Question 1

Doing an internal analysis is needed for making good strategic decisions.

Accepted Answer

An internal analysis is essential to identify the strengths and weaknesses of the organization's internal resources and capabilities. It helps in making well-informed decisions about the future direction of the organization.

Question 2

An external audit is a thorough assessment of an organization's various internal functional areas.

Accepted Answer

An external audit primarily focuses on evaluating the accuracy of an organization's financial records and compliance with external regulations, rather than assessing its internal functional areas.

Question 3

Preparing a current product-market profile emphasizes organization-customer interactions.

Accepted Answer

Preparing a current product-market profile involves analyzing the interactions between the organization and its customers to understand the needs, preferences, and feedback of the target market. This helps in refining the marketing strategy and improving the value proposition of the product or service.

Question 4

An internal analysis involves an examination of

Accepted Answer

An internal analysis typically involves examining the organization's resources, capabilities, and core competencies, rather than its vision, mission, strategic objectives, or strategies.

Question 5

An organization's tangible and intangible resources can be a source of competitive advantage and these resources play an important role in determining an organization's capabilities and competencies.

Accepted Answer

Tangible resources include physical assets such as property, equipment, and financial resources, while intangible resources include things like intellectual property, brand reputation, and human capital. These resources can give an organization an advantage over competitors by enhancing their ability to develop and deliver products or services in a more efficient or effective manner. Therefore, an organization's resources are essential in shaping its capabilities and competencies, which can ultimately lead to a competitive advantage.

Question 6

Strengths are resources that the organization possesses and capabilities that the organization has developed, both of which can be exploited and developed into a sustainable competitive advantage.

Accepted Answer

Strengths are indeed resources and capabilities that can be used to create a sustainable competitive advantage for the organization.

Question 7

When customers purchase a product, they are not purchasing a bundle of attributes that they believe will satisfy their needs.

Accepted Answer

Customers are indeed purchasing a bundle of attributes (features, benefits, services, etc.) that they believe will satisfy their needs, as these attributes collectively define the value proposition of the product.

Question 8

Dynamic capabilities are an organization's ability to build, integrate, and reconfigure capabilities to address rapidly changing environments.

Accepted Answer

This statement accurately describes the concept of dynamic capabilities.

Question 9

Organizational capabilities are regular, predictable, and sequential patterns of work activity by organizational members.

Accepted Answer

Organizational capabilities refer to the collective skills, abilities, and expertise of an organization, and how they are applied to achieve the organization's goals. They are not merely regular, predictable, and sequential patterns of work activity but encompass a broader range of strategic, operational, and dynamic capabilities that enable an organization to adapt and compete effectively.

Question 10

Identifying and agreeing on the key competencies and capabilities is critical to managing strategically for a sustainable competitive advantage.

Accepted Answer

Identifying and agreeing on the key competencies and capabilities is important so that a company can focus its resources and efforts on developing and enhancing these areas to gain a sustainable competitive advantage over its competitors. Without a clear understanding of these key factors, a company may struggle to compete effectively in the market.

Question 11

Customer value arises from the similarity of products to others, the product is low priced, and the ability of the organization to respond to customer needs.

Accepted Answer

Customer value arises from the differentiation of products from others, the product is priced just right, and the ability of the organization to understand and fulfill customer needs. So, the statement is false.

Question 12

Every organization needs goals at all levels and in all functional areas that state what it hopes to accomplish by when.

Accepted Answer

Goals are important for providing direction and focus to an organization's efforts, and they should be set at all levels to ensure alignment and coordination across different functional areas. Without clear goals, it would be difficult to measure progress or make strategic decisions.

Question 13

Core competencies are the organization's major value-creating skills and capabilities that are essential to their business.

Accepted Answer

Core competencies are indeed the organization's major value-creating skills and capabilities that are critical to their business success. They are viewed as unique and difficult for competitors to imitate, giving the organization a competitive advantage.

Question 14

Distinctive organizational competencies are the common capabilities that do not distinguish an organization from its competitors.

Accepted Answer

Distinctive organizational competencies are the unique capabilities that distinguish an organization from its competitors.

Question 15

Value chain analysis is a systematic way of examining all the organization's functional activities and how well they create customer value.

Accepted Answer

Value chain analysis is indeed a systematic approach that involves analyzing an organization's primary and secondary activities and determining how well they contribute to creating customer value. This approach helps identify areas where the organization can improve its operational efficiency and gain a competitive advantage.

Question 16

Weaknesses are resources and capabilities that are lacking or deficient and that prevent the organization from developing a sustainable competitive advantage.

Accepted Answer

Weaknesses refer to internal factors that hinder an organization's ability to gain a sustainable competitive advantage. They are areas where the organization lacks resources or capabilities compared to its competitors, making it less efficient and effective in achieving its goals.

Question 17

The first step in the capabilities assessment profile is to develop and leverage the organization's distinctive capabilities.

Accepted Answer

The first step in the capabilities assessment profile is to identify the organization's key capabilities, not to develop and leverage them. This initial step involves understanding what the organization does best and how it stands out from competitors.

Question 18

An internal audit is similar to a financial audit, although it focuses on much more than just the financial aspects.

Accepted Answer

An internal audit typically covers a broad range of areas such as operations, compliance, and risk management in addition to financial aspects.

Question 19

Organizational capabilities are the special and unique processes that distinguish the organization from its competitors.

Accepted Answer

The answer of Organizational capabilities are the special and unique...

Question 20

One criterion that could be used to determine whether resources and capabilities are strengths or weaknesses is past performance trends.

Accepted Answer

Past performance trends can be a useful criterion for determining whether resources and capabilities are strengths or weaknesses. By analyzing past performance, one can identify patterns of success or failure and determine whether a particular resource or capability has contributed to those outcomes. For example, if a company has consistently outperformed its competitors in a particular area, such as product innovation, then this may be seen as a strength that should be leveraged for future success. Conversely, if a company has consistently underperformed in a particular area, such as customer service, then this may be seen as a weakness that needs to be addressed.

Quiz 4: Assessing Strengths and Weaknesses: Doing an Internal Analysis