Question 1

The need to meet quarterly earnings numbers disciplines managers to accurately examine the firm's internal organization.

Accepted Answer

False

Question 2

The Chapter 3 Strategic Focus illustrates the challenge facing strategic managers in making decisions about the appropriate use of their companies' resources and capabilities. While a number of firms have successfully used resources and capabilities to earn above average returns, others have not been so successful.

Accepted Answer

The statement accurately describes the content of Chapter 3 Strategic Focus and the challenge facing strategic managers.

Question 3

Walmart uses core competencies such as information technology and distribution channels to create value for its customers through its "everyday low price."

Accepted Answer

Walmart's use of information technology and distribution channels allows them to efficiently and effectively provide a wide selection of products at low prices, which is a value proposition for their customers.

Question 4

Analyzing the internal environment enables a firm to determine what it can do by identifying resources, capabilities, and core competencies in the internal organization.

Accepted Answer

Analyzing the internal environment helps a firm to identify its strengths and weaknesses by assessing its resources, capabilities, and core competencies. This understanding enables a firm to determine what it can do and what it needs to change or improve.

Question 5

Resources are the source of capabilities, some of which lead to the development of core competencies; in turn, some core competencies may lead to competitive advantage.

Accepted Answer

This statement is true. Resources such as human capital, technology, and financial assets can be leveraged to develop capabilities. These capabilities can be organized and integrated to develop core competencies. Core competencies are unique skills and abilities that enable a company to excel in a specific area, and they can lead to competitive advantage.

Question 6

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

Accepted Answer

The answer of Analyzing the internal environment enables a firm...

Question 7

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

Accepted Answer

This statement is true. Eventually, any successful strategy or technology that provides a competitive advantage can be imitated by competitors. This is why companies constantly need to innovate and adapt in order to maintain their edge in the marketplace.

Question 8

Value is created when firms innovately bundle and leverage their resources to form capabilities and core competencies.

Accepted Answer

This statement is true. By combining and utilizing resources in a unique way, firms can gain a competitive advantage and create value for their customers. This can lead to the development of capabilities and core competencies that set them apart from their competitors.

Question 9

The learning generated by making and correcting mistakes is generally unimportant to efforts to create new capabilities and core competencies.

Accepted Answer

Learning from mistakes is crucial in developing new capabilities and core competencies as it helps to identify areas that need improvement and refine current processes. Organizations that encourage learning from mistakes can create a culture of continuous improvement, innovation, and ultimately, competitive advantage.

Question 10

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

Accepted Answer

The statement accurately reflects the factors that influence the sustainability of a competitive advantage. If a company's core competence quickly becomes outdated, there are many substitutes available, or it can be easily imitated by competitors, then the competitive advantage is likely to be short-lived.

Question 11

Firms achieve strategic competitiveness and earn above average returns by acquiring, bundling, and leveraging their resources for the purpose of taking advantage of opportunities in the external environment in ways that create value for customers.

Accepted Answer

This statement accurately reflects the key to a firm's strategic competitiveness and success. By acquiring and utilizing resources effectively, firms can create value for customers and stay ahead of competitors in the constantly changing external environment.

Question 12

In today's global economy, traditional factors such as labor costs, access to financial resources and raw materials, and protected or regulated markets are less likely to become core competencies and possibily competitive advantages.

Accepted Answer

With the increasing interconnectedness and standardization of markets, many of these factors are becoming more universally available, which means that they are no longer providing as much of a competitive edge as they once might have. Instead, factors like innovation, agility, and customer experience are becoming more important determinants of success.

Question 13

Understanding how to leverage the firm's unique bundle of resources and capabilities is a key outcome decision makers seek when analyzing the internal organization.

Accepted Answer

Understanding how to leverage the firm's unique bundle of resources and capabilities is indeed a key outcome decision makers seek when analyzing the internal organization.

Question 14

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 15

The Chapter 3 Opening Case demonstrates that although conditions in the economic environment influenced Subway's success, the manner in which Subway used its resources and capabilities also influenced that success.

Accepted Answer

The Chapter 3 Opening Case describes how Subway adapted to economic changes by making strategic investments in technology and marketing, but also mentions how the company's focus on healthy and customizable options gave it a competitive advantage. Therefore, both the external environment and internal resources and capabilities played a role in Subway's success.

Question 16

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

Accepted Answer

Creating customer value is the foundation for developing a sustained competitive advantage, loyal customer base, and ability to command premium prices, all of which contribute to above-average returns for a firm.

Question 17

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 suggests that there is preliminary evidence indicating that 50% of organizational decisions fail, meaning that making effective decisions is a challenge and difficult task.

Question 18

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

Accepted Answer

Core competencies can become irrelevant or outdated due to changes in technology, consumer preferences, and other external factors. Therefore, firms should constantly seek to develop new core competencies to stay competitive and relevant in the market.

Question 19

People are a critical resource for helping organizations learn how to continuously innovate.

Accepted Answer

People bring diverse perspectives, skills, and experiences that can drive innovation within organizations. Through their interactions and collaboration, they can share knowledge and ideas that can lead to continuous improvements and innovation.

Question 20

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

Accepted Answer

A global mind-set is characterized by an open and adaptive attitude toward diverse cultures, languages, and practices. It is not bound by the assumptions or limitations of a single country, culture, or context.

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