Question 1

Individually,resources typically result in a sustainable competitive advantage.

Accepted Answer

Individually, resources do not typically result in a sustainable competitive advantage. Instead, it is the combination and integration of resources, capabilities, and strategies that create sustainable competitive advantages.

Question 2

The sustainability of a competitive advantage depends upon the imitability of the core competence,the availability of substitutes for the core competence,and the rate of core competence obsolescence.

Accepted Answer

The sustainability of a competitive advantage depends on various factors including the imitability of the core competence, availability of substitutes, and rate of core competence obsolescence. Therefore, the statement is true.

Question 3

Before the firm can make strategic decisions,managers must prioritize the decisions that generate adequate quarterly earning numbers.

Accepted Answer

Strategic decisions should focus on long-term goals and sustainability rather than just short-term financial performance. Prioritizing only quarterly earnings can undermine the firm's long-term success.

Question 4

A resource has high strategic value even if it has no effect on the competitive advantage of the firm.

Accepted Answer

A resource only has high strategic value if it contributes to the firm's competitive advantage, otherwise it is not a valuable strategic resource.

Question 5

Capabilities of an organization emerge over time through complex interactions between and among tangible and intangible resources.

Accepted Answer

Capabilities of an organization are developed through a combination of tangible resources (such as technology, equipment, and finances) and intangible resources (such as organizational culture, reputation, and knowledge/training). These resources interact over time and can combine to create unique capabilities and competitive advantages for the organization.

Question 6

Firms can earn above-average returns even if they do not develop or sustain a competitive advantage.

Accepted Answer

The answer of Firms can earn above-average returns even if...

Question 7

A firm's ability to achieve a competitive advantage is reflected in its financial capital base.

Accepted Answer

A firm's ability to achieve a competitive advantage is dependent on many factors such as innovation, quality, customer service, and brand recognition. While financial capital can contribute to a firm's ability to invest in these areas, it alone cannot guarantee a competitive advantage.

Question 8

Value of a product is measured by the variable and fixed costs associated with its production.

Accepted Answer

The value of a product is determined by the demand for it in the market, not solely by the costs of its production. However, costs do play a role in determining the price at which a product is sold.

Question 9

For capabilities to be a source of competitive advantage,they must allow a firm to perform value-creating activities that competitors are also able to complete.

Accepted Answer

Capabilities must allow a firm to perform value-creating activities in a unique or superior way that competitors are not able to replicate easily in order for them to be a source of sustainable competitive advantage.

Question 10

A competitive advantage can be created when several resources are bundled together in a unique fashion.

Accepted Answer

Yes, a unique combination or bundle of resources can offer a competitive advantage as it creates value that competitors cannot easily imitate. This is referred to as a resource-based view of competitive advantage.

Question 11

Not all resources and capabilities are core competencies.

Accepted Answer

Not all resources and capabilities are core competencies. A core competency is a unique capability or strength that gives a company a competitive advantage. While some resources and capabilities may be important for a company's overall success, they may not necessarily be a core competency.

Question 12

Analyzing the internal environment enables a firm to determine what it might be able to do by identifying what opportunities exist.

Accepted Answer

The answer of Analyzing the internal environment enables a firm...

Question 13

Only capabilities that are valuable,rare,costly to imitate,and non-substitutable are sources of sustainable competitive advantage.

Accepted Answer

This statement summarizes the criteria for a resource or capability to be considered a source of sustainable competitive advantage according to the VRIO framework.

Question 14

Firms should seek to obtain a sustainable competitive advantage through implementation of strategies based on their particular resources,capabilities,and core competencies.

Accepted Answer

This statement is true. Firms can achieve sustainable competitive advantage by leveraging their unique resources, capabilities, and core competencies that are difficult for competitors to imitate or replicate.

Question 15

Every core competence is a capability and every capability is a core competence.

Accepted Answer

While every core competence is a capability, not every capability is a core competence. Core competences are unique strengths or competitive advantages that distinguish a company from its competitors and allow it to create value. Capabilities, on the other hand, are the skills, resources, and processes that support a company's business activities.

Question 16

There are correct models and rules that must be followed when conducting a value chain analysis or the correct answer will not be determined.

Accepted Answer

Value chain analysis is a flexible framework that can be adapted to different industries and contexts. There are no strict models or rules that must be followed, but rather guidelines that can help in identifying value-adding activities.

Question 17

Capabilities may be costly to imitate if they are causally ambiguous or socially complex.

Accepted Answer

Causal ambiguity or social complexity may make it difficult for competitors to understand how a capability is created and implemented, making it costly to imitate.

Question 18

Only capabilities that are valuable,common,costly to imitate,and substitutable can be strategic capabilities.

Accepted Answer

The answer of Only capabilities that are valuable,common,costly to imitate,and...

Question 19

A company can earn above-average returns only when the value it creates is less than the costs incurred to create that value.

Accepted Answer

A company can earn above-average returns when the value it creates is greater than the costs incurred to create that value. This is the basis of creating a competitive advantage and generating a higher profit margin.

Question 20

Capabilities can be developed quickly in response to changes in the new competitive landscape.

Accepted Answer

The answer of Capabilities can be developed quickly in response...

Quiz 4: The Internal Organization: Resources, capabilities, and Core Competencies