Social complexity - Answer-Competency emerged from culture, interpersonal
relationships
Financial Ratio Importance - Answer-evaluates the financial health of companies by
scrutinizing past and current financial statements
Balanced Scorecard - Answer-a method of evaluating a firm's performance using
performance measures from the customer, internal, innovation and learning, and
financial perspectives.
4 Perspectives of Balanced Scorecard - Answer-Financial: Short Term Profit, Long
Term Profit, Sales cannibalization
Customer: Needs covered, Customer Satisfaction, Coherence
Process: Internal Capabilities, Synergies, What to Improve
Innovation: Success, Profitability, Imitability
Resource Characteristics for Competitive Advantage - Answer-Valuable, Rare, Difficult
to Imitate, Non-substitutable.
Sources of Inimitability: - Answer-Physical uniqueness
Path dependency
Causal ambiguity:
Social complexity
Physical uniqueness - Answer-resources that are physically unique, therefore
impossible to duplicate
Path dependency - Answer-Hard to duplicate because of all that has happened along
the path to development of the competency
Causal ambiguity: - Answer-Impossible for competitor to explain what caused the
competency to exist or how to recreate it
Value - Answer-amount buyers are willing to pay for the firm's products, services
Value Chain Analysis - Answer-a strategic analysis of an organization that uses value-
creating activities.
Primary activities in Value Chain definition - Answer-activities that refer to the physical
creation of the product or service.
QUESTIONS AND ANSWERS
Social complexity - Answer-Competency emerged from culture, interpersonal
relationships
Financial Ratio Importance - Answer-evaluates the financial health of companies by
scrutinizing past and current financial statements
Balanced Scorecard - Answer-a method of evaluating a firm's performance using
performance measures from the customer, internal, innovation and learning, and
financial perspectives.
4 Perspectives of Balanced Scorecard - Answer-Financial: Short Term Profit, Long
Term Profit, Sales cannibalization
Customer: Needs covered, Customer Satisfaction, Coherence
Process: Internal Capabilities, Synergies, What to Improve
Innovation: Success, Profitability, Imitability
Resource Characteristics for Competitive Advantage - Answer-Valuable, Rare, Difficult
to Imitate, Non-substitutable.
Sources of Inimitability: - Answer-Physical uniqueness
Path dependency
Causal ambiguity:
Social complexity
Physical uniqueness - Answer-resources that are physically unique, therefore
impossible to duplicate
Path dependency - Answer-Hard to duplicate because of all that has happened along
the path to development of the competency
Causal ambiguity: - Answer-Impossible for competitor to explain what caused the
competency to exist or how to recreate it
Value - Answer-amount buyers are willing to pay for the firm's products, services
Value Chain Analysis - Answer-a strategic analysis of an organization that uses value-
creating activities.
Primary activities in Value Chain definition - Answer-activities that refer to the physical
creation of the product or service.
