Deck 5: Internal Analysis: Managing Capabilities, Costs and Knowledge

Question 1

Combinations of resources are called capabilities

Answer 1

True
A shortened form of the definition from the glossary, which expands further on the concept

Question 2

Intellectual assets are displacing physical and financial assets

Answer 2

True
Increasing market value to book value ratios support this statement

Question 3

All capabilities must directly add value for customer

Answer 3

False
No, some contribute, for example, to cost reduction, and these cost reductions are not necessarily shared with customers

Question 4

Knowledge has a defined value

Question 5

Resources lead directly to competitive advantage

Question 6

Firms should excel at their core capabilities

Question 7

Structural capital is not a collective concept

Question 8

Competitive advantage is measured relative to the capital employed by the firm

Question 9

The ability to raise capital should be considered part of the firm's financial resources

Question 10

Intangible assets are typically represented on the firm's balance sheet

Question 11

Understanding how the value chain is evolving can provide competitive advantage

Question 12

Human capital is in the minds of individuals

Question 13

Firms have only a few options in extracting value from their intellectual property

Question 14

Transforming human capital into structural capital is an important job for management

Question 15

Managing transitions from one set of capabilities to another is very straightforward

Question 16

Changes in scale economics often drive industry restructuring

Question 17

Data, information and knowledge are substitutable concepts

Question 18

Customers typically favour open-source systems

Question 19

Many knowledge systems are scalable