Question 1

What is the difference between a tangible resource and an intangible resource?

Accepted Answer

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Question 2

A SWOT Analysis allows manages to evaluate a firm's current situation and future prospects by simultaneously considering ________ and _________ factors.

Accepted Answer

A SWOT Analysis allows managers to evaluate a firm's current situation and future prospects by simultaneously considering internal and external factors.

Question 3

One attribute of the VRIO framework is relevant to the organization rather than the resources.Briefly describe this element of the framework and why it is important.

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Question 4

Explain the difference between resource stocks and resource flows.

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Question 5

If a firm's resources and capabilities are costly to imitate because imitating firms do not understand the relationship between the resources and capabilities controlled by the firm.This firm's competitive advantage is protected from imitation by ________________.

Accepted Answer

Causal ambiguity describes a situation in which the cause and effect of a phenomenon are not readily apparent.

Question 6

It is difficult to pinpoint the underlying cause of Apple's phenomenal success.Gaining a deep understanding of exactly why Apple has done so well is difficult because of which situation?

Accepted Answer

Gaining a deep understanding of why Apple has been so successful is due in part to casual ambiguity.

Question 7

What is the difference between primary and support activities in the value chain framework?

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Question 8

Which framework most easily allows for the combination of both internal and external factors in the analysis of a firm's competitive advantage?

Accepted Answer

A SWOT Analysis simultaneously considers internal and external factors.

Question 9

Which of the following is a question that managers must ask concerning internal firm factors when conducting a SWOT analysis?

Accepted Answer

Managers should ask all of these questions when conducting a SWOT analysis in order to synthesize insights obtained in order to take advantage of external opportunities and to mitigate competitive threats.

Question 10

There are two critical assumptions underpinning the resource-based model of competitive advantage.One of these is resource immobility.Briefly explain what this means.Provide one example of an immobile resource.

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Question 11

How do dynamic capabilities enhance a firm's competitive advantage?

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Question 12

What is the purpose of using the VRIO framework?

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Question 13

What explanation does the chapter opener provide for the downfall of Circuit City?

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Question 14

Define core competency.

Accepted Answer

Core competencies are built through the interplay of resources and capabilities.

Question 15

Crocs Shoes (maker of the plastic clog)had tremendous growth from its launch in 2002 to revenue of over $650 million in 2008.However its market share and stock price plummeted towards the end of 2008.Which VRIO attribute was given as the main cause of the decline of Crocs brand shoes in this period?

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Question 16

There are two critical assumptions underpinning the resource-based model of competitive advantage.One of these is resource heterogeneity.Briefly explain what this means.Provide one example of a heterogeneous resource.

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Question 17

In order for a firm's strategy to be effective,it must match all of the following EXCEPT:

Accepted Answer

When managers perform a SWOT analysis they are obtaining insights about the firm's internal strengths and weaknesses as well as external opportunities and threats when it comes to formulating strategy.

Question 18

Which SWOT factors below are generated from internal resources,capabilities and competencies?

Accepted Answer

In a SWOT analysis strengths and weaknesses are generated internally to the firm while opportunities and threats are derived from outside the firm.

Question 19

This chapter discusses both a strategic activity system and a value chain framework.How would you describe the differences between these two tools for a given firm?

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Question 20

Which of the following is NOT a condition that can help a firm to sustain its competitive advantage?

Accepted Answer

When past decisions constrain a firms current dynamic capabilities than it will be difficult to sustain a competitive advantage.

Quiz 4: Internal Analysis: Resources, Capabilities, and Activities