Quiz
Chapter 3 - Evaluating a Firm's Internal Capabilities
Questions in this quiz (49)
1________ in the RBV are defined as the tangible and intangible assets that a firm controls that it can use to conceive and implement its strategies.
- AManagement controls
- BCapabilities
- CResources
- DCompensation policies
2________ are a subset of a firm's resources and are defined as tangible and intangible assets that enable a firm to take full advantage of other resources it controls.
- ARetained earnings
- BCapabilities
- CHuman resources
- DFinancial resources
3A firm's marketing skills and teamwork as well as its cooperation among managers are examples of
- Afinancial resources.
- Bhuman resources.
- Cphysical resources.
- Dcapabilities.
4The training, experience, judgment, intelligence, relationships and insight of individual managers and workers in a firm are examples of
- Aphysical resources.
- Bhuman resources.
- Corganizational resources.
- Dfinancial resources.
5Computer hardware and software technology, robots used in manufacturing and automated warehouses are examples of which type of resources?
- Afinancial resources.
- Bphysical resources
- Chuman resources
- Dorganizational resources
6A firm's formal reporting structure, its formal and informal planning and its controlling and coordinating systems are examples of which type of resources?
- Afinancial resources
- Bphysical resources
- Chuman resources
- Dorganizational resources
7The VRIO assumption that some of the resource and capability differences among firms may be long lasting because it may be very costly for firms without certain resources and capabilities to develop or acquire them is known as
- Aresource mobility.
- Bresource homogeneity.
- Cresource immobility.
- Dresource heterogeneity.
8________ implies that for a given business activity, some firms may be more skilled in accomplishing this activity than other firms.
- AResource mobility
- BResource homogeneity
- CResource immobility
- DResource heterogeneity
9The theoretical roots of the resource-based view can be traced to research done by
- ADavid Ricardo.
- BAdam Smith.
- COliver Williamson.
- DJoseph Schumpeter.
10Inputs whose quantity of supply is fixed and does not respond to price increases are said to be
- Aelastic in supply.
- Binelastic in supply.
- Celastic in demand.
- Dperfectly competitive.
11To the extent that a firm's resources and capabilities enhance a firm's competitive position by enabling a firm to exploit its opportunities or neutralize its threats, these resources and capabilities are valuable and are known as
- Atemporary competitive advantages.
- Bsustainable competitive advantages.
- Ccore competencies.
- Dstrengths.
12The set of business activities in which a firm engages to develop, produce, and market its products or services is known as its
- Avalue chain.
- Bphysical resources.
- Corganizational resources.
- Dhuman resources.
13If in the process of maximizing its performance, a firm engages in activities that pollute the environment, the impact of that pollution is a(n)
- Acapability.
- Bexternality.
- Ccompetitive advantage.
- Dweakness.
14ESPN's development of an extensive offering of X-Games coverage that is unmatched by any other sports outlet is an example of which element of the VRIO framework?
- Aorganization
- Bimitability
- Ccompetitive parity
- Drarity
15Most firms have a resource base that is composed primarily of resources and capabilities that are
- Avaluable but not rare.
- Bneither valuable nor rare.
- Cvaluable and rare.
- Drare but not valuable.
16Which of the following is not one of the six distinct activities in McKinsey and Company's value chain model?
- Atechnology development
- Bproduct design
- Cmanufacturing
- Dinbound logistics
17In general, as long as the number of firms that possess a particular valuable resource or capability is less than the number of firms needed to generate perfect competition dynamics in an industry, that resource or capability can be considered ________ and a potential source of competitive advantage.
- Avaluable
- Brare
- Cinimitable
- Dun-substitutable
18If firms that do not possess valuable and rare resources or capabilities face a cost disadvantage in obtaining these resources or capabilities compared to the firms that already possess them, these resources and capabilities are termed
- Arare.
- Bvaluable.
- Cimperfectly imitable.
- Dperfectly imitable.
19Firms that possess and exploit costly-to-imitate, rare and valuable resources in choosing and implementing their strategies may enjoy a period of
- Atemporary competitive advantage.
- Bcompetitive disadvantage.
- Ccompetitive parity.
- Dsustained competitive advantage.
20If a firm's resources and capabilities are costly to imitate because imitating firms may not understand the relationship between the resources and capabilities controlled by a firm and that firm's competitive advantage, this competitive advantage is said to be protected from imitation by
- Apath dependence.
- Bcausal ambiguity.
- Cunique historical conditions.
- Dsocial complexity.
21Resources and capabilities, such as interpersonal relations among managers and a firm's culture, that may be costly to imitate because they are beyond the ability of firms to systematically manage and influence are referred to as
- Asocially complex.
- Bcausally ambiguous.
- Cpath dependent.
- Dthe result of unique historical conditions.
22According to the research in strategic human resources management,
- Afirms that are able to use human resource practices to develop socially complex human and organizational resources are able to gain competitive advantage over firms that do not engage in these practices.
- Bfirms that are able to use human resource practices to develop socially simplistic human and organizational resources are able to gain competitive advantage over firms that do not engage in these practices.
- Cfirms that are able to use human resource practices to develop socially complex human and organizational resources gain little advantage over firms that do not engage in these practices.
- Dfirms that are able to use human resource practices to develop socially complex human and organizational resources are at a competitive disadvantage when compared to firms that do not engage in these practices.
23Which of the following statements regarding patents is accurate?
- APatents always increase the costs of imitation.
- BPatents may decrease, rather than increase, the costs of imitation.
- CPatents always decrease the costs of imitation.
- DPatents have no impact on the costs of imitation.
24The range of formal and informal mechanisms to ensure that managers are behaving in ways consistent with a firm's strategies are referred to as
- Aformal reporting structures.
- Borganizational charts.
- Ccompensation policies.
- Dmanagement control systems.
25Which of the following is an example of formal management controls?
- Aa firm's culture
- Bthe willingness of employees to monitor each other
- Cbudgeting and reporting activities
- Dmanagerial motivation
26Southwest Airlines' strong internal culture that helps ensure that employees act in ways consistent with the company's strategy is an example of a(n)
- Ainformal management control.
- Bformal management control.
- Ccompensation policy.
- Dformal reporting structure.
27Resources that are valuable but not rare can be categorized as
- Aorganizational weaknesses.
- Bdistinctive competencies.
- Corganizational strengths.
- Dcomplementary resources and capabilities.
28Resources that generate a temporary competitive advantage are
- Avaluable, rare and costly to imitate.
- Bvaluable but neither rare nor costly to imitate.
- Cvaluable and either rare or costly to imitate.
- Dvaluable and rare but not costly to imitate.
29If a resource or capability is valuable and rare but not costly to imitate, exploiting this resource will generate a(n)
- Asustained competitive advantage.
- Bperfectly competitive environment.
- Ctemporary competitive advantage.
- Denvironment characterized by competitive parity.
30Resources and capabilities that are valuable, rare, and costly to imitate are best described as
- Adistinctive competencies.
- Bentry barriers.
- Ccomplementary resources and capabilities.
- Dsustainable distinctive competencies.
31If Delta Airlines were to significantly change its fare structure and flight schedule to enhance its competitive position in response to aggressive price cutting by Southwest Airlines, this would be an example of
- Aexplicit collusion.
- Btacit collusion.
- Ccompetitive dynamics.
- Da harvest strategy.
32Any actions a firm takes that have the effect of reducing the level of rivalry in an industry that also do not require firms in an industry to directly communicate or negotiate with each other can be thought of as
- Atacit cooperation.
- Btacit collusion.
- Cexplicit collusion.
- Dcompetitive parity.
33When tacit cooperation has the effect of reducing supply and increasing prices, it is known as
- Amonopolistic competition.
- Bexplicit collusion.
- Ccompetitive parity.
- Dtacit collusion.
34Tacit cooperation is only a viable strategy when
- Aan industry is perfectly competitive.
- Ban industry is heterogeneous with respect to the products it sells and their cost structure.
- Cthere is a strong market share leader in the industry.
- Dthere are low entry barriers in the industry.
35The specific actions a firm takes to implement its strategies are known as
- Acompetitive advantages.
- Bobjectives.
- Cgoals.
- Dtactics.
36Which of the following statements regarding the resource-based view is accurate?
- ACompetitively valuable resources and capabilities are controlled only by a firm's general managers.
- BOnly lower level employees need to accept the responsibility of creating, nurturing and exploiting resources and capabilities that can generate competitive advantages for a firm.
- CEmployees should define their jobs in functional terms instead of in competitive and economic terms.
- DCompetitive advantage is too important to remain the sole property of senior management.
37Which of the following statements regarding competitive parity and competitive advantage is accurate?
- ASome firms develop valuable, rare, and costly-to-imitate resources and capabilities in being efficient second movers, that is, in rapidly imitating and improving on the product and technological innovations of other firms.
- BFirms that benchmark their performance against the performance of successful competitors can expect to develop at least a temporary competitive advantage.
- CFirms must be first movers to gain competitive advantages.
- DEven if all a firm does is create value in the same way as its competitors, the firm can expect to earn at least a temporary competitive advantage.
38If there is a conflict between the resources a firm controls and that firm's organization, ________ should be changed.
- Athe resources
- Bboth
- Cnothing
- Dthe organization
39A process is said to be ________ when events early in the evolution of a process have significant effects on subsequent events.
- Acausally ambiguous
- Bpath dependent
- Csocially complex
- Dpath independent
40LaserTech's new technology appears to be
- Avaluable and rare but not costly to imitate.
- Bvaluable and either rare or costly to imitate.
- Cvaluable but neither rare nor costly to imitate.
- Dvaluable, rare and costly to imitate.
41If one of LaserTech's rivals were to decide to divest its industrial laser manufacturing business in response to LaserTech's new technology, this would be an example of
- Acompetitive dynamics.
- Btacit collusion.
- Ca sustainable distinctive competence.
- Dcompetitive parity.
42If LaserTech's new technological development were due to proprietary investments the company made when it was first founded twenty years ago, this would be an example of
- Asocial complexity.
- Btacit collusion.
- Cpath dependence.
- Dcausal ambiguity.
43LaserTech's new technology is an example of
- Afinancial resources.
- Bphysical resources.
- Chuman resources.
- Dorganizational resources.
44The inability of rivals to develop or acquire technology similar to that of LaserTech is an illustration of
- Aresource immobility.
- Bresource heterogeneity.
- Ccausal ambiguity.
- Dpath dependence.
45Bates' culture is an example of a(n)
- Ainformal management control.
- Bformal management control.
- Ccompensation policy.
- Dformal reporting structure.
46The budgeting and reporting activities that Bates uses are examples of
- Ainformal management controls.
- Bformal reporting structures.
- Cformal management controls.
- Dprimary value chain activities.
47The reward system Bates uses to encourage employees to find ways to reduce costs is an example of a(n)
- Asustained distinctive competence.
- Binformal management control.
- Cformal reporting structure.
- Dcompensation policy.
48The fact that it would be would be difficult and costly for firms to match Bates' capabilities in the tool industry indicates that these capabilities are
- Aimperfectly imitable.
- Bcausally ambiguous.
- Csubstitutable.
- Dperfectly imitable.
49It would be costly for competitors to duplicate Bates due to
- Apath dependence and causal ambiguity.
- Bcausal ambiguity and unique historical conditions.
- Cpath dependence and unique historical conditions.
- Dcausal ambiguity and patents.
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- Quiz on Chapter 3 - Evaluating a Firm's Internal Capabilities, created by Strategy IO on 28/12/2016.
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