Deck 2: Developing Resources

Question 1

The resource-based theory views the firm as a bundle of resources capable of creating value for shareholders and other stakeholders.

Answer 1

True

Question 2

Competitive advantage represents the ability of an organization to consistently outperform rivals in a given market.

Answer 2

True

Question 3

A typical organization has a long list of distinctive competencies.

Answer 3

False

Question 4

Socially complex activities can be, and usually are, understood by one individual and are easy for outsiders to replicate.

Question 5

Royal Bank of Scotland has followed a strategy of offering a variety of products under one brand name.

Question 6

The appropriability of resources refers to whether a competitor can capture the profit it generates.

Question 7

In the UK, Marks and Spencer allotted 10% of store space for employee welfare activities such as in-house medical care.

Question 8

The metaphor of the bathtub in describing management of resources describes the level of water in the tub as 'resource stocks' and the water entering the tub as 'resource flows'.

Question 9

In the 1990s, the UK's Marks and Spencer stores expanded through Canada, Europe and the United States.

Question 10

Employee socialization occurs not only by formal instruction, but also by observing other employees at work.

Question 11

Most competitive resources are not causally ambiguous (e.g., the connection between activities and success is readily apparent).

Question 12

When things go well, people tend to attribute success to their own efforts.

Question 13

After World War II, the two railroad firms, Rock Island and Chicago-Northwestern, differed in their explanation of their economic downturns.

Question 14

Luck can play a role in the resource environments available to a given company at a point in time.

Question 15

The seven steps in managing resources include defining distinctive competencies by doing comparison with other firms.

Question 16

Competence-destroying change in the environment can involve new competitors, regulation, or new technology.

Question 17

The web's harmful affect on brick and mortar travel agency business is an example of 'competence-enhancing' change.

Question 18

Resource stocks can experience an increase in value, an instance of 'competence-destroying' change.

Question 19

Current competence and the resources that support it tend to erode.

Question 20

Every strategist inherits a stock of resources and must sometimes leave them behind, and assets more appropriate to changing conditions must be developed.

Question 21

______ are combinations of resources that create value.

A) Capabilities
B) Competencies
C) Distinct competencies
D) Routines

Question 22

______ is an activity that follows patterns observed in the behaviour of others.

A) Distinctive competencies
B) Mimetic behaviour
C) X

Question 23

Resources most likely to generate competitive market advantage have what characteristics?

A) Common
B) Tradeable, available on the open market
C) Easily substitutable
D) All of the above
E) None of the above

Question 24

Research on value of brands as a resource shows the highest user loyalty for:

A) Televisions
B) Soft drinks
C) Beer
D) Cigarettes

Question 25

A company should expect to wait the longest number of years before developing which resource?

A) databases
B) networks
C) company reputation
D) supplier know-how
E) employee know-how

Question 26

Amazon stock lost value by mid 2000 due to

A) untalented employees
B) Lack of marketing skill
C) Lack of inventory management skill
D) Lack of publicity

Question 27

Strategic risk estimates ____ about outcomes:

A) negativity
B) uncertainty
C) conviction
D) X

Question 28

There is a trade-off between resource deployment and resource _______.

A) accumulation
B) commitment
C) expectation
D) focus

Question 29

Which of the following is not true about Disney?

A) Disney appropriates most of the profit from its consumer goods due to its unique brand name.
B) Disney's 'human' stars such as Regis Philbin have more long-term success than classic stars such as Mickey and Minnie Mouse.
C) Disney purchased Pixar Animation studios in 2006.
D) Disney is known as one of the best places to work for U.S. graduates.

Question 30

Which of the following is true about tangible resources?

A) Tangible resources are rare.
B) On their own, tangible resources are likely to create competitive advantage.
C) Tangible resources include knowledge and reputation.
D) Tangible resources can be combined with intangible resources to create capabilities.

Question 31

Which of the following is true about routines?

A) Routines describe atypical behavioral patterns of firms.
B) Firm routines include the procedures for accounting and other processes.
C) Routines should never be changed or else firms will lose value.
D) Routines are combinations of tangible resources that create value.

Question 32

Which of the following aspects is not a key component of helping a firm create sustainable advantage?

A) Branding
B) Education
C) Investment
D) Socialization

Question 33

Research on value of brands as a resource shows the lowest user loyalty for:

A) Athletic shoes
B) Coffee
C) Garbage bags
D) Laundry detergent

Question 34

Resource _______ accumulate from investments over time to support competitive advantage.

A) Competencies
B) Flows
C) Positions
D) Stocks

Question 35

Which of the following is true about the 1998-2003 fall of Marks and Spencer?

A) Continued to use suppliers in the United Kingdom rather than cheaper suppliers overseas.
B) Did not face any local High Street competition in the apparel industry.
C) Eliminated its U.K. catalog business.
D) Established a wildly successful joint venture with lingerie firm Agent Provocateur.

Question 36

_________ is one of the hardest intangible assets to replace, taking an average of 10.8 years.

A) Company reputation
B) Distributor know-how
C) Employee know-how
D) Product reputation

Question 37

At 1.6 years, _________ is one of the shortest time periods for replacing an intangible asset.

A) Company reputation
B) Databases
C) Distributor know-how
D) Supplier know-how

Question 38

Which of the following is not true about socialization?

A) Can help employees to identify with their organization.
B) Informs newcomers of "how we do things around here."
C) Involves the telling and interpreting of stories.
D) Purely a formal process.

Question 39

___________ refers to the lack of readily apparent connection between a firm's activities and its competitive success.

A) Causal ambiguity
B) External attribution
C) Overcommitment
D) Uncertain capacity

Question 40

Resource flow decisions are multiple, with daily, detailed decisions usually left to:

A) Low level personnel
B) Middle personnel
C) Top level personnel

Question 41

What is mimetic behaviour? Provide an example of a firm that displays mimetic behavior.

Question 42

What are some of the risks associated with resource accumulation?

Question 43

Define distinctive competencies and give an example.

Question 44

Describe some of the strategic changes made by Disney in the last decade.

Question 45

Define routines and provide examples of how these routines might lead to distinctive competencies.

Question 46

Strategists try to create and maintain brand identity. Provide examples of five questions that strategists might ask in this process.

Question 47

Using the Internet as an example of a change in the environment, describe in detail three examples of firms that experienced competence-destroying changes.

Question 48

Using colder weather from climate change in the environment, describe in detail three examples of firms that experienced competence-enhancing changes.

Question 49

Describe the six step process that strategists can follow to manage the accumulation and deployment of resources?

Question 50

What firm resources are associated with competitive advantage?