MBA 705 Exam 2 - Minsun Kim Test
Questions Well Answered 2026-2027
Updated.
Internal Analysis - Answer Looking inside the firm to analyze its resources, capabilities, and
core competencies allows us to understand its strengths and weaknesses
-Linking a firm's internal analysis to it's external analysis leverages its internal strengths to
exploit external opportunities and mitigate internal weaknesses and threats
Two Methods of Internal Evaluation - Answer 1. Resource Based View (RBV) and VRIO
Framework
2. Value Chain Analysis
Core Competencies - Answer unique strengths embedded deep within a firm
Examples:
Google - superior in creating proprietary algorithms based on large amounts of online data,
superior AI capability
Netflix- superior in creating proprietary algorithms based on individual customer preferences
Exxon - superior at discovering and exploring fossil-fuel-based energy sources globally
Two types of resources - Answer Tangible and intangible
Tangible resources - Answer resources that can be readily seen, touched and quantified.
Examples: cash, physical assets such as a firm's property, plant, and equipment
Intangible resources - Answer resources that are difficult to see, touch, or quantify
-Competitive advantage is more likely from this type of resource, developing them will allow the
firm to achieve long-term competitive advantages
Examples:
-knowledge and skills of employees
a firm's reputation
-brand name
-exlcusive rights to intellectual property
-Leadership traits of executives
a Firm's culture
,Capabilities - Answer the firm's ability to bundle, manage, or otherwise exploit resources in a
manner that provides added value and advantage over competitors
-organizational and managerial skills necessary to orchestrate a diverse set of resources and to
deploy them strategically
-by nature are intangible
Resource Based View (RBV) - Answer -model sees resources as key to superior firm
performance
-examines any resources and capabilities of the firm that may provide a competitive advantage
- in this view, a firm is assumed to be a unique bundle of resources, capabilities and
competencies
Two Assumptions critical to the RBV - Answer 1. Resource Heterogeneity
2. Resource Immobility
Resource Heterogeneity - Answer - bundles of resources, capabilities, and competencies
differ across firms
- Southwest Airlines and Alaska Airlines have different resource bundles
- SWA: Higher employee productivity
- informal organization, pilots help load luggage, flight attendants clean airplanes
Resource Immobility - Answer -resources tend to be "sticky" and do not move easilty
-SWA has sustained advantage due to superior performance, competitors have unsuccessfully
imitated their model
The VRIO Framework - Answer A strategic resource is an asset that is:
V- Valuable
R- Rare
I- Difficult to Imitate
O- Organized to capture value
-all resources do not lead to competitive advantages
-organizations that own "strategic resources" have important competitive advantages over
organizations that do not
-firm can gain and sustain competitive advantage only when it has resources that satisfy all VRIO
criteria
, V- Valuable Resource - Answer source is valuable if it helps a firm exploit an external
opportunity or offset an external threat
-although airline industry is extremely competitive, SWA turns a profit virtually every year. One
reason for their success is a legendary organizational culture that inspires employees to do their
very best
R- Rare resource - Answer 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
- SWA's culture provides the firm with uniquely strong employee relations in an industry where
strikes, layoffs, and poor morale are common
I- Difficult to Imitate Resources - Answer resource is difficult to imitate if firms that do not
possess the resource are unable to develop or buy the resources at a comparable cost
- SWA's culture arose from its very humble beginnings and has evolved across decades. Because
of this unusual history, other airlines could not replicate their culture, regardless of how hard
they try
O- Organized to Capture Value - Answer 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
- the influence of SWA's organizational culture extends to how customers are treated by
employees. Executives strongly encourage flight attendants to entertain passengers, like hiding
in an overhead compartment. Processes related to passengers are infused with customer
service attention and actions
Intellectual Property - Answer -refers to creations of the mind
- if it meets the four VRIO criteria:
- it constitutes a strategic resource
- it can serve as a value-added resource for organizations
-various methods exist to protect from imitation by rivals
Four Types of intellectual property - Answer Patents
Trademarks
Copyrights
Trade Secrets
Patents - Answer Legal decrees that protect inventions from direct imitation for a limited
period
-must demonstrate that an invention is new, nonobvious, and useful
Questions Well Answered 2026-2027
Updated.
Internal Analysis - Answer Looking inside the firm to analyze its resources, capabilities, and
core competencies allows us to understand its strengths and weaknesses
-Linking a firm's internal analysis to it's external analysis leverages its internal strengths to
exploit external opportunities and mitigate internal weaknesses and threats
Two Methods of Internal Evaluation - Answer 1. Resource Based View (RBV) and VRIO
Framework
2. Value Chain Analysis
Core Competencies - Answer unique strengths embedded deep within a firm
Examples:
Google - superior in creating proprietary algorithms based on large amounts of online data,
superior AI capability
Netflix- superior in creating proprietary algorithms based on individual customer preferences
Exxon - superior at discovering and exploring fossil-fuel-based energy sources globally
Two types of resources - Answer Tangible and intangible
Tangible resources - Answer resources that can be readily seen, touched and quantified.
Examples: cash, physical assets such as a firm's property, plant, and equipment
Intangible resources - Answer resources that are difficult to see, touch, or quantify
-Competitive advantage is more likely from this type of resource, developing them will allow the
firm to achieve long-term competitive advantages
Examples:
-knowledge and skills of employees
a firm's reputation
-brand name
-exlcusive rights to intellectual property
-Leadership traits of executives
a Firm's culture
,Capabilities - Answer the firm's ability to bundle, manage, or otherwise exploit resources in a
manner that provides added value and advantage over competitors
-organizational and managerial skills necessary to orchestrate a diverse set of resources and to
deploy them strategically
-by nature are intangible
Resource Based View (RBV) - Answer -model sees resources as key to superior firm
performance
-examines any resources and capabilities of the firm that may provide a competitive advantage
- in this view, a firm is assumed to be a unique bundle of resources, capabilities and
competencies
Two Assumptions critical to the RBV - Answer 1. Resource Heterogeneity
2. Resource Immobility
Resource Heterogeneity - Answer - bundles of resources, capabilities, and competencies
differ across firms
- Southwest Airlines and Alaska Airlines have different resource bundles
- SWA: Higher employee productivity
- informal organization, pilots help load luggage, flight attendants clean airplanes
Resource Immobility - Answer -resources tend to be "sticky" and do not move easilty
-SWA has sustained advantage due to superior performance, competitors have unsuccessfully
imitated their model
The VRIO Framework - Answer A strategic resource is an asset that is:
V- Valuable
R- Rare
I- Difficult to Imitate
O- Organized to capture value
-all resources do not lead to competitive advantages
-organizations that own "strategic resources" have important competitive advantages over
organizations that do not
-firm can gain and sustain competitive advantage only when it has resources that satisfy all VRIO
criteria
, V- Valuable Resource - Answer source is valuable if it helps a firm exploit an external
opportunity or offset an external threat
-although airline industry is extremely competitive, SWA turns a profit virtually every year. One
reason for their success is a legendary organizational culture that inspires employees to do their
very best
R- Rare resource - Answer 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
- SWA's culture provides the firm with uniquely strong employee relations in an industry where
strikes, layoffs, and poor morale are common
I- Difficult to Imitate Resources - Answer resource is difficult to imitate if firms that do not
possess the resource are unable to develop or buy the resources at a comparable cost
- SWA's culture arose from its very humble beginnings and has evolved across decades. Because
of this unusual history, other airlines could not replicate their culture, regardless of how hard
they try
O- Organized to Capture Value - Answer 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
- the influence of SWA's organizational culture extends to how customers are treated by
employees. Executives strongly encourage flight attendants to entertain passengers, like hiding
in an overhead compartment. Processes related to passengers are infused with customer
service attention and actions
Intellectual Property - Answer -refers to creations of the mind
- if it meets the four VRIO criteria:
- it constitutes a strategic resource
- it can serve as a value-added resource for organizations
-various methods exist to protect from imitation by rivals
Four Types of intellectual property - Answer Patents
Trademarks
Copyrights
Trade Secrets
Patents - Answer Legal decrees that protect inventions from direct imitation for a limited
period
-must demonstrate that an invention is new, nonobvious, and useful
