Question 1

Although an organization's good reputation is a valuable resource that takes years of superior marketplace competence to achieve, it is not a good basis for building a competitive advantage because it can be destroyed almost instantly by bad publicity.

Accepted Answer

A good reputation is a valuable resource that can provide a competitive advantage, as it builds trust and loyalty among customers, even though it can be vulnerable to bad publicity.

Question 2

The best way to understand the relationship between resources, capabilities, and core competencies is to recognize that resources are the source of capabilities.Some capabilities lead to the development of core competencies and these, in turn, may lead to competitive advantages.

Accepted Answer

Resources are the foundational elements that enable a firm to develop capabilities. Some capabilities evolve into core competencies, which can provide a competitive edge.

Question 3

Chipotle linked fresh ingredients with the marketing and training of employees to build customer service as a capability.This example illustrates the way in which resources must be combined in order to form capabilities.

Accepted Answer

Combining resources like fresh ingredients, marketing, and employee training helps build capabilities such as customer service, demonstrating how resources must be integrated to create capabilities.

Question 4

Creating value for customers is the source of above-average returns for a firm.

Accepted Answer

Creating value for customers leads to customer satisfaction and loyalty, which can result in increased sales and market share, ultimately leading to above-average returns for a firm.

Question 5

Firms achieve strategic competitiveness and earn above-average returns by acquiring, bundling, and leveraging their resources for the purpose of taking advantage of opportunities in the external environment in ways that create value for customers.

Accepted Answer

Firms achieve strategic competitiveness by effectively utilizing their resources to exploit external opportunities, thereby creating value for customers and earning above-average returns.

Question 6

Firms should seek to continually develop new core competencies because all core competencies guarantee above-average profit.

Accepted Answer

Not all core competencies guarantee above-average profit; market conditions and competition can affect profitability.

Question 7

The value of tangible assets, such as the firm's borrowing capacity and its physical plant, is high because these assets can be easily leveraged to derive additional value.

Accepted Answer

Tangible assets are not easily leveraged to derive additional value.

Question 8

Walmart uses core competencies, such as information technology and distribution channels, to create value for its customers through its "everyday low prices."

Accepted Answer

Walmart leverages its core competencies in information technology and efficient distribution channels to minimize costs, allowing it to offer products at lower prices consistently, which aligns with its "everyday low prices" strategy.

Question 9

Capabilities of an organization emerge spontaneously through the interaction of tangible and intangible resources.

Accepted Answer

The answer of Capabilities of an organization emerge spontaneously through...

Question 10

Analyzing the internal environment enables a firm to determine what it CAN DO by identifying resources, capabilities, and core competencies in the internal organization.

Accepted Answer

Analyzing the internal environment helps a firm understand its strengths and weaknesses by evaluating its resources, capabilities, and core competencies, which are crucial for strategic planning and decision-making.

Question 11

Technology has made it more difficult for companies to find ways to develop competitive advantages.

Accepted Answer

Technology has made it easier for companies to find ways to develop competitive advantages by providing them with access to new tools and resources.

Question 12

Analyzing the internal environment enables a firm to determine what it MIGHT DO by identifying what opportunities and threats exist.

Accepted Answer

Analyzing the internal environment helps a firm determine what it CAN DO by assessing its strengths and weaknesses, while opportunities and threats are identified through external environment analysis.

Question 13

Understanding how to leverage the firm's unique bundle of resources and capabilities is a key outcome decision makers seek when analyzing the internal organization.

Accepted Answer

Understanding and leveraging a firm's unique resources and capabilities is crucial for gaining competitive advantage and achieving strategic goals.

Question 14

Value is measured by the variable and fixed costs associated with the production and marketing of a particular product compared with the revenue and profits the product generates.

Accepted Answer

Value is typically measured by the perceived benefits and utility a product provides to consumers, not just by the costs and revenues associated with its production and marketing.

Question 15

Resources, capabilities, and core competencies are the foundation of competitive advantage.

Accepted Answer

Resources, capabilities, and core competencies are essential elements that enable a firm to achieve and sustain a competitive advantage by effectively utilizing its strengths to outperform competitors.

Question 16

The need to meet quarterly earnings results causes managers to accurately examine the firm's internal organization.

Accepted Answer

The pressure to meet quarterly earnings results often leads managers to focus on short-term financial performance rather than thoroughly examining and improving the firm's internal organization.

Question 17

In today's global economy, some resources that were traditionally critical to firms' efforts to produce, sell, and distribute goods are now less likely to be a source of competitive advantage.

Accepted Answer

As globalization and technological advancements have increased access to resources, traditional resources like raw materials and labor are less likely to provide a competitive edge, shifting focus to innovation, technology, and intellectual capital.

Question 18

The learning generated by making and correcting mistakes is generally unimportant to efforts to create new capabilities and core competencies.

Accepted Answer

Learning from mistakes is crucial for innovation and developing new capabilities, as it allows for improvement and adaptation.

Question 19

When comparing the resources a company has at its disposal, the capacity to innovate or a positive reputation, both of which are intangible, would be an inferior source of capabilities and core competencies than tangible resources such as copyrights, patents, and the ability to generate funds.

Accepted Answer

Intangible resources like innovation capacity and reputation can be superior sources of capabilities and core competencies because they are often unique, difficult to replicate, and can provide sustainable competitive advantages.

Question 20

By themselves, resources can allow firms to create value for customers as the foundation for earning above-average returns.

Accepted Answer

Resources alone are not sufficient; they must be valuable, rare, inimitable, and organized effectively to create value and earn above-average returns.

Quiz 3: The Internal Organization: Resources, Capabilities, Core Competencies, and Competitive Advantages