Internal Analysis: Resources, Capabilities, And Core Competencies

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Questions Bank

What Is Strategy
Strategic Leadership: Managing the Strategy Process
External Analysis: Industry Structure, Competitive Forces, and Strategic Groups
Internal Analysis: Resources, Capabilities, and Core Competencies
Competitive Advantage, Firm Performance, and Business Models
Business Strategy: Differentiation, Cost Leadership, and Blue Oceans
Business Strategy: Innovation, Entrepreneurship, and Platforms
Corporate Strategy: Vertical Integration and Diversification
Corporate Strategy: Strategic Alliances, Mergers and Acquisitions
Global Strategy: Competing Around the World
Organizational Design: Structure, Culture, and Control
Corporate Governance and Business Ethics

All Questions

Question 1

Free

Multiple Choice

Nike has come a long way from its humble beginnings.It has been able to outperform adidas in sales and become the undisputed leader in the athletic shoe and apparel industry.Which of the following statements accurately explains one of the main reasons for Nike's success?

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It stopped spending money on celebrity endorsements and started restricting its expenditure for sponsoring only track and field sports stars.

It made the unorthodox move to spend basically its entire budget for a specific sport on a single star athlete.

It spread its marketing budget more widely.

It focused on sponsoring future athletic superstars who embodied a likely success story.

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Question 2

Free

Multiple Choice

_____ are best described as unique strengths, 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 or offering products and services of comparable value at lower cost.

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Resource leverages

Core competencies

Capital gains

Equity reserves

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Question 3

Free

Multiple Choice

Dandelions Max is a consumer electronics company.It has acquired an edge over its competitors through its ability to provide breakthrough technology at the lowest price in the market.This advantage of Dandelions Max best exemplifies a _____ .

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markup

resource flow

capital gain

core competency

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Question 4

Free

Multiple Choice

Organizational and managerial skills that find their expression in a company's structure, routines, and culture are referred to as _____ .

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tangible resources

reserves

capital gains

capabilities

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Question 5

Free

Multiple Choice

Amazon.com's ability to provide the largest selection of items online, combined with superior IT systems and customer service, can be referred to as its _____ .

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equity reserve

economic equity

core competency

capital gain

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Question 6

Multiple Choice

Which of the following is an example of a firm's resources?

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Routine activities like order taking and invoicing customers, performed in a firm

Assistance available from the government in the form of rules and regulations

Assets such as land and building owned by a firm

Liabilities such as bills payables and short-term debts

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Question 7

Multiple Choice

The management of a company is assessing the value of all the tangible resources the company owns.Which of the following will be included in this assessment?

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The company's copyrights

The company's brand equity

The company's patents

The company's machinery

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Question 8

Multiple Choice

Which of the following is an example of a firm's intangible resources?

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The firm's cash at bank

The firm's finished goods inventory

The firm's organizational culture

The firm's land and building

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Question 9

Multiple Choice

True Sync Inc.is a software company, which has built and acquired numerous assets over the years.According to the resource-based view of a firm, which of the following assets of True Sync Inc.will best enable it to gain and sustain a competitive advantage?

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The resources of the company that are mobile

The capital raised by the company from its shareholders

The expertise acquired by the employees in the company

The headquarters owned by the company

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Question 10

Multiple Choice

Which of the following statements accurately brings out the difference between tangible and intangible resources?

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Tangible resources contribute to a company's competitive advantage, whereas intangible resources fail to do the same.

Tangible assets can be bought on the open market, whereas intangible assets cannot be easily purchased.

Tangible resources take a longer time to build, whereas intangible assets can be built comparatively easily.

Tangible assets are difficult to imitate, whereas intangible assets can be easily replicated.

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Question 11

Multiple Choice

GN Corp.and BC Inc.are two competing firms in the same industry.GN Corp.'s tangible assets are valued at $15 billion and its intangible assets are valued at $35 billion.BC Inc.'s tangible assets are valued at $5 billion and its intangible assets are valued at $45 billion.What can be concluded from this information?

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It is easier to buy intangible assets with cash than tangible assets.

It is likely that BC Inc. is better enabled than GN Corp. to gain and sustain a competitive advantage.

It takes longer time to build tangible assets than intangible assets.

There is no resource heterogeneity between the two firms, BC Inc. and GN Corp. as they operate in the same industry.

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Question 12

Multiple Choice

Coral Think Inc.is a new company in the publishing industry.It has raised sufficient capital from multiple sources.It is planning to use its capital to purchase certain assets.Which of the following assets will be the most difficult for Coral Think Inc.to acquire using its capital?

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Inventory

Tools and equipment

Land and building

Brand name

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Question 13

Multiple Choice

Intangible assets add great value to a firm primarily because the firm's:

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reputation and brand equity are accumulated quickly and can be leveraged easily.

knowledge and culture take time to develop and are generally difficult to imitate.

tangible assets require a higher degree of capital than its intangible assets.

capabilities are by nature typically tangible.

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Question 14

Multiple Choice

True Home Inc., Super Cart Inc., and Daily Things Inc.are three consumer-product retailing companies.Their products consist primarily of day-to-day items that are easy to imitate and sell.All three companies use the same resources and capabilities in the production and distribution of their products.Which of the following is an implication of the market condition indicated in this scenario?

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Resource immobility of the firms will be low.

The industry structure will be far from perfect competition.

Barriers to entry within the industry will be high.

Any advantage that one firm has will be short-lived.

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Question 15

Multiple Choice

The resource-based view of a firm assumes that the:

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resources of firms are highly scarce and hence the government interferes to ensure equal distribution.

resources of firms are highly exhaustible and hence they cannot contribute to their competitive advantage.

resource bundles of firms competing in the same industry are unique to some extent and thus differ from one another.

resource bundles of firms competing in the same industry tend to be highly mobile, moving easily from firm to firm.

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Question 16

Multiple Choice

Although True Ion Inc.and One Electro Inc.operate in the same consumer electronic industry, True Ion Inc.has better sales and brand equity.This is attributed to True Ion Inc.'s commitment to innovation.The company has adequate financial and human capital to invest in research and development, an area where One Electro Inc.lacks.In this scenario, which of the following critical assumptions of the resource-based view of a firm has been illustrated?

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Resource equality

Resource heterogeneity

Resource mobility

Resource maturity

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Question 17

Multiple Choice

As a result of _____ , a critical assumption in the resource-based model of a firm, the resource differences that exist between firms are difficult to replicate.

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resource immobility

resource homogeneity

resource perishability

resource equality

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Question 18

Multiple Choice

Maroon Inc.is a leading international apparel company.Competitors across the globe have failed to imitate Maroon Inc.'s production models, supply chain systems, knowledge systems, and culture.These attributes have remained unique to Maroon Inc.for a long time.Which of the following assumptions of the resource-based model of competitive advantage does this scenario best illustrate?

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Resource homogeneity

Resource perishability

Resource equality

Resource immobility

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Question 19

Multiple Choice

In the context of the resource-based model of competitive advantage, if a successful firm exhibits resource immobility it means that the:

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rival firms have better accessibility to quality resources.

firm will have a sustained competitive advantage because of its unique resources.

competitors can easily replicate or copy the firm's resource bundles and capabilities.

resources of the firm cannot be effectively deployed within its own organization.

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Question 20

Multiple Choice

Due to resource immobility, a critical assumption in the resource-based model of a firm, the:

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competitive advantage of a firm exists for a short period of time.

resource bundles of a firm can be easily imitated by competitors.

resource differences between firms last for a long time.

competencies and capabilities of all firms in an industry are similar.

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