BUSI 4940 EXAM 1 TEST PAPER FULL
SOLUTION QUESTIONS AND CORRECT
ANSWERS GRADED A+
●● What are the basic assumptions regarding companies and assets of
the I/O Economics Model?
Answer: 1) the external environment (what's outside the company)
imposes pressures and constraints that determine strategic choices
2) strategically relevant resources are similar causing competitors to
pursue similar strategies
3) resource differences among competitors are short-lived due to
resource mobility across firms
4) strategic decision makers are rational and engage in profit-
maximizing behaviors
●● Resource-Based Theory of Firms (resource-based model
assumptions)
Answer: -firms acquire different resources
,-firms develop unique capabilities based on how they combine & use
resources
-resources & certain capabilities aren't highly mobile across firms
-differences in resources & capabilities are the bases of competitive
advantage & a firm's performance rather than its industry's structural
characteristics
●● Who is the primary scholar associated with I/O Economics from a
strategy perspective?
Answer: Michael Porter
●● Who is the primary scholar associated with the Resource Based
View?
Answer: Jay barney
●● ____________________ are inputs into a firm's production process,
such as capital equipment, the skills of individual employees, patents,
finances, and talented managers
Answer: resources
●● _________________ is the capacity for a set of resources to perform
a task or an activity in an integrative manner
, Answer: capabilities
●● _______________________ are capabilities that serve as a source of
competitive advantage for a firm over its rivals
Answer: competencies
●● what sequence do capabilities, resources, and competencies follow
before enabling competitive advantages?
Answer: resources -> capabilities -> core competencies
●● tangible resources
Answer: resources you can touch/feel
●● intangible resources
Answer: resources you can not touch/feel
●● what are the 3 categories of stakeholders
Answer: 1) capital market shareholders
2) product market stakeholders
3) organizational stakeholders
●● which stakeholders are stakeholders bc of money (shareholders,
suppliers of capital)?
SOLUTION QUESTIONS AND CORRECT
ANSWERS GRADED A+
●● What are the basic assumptions regarding companies and assets of
the I/O Economics Model?
Answer: 1) the external environment (what's outside the company)
imposes pressures and constraints that determine strategic choices
2) strategically relevant resources are similar causing competitors to
pursue similar strategies
3) resource differences among competitors are short-lived due to
resource mobility across firms
4) strategic decision makers are rational and engage in profit-
maximizing behaviors
●● Resource-Based Theory of Firms (resource-based model
assumptions)
Answer: -firms acquire different resources
,-firms develop unique capabilities based on how they combine & use
resources
-resources & certain capabilities aren't highly mobile across firms
-differences in resources & capabilities are the bases of competitive
advantage & a firm's performance rather than its industry's structural
characteristics
●● Who is the primary scholar associated with I/O Economics from a
strategy perspective?
Answer: Michael Porter
●● Who is the primary scholar associated with the Resource Based
View?
Answer: Jay barney
●● ____________________ are inputs into a firm's production process,
such as capital equipment, the skills of individual employees, patents,
finances, and talented managers
Answer: resources
●● _________________ is the capacity for a set of resources to perform
a task or an activity in an integrative manner
, Answer: capabilities
●● _______________________ are capabilities that serve as a source of
competitive advantage for a firm over its rivals
Answer: competencies
●● what sequence do capabilities, resources, and competencies follow
before enabling competitive advantages?
Answer: resources -> capabilities -> core competencies
●● tangible resources
Answer: resources you can touch/feel
●● intangible resources
Answer: resources you can not touch/feel
●● what are the 3 categories of stakeholders
Answer: 1) capital market shareholders
2) product market stakeholders
3) organizational stakeholders
●● which stakeholders are stakeholders bc of money (shareholders,
suppliers of capital)?
