BUS 345 Ch 4 Internal Analysis [Quiz 2
- Solved
________ in the marketplace generates profits that can be reinvested into the firm to
further hone and upgrade a firm's resources and capabilities in its pursuit of achieving
and maintaining a strategic fit within a dynamic environment. - ANSWER-Superior
performance
________ reinforce core competencies, while ________ allow managers to orchestrate
their core competencies. - ANSWER-Resources, capabilities
(Resource-based View)
*If a resource exhibits VRIO attributes, the resource enables the firm to gain and sustain
a ________.* - ANSWER-competitive advantage.
(VRIO Framework)
A firm can gain and sustain competitive advantage only when it has ________ that
satisfy ________ of the VRIO criteria. - ANSWER-resources, all
*Knowledge Diffusion* can occur through: - ANSWER-- Benchmarking studies
- New methods taught in college courses
- Consultants
*Social complexity* makes copying these systems difficult, if not impossible, resulting
in... - ANSWER-a valuable, rare, and costly-to-imitate resource that the firm is
organized to exploit.
*Substitution* is often accomplished through... - ANSWER-strategic equivalence
A firm may be able to protect its competitive advantage when: - ANSWER-- Managers
have consistently better expectations about the future value of resources.
- It has accumulated a resource advantage that can be imitated only over long periods
of time.
- The source of its competitive advantage is causally ambiguous or socially complex.
A firm must understand competitive advantage within its ________ and ________
context. - ANSWER-organizational, industry
A Firm's *Culture* - ANSWER-Interactions within the firm's processes, procedures, and
norms.
A resource is *costly to imitate* if... - ANSWER-firms that do not possess the resource
are unable to develop or buy the resource at a comparable cost.
, A resource is *rare* if... - ANSWER-the number of firms that possess if it is less than the
number of firms it would require to reach a state of perfect competition.
A resource is *valuable* if... - ANSWER-*it helps a firm increase the perceived value of
its product or service in the eyes of consumers.*
Either by adding attractive features or lowering costs.
Activities - ANSWER-*Distinct and fine grained business processes that enable firms to
add incremental value by transforming input into goods and services.*
**order taking, the physical delivery of products, invoicing customers, etc.
Amazon uses a ________ to satisfy a customer need previously met by brick-and-
mortar retail stores. - ANSWER-strategic equivalent substitute
Better Expectations of Future Values - ANSWER-Buy resources at a low cost.
Capabilities - ANSWER-Organizational and managerial skills necessary to orchestrate a
diverse set of resources and to deploy them strategically.
Capabilities are by nature... - ANSWER-intangible
Causal Ambiguity - ANSWER-The cause of success or failure is not apparent.
Companies... - ANSWER-- Are influenced by forces in their environment.
- Can influence the development of those forces.
Competitive advantage can be driven by.... - ANSWER-core competencies.
Competitive advantage is more likely to spring from... - ANSWER-intangible rather than
tangible resources.
Competitive Parity - ANSWER-When a firm possesses resources and capabilities that
are valuable but not rare.
Core Competencies - ANSWER-*UNIQUE strengths that are embedded deep within a
firm, that allow a firm to DIFFERENTIATE its products and services from those of its
rivals.*
- Creating higher value for the customer.
- Offering products and services from of comparable value at a lower cost.
Core competencies are built through... - ANSWER-the interplay of resources and
capabilities.
- Solved
________ in the marketplace generates profits that can be reinvested into the firm to
further hone and upgrade a firm's resources and capabilities in its pursuit of achieving
and maintaining a strategic fit within a dynamic environment. - ANSWER-Superior
performance
________ reinforce core competencies, while ________ allow managers to orchestrate
their core competencies. - ANSWER-Resources, capabilities
(Resource-based View)
*If a resource exhibits VRIO attributes, the resource enables the firm to gain and sustain
a ________.* - ANSWER-competitive advantage.
(VRIO Framework)
A firm can gain and sustain competitive advantage only when it has ________ that
satisfy ________ of the VRIO criteria. - ANSWER-resources, all
*Knowledge Diffusion* can occur through: - ANSWER-- Benchmarking studies
- New methods taught in college courses
- Consultants
*Social complexity* makes copying these systems difficult, if not impossible, resulting
in... - ANSWER-a valuable, rare, and costly-to-imitate resource that the firm is
organized to exploit.
*Substitution* is often accomplished through... - ANSWER-strategic equivalence
A firm may be able to protect its competitive advantage when: - ANSWER-- Managers
have consistently better expectations about the future value of resources.
- It has accumulated a resource advantage that can be imitated only over long periods
of time.
- The source of its competitive advantage is causally ambiguous or socially complex.
A firm must understand competitive advantage within its ________ and ________
context. - ANSWER-organizational, industry
A Firm's *Culture* - ANSWER-Interactions within the firm's processes, procedures, and
norms.
A resource is *costly to imitate* if... - ANSWER-firms that do not possess the resource
are unable to develop or buy the resource at a comparable cost.
, A resource is *rare* if... - ANSWER-the number of firms that possess if it is less than the
number of firms it would require to reach a state of perfect competition.
A resource is *valuable* if... - ANSWER-*it helps a firm increase the perceived value of
its product or service in the eyes of consumers.*
Either by adding attractive features or lowering costs.
Activities - ANSWER-*Distinct and fine grained business processes that enable firms to
add incremental value by transforming input into goods and services.*
**order taking, the physical delivery of products, invoicing customers, etc.
Amazon uses a ________ to satisfy a customer need previously met by brick-and-
mortar retail stores. - ANSWER-strategic equivalent substitute
Better Expectations of Future Values - ANSWER-Buy resources at a low cost.
Capabilities - ANSWER-Organizational and managerial skills necessary to orchestrate a
diverse set of resources and to deploy them strategically.
Capabilities are by nature... - ANSWER-intangible
Causal Ambiguity - ANSWER-The cause of success or failure is not apparent.
Companies... - ANSWER-- Are influenced by forces in their environment.
- Can influence the development of those forces.
Competitive advantage can be driven by.... - ANSWER-core competencies.
Competitive advantage is more likely to spring from... - ANSWER-intangible rather than
tangible resources.
Competitive Parity - ANSWER-When a firm possesses resources and capabilities that
are valuable but not rare.
Core Competencies - ANSWER-*UNIQUE strengths that are embedded deep within a
firm, that allow a firm to DIFFERENTIATE its products and services from those of its
rivals.*
- Creating higher value for the customer.
- Offering products and services from of comparable value at a lower cost.
Core competencies are built through... - ANSWER-the interplay of resources and
capabilities.
