Deck 6: Resource Analysis

Question 1

Resources that have the potential to give an organization a competitive advantage are

A) expensive, readily transferrable, covered by patents, and developed over time
B) single purpose, embedded in organizational routines, easy to copy, short lived
C) valuable, rare, difficult to copy, and organized effectively
D) codified, sustainable, technical, and sufficient

Answer 1

C

Question 2

The purpose of evaluating the strategy-resources linkage is to test for

A) profitability
B) managerial fit
C) material gaps
D) sustainability

Answer 2

D

Question 3

One of the elements taken into consideration when conducting a resource analysis by strategy component is

A) managerial preferences
B) break-even point
C) government regulation
D) value proposition

Answer 3

D

Question 4

Path-dependency refers to resources that arise from a

A) competitive price war
B) series of events occurring over time
C) patent infringement
D) change in government policy

Question 5

Some of the resources required to execute a strategic proposal include

A) forecasts, budgets, and sales projections
B) financial, procedural, and environmental
C) operating, management, and equipment
D) financial, operating, and marketing

Question 6

Core competencies give an organization the opportunity to compete on the basis of its

A) product market focus
B) alliances
C) unique resources
D) performance

Question 7

Strategic proposals that fit well with the environment and available resources are further evaluated based on

A) product-market focus
B) break-even point
C) the level of initial investment
D) managerial preferences

Question 8

The adequacy of available resources is relative to the

A) size of the organization
B) demands of the strategic proposal
C) managerial preferences
D) number of competitors

Question 9

A resource analysis by resource category considers such elements as the

A) market share, technology, and employee capabilities
B) population, social values, and technology
C) economy, government regulation, and product life cycle
D) break-even point, interest rates, and consumer preferences

Question 10

One of the considerations when evaluating resource gaps is the

A) cost of failure
B) likelihood of government subsidies
C) nature of a competitive response
D) product market focus

Question 11

An organization's resources can be enhanced or undermined by

A) how rare the resources are
B) the organization's product market focus
C) the break-even point
D) the organization's social values

Question 12

The advantage provided by resources that are held by few competitors is

A) enduring
B) sustainable
C) temporary
D) enabling

Question 13

Competitive advantages that are not intuitively obvious are an example of

A) causal ambiguity
B) competitive parity
C) inimitable resources
D) path-dependency

Question 14

A resource-pushed strategy is one that

A) lacks sufficiency
B) leverages unique capabilities
C) is sustainable
D) can be readily copied

Question 15

A capability arising from a network of relationships is known as

A) integrative thinking
B) social complexity
C) path dependency
D) managerial know-how

Question 16

Resources that can be used by the organization to address an environmental threat are

A) valuable
B) rare
C) sustainable
D) easy to copy

Question 17

Resources with the potential to provide a sustainable advantage as opposed to a competitive advantage can be

A) modified by the competitor
B) upgraded reasonably easily
C) purchased in factor markets
D) leveraged by the organization

Question 18

Resource durability is sometimes associated with a

A) procedure
B) patent
C) brand
D) position

Question 19

Distinctive competencies are activities an organization

A) has outsourced
B) performs better than its competitors
C) has integrated with its suppliers
D) requires no improvement

Question 20

The core skills of an organization represent

A) managerial know-how and strong links to the investor community
B) knowledge and experience developed over time
C) proprietary technology and alliances with the scientific community
D) capacity to raise capital and flexible work rules

Question 21

If testing the resource-strategy linkage leads to identifying resource gaps you know immediately you cannot close, you should then

A) ignore gaps and ensure current business requirements are being addressed
B) recycle the strategy for the next generation of proposals
C) select workable part(s) of the strategy and move forward
D) proceed and adjust gaps going forward

Question 22

Resources considered to be valuable give the organization a sustainable competitive advantage.

Question 23

Unique historical conditions can give an organization a competitive advantage.

Question 24

Resources can drive strategy, but they seldom constrain strategy.

Question 25

Innovative strategic proposals built on unique resources are unlikely to fail.

Question 26

Resources that are easy to imitate or readily substitutable give the organization a competitive advantage.

Question 27

Supplier relationships, logistics reliability and efficiency, and quality reputation are examples of the following resource category:

A) operations
B) development
C) financial
D) corporate reputation

Question 28

The purpose of assessing an organization's capabilities is to determine what the

A) competition might do in response
B) government might choose to regulate
C) suppliers might try to copy
D) organization might do to leverage an opportunity

Question 29

The Dow Chemical company is the leader in the low-cost production of commodity chemicals. Dow's ability to execute this is observed as a

A) core competence
B) distinctive competence
C) core skill
D) distinctive skill

Question 30

Diversification can be defined as an organization's ability to

A) define the scope of its operations
B) divest of non-core activities
C) match the capabilities of its competitors
D) leverage its current resources

Question 31

In a rapidly changing environment, organizations need resources that are

A) stable
B) easily replicated
C) adaptable
D) single-use

Question 32

The scope of a firm is traditionally defined by its

A) work force, assets, and location
B) product line, production capacity, and technological base
C) product market, geography, and vertical integration
D) technology, employee capabilities, and procedures

Question 33

A firm's logistics capability is an example of an operational resource.

Question 34

Interconnected organizational capabilities are seldom sources of competitive advantage.

Question 35

A firm's value chain of activities is sometimes referred to as

A) horizontal integration
B) competitive parity
C) structural functionality
D) vertical integration

Question 36

When considering the VRIO model, understanding how many competing firms possess specific, valuable resources and capabilities answers the question of

A) value
B) rareness
C) inimitability
D) organization

Question 37

The value of a resource depends on the context in which it is intended to be used.

Question 38

Resources provide an organization with the potential to act.

Question 39

The social values of an organization can enhance or undermine the resources of the organization.

Question 40

In 2001, Yahoo replaced a significant number of its salesforce, brought in new leadership and refocused its effort on direct selling. This is an example of link strategy to the following resource:

A) marketing
B) operations
C) finance
D) human Resources

Question 41

One of the factors to consider when evaluating the strategy-resource linkage is the feasibility of closing any material gaps.

Question 42

Leveraging current resources is an example of horizontal diversification.

Question 43

Opportunities and threats emerge from a scan of the internal environment.

Question 44

The purpose of testing the strategy-resource linkage is to establish where value can be created.

Question 45

Gap-closing initiatives that depend on some form of organization change are riskier than those entailing additional costs.

Question 46

Inwardly focused firms that base their strategies on leveraging existing resources are well positioned to take advantage of changes in customer preferences.

Question 47

Strategic proposals with formidable resource gaps should be abandoned.

Question 48

A strategy based on superior product features will require a careful analysis of the development resources of the organization.

Question 49

An acquisition could be a mechanism for addressing a resource gap.

Question 50

When an organization is in crisis, it is sometimes easier to advance riskier proposals.

Question 51

Qualitative resource requirements are often difficult to predict.

Question 52

Testing the strategy-resource linkage identifies what the organization needs to do to compete.

Question 53

Strategic alliances are sometimes used to complement the capabilities of the organization.

Question 54

In rapidly changing environments, organizations need resources that can be re-configured relatively easily.

Question 55

Failure to implement a strategic proposal may result in penalties such as loss of market position.