Question 1

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

Accepted Answer

Meeting quarterly earnings numbers often pressures managers to focus on short-term financial performance rather than thoroughly examining and improving the firm's internal organization for long-term success.

Question 2

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 to evaluate its capabilities, resources, and core competencies within the organization. This helps the firm identify its strengths and weaknesses and determine what it can do to improve its overall performance.

Question 3

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

Accepted Answer

False

Question 4

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

Accepted Answer

Tangible assets like physical plants and borrowing capacity are valuable, but they are not always easily leveraged for additional value due to factors like market conditions, depreciation, and liquidity constraints.

Question 5

The foundation of many capabilities lies in the unique skills and knowledge of a firm's employees.

Accepted Answer

A firm's employees bring their own unique set of skills and knowledge to the table, which play an important role in developing the firm's capabilities. Without the input and expertise of employees, a firm may struggle to innovate and evolve in its industry.

Question 6

Resources are the source of capabilities,some of which lead to the development of core competencies; in turn,some core competencies may lead to competitive advantage.

Accepted Answer

This statement is true. Resources, when effectively utilized, can lead to the development of core competencies, which can then give a company a competitive advantage over its rivals.

Question 7

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

The answer of Value is measured by the variable and...

Question 8

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

This statement accurately describes the concept of strategic competitiveness and the role of resources in creating value for customers in the external environment.

Question 9

Resources must be combined to form capabilities,as illustrated by Subway,which linked its fresh ingredients with several other resources,including the continual training it provides to those running the firm's units as the foundation for customer service as a capability.

Accepted Answer

The statement accurately describes how resources are combined to form capabilities, using Subway as an example.

Question 10

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 in creating new capabilities and core competencies. It allows organizations to identify areas of improvement and make necessary adjustments to achieve their goals. Without this learning, it is difficult for organizations to innovate and adapt in a rapidly changing environment.

Question 11

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

Accepted Answer

Developing new core competencies does not necessarily guarantee above-average profit. It is important for firms to assess the potential profitability of a new core competency before investing resources into its development. Additionally, existing core competencies may continue to provide above-average profit, so firms should not ignore them in pursuit of new ones.

Question 12

Technology is a critical resource for helping organizations learn how to continually innovate.

Accepted Answer

The answer of Technology is a critical resource for helping...

Question 13

Compared to tangible resources,intangible resources are an inferior source of core competencies.

Accepted Answer

Intangible resources, such as brand reputation, intellectual property, and organizational culture, can often be a more valuable source of core competencies than tangible resources. These resources are often more difficult to imitate or replicate, and can provide a sustainable competitive advantage.

Question 14

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 15

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

Accepted Answer

The answer of By themselves,resources can allow firms to create...

Question 16

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 is known for its effective use of information technology and efficient distribution channels to keep costs low and offer everyday low prices to customers. These are considered core competencies that help create value for customers.

Question 17

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

The answer of Although an organization's good reputation is a...

Question 18

GE's brand name is a tangible source of competitive advantage for the company.

Accepted Answer

A brand name is considered an intangible asset, not a tangible one. It can provide competitive advantage, but it is not a physical or tangible asset.

Question 19

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

Yes, 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. This helps the firm to effectively compete in the market and achieve its strategic objectives.

Question 20

Creating customer value is the source of the firm's potential to earn above-average returns.

Accepted Answer

Creating customer value is a key factor in a firm's ability to differentiate itself from competitors and attract customers, which can lead to increased sales and market share. This, in turn, can lead to higher profits and the potential to earn above-average returns.

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