Question 1

Capabilities typically come from:

Accepted Answer

Capabilities are typically developed by combining various resources to create a synergy that allows an organization to perform activities effectively.

Question 2

Value consists of a product's:

Accepted Answer

Value in a product is determined by the performance characteristics and attributes that customers are willing to pay for, as these directly contribute to the product's utility and satisfaction.

Question 3

The challenge and difficulty of making effective decisions are implied by preliminary evidence suggesting that __________ of organizational decisions fail.

Accepted Answer

Preliminary evidence suggests that a significant portion, specifically one-half, of organizational decisions fail, highlighting the challenge and difficulty in making effective decisions.

Question 4

The Obama administration expressed a desire to eliminate coal as an energy source, and introduced regulations to drive the coal industry out of business.The Trump administration eased regulations on the coal industry, but also took steps to encourage the development of other forms of energy.In light of this changing regulatory environment, decision makers in the energy industry are most affected by what condition?

Accepted Answer

The changing regulatory environment creates uncertainty for decision makers in the energy industry, as they must navigate and adapt to shifting policies and regulations that impact their operations and strategic planning.

Question 5

A decision that results in failure:

Accepted Answer

Failure can provide valuable lessons and insights, allowing individuals and organizations to learn and improve future decision-making processes.

Question 6

Which of the following is NOT a component of internal analysis leading to competitive advantage?

Accepted Answer

Analysis of supplier power is part of external analysis, not internal analysis.

Question 7

Internal analysis enables a firm to determine what it:

Accepted Answer

Internal analysis helps a firm understand its resources, capabilities, and core competencies, which informs what it can do.

Question 8

One reason executive judgment can be a particularly important source of competitive advantage is that judgment:

Accepted Answer

The answer of One reason executive judgment can be a...

Question 9

Tangible resources include:

Accepted Answer

Tangible resources are assets that can be observed and quantified, such as buildings, equipment, and inventory.

Question 10

Which of the following is NOT a factor affecting sustainability of a competitive advantage?

Accepted Answer

The length of time a core competence has existed does not directly affect the sustainability of a competitive advantage; rather, it's about how well the competence is maintained and adapted over time.

Question 11

One of the managers at RDK has a successful track record that goes back several years.As a result, he has become extremely confident in his judgment, and has begun to make decisions without taking the time to evaluate contingencies that he feels are not relevant.This has led to some mistakes recently.The over-confidence exhibited by this manager is an example of what?

Accepted Answer

Cognitive bias refers to the systematic pattern of deviation from norm or rationality in judgment, where individuals create their own "subjective reality" from their perception of the input. The manager's over-confidence and failure to evaluate contingencies is a classic example of cognitive bias.

Question 12

__________are the source of a firm's __________, which are the source of the firm's __________.

Accepted Answer

Resources are the inputs that a firm uses to create capabilities. These capabilities, when effectively utilized, can develop into core competencies, which are unique strengths that provide a competitive advantage.

Question 13

All of the following are tangible resources EXCEPT:

Accepted Answer

A firm's reputation is an intangible resource because it cannot be physically touched or seen.

Question 14

A person who has made a successful decision when no obviously correct model or rule is available or when relevant data are unreliable or incomplete has exercised:

Accepted Answer

Judgment involves making decisions in situations where there is no clear rule or model to follow, or when data is incomplete or unreliable.

Question 15

A marketing manager at GTA Technology wants the next generation of a particular application to include certain features.The product manager of that app insists that the feature would be costly to implement and could not be achieved by the desired release date unless additional resources, both financial and human, were directed to the app.The marketing manager insists that this is necessary, while the product manager feels that the inclusion of these features would not validate the extra investment.It is now up to the project manager to decide how to proceed.Which of the following conditions is most affecting the project manager's decision?

Accepted Answer

The project manager is dealing with intraorganizational conflict, as there is a disagreement between the marketing manager and the product manager regarding the inclusion of certain features and the associated costs.

Question 16

When considering the relationships among the various characteristics a firm possesses, it is necessary to understand that _________ are the most numerous.

Accepted Answer

Resources are the most numerous among the various characteristics a firm possesses.

Question 17

By emphasizing core competencies when selecting and implementing strategies, companies learn to compete primarily on the basis of:

Accepted Answer

Core competencies are unique strengths and abilities that are firm-specific and differentiate a company from its competitors.

Question 18

The proper matching of what a firm CAN DO with what it MIGHT DO:

Accepted Answer

The answer of The proper matching of what a firm...

Question 19

The three conditions that characterize difficult managerial decisions concerning resources, capabilities, and core competencies are:

Accepted Answer

Uncertainty, complexity, and intraorganizational conflicts are the three conditions that characterize difficult managerial decisions concerning resources, capabilities, and core competencies.

Question 20

The key to achieving competitiveness, earning above-average returns, and remaining ahead of competitors in the long run is to manage current core competencies:

Accepted Answer

To sustain competitiveness and achieve long-term success, firms must not only manage their current core competencies but also continuously develop new ones to adapt to changing environments and stay ahead of competitors.

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