Question 1

The need to meet quarterly earnings numbers disciplines managers to accurately examine the firm's internal organization.

Accepted Answer

False

Question 2

Analyzing the internal environment enables a firm to determine what it might do by identifying what opportunities and threats exist.

Accepted Answer

False

Question 3

The challenge and difficulty of making effective decisions are implied by preliminary evidence suggesting that one-half of organizational decisions fail.

Accepted Answer

The statement implies that there is evidence suggesting that one-half of organizational decisions fail, indicating the challenge and difficulty of making effective decisions.

Question 4

Understanding how to leverage the firm's unique bundle of resources and capabilities is a key outcome decision makers seek when analyzing the internal organization.

Accepted Answer

Understanding how to leverage the firm's unique bundle of resources and capabilities is indeed a key outcome decision makers seek when analyzing the internal organization.

Question 5

Given enough time, any firm's competitive advantage can be imitated by its competitors.

Accepted Answer

This is a widely accepted concept in the field of strategy and competition. As markets and technology evolve, competitors are able to replicate or improve upon the strategies and technologies of their rivals, eroding any initial advantage. Therefore, firms need to continuously innovate and adapt to maintain their advantage.

Question 6

Resources are the source of capabilities, some of which lead to the development of core competencies; in turn, some core competencies may lead to competitive advantage.

Accepted Answer

This statement is true, as resources are a key input in developing an organization's capabilities, which can then be used to develop core competencies. These competencies can then provide a competitive advantage over other organizations in the market.

Question 7

Value is measured by the variable and fixed costs associated with the production and marketing of a particular product compared with the revenue and profits the product generates.

Accepted Answer

The answer of Value is measured by the variable and...

Question 8

Walmart uses core competencies such as information technology and distribution channels to create value for its customers through its "everyday low price."

Accepted Answer

Walmart's information technology and distribution channels allow them to efficiently manage inventory and logistics, resulting in cost savings that they pass on to customers through their "everyday low price" strategy. This helps Walmart to create value for its customers by offering affordable products.

Question 9

In today's global economy, traditional factors such as labor costs, access to financial resources and raw materials, and protected or regulated markets are less likely to become core competencies and possibily competitive advantages.

Accepted Answer

With the rise of technology and globalization, companies are now able to tap into a wider pool of resources and markets beyond traditional boundaries. Therefore, traditional factors are becoming less of a competitive advantage.

Question 10

Firms should seek to continually develop new core competencies because all core competencies have limited life spans.

Accepted Answer

Core competencies are unique strengths and abilities that distinguish a company from its competitors and provide a competitive advantage. However, these competencies can become outdated or imitated by competitors, therefore it is important for firms to continually develop new core competencies to maintain their competitive advantage.

Question 11

The learning generated by making and correcting mistakes is generally unimportant to efforts to create new capabilities and core competencies.

Accepted Answer

The learning generated by making and correcting mistakes is important to efforts to create new capabilities and core competencies. It allows for the identification and correction of errors and improvement of processes.

Question 12

Value is created when firms innovately bundle and leverage their resources to form capabilities and core competencies.

Accepted Answer

This statement is true. Value is created when firms are able to combine their resources in innovative ways to create new capabilities and core competencies. Successful firms are often those that are able to develop distinctive capabilities that give them a competitive advantage in the marketplace.

Question 13

Analyzing the internal environment enables a firm to determine what it can do by identifying resources, capabilities, and core competencies in the internal organization.

Accepted Answer

Analyzing the internal environment allows the firm to identify its strengths and weaknesses by looking at its resources, capabilities, and core competencies. This helps the firm to determine what it can do and what it needs to improve upon.

Question 14

The Chapter 3 Opening Case demonstrates that although conditions in the economic environment influenced Subway's success, the manner in which Subway used its resources and capabilities also influenced that success.

Accepted Answer

The opening case clearly highlights how Subway effectively used its resources and capabilities to respond to the environmental changes and increase its success, indicating that the conditions in the economic environment were not the sole determinant of Subway's success.

Question 15

Firms achieve strategic competitiveness and earn above average returns by acquiring, bundling, and leveraging their resources for the purpose of taking advantage of opportunities in the external environment in ways that create value for customers.

Accepted Answer

This statement is a true statement about how firms can achieve strategic competitiveness and earn above average returns. It highlights the importance of using a firm's resources to create value for customers while taking advantage of external opportunities.

Question 16

A global mind-set is free of the assumptions of a single country, culture, or context.

Accepted Answer

A global mind-set involves understanding and valuing diverse perspectives and approaches from around the world, which requires being open to and free from the assumptions of a single country, culture, or context.

Question 17

People are a critical resource for helping organizations learn how to continuously innovate.

Accepted Answer

People bring new ideas, perspectives, skills, and knowledge that contribute to organizational learning and innovation. They also play a key role in promoting a culture of innovation and experimentation within the organization. Therefore, people are a critical resource for helping organizations continuously innovate.

Question 18

The Chapter 3 Strategic Focus illustrates the challenge facing strategic managers in making decisions about the appropriate use of their companies' resources and capabilities. While a number of firms have successfully used resources and capabilities to earn above average returns, others have not been so successful.

Accepted Answer

The statement correctly portrays the challenge faced by strategic managers in making decisions about resource allocation and capability utilization. While some firms have been successful in using these factors to earn higher returns, others may not have been as successful.

Question 19

The sustainability of a competitive advantage depends upon the rate of obsolescence of the core competence, the availability of substitutes for the core competence, and the imitability of the core competence.

Accepted Answer

This statement is true. The sustainability of a competitive advantage depends on various factors including the rate of obsolescence of the core competence, the availability of substitutes, and the imitability of the core competence. If the core competence becomes obsolete quickly or there are readily available substitutes, then the competitive advantage may not last long. Similarly, if the core competence can be easily imitated by competitors, then the advantage may not be sustainable.

Question 20

Creating customer value is the source of the firm's potential to earn above-average returns.

Accepted Answer

Creating customer value is the key for a firm to differentiate itself from its competitors and establish customer loyalty, which in turn can lead to higher profits and returns. Therefore, creating customer value is the source of the firm's potential to earn above-average returns.

Quiz 3: The Internal Organization: Resources, Capabilities, Core Competencies, and Competitive Advantages