Deck 3: Leveraging Resources and Capabilities

Question 1

Intangible assets include the technological resources a company has that no other company can claim.

Answer 1

False

Question 2

The resource-based view sees capabilities as a firm's tangible and intangible assets that it uses to choose and implement its strategies.

Answer 2

True

Question 3

The performance of a firm is not altered negatively or positively by non-value-adding assets.

Answer 3

False

Question 4

Intangible resources and capabilities are assets that are more easily quantified.

Question 5

Conducting a value chain analysis helps a firm see how it is good at all its primary and support activities.

Question 6

​In SWOT analysis,the industry view focuses on SW: strengths and weaknesses.

Question 7

​A fundamental question in a value chain analysis is whether a firm's resources and capabilities add value.

Question 8

Offshoring and outsourcing interchangeable concepts.

Question 9

It is easier to imitate intangible resources/capabilities than tangible ones.

Question 10

Tightly bundled resources/capabilities may be a disadvantage in high velocity environments.

Question 11

IBM is an example of how capabilities may cease to add value and instead become core rigidities.

Question 12

​A SWOT analysis of the value chain engages managers in ascertaining a firm's strengths and weaknesses on an activity-by-activity basis.

Question 13

​In SWOT analysis,the resource view focuses on OT: opportunities and threats.

Question 14

A value chain for Nike would include shoe manufacturing as a primary activity and Nike branded stores as a support activity.

Question 15

Brick-and-mortar assets are considered tangible,whereas financial assets are considered intangible.

Question 16

Most goods and services are produced through a chain of vertical activities which add value.

Question 17

For any given activity,one of the four choices for managers in terms of modes and locations includes onshoring.

Question 18

Outsourcing is possible for both manufacturing and servicing activities.

Question 19

In order for the VRIO framework to provide effective information,the various capabilities of a company such as LeapFrog Enterprises needs to be evaluated in isolation from other resources and capabilities.

Question 20

In markets where a high quality in a product is expected,providing that level of quality provides little advantage,and at best could be considered competitive parity.

Question 21

​Causal ambiguity refers to the difficulty of identifying the outcomes of causal determinants.

Question 22

​A resource-based view is good at explaining what happened in the past,but has difficulty predicting what will happen in the future.

Question 23

When making strategic plans,a manager needs to integrate resources and capabilities that are valuable,rare,and difficult to imitate with those that do not have these attributes.​

Question 24

A common mistake made when evaluating a firm's capabilities is failing to assess them relative to the capabilities of the firm's rivals.
​

Question 25

Many multinationals consist of many people scattered in many different countries.As a result,their invisible relationships do not add value.

Question 26

​Resource-based studies of firm performance need to describe the measurement of firm-specific factors such as organizational learning,knowledge management,and managerial talent.

Question 27

​Causal ambiguity is the hallmark of many industries with ambiguous industry structure and blurred boundaries.

Question 28

The chapter indicates that Burberry is an example of causal ambiguity.

Question 29

​Resource-based theorists readily admit that "the source of sustainable competitive advantage is likely to be found in different places at different points in time in different industries."

Question 30

​The logic of the resource-based view is relatively static.

Question 31

​How a firm performs different value-adding activities relative to rivals determines the scope of a firm.

Question 32

​Critics suggest that the resource-based view should eliminate dynamic capabilities.

Question 33

​Strategy execution in a high-velocity industry would be characterized as linear rather than iterative in nature.

Question 34

​The proposition that firm performance is most fundamentally determined by firm-specific resources and capabilities is at the heart of the industry-based view.

Question 35

​A sustained competitive advantage can last because not all advantages eventually erode.

Question 36

​Valuable,rare,but imitable resources/capabilities may provide temporary competitive advantage.

Question 37

One of the most important implications for strategic action is that relentless imitation and benchmarking are important but not likely to be a sustainable successful strategy.

Question 38

​Imitation is not likely to be a successful strategy over the long term.

Question 39

​Companies in developing countries are the most frequent users of offshoring opportunities.

Question 40

​One of the most valuable and organizationally complex resources that is difficult for other firms to imitate is tacit knowledge within a given firm.

Question 41

​Which view of strategy focuses on how individual firms differ from each other in one industry?

A) ​Industry-based view.
B) ​Resource-based view.
C) ​Organizational-based view.
D) ​Institution-based view.

Question 42

​Which of the following statements about resources is true?

A) ​The dynamics capabilities view makes no distinction between resources and capabilities.
B) ​Scholars agree that the terms resources and capabilities are interchangeable.
C) ​A firm uses its tangible assets to choose and implement its strategies.
D) ​Intangible resources include a firm's technological capabilities.

Question 43

​The terms outsourcing and offshoring are:

A) ​Identical in meaning.
B) ​Two completely separate concepts.
C) ​Closely related but not identical in meaning.
D) ​Descriptive of activities to be avoided.

Question 44

Traditional resource-based view:

A) Overemphasizes leveraging existing resources/capabilities.
B) Overemphasizes developing new resources/capabilities.
C) Does not include an assessment of a firm's capabilities.
D) Is primarily focused on a firm's tangible resources and capabilities.

Question 45

​Which of the following is considered a benefit of outsourcing activities?

A) ​Leverages activities of multiple clients for greater economies of scale.
B) ​Shares activities with relatively generic attributes across industries.
C) ​Allows a firm to focus on its core activities.
D) ​All of the above.

Question 46

In the opening case,which of the following attributes describe IBM is part of the strategy Burberry uses?

A) Outsourcing.
B) Imitation of luxury market competitors.
C) Focus on high value and rarity.
D) Proliferation of unrelated products.

Question 47

Having valuable,but common resources/capabilities leads to:

A) Competitive parity.
B) Competitive advantage.
C) Lack of competition.
D) Competitive disadvantage.

Question 48

​To choose and implement its strategies,Whole Foods uses:

A) ​Tangible and intangible assets.
B) ​Capabilities.
C) ​Human resources and reputation.
D) ​All of the above.

Question 49

​The relationship between valuable resources and capabilities and firm performance is:

A) ​Only a factor for large manufacturing organizations.
B) ​Most often a competitive disadvantage.
C) ​The primary factor is deciding whether to exit an industry.
D) ​Basis for determining whether activities are value-adding or non-value-adding.

Question 50

​Managers who are involved in value chain analysis:

A) ​Benchmark the firm's overall capabilities.
B) ​Assess their firm's resources and capabilities at a micro,activity-based level
C) ​Look for ways to commoditize a firm's product lines.
D) ​None of the above.

Question 51

​In conducting a value chain analysis,a manager at a small manufacturing firm looks at a particular department within the company and sees that its activities are proprietary to the company's yet common across the industry.In this case,the manager would:

A) ​Definitely work toward outsourcing this activity.
B) ​Definitely work toward keeping this activity in-house.
C) ​Want to consider outsourcing this activity,sell the unit involved,or lease the unit's services to other firms.
D) ​Try to make the activity less proprietary.

Question 52

​One of the ways in which a firm makes it more difficult for other firms to imitate its resources and capabilities is through:

A) Direct duplication.
B) Non-value-adding activities.
C) Causal ambiguity.
D) None of the above

Question 53

​A small U.S.company located in the West has outsourced its payroll activities to a company in a Midwestern state.This action is known as:

A) ​Offshoring.
B) ​Onshoring.
C) ​Reshoring.
D) ​Reshoring.

Question 54

​The VRIO framework is based on a(n):

A) ​Captive-sourcing view.
B) ​Industry-based view.
C) ​Resource-based view.
D) ​Institutional-based view.

Question 55

​In the VRIO framework,the questions of value and rarity are:

A) ​Determinants of the level of competitive advantage.
B) ​Mostly unrelated issues.
C) ​Less important than whether a firm's activity can be imitated.
D) ​Essentially the same question.

Question 56

A firm's__________ are its tangible and intangible assets a firm uses to choose and implement its strategies.

A) Resources
B) Dynamic capabilities
C) Core competencies
D) Net worth

Question 57

International outsourcing involves:

A) Offshoring.
B) Onshoring.
C) Reshoring.
D) Captive sourcing.

Question 58

​When a company's product is easily imitate:

A) ​Valuable and rare resources are not really a source of competitive advantage.
B) ​The company needs more tangible resources.
C) ​The company benefits from causal ambiguity.
D) ​None of the above.

Question 59

According to the text,which of the following are intangible resources and capabilities?

A) Trade secrets.
B) Organizational.
C) Formal structures.
D) All of the above.
E) None of the above.

Question 60

​A firm with valuable,rare,and hard-to-imitate resources and capabilities will:

A) ​Always have a sustained competitive advantage.
B) ​Have difficulty sustaining a competitive advantage if it is not well organized.
C) ​Outsource all activities except for core activities.
D) ​Be highly susceptible to commoditization.

Question 61

Recent research suggests that capabilities in very dynamic high-velocity industries (such as IT)are characterized by all of the following EXCEPT:

A) Simple (not complicated).
B) Experiential (not analytic).
C) Linear (not iterative processes).
D) "Learning by doing."

Question 62

Which of the following is not involved in hypercompetition?

A) A shortened window during which a firm may command competitive advantage.
B) Static yet deliberate maneuvering.
C) Unleashing a series of small,unpredictable,but powerful actions.
D) Attempts to erode rivals' competitive advantage.

Question 63

​Firms that have a sustained competitive advantage will find that:

A) ​Anticipation of future needs is still necessary.
B) ​The particular advantage will last indefinitely.
C) ​Sustained competitive advantage is realistic in today's global competition.
D) ​They have eliminated all non-value-adding activities.

Question 64

Taking advantage of strengths embodied in resources/capabilities and overcoming weaknesses deals with which fundamental question?

A) Why do firms differ?
B) What determines the scope of the firm?
C) How do firms behave?
D) What determines the international success and failure of firms?

Question 65

Tacit knowledge is probably the most _________ resource.

A) Static
B) Organizationally complex resource
C) Hard-to-imitate
D) Outsourced

Question 66

The VRIO framework does not include capabilities and resources that are:

A) Valuable.
B) Rare.
C) Imitable.
D) Organizationally embedded.

Question 67

Which of the following is better performed in-house rather than being outsourced?

A) An activity with a high degree of industry commonality.
B) An activity with a high degree of commoditization.
C) An industry-specific and firm-specific (proprietary)activity.
D) All of the above.

Question 68

Academic research has found support for ______________effects on firm performance.

A) Resource-based
B) Industry-based
C) Complementary specific collective
D) All of the above

Question 69

All of the following are arguments used by proponents of offshoring EXCEPT:

A) It is not true that some US employees may lose their jobs.
B) Western firms are able to tap into low-cost and high-quality labor.
C) Firms can focus on their core capabilities.
D) It creates enormous value for firms and economies.

Question 70

How has offshoring contributed to complex supply-chain management? What are some examples?

Question 71

Recent aspects of outsourcing include all of the following EXCEPT:

A) "Business process outsourcing" (BPO).
B) High-end services to countries such as India.
C) Digitization and commoditization of service work.
D) Definite long-term benefits.

Question 72

​Which of the following is an excellent example of a firm's tacit knowledge?

A) ​The static nature of the firm's resources.
B) ​Familiarity with the preferences of the firm's customers.
C) ​Hard-to-imitate aspect of the firm's premier product.
D) ​The firm's reputation within the industry.

Question 73

​Which of the following is a leading debate about the resource-based view of strategy?

A) ​The identification of a clearly defined industry.
B) ​The necessity of choosing a cost leadership or differentiation strategy.
C) ​The benefits of strategic groups within an industry.
D) ​The need to move toward dynamic,rather than static,capabilities.

Question 74

​When it comes to competing internationally,firms that are successful domestically typically:

A) ​Are more successful internationally.
B) ​Are on their way to becoming global cult brands.
C) ​Find that cross-border capabilities may or may not be the same.
D) ​Find that factors that lead to success domestically are easily translated to competing internationally.

Question 75

List several resources for a firm of your choice,a​nd describe why each is considered a tangible or intangible resource.How does the dynamic capabilities view distinguish between resources and capabilities?

Question 76

Critics of offshoring make all of the following arguments except:

A) If even core functions such as engineering,R&D,manufacturing,and marketing can-and often should-be moved outside the country,what is left of the firm?
B) In some cases,it undermines national security.
C) Offshoring increasingly results in job losses in high-end areas such as design,R&D,and IT/BPO.
D) Many large US firms claim that they are "global companies" but they seem to be bound by "American values."

Question 77

Examining whether a firm has resources and capabilities to perform a particular activity in a manner superior to competitors is known as _________ in SWOT analysis.

A) Parity
B) Competition
C) Benchmarking
D) Standardization

Question 78

​Critics of outsourcing agree that firms who outsource aspects of their activities are ineffective at:

A) Exploiting cheap labor.
B) Treating people as "tradable commodities."
C) Upholding corporate social responsibility.
D) Protecting customer privacy.

Question 79

​In assessing and choosing a firm's strategy,a manager will usually find that benchmarking is:

A) ​Likely to be the most successful strategy.
B) ​Can be a valuable part of evaluating a firm's capabilities.
C) ​Unimportant to any well-thought-out strategy.
D) ​The surest way to dilute strengths and magnify weaknesses.

Question 80

​ Methods that measure organizational learning,knowledge management,and managerial talents:

A) ​Look at unobservable firm-specific characteristics.
B) ​Result in observable consequences of unobservable resources.
C) ​Are subject to methodological criticisms.
D) ​All of the above.