Question 1

Research has shown that there is a/an ____ relationship between the firm's external environment and the firm's strategy that affects the performance of the firm.

Accepted Answer

The word "reciprocal" means that there is a mutual exchange or relationship between two things. In this case, the external environment (such as the economy, competitors, and regulatory environment) and a firm's strategy have a reciprocal relationship, meaning they both affect each other. This relationship ultimately affects the performance of the firm. Therefore, option D is the best choice.

Question 2

____ is a capacity for a set of resources to perform a task or an activity in an integrative manner.

Accepted Answer

A capability refers to the capacity of a set of resources or skills to perform a task or activity, and it involves integrating different resources or skills in a coherent and effective way. A core competence refers to a unique combination of skills or technologies that provide a competitive advantage, while sustainable competitive advantage refers to the ability to maintain an advantage over rivals for a prolonged period of time. Organizational intelligence is a term that refers to the ability of an organization to gather, analyze, and utilize information in order to make better decisions.

Question 3

Which of the following statements about organizational knowledge is correct?

Accepted Answer

A) Knowledge is intangible and cannot be physically touched or seen.
B) In today's information age, knowledge is becoming more and more important for organizations to gain and maintain competitive advantage.
C) As the importance of knowledge increases, the value of knowledge as a proportion of shareholder value also increases.

Question 4

All of the following are resources of an organization EXCEPT

Accepted Answer

Weak competitors in the industry are not resources of an organization, they are external factors that may impact the organization's success. The other choices are all resources that an organization can utilize to achieve its goals.

Question 5

In order to cope with hypercompetition, firms need to develop ____ through continuous learning.

Accepted Answer

The answer of In order to cope with hypercompetition, firms...

Question 6

The ability to effectively and efficiently access and use information is

Accepted Answer

Accessing and effectively using information is an important source of competitive advantage in virtually all industries, as it allows firms to make informed decisions, identify opportunities, and respond to changes in the market. It is not just limited to high technology industries, and is often a minimum requirement for survival in today's business environment. While entering a global market may require additional considerations in terms of accessing and using information, this is not the only scenario where it is important.

Question 7

In the resource-based model, which of the following factors would be considered a key to organizational success?

Accepted Answer

The answer of In the resource-based model, which of the...

Question 8

To have the potential to become sources of competitive advantage, resources and capabilities must be non-substitutable, valuable, ____, and ____.

Accepted Answer

Resources and capabilities must be rare, meaning they are not widely available to competitors, and costly to imitate, meaning that replicating them would be difficult or expensive. This makes them difficult for competitors to acquire or replicate, giving a company a sustainable competitive advantage. Unique and easy to imitate resources and capabilities do not provide as much of an advantage, while being easy to implement is not a criteria for competitive advantage.

Question 9

All of the following are assumptions of the industrial organization (I/O) model EXCEPT

Accepted Answer

The I/O model assumes that resources are not firm-specific and can be acquired or used by multiple firms. This is known as the resource-mobility assumption.

Question 10

The resource-based model of the firm argues that

Accepted Answer

The resource-based model of the firm argues that a firm's resources that are valuable, rare, costly to imitate, and non-substitutable form the basis of its core competencies, which in turn can lead to sustainable competitive advantage. Therefore, option D is the correct answer. Option A is incorrect because not all resources may be valuable or rare, and some may be easily imitated. Option B is incorrect because resources alone may not necessarily lead to sustainable competitive advantage. Option C focuses on industry structure, which is not the primary focus of the resource-based model.

Question 11

All of the following are assumptions of the resource-based model EXCEPT

Accepted Answer

The answer of All of the following are assumptions of...

Question 12

The advent of inexpensive high-performance digital cameras may be an example of

Accepted Answer

Inexpensive high-performance digital cameras disrupted the traditional camera industry and changed the way people take photos, making film-based cameras obsolete. This is an example of a disruptive technology.

Question 13

Knowledge is composed of all the following EXCEPT

Accepted Answer

The answer of Knowledge is composed of all the following...

Question 14

The five forces model suggests that an industry's profitability is a function of all the following factors EXCEPT

Accepted Answer

The five forces model includes buyers, competition between existing firms, suppliers, threat of new entrants, and threat of substitute products. The economic environment is not a factor in the model.

Question 15

The CEO of Ridgeway, Inc., realizes that the company's survival depends on developing and acquiring knowledge. Which of the following actions by the CEO would be most consistent with this need?

Accepted Answer

The answer of The CEO of Ridgeway, Inc., realizes that...

Question 16

When resources and capabilities serve as a source of competitive advantage for a firm, the firm has created a(n)

Accepted Answer

Core competence refers to a unique set of capabilities and resources that enable a firm to gain a competitive advantage over its rivals in the market. It is a source of sustainable competitive advantage as it is difficult for competitors to replicate or imitate the firm's core competence. A strategic mission, inspiring vision and sustainable market niche are important for a firm, but they do not necessarily create a competitive advantage.

Question 17

The industrial organization (I/O) model argues that

Accepted Answer

The I/O model emphasizes the importance of industry selection in determining a firm's success. It argues that external factors such as industry structure and competition are more important than internal factors in the long-term success of a company. A firm that chooses the right industry to compete in will be in a position to earn above-average returns.

Question 18

An investor is considering in which of two start-up companies she should invest. The investor has faith in the industrial organizational model of above-average returns, and she is using its concepts to make her decision. Both start-up companies propose to manufacture health-focused foods with such characteristics as low salt, low sugar, high fiber, and no artificial additives. RexRich Foods has a business strategy of producing a differentiated product for which consumers will pay more. Green Pastures Foods is in the health-foods industry because of its internal culture and commitment to healthful lifestyles. Which firm will the investor feel is most consistent with the model of industrial organization?

Accepted Answer

The I/O model focuses on creating above-average returns by exploiting external market conditions and opportunities. In the case of RexRich Foods, their business strategy of producing a differentiated product indicates a focus on market opportunities and gaining a competitive advantage. On the other hand, Green Pastures Foods' focus on healthful lifestyles indicates an internal focus that may not fully exploit market opportunities. Therefore, RexRich Foods is more consistent with the I/O approach.

Question 19

The resource-based view of the firm

Accepted Answer

The answer of The resource-based view of the firm
...

Question 20

Which of the following statements is most consistent under the I/O view? Performance of the firm is most directly attributable to

Accepted Answer

The answer of Which of the following statements is most...

Quiz 1: Strategic Management and Strategic Competitiveness