Question 1

Analyzing the internal environment enables a firm to determine what it might be able to do by identifying what opportunities exist.

Accepted Answer

False

Question 2

Some resources, such as financial capital, have inherent value to the firm, while others are not inherently valuable.

Accepted Answer

False

Question 3

Firms and managers can learn from the failure resulting from a mistake-that is, what not to do when seeking competitive advantage.

Accepted Answer

When a mistake is made, it provides an opportunity to learn and improve for the future. By understanding what not to do in pursuit of competitive advantage, firms and managers can avoid repeating the same mistakes and work towards more effective strategies.

Question 4

The sustainability of a competitive advantage depends upon the imitability of the core competence, the availability of substitutes for the core competence, and the rate of obsolescence of the core competence.

Accepted Answer

The statement is true. A core competence is a unique capability that gives a company a competitive advantage, but if it can be easily imitated by competitors or if there are readily available substitutes, the advantage may not be sustainable in the long term. Additionally, if the core competence becomes obsolete quickly, the competitive advantage may be short-lived.

Question 5

Value is created when the firm exploits its core competencies or competitive advantages to meet or exceed the demanding standards of global competition.

Accepted Answer

Value is indeed created when a firm utilizes its unique strengths or competitive advantages to meet or surpass the high standards set by global competition. This enables the firm to differentiate itself from competitors and create superior value for its customers.

Question 6

Managerial decisions concerning resources, capabilities, and core competencies are characterized by three conditions: ambiguity, interconnectivity, and intraorganizational agreement.

Accepted Answer

Managerial decisions concerning resources, capabilities, and core competencies are characterized by ambiguity, complexity, and intraorganizational conflict, not interconnectivity and intraorganizational agreement.

Question 7

Value is measured by the variable and fixed costs associated with the production and marketing of a particular product compared with the revenue and profits the product generates.

Accepted Answer

The answer of Value is measured by the variable and...

Question 8

The need to meet quarterly earnings numbers disciplines managers to exercise judgment and to make strategic decisions that are best for the long-run performance of the firm.

Accepted Answer

The pressure to meet quarterly earnings may lead managers to focus more on short-term gains rather than long-term goals, which can harm the overall performance of the firm in the long run.

Question 9

Analyzing the internal environment enables a firm to determine what it can do by identifying what opportunities exist.

Accepted Answer

Analyzing the internal environment of a firm helps to identify its strengths and weaknesses, which in turn helps in identifying opportunities that the firm can capitalize on.

Question 10

Firms should seek to continually develop new core competencies because all core competencies have limited life spans.

Accepted Answer

Core competencies are unique capabilities that give a company a competitive advantage in the market. However, they can become outdated or irrelevant over time due to changes in technology, consumer preferences, or market conditions. Therefore, firms should focus on developing new core competencies to stay competitive and meet the evolving needs of their customers.

Question 11

The challenge and difficulty of making effective decisions are implied by preliminary evidence suggesting that one-half of organizational decisions fail.

Accepted Answer

The statement implies that one-half of organizational decisions fail, indicating that making effective decisions is challenging and difficult.

Question 12

The core competencies of a firm should be the primary drivers of its strategy.

Accepted Answer

The answer of The core competencies of a firm should...

Question 13

Analysis of the firm's internal organization examines the firm's portfolio of resources but excludes the bundles of heterogeneous resources and capabilities.

Accepted Answer

Analysis of the firm's internal organization typically includes an examination of the firm's entire portfolio of resources, including both homogeneous and heterogeneous resources and capabilities. This broader view allows for a more comprehensive understanding of the firm's strengths and weaknesses, as well as potential areas for improvement or development.

Question 14

Given enough time, any firm's competitive advantage can be imitated by its competitors.

Accepted Answer

While a firm's competitive advantage may be difficult to replicate, given enough time and resources, competitors can eventually figure out how to imitate it. This is why it's important for firms to continuously evolve and innovate to maintain their competitive advantage.

Question 15

In the global economy, traditional factors such as labor costs, access to financial resources and raw materials, and protected or regulated markets are no longer sources of competitive advantage.

Accepted Answer

The answer of In the global economy, traditional factors such...

Question 16

Creating customer value is the source of the firm's potential to earn above-average returns.

Accepted Answer

Creating customer value is important for a firm to differentiate itself from competitors and retain customers, ultimately leading to higher profits and above-average returns.

Question 17

A useful rule for evaluating whether a capability is a core competence is its historical ability to provide sustainable competitive advantage for the firm.

Accepted Answer

The answer of A useful rule for evaluating whether a...

Question 18

In the long run, if an organization does not change it will fail.

Accepted Answer

In today's rapidly changing business environment, organizations that don't adapt to market trends, customer needs, and technological advancements will eventually become outdated and fail. Change is necessary for growth, innovation, and long-term sustainability.

Question 19

A global mind-set is free of the assumptions of a single country, culture, or context.

Accepted Answer

A global mind-set is not limited by one's own cultural or national perspective, but rather takes into account a variety of perspectives and contexts from different regions and cultures.

Question 20

In the global market, employees move freely from firm to firm, so they are not an important source of competitive advantage for the firm.

Accepted Answer

While employees may move freely between firms, having a talented and skilled workforce can still provide a competitive advantage for a firm. Highly skilled and motivated employees can increase productivity, help drive innovation, and create a positive reputation for the company, all of which can contribute to the firm's success in the global market.

Quiz 3: The Internal Organization: Resources, Capabilities, Core Competencies, and Competitive Advantages