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Strategic Mgmt. Ch 4 Exam with Correct
Answers
Evaluating a company's resources, capabilities, and competitive
strength relative to its rivals using VRIN tests does not include
developing answers to which one of the following questions?—
Ans: How good is the company's value chain?
Which one of the following is not a good indicator of how well a
company's present strategy is working?— Ans: whether the
company's resource strengths and competitive capabilities
outnumber its resource weaknesses and competitive
vulnerabilities
Which one of the following groups of characteristics is least likely
to represent valuable company resources or competitive
capabilities?— Ans: larger workforce, longer time in business,
lower profit margins, and smaller capital investment spend than
rivals
Which of the following statements is false?— Ans: All of the
statements above represent means of accurately assessing the
competitiveness of a company's value chain, cost structure, and
customer value proposition against the competitive environment
in general and rivals in particular. A dynamic capability is the
ability to modify, deepen, or reconfigure the company's existing
resources and capabilities in response to its changing environment
or market opportunities.
Which of the following statements about market opportunity is
correct?— Ans: Depending on the prevailing circumstances, a
company's opportunities can be plentiful or scarce and can range
from wildly attractive to unsuitable.
A company that is at a disadvantage in the marketplace because it
lacks competitively valuable resources possessed by rivals— Ans:
nearly always is relegated to a trailing position in the industry.
Imitation by rivals is most challenging when— Ans: capabilities
reflect a high level of social complexity and causal ambiguity.
© 2025 All rights reserved
Strategic Mgmt. Ch 4 Exam with Correct
Answers
Evaluating a company's resources, capabilities, and competitive
strength relative to its rivals using VRIN tests does not include
developing answers to which one of the following questions?—
Ans: How good is the company's value chain?
Which one of the following is not a good indicator of how well a
company's present strategy is working?— Ans: whether the
company's resource strengths and competitive capabilities
outnumber its resource weaknesses and competitive
vulnerabilities
Which one of the following groups of characteristics is least likely
to represent valuable company resources or competitive
capabilities?— Ans: larger workforce, longer time in business,
lower profit margins, and smaller capital investment spend than
rivals
Which of the following statements is false?— Ans: All of the
statements above represent means of accurately assessing the
competitiveness of a company's value chain, cost structure, and
customer value proposition against the competitive environment
in general and rivals in particular. A dynamic capability is the
ability to modify, deepen, or reconfigure the company's existing
resources and capabilities in response to its changing environment
or market opportunities.
Which of the following statements about market opportunity is
correct?— Ans: Depending on the prevailing circumstances, a
company's opportunities can be plentiful or scarce and can range
from wildly attractive to unsuitable.
A company that is at a disadvantage in the marketplace because it
lacks competitively valuable resources possessed by rivals— Ans:
nearly always is relegated to a trailing position in the industry.
Imitation by rivals is most challenging when— Ans: capabilities
reflect a high level of social complexity and causal ambiguity.
© 2025 All rights reserved
