Question 1

From a customer's point of view, for an organization's capability to be a core competence, it must be:

Accepted Answer

A core competence must be valuable and unique to provide a competitive advantage and meet customer needs effectively.

Question 2

At a manufacturing facility, which of the following would be categorized as an intangible resource?

Accepted Answer

The quality control process is an intangible resource as it represents a system or method rather than a physical object or person.

Question 3

Valuable capabilities allow the firm to:

Accepted Answer

Valuable capabilities enable a firm to effectively exploit opportunities or neutralize threats in its external environment, thereby gaining a competitive advantage.

Question 4

Compared to intangible resources, in terms of their value, tangible resources are __________ constrained because they are __________ to leverage.

Accepted Answer

Tangible resources are more constrained because they are harder to leverage, as they are physical and finite, unlike intangible resources which can be more easily scaled or adapted.

Question 5

An investor is considering buying a restaurant that has been in operation for a number of years.The restaurant has a highly regarded chef and many long-term kitchen and wait staff who work together smoothly.It has a reputation for dishes of consistently high quality and an appealing dining atmosphere.Which of the following should the investor consider when making a decision?

Accepted Answer

The restaurant's reputation, skilled staff, and quality service are intangible assets that may not be fully reflected in financial statements, potentially undervaluing the business's true worth.

Question 6

A major department store chain has a strict policy of banning photographs or videos of its sales floor or back-room operations.It also does not allow academics to conduct studies of it for publication in research journals.In fact, some of its own top managers refer to the management's policies on secrecy as "verging on paranoid." These policies indicate that the top management of the firm believes the organization's core competencies are:

Accepted Answer

The answer of A major department store chain has a...

Question 7

Consider the criteria necessary for sustainable competitive advantage.Which of the following combinations would most likely bring about a temporary competitive advantage and the possibility for above-average returns?

Accepted Answer

The answer of Consider the criteria necessary for sustainable competitive...

Question 8

Because firms combine tangible and intangible resources to create capabilities:

Accepted Answer

Capabilities are often based on the development, carrying, and exchange of information and knowledge through the firm's human capital, which combines both tangible and intangible resources.

Question 9

Innovation, consumer understanding, brand-building, go-to-market, and scale are activities that P&G performs well and are examples of the company's:

Accepted Answer

Core competencies refer to the unique strengths and abilities that a company develops over time, which are critical to its competitive advantage. P&G's excellence in innovation, consumer understanding, brand-building, go-to-market, and scale are examples of such competencies.

Question 10

To provide a sustainable competitive advantage, a capability must satisfy all of the following criteria EXCEPT be:

Accepted Answer

Technological innovation alone does not guarantee a sustainable competitive advantage unless it also meets the other criteria of being hard to duplicate, without good substitutes, and valuable to customers.

Question 11

In the airline industry, frequent flyer programs, ticket kiosks, and e-ticketing are all examples of capabilities that are __________ but no longer __________.

Accepted Answer

These capabilities are valuable because they enhance customer experience and operational efficiency, but they are no longer rare as they have become standard practices in the airline industry.

Question 12

The PRQ chain of retail stores has achieved a high level of efficiency in its inventory control by collecting data at the point of purchase.This is an example of a capability in which specific functional area?

Accepted Answer

The capability described is related to Management Information Systems (MIS), which involves collecting, processing, and managing data to improve business operations, such as inventory control.

Question 13

Compared to tangible resources, intangible resources are:

Accepted Answer

Intangible resources, such as brand reputation, intellectual property, and company culture, often provide a superior source of capabilities because they are unique, difficult to imitate, and can provide a sustainable competitive advantage.

Question 14

Which of the following is a true statement about capabilities?

Accepted Answer

Capabilities are often developed in specific functional areas such as manufacturing, R&D, and marketing, as they are built through the integration of resources and skills within these areas.

Question 15

__________ can be viewed as the capacity to take action.

Accepted Answer

The answer of __________ can be viewed as the capacity...

Question 16

__________ is an example of a capability that is based in the functional area of distribution.

Accepted Answer

Logistics management is a key component of distribution, focusing on the efficient movement and storage of goods.

Question 17

Several months ago, a restaurant developed a new appetizer that is a hit with customers.Many customers go to the restaurant just for the appetizer, and it was at the center of a recent highly positive review by a food critic.Preparation involves common ingredients and average culinary skills but requires a very high oven temperature, which significantly increases utility costs.Several competing restaurants have since added their own version of the appetizer to their menu.Which of the following criterion for assessing capabilities/core competencies is met?

Accepted Answer

The appetizer is valuable as it attracts customers and received positive reviews, but it is not rare or costly to imitate since other restaurants have easily added similar items to their menus.

Question 18

When firms lay off employees, they are:

Accepted Answer

Laying off employees can lead to a loss of organizational knowledge and skills, which are considered valuable knowledge resources.

Question 19

Which of the following is NOT a reputational resource?

Accepted Answer

Reputational resources are external perceptions that affect a firm's reputation. Employees' opinions of their supervisors' fairness are internal and relate more to organizational culture than external reputation.

Question 20

Compared to tangible resources, intangible resources are __________ and __________.

Accepted Answer

Intangible resources are less visible because they are not physical assets, and they are more difficult to copy because they often involve unique knowledge, skills, or relationships.

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