Question 1

A successful business model defines an organization's:&#10;A) Economic logic&#10;B) Raison d'etre&#10;C) Purpose&#10;D) Social agenda

Accepted Answer

A successful business model defines an organization's economic logic, which includes how the company creates, delivers, and captures value. While purpose and social agenda may be important components of a business model, they do not encompass the entirety of it. Raison d'etre, or reason for being, is similar to purpose and not the same as economic logic.

Question 2

Which of the following is an example of a socially complex resource?&#10;A) Culture&#10;B) Politics&#10;C) Resources&#10;D) Processes

Accepted Answer

Culture is an example of a socially complex resource because it includes the beliefs, values, customs, and behaviors of a particular group or society. These elements are often interconnected and influenced by multiple factors such as history, religion, geography, and economics, making it a complex resource to understand and navigate.

Question 3

In a framework analysis of advantage through causal ambiguity, which of the following is a characteristic of advantage?&#10;A) Linkage&#10;B) Association&#10;C) Benefit&#10;D) Interest

Accepted Answer

Linkage is a characteristic of advantage in a framework analysis through causal ambiguity because it refers to the connections or relationships between resources or capabilities that create a competitive advantage that is difficult for competitors to understand or imitate.

Question 4

Time compression diseconomy describes advantage through:&#10;A) Unique historical conditions&#10;B) Unique market conditions&#10;C) Unique cultural conditions&#10;D) Unique political conditions

Accepted Answer

Time compression diseconomy refers to the advantage gained through unique historical conditions that cannot be easily replicated by competitors, even with more resources.

Question 5

No two firms possess identical resources and this is known as:&#10;A) Resource heterogeneity&#10;B) Resource homogeneity&#10;C) Resource heteroscedasticity&#10;D) Resource profiling

Accepted Answer

Resource heterogeneity refers to the concept that different firms possess different resources, capabilities, and skills. This means that no two firms have identical resources, leading to variations in their ability to compete and succeed in the marketplace. Choice B, resource homogeneity, suggests that all firms have the same resources, which is not the case in reality. Choice C, resource heteroscedasticity, is not a concept commonly used in strategic management. Choice D, resource profiling, may refer to the process of identifying and assessing a firm's resources, but it does not capture the idea that resources are unique to each firm.

Question 6

Which three factors listed are examples of isolating mechanisms that help to sustain competitive advantage?&#10;A) Unique historical conditions&#10;B) Social complexity&#10;C) Causal ambiguity.&#10;D) Unique political configuration&#10;E) Resource complexity

Accepted Answer

Unique historical conditions, social complexity, and causal ambiguity are all examples of isolating mechanisms that can sustain competitive advantage by making it difficult for competitors to replicate a firm's successful strategies or resources. Unique historical conditions provide a company with unique assets that cannot be replicated due to their dependence on specific temporal and situational contexts. Social complexity, involving intricate social and business relationships, is hard for competitors to understand and imitate. Causal ambiguity exists when the reasons behind a company's success are not clear, even to the company itself, making replication by competitors challenging.

Question 7

Which two of the following are key dynamic capability processes?&#10;A) Reconfiguration&#10;B) Leveraging&#10;C) Bundling&#10;D) Reflecting

Accepted Answer

Reconfiguration and leveraging are both key dynamic capability processes as they involve the ability to adapt and adjust resources and capabilities to changing environments and opportunities. Bundling and reflecting, while still important processes, do not have as direct a focus on adaptation and flexibility.

Question 8

Patents can offer advantage to competitors by providing the blue prints for a design that gives advantage

Accepted Answer

Patents give exclusive rights to the inventor for a certain period of time, during which competitors cannot use, make, or sell the patented technology or design without permission. This can provide a competitive advantage to the inventor as they have the exclusive right to use and profit from their invention. However, once the patent expires, competitors have access to the patented technology and can use it to gain a competitive advantage.

Question 9

Core rigidities are value destroying

Accepted Answer

Core rigidities are value destroying because they prevent a company from adapting to changing market conditions and pursuing new opportunities. The organization becomes locked into outdated practices and processes, which reduces its ability to innovate and grow. As a result, core rigidities can lead to decline and ultimately, failure.

Deck 8: Strategies for Achieving Competitive Advantage