Question 1

A strategic industry factor (Amit and Shoemaker) is known ex ante

Accepted Answer

Strategic industry factors are typically identified through analysis and are not known in advance (ex ante). They are determined by understanding the competitive dynamics and key success factors within an industry.

Question 2

According the the Resource Based View, what accounts for superior profits in an industry and how does this view differ from the Market Based View?

Accepted Answer

The resource based view argues that superior performance derives from the way in which a firm's resources are configured and managed - it uses the language of 'core competencies'. The market based view argues that competitive advantage derives from positioning within the industry - it is also known as the 'positioning' school and is associated strongly with the work of Porter.

Question 3

How does 'causal ambiguity' protect competitive advantage?

Accepted Answer

Causal ambiguity is where the lines of cause and effect which add up to superior performance are difficult to prove. It is therefore difficult for a rival to copy the superior firm. The problem with this is that the superior firm might not know for sure why it is superior either.

Question 4

What is meant by the term 'strategic intent'?

Accepted Answer

The answer of What is meant by the term 'strategic...

Question 5

Describe typical characteristics of 'strategic industry factors' (Amit and Shoemaker, 1993).

Accepted Answer

The answer of Describe typical characteristics of 'strategic industry factors'...

Question 6

Prahalad and Hamel argue that core competences should be seen as sources of leverage within each strategic business unit.

Accepted Answer

Prahalad and Hamel argue that core competences should be seen as sources of leverage across the entire organization, not just within individual strategic business units.

Question 7

In practice, competitive advantage is about creating value for the firm and for customers. Four main elements of value are positioning, customer persuasion, capabiltiy and

Accepted Answer

Efficiency is a key element of value as it involves optimizing resources to deliver products or services effectively, contributing to competitive advantage.

Question 8

One of the reasons that US firms lost out to East Asian firms is that

Accepted Answer

East Asian firms often pursued their objectives with 'strategic intent,' focusing on long-term goals and competitive advantage, which contributed to their success over US firms.

Question 9

Adapting and expanding resources to fulfill the aims of strategic intent is known as

Accepted Answer

Strategic stretch refers to the process of leveraging and expanding resources to achieve ambitious strategic goals beyond the current capabilities.

Question 10

In the heavy construction vehicles industry, Komatsu outperformed Caterpillar in the 1990s by changing the basis of competitive advantage from quality to cost. Komatsu used strategic ___________

Accepted Answer

The answer of In the heavy construction vehicles industry, Komatsu...

Question 11

Which of the following factors does Peteraf (1993) consider to be the basic foundations for determining the value of a core competence?

Accepted Answer

Imitability and appropriability are the basic foundations for determining the value of a core competence, according to Peteraf (1993).

Question 12

'Path dependency' determines the extent that an asset can be imitated. What is the meaning of 'path dependency' in this context?

Accepted Answer

Path dependency refers to the idea that the value or uniqueness of an asset is derived from the cumulative learning, experience, and historical development that has occurred over time, making it difficult to replicate.

Question 13

The output of an academic researcher at a university is normally considered to be a strategic asset.

Accepted Answer

The answer of The output of an academic researcher at...

Question 14

Amit and Shoemaker (1993) devised a theory to explain how competitive advantage can achieved. They suggest that core competencies (strategic assets) should be seen in the context of

Accepted Answer

The answer of Amit and Shoemaker (1993) devised a theory...

Question 15

The asset triangle (McGee) is made up of make-or-buy assets, strategic assets and

Accepted Answer

Core assets are the assets that are essential to the company's operations and that provide the company with a competitive advantage.

Question 16

Make-or-buy assets include those that are important strategically.

Accepted Answer

Make-or-buy decisions often involve assets that are strategically important to a company's operations, as these decisions can impact competitive advantage and long-term success.

Question 17

The 'core competence' concept can be applied at corporate level and business level.

Accepted Answer

The 'core competence' concept is applicable at both corporate and business levels as it involves identifying and leveraging unique strengths that provide competitive advantage across different areas of a company.

Question 18

___________ assets are those which do not have a physical presence.

Accepted Answer

The answer of ___________ assets are those which do not...

Question 19

Which view of strategy argues that competitive advantage derives from 'core competences'?

Accepted Answer

The resource-based view argues that competitive advantage comes from a firm's unique resources and capabilities, known as 'core competences'.

Question 20

The resource-based view sees the firm as a 'black box'.

Accepted Answer

The resource-based view sees the firm as a collection of resources and capabilities that can be used to create value for customers.

Quiz 6: Competitive Strategy: The Analysis of Strategic Capability