Deck 3: Organizational Resources and Competitive Advantage

Question 1

Which of the following is least likely to be a source of sustainable competitive advantage?

A)A unique and valuable relationship with an important stakeholder
B)A computer program
C)An organization's culture
D)An organization's reputation
E)A well-known and respected brand

Answer 1

B

Question 2

Which group of stakeholders plays an important role in governing the behavior of top managers?

A)Managers
B)Employees
C)Board of directors
D)Unions
E)Customers

Answer 2

C

Question 3

Which ratio measures a firm's liquidity?

A)Debt-to-equity
B)Current
C)Return-on-assets
D)Asset turnover
E)None of these

Answer 3

B

Question 4

All of the following resources and capabilities fall within the category of general organizational resources except:

A)A strong balance sheet
B)Organizational structure
C)Organizational culture
D)Unique stakeholder relationships
E)A brand name

Question 5

Which ratio measures a firm's leverage?

A)Debt-to-equity
B)Current
C)Return-on-assets
D)Asset turnover
E)None of these

Question 6

If an organization possesses a valuable and unique resource,it is always a source of competitive advantage.

Question 7

Which of the following is most likely to be a source of sustainable competitive advantage?

A)A state-of-the art machine that a firm purchases from a supplier
B)A new product
C)A research and development process
D)A plant design
E)A new service

Question 8

Capabilities and resources have the potential to lead to competitive advantage if they are valuable and unique.

Question 9

An organization's human resources,physical resources,financial resources,knowledge and learning resources,and general organizational resources are highly interconnected.

Question 10

Organizations that cluster near each other typically are at a competitive disadvantage relative to organizations that are not in clusters.

Question 11

Stakeholder-based performance measures reflect more of the total value a firm creates.

Question 12

What are the probable implications of a firm neglecting its knowledge and learning resources?

A)It will become weaker financially
B)Its general organizational resources will become weaker
C)Its physical resources will become weaker
D)Its human resources will become weaker
E)All of the above

Question 13

Tacit knowledge can be communicated with precision through written means.

Question 14

Effective training programs can be a source of competitive advantage.

Question 15

A firm with weak knowledge and learning resources is at risk that its financial resources will also become weak.

Question 16

Human resource management is a basic activity in the value chain.

Question 17

A resource or capability that has led to sustainable competitive advantage for a firm has the following characteristic(s):

A)It is hard to imitate
B)Managers are aware of and taking advantage of the potential of the resource or capability
C)It is unique
D)It is valuable
E)All of the above

Question 18

If an organizational capability or resource is valuable and unique,but it is easy to imitate:

A)It cannot be a source of competitive advantage
B)It is likely to lead to a sustainable competitive advantage
C)It is a core competency or capability
D)It can be a source of competitive advantage for a period of time
E)None of these is correct

Question 19

Board members can play important strategic roles in organizations such as providing advice to managers with regard to strategies and strategic direction.

Question 20

A realized competitive advantage becomes sustainable when:

A)It is unique,valuable,and based on strong financial resources
B)It involves all of the functional areas of the organization
C)It is based on physical assets rather than knowledge
D)It is based on a resource or capability that is difficult to imitate by competitors and there is no readily available substitute
E)It is based on the quality of the organization's products and services

Question 21

Basic activities of the value chain include all of the following except:

A)Supply chain management
B)Strategic planning processes
C)Marketing management
D)Management of post-transaction contacts
E)Internal operations management

Question 22

What is the difference between a tangible and an intangible resource? Give an example of each? Which of these types of resources is most likely to lead to competitive advantage? Why?

Question 23

Support activities of the value chain include:

A)Human resources/compensation systems
B)Physical location management
C)Distribution management
D)Marketing management
E)Management of post-transaction contacts

Question 24

Support activities of the value chain include:

A)Internal operations management
B)Transportation
C)Direct sales
D)Installation
E)Information technology

Question 25

Firm performance has traditionally been measured in purely financial terms such as shareholder returns.What are some of the weaknesses associated with this approach?

A)They are hard to calculate
B)They encourage executives to focus on short-term profits
C)They reflect only current performance,with no expectations about the future
D)There is no link between the measures and the capital provided to the firm
E)None of these

Question 26

Organizational learning involves:

A)Knowledge retention
B)Knowledge utilization
C)Knowledge sharing
D)Knowledge creation
E)All of the above

Question 27

Please describe value chain analysis and how it can be used to help firms develop competitive advantages.

Question 28

What are the essential characteristics of a resource or capability that leads to a sustainable competitive advantage? Please explain.

Question 29

Basic activities of the value chain include:

A)Product/service R&D
B)Information technology
C)Marketing management
D)Human resources/compensation systems
E)Financial management

Question 30

General organizational resources include such things as:

A)Brands,culture,and an organization's reputation
B)Financial assets
C)Plants and equipment
D)Knowledge and learning systems
E)None of the above

Question 31

What does organizational learning involve? If a firm is involved in multiple countries,how is organizational learning affected?

Question 32

What are the basic categories of organizational resources and capabilities and how are they interconnected? What is likely to happen if a firm neglects one of the resource areas?

Question 33

With regards to the value chain,an organization can develop a competitive advantage:

A)In any of the basic or support activities
B)In the way basic and support activities are combined
C)In the way internal activities are linked to the external environment
D)Through activities that create value for the customer
E)All of these are ways to develop a competitive advantage