Question 1

Resources that have the potential to give an organization a competitive advantage are
A) expensive, readily transferrable, covered by patents, and developed over time
B) single purpose, embedded in organizational routines, easy to copy, short lived
C) valuable, rare, difficult to copy, and organized effectively
D) codified, sustainable, technical, and sufficient

Accepted Answer

The resources that have the potential to give an organization a competitive advantage are those that are valuable, rare, difficult to copy, and organized effectively. These types of resources are not easily obtainable by competitors and are therefore, a source of advantage for the organization. Expensive resources that are readily transferrable or covered by patents may not necessarily be valuable or rare and may be easily copied by competitors. Single purpose resources that are embedded in organizational routines may not be difficult to copy and may have a short life span. Codified and technical resources may also be easily replicated by competitors and may not necessarily provide a sustainable advantage.

Question 2

The purpose of evaluating the strategy-resources linkage is to test for
A) profitability
B) managerial fit
C) material gaps
D) sustainability

Accepted Answer

D

Question 3

One of the elements taken into consideration when conducting a resource analysis by strategy component is
A) managerial preferences
B) break-even point
C) government regulation
D) value proposition

Accepted Answer

The value proposition is an essential element of conducting a resource analysis in the strategy component. The value proposition refers to the unique benefits that a company offers to its customers, which differentiates it from its competitors. The value proposition should align with the company's resources, capabilities, and market opportunities, making it a crucial consideration in resource analysis. Managerial preferences, break-even point, and government regulation may also be important considerations in specific situations, but they are not as relevant as the value proposition in conducting a comprehensive resource analysis.

Question 4

Path-dependency refers to resources that arise from a
A) competitive price war
B) series of events occurring over time
C) patent infringement
D) change in government policy

Accepted Answer

Path-dependency refers to the resources that arise from a series of events occurring over time. It means that the current state of a system or organization is dependent on its past decisions and events. Path-dependency is a key concept in understanding the evolution of institutions, industries, and economies.

Question 5

Some of the resources required to execute a strategic proposal include
A) forecasts, budgets, and sales projections
B) financial, procedural, and environmental
C) operating, management, and equipment
D) financial, operating, and marketing

Accepted Answer

The resources required to execute a strategic proposal typically include financial resources to fund the proposal, operating resources to implement the strategy, and marketing resources to promote the strategy to customers. Therefore, choice D, which includes financial, operating, and marketing resources as options, is the best choice. Choices A, B, and C each include some relevant resources, but they do not encompass the full range of resources typically required to execute a strategic proposal.

Question 6

Core competencies give an organization the opportunity to compete on the basis of its
A) product market focus
B) alliances
C) unique resources
D) performance

Accepted Answer

Core competencies refer to the unique skills, capabilities, and resources that a company possesses and can leverage to achieve a competitive advantage. Therefore, the best choice is C, unique resources, as this directly relates to a company's core competencies and their ability to compete in the market. A product market focus (A), alliances (B), and performance (D) are important factors for a company's success, but they are not necessarily related to core competencies.

Question 7

Strategic proposals that fit well with the environment and available resources are further evaluated based on
A) product-market focus
B) break-even point
C) the level of initial investment
D) managerial preferences

Accepted Answer

The answer of Strategic proposals that fit well with the...

Question 8

The adequacy of available resources is relative to the
A) size of the organization
B) demands of the strategic proposal
C) managerial preferences
D) number of competitors

Accepted Answer

The adequacy of available resources is relative to the demands of the strategic proposal. The size of the organization, managerial preferences, and number of competitors may also play a role in determining the adequacy of resources, but the primary factor is the demands of the strategic proposal. The resources available must be sufficient to meet the needs and requirements of the proposal in order to ensure successful implementation.

Question 9

A resource analysis by resource category considers such elements as the
A) market share, technology, and employee capabilities
B) population, social values, and technology
C) economy, government regulation, and product life cycle
D) break-even point, interest rates, and consumer preferences

Accepted Answer

A resource analysis by resource category typically considers elements such as market share (related to market resources), technology (related to technological resources), and employee capabilities (related to human resources). Option B is more related to a socio-cultural analysis, option C is more related to a PESTEL analysis, and option D is more related to a financial analysis.

Question 10

One of the considerations when evaluating resource gaps is the
A) cost of failure
B) likelihood of government subsidies
C) nature of a competitive response
D) product market focus

Accepted Answer

The cost of failure is an important consideration when evaluating resource gaps because it takes into account the potential consequences of not having enough resources to achieve the desired outcome. A company must assess the risks and costs associated with resource gaps to determine the most effective way to address them. This includes evaluating the costs of lost business opportunities, damaged reputation, and loss of investor confidence.

Question 11

An organization's resources can be enhanced or undermined by
A) how rare the resources are
B) the organization's product market focus
C) the break-even point
D) the organization's social values

Accepted Answer

The answer of An organization's resources can be enhanced or...

Question 12

The advantage provided by resources that are held by few competitors is
A) enduring
B) sustainable
C) temporary
D) enabling

Accepted Answer

Resources held by few competitors provide a temporary advantage as competitors may eventually acquire or develop similar resources.

Question 13

Competitive advantages that are not intuitively obvious are an example of
A) causal ambiguity
B) competitive parity
C) inimitable resources
D) path-dependency

Accepted Answer

Causal ambiguity refers to situations where it is difficult to determine the cause of a firm's competitive advantages, making them difficult to replicate. If a competitive advantage is not intuitively obvious, it may be hard for competitors to understand what is causing the advantage and attempts to imitate it may fail. Therefore, the best choice in this case is A. Competitive parity refers to situations where a firm has similar resources and capabilities to its competitors, leading to similar levels of performance, and does not apply here. Inimitable resources are those that are difficult to replicate, but this term is not specific to advantages that are not intuitively obvious, so it is not the best choice. Path-dependency refers to situations where a firm's history and past decisions affect its current path and options, which is not relevant to the question.

Question 14

A resource-pushed strategy is one that
A) lacks sufficiency
B) leverages unique capabilities
C) is sustainable
D) can be readily copied

Accepted Answer

A resource-pushed strategy leverages unique capabilities, resources or assets that are difficult to imitate or reproduce by competitors, giving an organization a competitive advantage. A lack of sufficiency would refer to a capability-pushed strategy, while sustainability and lack of replicability would not necessarily distinguish a resource-pushed strategy from other types of strategies.

Question 15

A capability arising from a network of relationships is known as
A) integrative thinking
B) social complexity
C) path dependency
D) managerial know-how

Accepted Answer

Social complexity refers to the ability of a network of relationships to produce unique and valuable capabilities that cannot be achieved by individuals or organizations in isolation. Path dependency refers to the idea that decisions and actions made in the past shape and constrain future options. Integrative thinking is a cognitive ability to hold opposing ideas and reconcile them into a solution that is better than either idea on its own. Managerial know-how refers to the skills and knowledge needed to effectively manage an organization. None of these concepts directly relate to the idea of a capability arising from a network of relationships, making B the most suitable option.

Question 16

Resources that can be used by the organization to address an environmental threat are
A) valuable
B) rare
C) sustainable
D) easy to copy

Accepted Answer

Valuable resources are those that can help an organization address environmental threats effectively.

Question 17

Resources with the potential to provide a sustainable advantage as opposed to a competitive advantage can be
A) modified by the competitor
B) upgraded reasonably easily
C) purchased in factor markets
D) leveraged by the organization

Accepted Answer

Resources with the potential to provide a sustainable advantage can be leveraged by the organization to create a lasting competitive advantage that is difficult for competitors to replicate or modify. The other options (A, B, C) suggest that these resources can be easily replicated or obtained by competitors, and thus do not necessarily provide a sustainable advantage.

Question 18

Resource durability is sometimes associated with a
A) procedure
B) patent
C) brand
D) position

Accepted Answer

Resource durability is often associated with a brand, as a brand's reputation can be affected by the durability of its resources or products. A brand that is known for producing long-lasting, reliable products will likely see increased customer loyalty and positive word-of-mouth advertising.

Question 19

Distinctive competencies are activities an organization
A) has outsourced
B) performs better than its competitors
C) has integrated with its suppliers
D) requires no improvement

Accepted Answer

Distinctive competencies are unique or superior capabilities or resources that a company possesses compared to its competitors. These competencies enable the company to perform better in the market and gain a competitive advantage. A company may outsource non-core activities to focus on its distinctive competencies. Therefore, A is incorrect. Integrating with suppliers may result in cost savings, but it is not necessarily a distinctive competency. Therefore, C is incorrect. Distinctive competencies are not static and can be improved upon. Therefore, D is incorrect.

Question 20

The core skills of an organization represent
A) managerial know-how and strong links to the investor community
B) knowledge and experience developed over time
C) proprietary technology and alliances with the scientific community
D) capacity to raise capital and flexible work rules

Accepted Answer

Core skills of an organization are the knowledge and experience developed over time. Managerial know-how, investor community links, proprietary technology, scientific community alliances, capital raising, and flexible work rules may contribute to a company's success, but they are not core skills.

Quiz 6: Resource Analysis

Resources that have the potential to give an organization a competitive advantage are

The purpose of evaluating the strategy-resources linkage is to test for

One of the elements taken into consideration when conducting a resource analysis by strategy component is

Path-dependency refers to resources that arise from a

Some of the resources required to execute a strategic proposal include

Core competencies give an organization the opportunity to compete on the basis of its

Strategic proposals that fit well with the environment and available resources are further evaluated based on

The adequacy of available resources is relative to the

A resource analysis by resource category considers such elements as the

One of the considerations when evaluating resource gaps is the

An organization's resources can be enhanced or undermined by

The advantage provided by resources that are held by few competitors is

Competitive advantages that are not intuitively obvious are an example of

A resource-pushed strategy is one that

A capability arising from a network of relationships is known as

Resources that can be used by the organization to address an environmental threat are

Resources with the potential to provide a sustainable advantage as opposed to a competitive advantage can be

Resource durability is sometimes associated with a

Distinctive competencies are activities an organization

The core skills of an organization represent