Question 1

Stretch is accomplished through:
A)Effectively assessing organizational strengths and weaknesses.
B)Resource leveraging or systematically achieving the most possible from the available resources.
C)Focusing only on high-value, rare strengths.
D)Eliminating all competitively relevant weaknesses.

Accepted Answer

Stretch is mainly accomplished by resource leveraging or systematically achieving the most possible from the available resources. The other options (A, C, and D) are all important aspects of strategic planning, but they do not directly relate to stretching an organization's capabilities to achieve higher levels of performance.

Question 2

Under what circumstances are organizational weaknesses competitively relevant?

Accepted Answer

Competitively relevant weaknesses relate to areas that are valued in the marketplace, are not common weaknesses attributed to competitors, are difficult for the organization to correct, and offer advantages that can be sustained by others.

Question 3

Which of the following is the proper interpretation of competitive disadvantages for an organizational weakness that exhibits high value, is not rare, is easy to correct, and such that competitors can sustain their advantage?
A)Short-term competitive disadvantage.
B)No competitive disadvantage.
C)Long-term competitive disadvantage.
D)Neither a competitive advantage nor disadvantage.

Accepted Answer

A

Question 4

How many organizations develop sustainable competitive advantages by being extraordinarily competent at converting ordinary resources and skills into genuine strategic assets?

Accepted Answer

The answer of How many organizations develop sustainable competitive advantages...

Question 5

The strategic implications of the competitively relevant strength of
"entrepreneurial culture" are history, and performance has established a firm reputation for innovation.

Accepted Answer

The statement suggests that having an "entrepreneurial culture" with a reputation for innovation can have strategic implications, which is true.

Question 6

Explain the value of stretch to an organization.

Accepted Answer

The answer of Explain the value of stretch to an...

Question 7

Synergy is created by combining complementary resources, competencies, and capabilities.

Accepted Answer

Synergy is created by combining resources, competencies, and capabilities that complement each other, resulting in a combined effect that is greater than the sum of individual parts.

Question 8

The more often that a particular resource, competency, or capability is used, the greater is the potential for leveraging.

Accepted Answer

The statement is true. The more a particular resource, competency, or capability is utilized, the more it becomes embedded in the organization's way of operating and becomes a source of competitive advantage. This is known as leveraging.

Question 9

Stretch is accomplished through resource leveraging or systematically achieving the most possible from the available resources.

Accepted Answer

Stretch is all about making the most of the available resources in order to achieve maximum results.

Question 10

The three elements of service delivery are:
A)Pricing, quality, and marketing.
B)Target market, clinical operations, and billing.
C)Pre-service, point-of-service, and after-service.
D)Branding, process innovation, and clinical.

Accepted Answer

The three elements of service delivery are pre-service (before the service is received), point-of-service (during the service delivery), and after-service (after the service has been delivered). While pricing, quality, and marketing are important factors in service delivery, they do not encompass all three essential elements. Target market, clinical operations, and billing are also important components of service delivery, but again, do not encompass all three elements. Branding, process innovation, and clinical are all potential aspects of service delivery, but not the three essential elements.

Question 11

How does an organization achieve a competitive advantage?

Accepted Answer

The answer of How does an organization achieve a competitive...

Question 12

Organizational strengths represent competitive advantages when they:
A)Are present in the organization.
B)Are more intense than the same strength in a competitor.
C)Are marshaled in a way that allows them to become genuine strategic assets.
D)Are arranged into a matrix of resources and the manner in which they are allocated.

Accepted Answer

Simply having organizational strengths present may not necessarily provide a competitive advantage, as competitors may have similar strengths. The key to gaining a competitive advantage is to marshal organizational strengths in a way that allows them to become strategic assets. This involves developing and utilizing these strengths in a way that sets the organization apart from its competitors.

Question 13

Complete the following statement. Sustained competitive advantage is the result of:
A)An enduring value differential between the services of one organization and that of its competitors in the minds of patients, physicians, and so on.
B)Having superior resources and competency.
C)A long list of intangible assets, large bank balances, and a strong board of directors.
D)Location, price, key personnel, and organizational structure.

Accepted Answer

Sustained competitive advantage is the result of an enduring value differential between the services of one organization and that of its competitors in the minds of patients, physicians, and so on. This means that the organization is able to consistently provide services that are perceived to be of higher value by its customers than those of its competitors, and this competitive advantage is sustained over time through effective management and innovation. While having superior resources and competency can certainly contribute to a competitive advantage, they are not sufficient in themselves to create sustained advantage. Similarly, a long list of intangible assets and a strong board of directors may be helpful, but they do not necessarily lead to sustained competitive advantage. Factors such as location, price, key personnel, and organizational structure may contribute to a competitive advantage, but they are not sufficient in themselves to create sustained advantage.

Question 14

Which of the following is the proper interpretation of a strategic thinking map of competitive advantages with the judgments of Value (High); Rareness (No); Imitability (Difficult); and Sustainable (Yes)?
A)No competitive advantage. Most competitors have the strength and those that do not can develop it easily and sustain it. Because the strength is widely possessed and can be sustained, it is likely that it already has become a minimum condition for long-term success.
B)Long-term competitive advantage. This strength is rare in the service area, difficult to imitate by competitors, and can be sustained by the organization. If the value is very high, it may be worth "betting the organization" on this strength.
C)Short-term competitive advantage. Because the strength is valuable and rare, competitors will do what is necessary to develop this easy-to-imitate strength. The organization should exploit this short-term advantage but should not base long- term strategies on this type of strength. Over time, this strength may become a minimum condition for long-term success.
D)No competitive advantage. Many competitors possess the strength but it is difficult to develop, so care should be taken to maintain this strength. Because the strength is widely possessed and can be sustained, it is likely that it already has become a minimum condition for long-term success.

Accepted Answer

The strength is valuable and sustainable but not rare, meaning many competitors already have it, and it is difficult to imitate, indicating it is not easily developed by others. However, since it is not rare, it does not provide a competitive advantage.

Question 15

An organizational strength that is of low value, rare, easy to imitate, and difficult to sustain offers short-term competitive advantage.

Accepted Answer

An organizational strength that is of low value, rare, easy to imitate, and difficult to sustain does not offer competitive advantage, whether short-term or long-term.

Question 16

Organizational weaknesses represent competitive disadvantages when they:
A)Are present in the organization.
B)Are more prevalent than the weaknesses in a competitor.
C)Are arranged into a matrix and sorted by relevance.
D)Are of high value to stakeholders, not possessed by competitors, not easily eliminated, and such that competitors can sustain their strengths.

Accepted Answer

Organizational weaknesses represent competitive disadvantages when they are important to stakeholders, not easily eliminated, not possessed by competitors, and such that competitors can sustain their strengths. This means that they are not just present in the organization, but that they significantly impact the organization's ability to compete effectively. Simply having weaknesses present in the organization (option A) may not necessarily be a competitive disadvantage if they do not greatly impact the organization's performance relative to its competitors. Option B is also not necessarily true as having fewer weaknesses than a competitor does not automatically mean the organization has a competitive advantage. Option C is not relevant as arranging weaknesses into a matrix and sorting them does not inherently make them competitive disadvantages.

Question 17

The three subsystems that support service delivery by ensuring an inviting and supportive atmosphere, an effective organization, and sufficient resources such as finances, highly qualified staff, information systems, and appropriate facilities and equipment are:
A)Pricing, quality, and marketing.
B)Organizational culture, organizational structure, and strategic resources.
C)Pre-service, point-of-service, and after-service.
D)Branding, process innovation, and clinical.

Accepted Answer

The three subsystems that support service delivery are organizational culture, organizational structure, and strategic resources. These three subsystems ensure an inviting and supportive atmosphere, an effective organization, and sufficient resources such as finances, highly qualified staff, information systems, and appropriate facilities and equipment. Pricing, quality, and marketing are important components, but they do not directly support service delivery. Pre-service, point-of-service, and after-service are important stages in service delivery, but they do not represent subsystems within the organization. Branding, process innovation, and clinical are important factors, but they do not comprehensively cover the subsystems that support service delivery.

Question 18

The two categories into which capabilities may be classified are:
A)The ability to make dynamic improvements to the organization's activities through learning, renewal, and change over time.
B)The ability to develop strategic insights and recognize and arrange resources and competencies to develop novel strategies before or better than competitors.
C)Both a and b.
D)Neither a nor b.

Accepted Answer

Capabilities can be classified into two categories: dynamic capabilities (the ability to make dynamic improvements to the organization's activities through learning, renewal, and change over time) and strategic capabilities (the ability to develop strategic insights and recognize and arrange resources and competencies to develop novel strategies before or better than competitors). Therefore, both option A and B are correct, making option C the best choice.

Question 19

Only financial resources may be leveraged by an organization.

Accepted Answer

An organization can leverage not only financial resources but also human resources, technological resources, and intellectual resources, among others.

Question 20

What are the strategic implications of a competitively relevant weakness of ongoing legal claims that could prove a threat to financial viability?
A)It would have no strategic relevance because legal claims are a matter of insurance coverage.
B)It demonstrates an absence of competence among the organization's executives.
C)Settlements against the company could result in serious financial consequences.
D)An appropriate strategic response is to move operations generating the legal claims to an offshore location.

Accepted Answer

Ongoing legal claims that pose a threat to financial viability can result in serious financial consequences for the organization, including large settlements as well as negative publicity and damage to reputation. Therefore, it is a strategically relevant weakness that requires immediate attention and action. Options such as moving operations offshore or assuming that it is a matter of insurance coverage are not viable solutions to the problem. While executive competence may be a factor, it is not the only strategic implication of ongoing legal claims.

Quiz 4: Internal Environmental Analysis and Competitive Advantage

Stretch is accomplished through:

Under what circumstances are organizational weaknesses competitively relevant?

Which of the following is the proper interpretation of competitive disadvantages for an organizational weakness that exhibits high value, is not rare, is easy to correct, and such that competitors can sustain their advantage?

How many organizations develop sustainable competitive advantages by being extraordinarily competent at converting ordinary resources and skills into genuine strategic assets?

The strategic implications of the competitively relevant strength of "entrepreneurial culture" are history, and performance has established a firm reputation for innovation.

Explain the value of stretch to an organization.

Synergy is created by combining complementary resources, competencies, and capabilities.

The more often that a particular resource, competency, or capability is used, the greater is the potential for leveraging.

Stretch is accomplished through resource leveraging or systematically achieving the most possible from the available resources.

The three elements of service delivery are:

How does an organization achieve a competitive advantage?

Organizational strengths represent competitive advantages when they:

Complete the following statement. Sustained competitive advantage is the result of:

Which of the following is the proper interpretation of a strategic thinking map of competitive advantages with the judgments of Value (High) ; Rareness (No) ; Imitability (Difficult) ; and Sustainable (Yes) ?

An organizational strength that is of low value, rare, easy to imitate, and difficult to sustain offers short-term competitive advantage.

Organizational weaknesses represent competitive disadvantages when they:

The three subsystems that support service delivery by ensuring an inviting and supportive atmosphere, an effective organization, and sufficient resources such as finances, highly qualified staff, information systems, and appropriate facilities and equipment are:

The two categories into which capabilities may be classified are:

Only financial resources may be leveraged by an organization.

What are the strategic implications of a competitively relevant weakness of ongoing legal claims that could prove a threat to financial viability?