Question 1

Key "functional" strategies of a company include all of the following EXCEPT:

Accepted Answer

E

Question 2

One important indicator of how well a company's present strategy is working is whether:

Accepted Answer

The most important indicator of how well a company's present strategy is working is whether it is achieving its financial and strategic objectives and whether it is an above-average industry performer. Core competencies, industry success factors, product introduction timing, and competitive forces are important factors but they do not directly measure strategy effectiveness.

Question 3

Tangible resources do not include:

Accepted Answer

Tangible resources refer to physical assets such as buildings, equipment, and inventory. Human assets, also known as intangible resources, are not considered tangible resources.

Question 4

A useful way to identify a company's resources is to view them as:

Accepted Answer

Viewing a company's resources as tangible and intangible categories is a useful way to identify them as it allows for a comprehensive analysis of both physical and non-physical assets. This method can help organizations understand their strengths and weaknesses, and identify areas for improvement.

Question 5

The two approaches that can make the process of uncovering and identifying a firm's capabilities more systematic are:

Accepted Answer

The two approaches mentioned are resources assessment and the functional approach, which are both systematic ways to uncover and identify a firm's capabilities. These approaches involve analyzing the resources available to the firm and the functions that it performs in order to gain a comprehensive understanding of its capabilities. The other options mentioned do not align with established approaches for capability identification.

Question 6

Which of the following is NOT one of the six questions that comprise the task of evaluating a company's resources and competitive position?

Accepted Answer

The five other questions listed are part of the six questions that comprise the task of evaluating a company's resources and competitive position according to the text.

Question 7

A powerful tool for sizing up the company's competitive assets and determining whether they can provide the foundation necessary for competitive success in the marketplace is termed:

Accepted Answer

Resource and capability analysis involves evaluating the company's tangible and intangible resources and capabilities, such as its brand, technology, human capital, and financial strength, to determine its competitive advantage. This analysis helps firms understand their strengths and weaknesses relative to their competitors and identify areas needing improvement. SWOT, competitive analysis, financial and asset management analysis, and value chain analysis are all related tools that may be used in conjunction with or as a part of resource and capability analysis.

Question 8

The difference between a resource and a capability is:

Accepted Answer

A resource is a productive input or competitive asset that a firm possesses, while a capability is the capacity of the firm to perform some internal activity competently. In other words, resources are the tangible and intangible assets that an organization possesses, while capabilities are the abilities that enable the organization to use those resources effectively to achieve its strategic objectives. Thus, choice A is the best answer. The other choices are inaccurate or incomplete.

Question 9

A company's resources and capabilities represent:

Accepted Answer

A company's resources and capabilities refer to its competitive assets, which are key determinants of its competitiveness and ability to succeed in the market. These can include things like technology, expertise, brand reputation, and distribution networks.

Question 10

The best indicator of how well a company's strategy is working is whether the company:

Accepted Answer

The best indicator of how well a company's strategy is working is whether the company is achieving its stated financial and strategic objectives, its financial performance is better than the industry average, and it is gaining customers and increasing its market share. This suggests that the company has a solid strategy and is executing it well, which is reflected in its financial success and market position. The other options either focus on short-term considerations, such as capacity maximization, or are not directly tied to the company's financial success and market position.

Question 11

The spotlight in analyzing a company's resources,internal circumstances,and competitiveness includes such questions/concerns as:

Accepted Answer

The spotlight in analyzing a company's resources, internal circumstances, and competitiveness includes evaluating the company's resource strengths and weaknesses in relation to the market opportunities and external threats. Option A is not necessarily relevant to analyzing the company's competitiveness. Option B is an aspect of external analysis, which is not the main focus of this question. Option C relates to the effectiveness of the company's value chain, which is an important consideration but not the sole focus of the analysis. Option E relates to a potential action the company could take, but does not represent the analysis itself.

Question 12

A linked and closely integrated set of competitive assets centered around one or more cross-functional capabilities is termed:

Accepted Answer

The description given in the question matches the definition of a resource bundle, which is a collection of resources and capabilities that are closely integrated and work together to create a competitive advantage.

Question 13

The four tests of a resource's competitive power are often referred to as the:

Accepted Answer

The correct answer is D as the VRIN test is the commonly used framework to determine a resource's competitive power based on its value, rarity, inimitability, and non-substitutability. The other answer choices are either incorrect or irrelevant.

Question 14

While listening or categorizing company resources,what matters is that:

Accepted Answer

The answer of While listening or categorizing company resources,what matters...

Question 15

The best quantitative evidence of whether a company's present strategy is working well is:

Accepted Answer

The best quantitative evidence of whether a company's present strategy is working well is whether the company is achieving its financial and strategic objectives and whether it is an above-average industry performer. This is the most direct and measurable way to assess the success of a company's strategy. The other options mentioned may be factors that contribute to success but are not the best indicators of whether a company's strategy is working well.

Question 16

Tangible resources include:

Accepted Answer

Tangible resources are those that can be quantified or measured, and technological assets such as patents, copyrights, and innovation technologies can be measured and are a form of tangible resource.

Question 17

A sustainable competitive advantage is gained:

Accepted Answer

A sustainable competitive advantage is achieved when a company has competitive assets that are both durable and superior to those of its rivals. These assets can include things like patents, brand recognition, unique technology or processes, and strong customer relationships. This allows the company to stand out and maintain its position in the marketplace over time, fending off competition and remaining profitable.

Question 18

Which of the following is NOT pertinent in identifying a company's present strategy?

Accepted Answer

Identifying a company's present strategy involves understanding the key functional strategies being employed, management's proactive moves to outcompete rivals, moves to respond and react to changing conditions in the environment, and the strategic role of collaborative partnerships and strategic alliances with others. However, the company's mission, strategic objectives, and financial objectives are more related to defining the strategy rather than identifying it.

Question 19

Which of the following is NOT an analytical tool for revealing a company's competitiveness and for helping to match the strategy to the company's own particular circumstances?

Accepted Answer

The best practice concept is not an analytical tool for revealing a company's competitiveness and for helping to match the strategy to the company's own particular circumstances. Instead, it is a common industry practice that is deemed to be the most effective and efficient way of carrying out a certain function or process. The other four options (resource and capability analysis, SWOT, value chain analysis, and competitive strength analysis) are all analytical tools used in strategic analysis.

Question 20

Organizational capabilities are virtually always:

Accepted Answer

Organizational capabilities mainly reside in people and the company's intellectual capital or organizational processes and systems, which embody tacit knowledge. These capabilities include the skills, knowledge, and competencies within an organization, and they are not limited to specific individuals or key personnel. They are often seen as a key differentiator between successful and unsuccessful companies.

B, C, D, and E are incorrect because they do not accurately reflect the nature of organizational capabilities.

Quiz 4: Evaluating a Companys Resources, Capabilities, and Competitiveness