Question 1

A firm's capacity to deploy resources for a desired result is called&#10;A)Return on Capital Employed&#10;B)Meta-routines&#10;C)Organizational Capability&#10;D)Core Competencies

Accepted Answer

Organizational capability refers to a firm's ability to deploy its resources effectively to achieve desired outcomes. Return on capital employed (A) is a financial performance measure, meta-routines (B) refer to the routines for managing routines, and core competencies (D) are the unique strengths or abilities a company possesses that distinguish it from competitors.

Question 2

Tactics focusing on environmental sustainability:&#10;A)Offer unique products to consumers.&#10;B)Decrease waste across the value chain.&#10;C)Both A and B.&#10;D)Neither A and B.

Accepted Answer

D

Question 3

Blue Oceans are distinct because:&#10;A)Companies try to outperform previous goals.&#10;B)They require demand creation.&#10;C)Highly competitive and mature.&#10;D)None of the above.

Accepted Answer

Blue Oceans are distinct from traditional competitive markets because they require demand creation instead of solely trying to outperform previous goals in highly competitive and mature industries.

Question 4

All of the following are true except:&#10;A)Entry involves new firms entering new markets only.&#10;B)Conditions that encourage market entry also foster exit.&#10;C)Most entrants do not survive past 10 years in an industry.&#10;D)Entry/Exit decisions based partially on costs and competitors.

Accepted Answer

Entry can also involve new firms entering existing markets, not just new markets.

Question 5

To truly contribute to a firm's sustainable competitive advantage, resources must be:&#10;A)Rare&#10;B)Valuable&#10;C)Inimitable&#10;D)All of the above

Accepted Answer

For resources to contribute to a firm's sustainable competitive advantage, they must be rare, valuable, and inimitable. Rare resources are those that are not commonly available to other firms in the industry. Valuable resources are those that are able to help the firm create value for its customers or increase efficiency. Inimitable resources are those that are difficult or impossible for other firms to replicate. Only when all three of these conditions are met can a firm achieve and maintain a sustainable competitive advantage.

Question 6

Meta-routines serve the purpose of:&#10;A)Development, Organization, Evaluation&#10;B)Assessment, Maintenance and Development&#10;C)Evaluation, Capabilities, Organization&#10;D)Maintenance, Assessment, Capabilities

Accepted Answer

Meta-routines refer to routines that help with assessing, maintaining, and developing other routines within an organization. They are focused on ensuring that routines are efficient, effective, and flexible enough to adapt to changing circumstances. Option B accurately captures the purposes of meta-routines. Option A is incorrect because it misses the focus on maintenance, and Option C is not precise enough. Option D is incorrect because it misses the focus on development.

Question 7

Based on the chapter, the framework for predicting competitor behavior includes all of the following except:&#10;A)Identifying competitor's current strategy.&#10;B)Identifying competitor's resources and capabilities.&#10;C)Analyzing competitor's quarterly financial performance.&#10;D)Clarifying the competitor's assumptions about the market.

Accepted Answer

Analyzing competitor's quarterly financial performance is not included in the framework for predicting competitor behavior. The other options, identifying current strategy, resources and capabilities, and clarifying assumptions about the market are all key components in predicting competitor behavior.

Question 8

Service economies are focused on:&#10;A)Material cycles&#10;B)Scale economies&#10;C)Cradle-to-cradle&#10;D)Biomimicry

Accepted Answer

Service economies are focused on providing services rather than producing goods.

Question 9

Resources and capabilities can be evaluated on their ___________ and ____________:&#10;A)Quality and Sustainability&#10;B)Strength and Importance&#10;C)Sustainability and Importance&#10;D)Strength and Quality

Accepted Answer

Strength and Importance are the two dimensions commonly used to evaluate resources and capabilities in strategic management, indicating how well resources support a firm's position and how critical they are to its success.

Question 10

Routines and capabilities are transferred through:&#10;A)Meta-routines&#10;B)Mergers and Alliances&#10;C)Culture and Communication&#10;D)Entering new markets

Accepted Answer

Routines and capabilities within organizations are often transferred through culture and communication, as these elements facilitate the sharing of knowledge, practices, and norms that underpin organizational capabilities.

Deck 6: Competencies and Tactics to Support Strategies