Question 1

Managerial decision making and external strategic analysis are interdependent.

Accepted Answer

False

Question 2

Land is an example of a resource that could be both tangible and intangible.

Accepted Answer

Land can be physically touched and is therefore tangible, but it can also have intangible value such as sentimental value, cultural significance or spiritual importance.

Question 3

Intangible resources offer a better opportunity for competitive advantage than tangible resources.

Accepted Answer

Intangible resources such as knowledge, skills, reputation, and relationships are difficult to imitate or replicate, making them a better source of sustained competitive advantage compared to tangible resources such as machinery or inventory which can easily be acquired or duplicated.

Question 4

The basic building blocks of a firm's strategy are its resources and capabilities.

Accepted Answer

Resources and capabilities are the key components of a firm's strategy as they provide the foundation for the firm's competitive advantage and potential for sustained success.

Question 5

A firm could use an alliance to acquire additional resources and capabilities.

Accepted Answer

An alliance can be used to acquire additional resources and capabilities that the firm might not possess on its own. By partnering with other firms or organizations, the firm can leverage their strengths and expertise to achieve its goals. This can be particularly useful in situations where the firm is facing resource constraints or is trying to enter into new markets or industries.

Question 6

Tangible resources include knowledge, culture, and patents.

Accepted Answer

Tangible resources are physical assets such as money, equipment, land, and buildings, while knowledge, culture, and patents are intangible resources.

Question 7

Resources may be both tangible and intangible at the same time.

Accepted Answer

Resources can be both tangible, such as physical objects and money, and intangible, such as intellectual property and trademarks.

Question 8

Examples of differentiated resources include managerial judgment, trade secrets, and brand equity.

Accepted Answer

Differentiated resources are unique and difficult to replicate resources that give a competitive advantage, such as managerial judgment, trade secrets, and brand equity.

Question 9

There are certain generic resources available that any firm could acquire.

Accepted Answer

Generic resources such as office supplies, software, and equipment are commonly available and can be acquired by any firm.

Question 10

Examples of differentiated resources include land, debt financing, and unskilled labor.

Accepted Answer

Differentiated resources typically refer to unique or specialized resources that provide a competitive advantage, such as proprietary technology or skilled labor, rather than common resources like land, debt financing, and unskilled labor.

Question 11

Intel is successful because it doesn't license its technology to other manufacturers.

Accepted Answer

Intel licenses its technology to other manufacturers, which is a part of its business strategy to expand its market reach and influence.

Question 12

Intangible assets are easily identified and valued.

Accepted Answer

Intangible assets such as patents, trademarks, and goodwill are difficult to identify and value since they do not have a physical form or measurable quantity.

Question 13

Managers play the unique role of being a resource for the firm and having capabilities they use to manage the firm.

Accepted Answer

Managers are responsible for managing the resources of the firm, including their own unique capabilities, in order to achieve the firm's objectives.

Question 14

SWOT is an acronym for strengths, weaknesses, opportunities, and threats.

Accepted Answer

SWOT is indeed an acronym for strengths, weaknesses, opportunities, and threats.

Question 15

The resource-based inputs into the strategy process are opportunities and threats.

Accepted Answer

The resource-based inputs into the strategy process are actually a company's strengths and weaknesses - not opportunities and threats. Opportunities and threats are external factors that are part of the external analysis portion of the strategy process.

Question 16

A firm's resources and capabilities become less significant when a firm chooses to enter into a strategic alliance.

Accepted Answer

A firm's resources and capabilities remain significant when it enters into a strategic alliance because these resources and capabilities play a crucial role in determining the success of the alliance. The strengths of each partner are brought together in the alliance to create a collaborative advantage, and a firm's resources and capabilities can contribute to that advantage.

Question 17

Firms can achieve a competitive advantage by configuring value-chain activities in ways that add more value to their products and services.

Accepted Answer

By configuring value-chain activities in ways that add more value to their products and services, firms can differentiate themselves from their competitors and achieve a competitive advantage. This can be achieved through various means such as offering high-quality products, providing exceptional customer service, implementing efficient production processes or utilizing advanced technology.

Question 18

Resources are the inputs that firms use to create goods or services.

Accepted Answer

Resources are indeed the inputs that firms use to create goods or services. This can include things like labor, raw materials, technology, and capital.

Question 19

Undifferentiated resources are difficult to purchase through normal supply chain channels.

Accepted Answer

The answer of Undifferentiated resources are difficult to purchase through...

Question 20

Differences in long-term performance between firms in the same industry primarily come from different internal sources of competitive advantage.

Accepted Answer

This statement is true. While external factors such as market conditions and competition can certainly impact a company's performance, sustained success over the long term often depends on a company's ability to create and maintain internal advantages. These might include factors such as a strong brand, proprietary technology, superior supply chain management, or a talented and dedicated workforce. By leveraging these advantages, companies can differentiate themselves from their peers and build a sustainable competitive edge.

Quiz 3: Examining the Internal Environment: Resources