Question 1

In assessing and choosing a firm's strategy, a manager will usually find that benchmarking is:
A)​Likely to be the most successful strategy.
B)​Can be a valuable part of evaluating a firm's capabilities.
C) ​Unimportant to any well-thought-out strategy.
D) ​The surest way to dilute strengths and magnify weaknesses.

Accepted Answer

Benchmarking involves comparing a firm's performance and practices against those of other firms in the same industry. This can help a manager evaluate the company's own capabilities and identify areas for improvement. While benchmarking alone may not be the most successful strategy, it can be a valuable tool in developing a well-thought-out strategy. Diluting strengths and magnifying weaknesses would only occur if the benchmarking was not properly analyzed and applied.

Question 2

Methods that measure organizational learning, knowledge management, and managerial talents:
A)​Look at unobservable firm-specific characteristics.
B)​Result in observable consequences of unobservable resources.
C) ​Are subject to methodological criticisms.
D) ​All of the above.

Accepted Answer

Methods that measure organizational learning, knowledge management, and managerial talents use various techniques to look at unobservable firm-specific characteristics that result in observable consequences of unobservable resources. However, these methods are often subject to methodological criticisms, such as the potential for bias or inaccurate data collection. Therefore, D is the best choice because it includes all of the above information.

Question 3

Which of the following is an excellent example of a firm's tacit knowledge?
A)​The static nature of the firm's resources.
B)​Familiarity with the preferences of the firm's customers.
C) ​Hard-to-imitate aspect of the firm's premier product.
D) ​The firm's reputation within the industry.

Accepted Answer

Tacit knowledge refers to knowledge that is difficult to transfer or articulate, and is typically acquired through experience and skills. Familiarity with the preferences of the firm's customers is an example of tacit knowledge because it is based on the firm's experience and interactions with its customers.

Question 4

Firm A designs an innovative product. Firm B manufacturers the product based on the designs provided by Firm A. Firm C markets the product in global markets. In this case, Firm B is considered to be the:
A)​Original equipment manufacturer (OEM).
B)​Original design manufacturer (ODM).
C) ​Original brand manufacturer (OBM).
D) ​None of the above.

Accepted Answer

Firm B is considered the Original Equipment Manufacturer (OEM) because it manufactures the product based on designs provided by another company, Firm A.

Question 5

Recent aspects of outsourcing include all of the following EXCEPT:
A)"Business process outsourcing" (BPO).
B)High-end services to countries such as India.
C) Digitization and commoditization of service work.
D) Definite long-term benefits.

Accepted Answer

The statement "Definite long-term benefits" is not an accurate recent aspect of outsourcing. While outsourcing can lead to cost savings and increased efficiency, the long-term benefits are not always guaranteed or definite.

Question 6

Which of the following is a leading debate about the resource-based view of strategy?
A)​The identification of a clearly defined industry.
B)​The necessity of choosing a cost leadership or differentiation strategy.
C) ​The benefits of strategic groups within an industry.
D) ​The need to move toward dynamic, rather than static, capabilities.

Accepted Answer

The resource-based view of strategy emphasizes the importance of a firm's unique resources and capabilities in achieving sustained competitive advantage. However, there is debate over whether these resources and capabilities should be viewed as static or dynamic. Some argue that a firm needs to develop dynamic capabilities that allow it to adapt and evolve over time, while others believe that the focus should be on building and leveraging static resources and capabilities.

Question 7

Which of the following is better performed in-house rather than being outsourced?
A)An activity with a high degree of industry commonality.
B)An activity with a high degree of commoditization.
C) An industry-specific and firm-specific (proprietary) activity.
D) All of the above.

Accepted Answer

Activities that are industry-specific and firm-specific (proprietary) are better performed in-house as they require specialized knowledge and expertise unique to the company. Outsourcing these activities may result in a loss of competitive advantage or intellectual property. Activities with high industry commonality or commoditization may be more easily outsourced as they do not offer a unique advantage to the company and can be performed by external vendors more efficiently.

Question 8

Tacit knowledge is probably the most _________ resource.
A)Static
B)Organizationally complex resource
C) Hard-to-imitate
D) Outsourced

Accepted Answer

The answer of Tacit knowledge is probably the most _________...

Question 9

All of the following are arguments used by proponents of offshoring EXCEPT:
A)It is not true that some US employees may lose their jobs.
B)Western firms are able to tap into low-cost and high-quality labor.
C) Firms can focus on their core capabilities.
D) It creates enormous value for firms and economies.

Accepted Answer

All other options are common arguments used by proponents of offshoring. Option A is a statement that goes against the idea that offshoring can lead to job loss, which is not a common argument made by proponents of offshoring.

Question 10

Academic research has found support for ______________effects on firm performance.
A)Resource-based
B)Industry-based
C) Complementary specific collective
D) All of the above

Accepted Answer

Academic research has found support for all three effects (resource-based, industry-based, and complementary specific collective) on firm performance. The resource-based view suggests that a firm's unique and valuable resources and capabilities contribute to its competitive advantage and performance. The industry-based view explains that a firm's performance is shaped by the characteristics of the industry in which it operates. The complementary specific collective view argues that the performance of a firm is influenced by the interactions and complementarities among its resources and capabilities. Therefore, all three effects are important in understanding firm performance.

Question 11

When it comes to competing internationally, firms that are successful domestically typically:
A)​Are more successful internationally.
B)​Are on their way to becoming global cult brands.
C) ​Find that cross-border capabilities may or may not be the same.
D) ​Find that factors that lead to success domestically are easily translated to competing internationally.

Accepted Answer

Domestic success does not always guarantee success in international markets. Firms may face different cultural, legal, and economic conditions overseas that require unique cross-border capabilities. Therefore, the factors that lead to success domestically are not always easily translated to competing internationally.

Question 12

The VRIO framework does not include capabilities and resources that are:
A)Valuable.
B)Rare.
C) Imitable.
D) Organizationally embedded.

Accepted Answer

Capabilities and resources that are imitable are not included in the VRIO framework because they can be easily copied or acquired by competitors, which would reduce their competitive advantage.

Question 13

Critics of offshoring make all of the following arguments except:
A)If even core functions such as engineering, R&D, manufacturing, and marketing can-and often should-be moved outside the country, what is left of the firm?
B)In some cases, it undermines national security.
C) Offshoring increasingly results in job losses in high-end areas such as design, R&D, and IT/BPO.
D) Many large US firms claim that they are "global companies" but they seem to be bound by "American values."

Accepted Answer

All of the arguments listed are typically made by critics of offshoring, except for D. This argument is actually often made by companies who engage in offshoring to defend themselves against criticism that they are abandoning American values.

Question 14

Critics of outsourcing agree that firms who outsource aspects of their activities are ineffective at:
A)Exploiting cheap labor.
B)Treating people as "tradable commodities."
C) Upholding corporate social responsibility.
D) Protecting customer privacy.

Accepted Answer

The answer of Critics of outsourcing agree that firms who...

Question 15

Which of the following is not involved in hypercompetition?
A)A shortened window during which a firm may command competitive advantage.
B)Static yet deliberate maneuvering.
C) Unleashing a series of small, unpredictable, but powerful actions.
D) Attempts to erode rivals' competitive advantage.

Accepted Answer

Hypercompetition involves dynamic and unpredictable actions, and deliberate maneuvering would suggest a more static approach. Therefore, B is not involved in hypercompetition.

Question 16

Examining whether a firm has resources and capabilities to perform a particular activity in a manner superior to competitors is known as _________ in SWOT analysis.
A)Parity
B)Competition
C) Benchmarking
D) Standardization

Accepted Answer

Benchmarking involves comparing a firm's performance with that of competitors to determine if it can perform activities more effectively or efficiently.

Question 17

If Company A and Company B both have valuable assets that are identical, the text indicates that in order for A to gain a competitive advantage over B, A must:
A)Use its assets differently.
B)Find some basis for suing B.
C) Get out of its existing business.
D) Increase its quantity of those assets.

Accepted Answer

If both companies have identical assets, then increasing the quantity of those assets (option D) would not give A a competitive advantage over B. Finding some basis for suing B (option B) is unethical and not a legitimate way to gain a competitive advantage. Getting out of its existing business (option C) would not necessarily lead to a competitive advantage either. Therefore, the best option is for Company A to use its assets differently, which could include finding new ways to market and sell the assets, improving the quality of the assets, or combining them with other assets to create a unique offering.

Question 18

Firms that have a sustained competitive advantage will find that:
A)​Anticipation of future needs is still necessary.
B)​The particular advantage will last indefinitely.
C) ​Sustained competitive advantage is realistic in today's global competition.
D) ​They have eliminated all non-value-adding activities.

Accepted Answer

Anticipation of future needs is still necessary even if a firm has a sustained competitive advantage. Market conditions and technologies can change rapidly, and companies must anticipate future needs to continue to innovate and maintain their competitive advantage.

Question 19

Recent research suggests that capabilities in very dynamic high-velocity industries (such as IT) are characterized by all of the following EXCEPT:
A)Simple (not complicated).
B)Experiential (not analytic).
C) Linear (not iterative processes).
D) "Learning by doing."

Accepted Answer

The other options are all characteristics of capabilities in very dynamic high-velocity industries such as IT. However, these industries are typically characterized by iterative rather than linear processes, meaning that they involve a repeated cycle of testing, experimentation, and refinement rather than a one-time, linear process.

Question 20

Taking advantage of strengths embodied in resources/capabilities and overcoming weaknesses deals with which fundamental question?
A)Why do firms differ?
B)What determines the scope of the firm?
C) How do firms behave?
D) What determines the international success and failure of firms?

Accepted Answer

This question addresses how firms behave by leveraging their strengths and addressing weaknesses to achieve competitive advantage and success.

Quiz 3: Leveraging Resources and Capabilities

In assessing and choosing a firm's strategy, a manager will usually find that benchmarking is:

Methods that measure organizational learning, knowledge management, and managerial talents:

Which of the following is an excellent example of a firm's tacit knowledge?

Firm A designs an innovative product. Firm B manufacturers the product based on the designs provided by Firm A. Firm C markets the product in global markets. In this case, Firm B is considered to be the:

Recent aspects of outsourcing include all of the following EXCEPT:

Which of the following is a leading debate about the resource-based view of strategy?

Which of the following is better performed in-house rather than being outsourced?

Tacit knowledge is probably the most _________ resource.

All of the following are arguments used by proponents of offshoring EXCEPT:

Academic research has found support for ______________effects on firm performance.

When it comes to competing internationally, firms that are successful domestically typically:

The VRIO framework does not include capabilities and resources that are:

Critics of offshoring make all of the following arguments except:

Critics of outsourcing agree that firms who outsource aspects of their activities are ineffective at:

Which of the following is not involved in hypercompetition?

Examining whether a firm has resources and capabilities to perform a particular activity in a manner superior to competitors is known as _________ in SWOT analysis.

If Company A and Company B both have valuable assets that are identical, the text indicates that in order for A to gain a competitive advantage over B, A must:

Firms that have a sustained competitive advantage will find that:

Recent research suggests that capabilities in very dynamic high-velocity industries (such as IT) are characterized by all of the following EXCEPT:

Taking advantage of strengths embodied in resources/capabilities and overcoming weaknesses deals with which fundamental question?