Question 1

On any given activity, one of the four choices for managers in terms of modes and locations includes inshoring.

Accepted Answer

Inshoring refers to keeping business functions within the same country rather than outsourcing them to another country. This can be a choice for managers in terms of modes and locations for conducting an activity.

Question 2

In SWOT analysis, the resource view focuses on OT: Opportunities and Threats.

Accepted Answer

The resource view in SWOT analysis focuses on internal strengths and weaknesses, not external opportunities and threats. The acronym SWOT stands for Strengths, Weaknesses, Opportunities, and Threats, but the resource view only considers the first two components (S and W) while the environmental view considers the latter two components (O and T).

Question 3

Tightly bundled resources/capabilities may be a disadvantage in high velocity environments.

Accepted Answer

In high velocity environments, flexibility and agility are key. Tightly bundled resources and capabilities can limit an organization's ability to quickly adapt and respond to changes in the market or competitive landscape. It is often more advantageous to have loosely coupled resources that can be reconfigured and reallocated as needed.

Question 4

A SWOT analysis engages managers to ascertain a firm's strengths and weaknesses on an activity-by-activity basis.

Accepted Answer

A SWOT analysis involves examining a firm's internal strengths and weaknesses as well as external opportunities and threats, often on an activity-by-activity basis.

Question 5

Valuable, rare, but imitable resources/capabilities may provide temporary competitive advantage.

Accepted Answer

Valuable, rare, and difficult to imitate resources/capabilities are considered sources of competitive advantage. However, competitors may eventually be able to duplicate these resources/capabilities, leading to a temporary competitive advantage.

Question 6

Critics suggest that the resource-based view should eliminate dynamic capabilities.
a. True

Accepted Answer

Critics do not suggest that the resource-based view should eliminate dynamic capabilities. In fact, the resource-based view and dynamic capabilities complement each other and are both important for the success of a firm. The resource-based view focuses on the firm's internal resources and capabilities, while dynamic capabilities refer to the firm's ability to adapt and change in response to the external environment. Both perspectives are necessary for a firm to achieve sustainable competitive advantage.

Question 7

The Closing Case describes the admiration on the part of firms in developed nations for companies from emerging economies who copy products and processes from companies in developed nations.

Accepted Answer

The Closing Case actually describes the opposite situation - the admiration on the part of firms in emerging economies for companies from developed nations who create innovative products and processes.

Question 8

Imitation is not likely to be a successful strategy.

Accepted Answer

Imitation may provide short-term gains, but in the long run, it is not a sustainable strategy as it does not differentiate a company from its competitors. Successful companies aim to innovate and constantly improve their products or services to stand out in the market.

Question 9

How a firm performs different value-adding activities relative to rivals determines the scope of a firm.

Accepted Answer

The scope of a firm is determined by how it performs different value-adding activities compared to its competitors. The term "scope" refers to the breadth of a firm's operations and the variety of products or services it offers. A firm can increase its scope by performing more value-adding activities, or it can narrow its scope by focusing on a particular set of activities.

Question 10

Intangible resources and capabilities are assets that are more easily quantified.

Accepted Answer

Intangible resources and capabilities are assets that are difficult to quantify, as they are typically not physical or tangible in nature. Examples of intangible assets include intellectual property, brand reputation, culture, and knowledge.

Question 11

The logic of the resource-based view is relatively static.

Accepted Answer

The answer of The logic of the resource-based view is...

Question 12

Resource-based theorists readily admit that "the source of sustainable competitive advantage is likely to be found in different places at different points in time in different industries."

Accepted Answer

Resource-based theorists recognize that the potential sources of sustainable competitive advantage vary depending on various factors such as industry, market conditions, and timing. Therefore, they do not adhere to a one-size-fits-all approach when it comes to identifying and leveraging resources for sustainable competitive advantage.

Question 13

The chapter indicates that Toyota is an example of causal ambiguity.

Accepted Answer

The chapter explains that Toyota is an example of causal ambiguity as their success cannot be attributed to one specific factor, but rather a combination of factors such as their production system, culture, and leadership.

Question 14

IBM is an example of how capabilities may cease to add value and instead become core rigidities.

Accepted Answer

IBM is an example of how capabilities may cease to add value and become core rigidities. For example, in the early 1980s, IBM was a leader in the computer industry, but its focus on large, complex mainframe systems hindered its ability to respond quickly to the rise of personal computers. This became a core rigidity that led to IBM's decline in the computer market.

Question 15

A sustained competitive advantage can last since not all advantages eventually erode.

Accepted Answer

The answer of A sustained competitive advantage can last since...

Question 16

In SWOT analysis, the industry view focuses on SW: Strengths and Weaknesses.

Accepted Answer

In SWOT analysis, the industry view focuses on OT: Opportunities and Threats, while SW: Strengths and Weaknesses are typically internal factors.

Question 17

It is easier to imitate intangible resources/capabilities than tangible ones.

Accepted Answer

Tangible resources/capabilities are physical and visible, therefore easier to mimic. Intangible resources/capabilities, such as knowledge, culture, and reputation, are intangible and invisible, making it more difficult to replicate.

Question 18

Causal ambiguity refers to the difficulty of identifying the outcomes of causal determinants.

Accepted Answer

The answer of Causal ambiguity refers to the difficulty of...

Question 19

Most goods and services are produced through a chain of vertical activities which add value.

Accepted Answer

This statement is true. Most goods and services go through a chain of activities, such as production, manufacturing, distribution, and sales, before they reach the consumers. Each activity in the chain adds value to the product or service, contributing to its final price. This is known as the value chain or vertical integration.

Question 20

Many multinationals consist of many people scattered in many different countries. As a result, their invisible relationships do not add value.

Accepted Answer

Multinationals rely on their global network and relationships to create value, even if those relationships are not always visible or direct. Collaboration and communication among team members in different countries can lead to innovation and success in the global market.

Quiz 3: Leveraging Resources and Capabilities