Question 1

After studying the external and internal environment and the need to integrate external resources, the firm has the knowledge required to select corporate level strategies and organizational form to realize its goals

Accepted Answer

The answer of After studying the external and internal environment...

Question 2

The Toyota Production System relies heavily on the creativity and alertness of all employees and the ingenuity of suppliers and sales partners to generate ideas

Accepted Answer

The Toyota Production System is known for its emphasis on continuous improvement and respect for people. All employees are encouraged to actively participate in identifying problems and suggesting solutions, regardless of their position or level within the company. Furthermore, Toyota works closely with suppliers and sales partners to improve the overall supply chain and customer satisfaction. Therefore, the system heavily relies on the creativity and alertness of all employees and the ingenuity of suppliers and sales partners to generate ideas.

Question 3

Not invented here refers to the protection of internal ideas from competitors

Accepted Answer

Not Invented Here syndrome refers to the attitude of not accepting ideas, products or techniques from outside sources. It is a resistance to ideas and inputs from external sources, rather than protecting internal ideas from competitors.

Question 4

Absorptive capacity, or the ability to learn, underpins the successful implementation of practical alternatives to integrating knowledge such as alliances, M&A, lead users, ventures etc.

Accepted Answer

Absorptive capacity plays a crucial role in successfully implementing practical alternatives to integrating knowledge. It refers to an organization's ability to acquire, assimilate, transform, and exploit external knowledge for its own benefit. Without this capacity, the organization may struggle to effectively leverage alliances, mergers and acquisitions, lead user input, and other collaborative efforts to gain new knowledge and innovate. Therefore, the statement is true.

Question 5

Recently Proctor & Gamble instituted a policy stating that any idea that originates in its labs must not be offered to outside firms under any circumstances

Accepted Answer

Proctor & Gamble is known for its "Connect + Develop" strategy, which encourages collaboration with external partners to leverage ideas and innovations from outside the company.

Question 6

Stable integration is the purposeful selection of resources that are better sourced externally to substitute specific elements of the value chain

Accepted Answer

Stable integration refers to the consistent and reliable incorporation of external resources into a company's operations, not necessarily to substitute elements of the value chain but to enhance or complement them.

Question 7

One difficulty resulting from exploiting external resources is understanding highly complex tasks that require tacit knowledge

Accepted Answer

Tacit knowledge is often difficult to document or transfer, and therefore it can be challenging for external resources to fully understand and execute highly complex tasks that require this type of expertise.

Question 8

One of the following countries is often referred to as a BRIC country
A) Brazil
B) Canada
C) Israel
D) Ireland

Accepted Answer

BRIC refers to an acronym representing Brazil, Russia, India, and China, which are considered emerging economies with significant growth potential.

Question 9

Competences can turn into core rigidities when
A) Companies become too reliant on external resources
B) Companies fully integrate internal and external resources
C) Companies learn from the past
D) Companies lose their ability to learn and end up trapped with what mattered in the past

Accepted Answer

Competences that were once successful in the past can become core rigidities if a company loses its ability to learn and adapt to new challenges and opportunities. This can result in the company getting stuck relying solely on what worked in the past and being unable to adopt new ways of doing things, ultimately contributing to its decline.

Question 10

Muji's products bear the message
A) No brand, quality goods
B) Low cost brand names
C) No brand, low cost
D) Low prices, essential

Accepted Answer

Muji's message is "No brand, quality goods." Although they do offer relatively low prices, that is not the main message they are trying to convey to their customers.

Question 11

One of the following is not used in SWOT analysis
A) Threats
B) Options
C) Weaknesses
D) Strengths

Accepted Answer

The term "options" is not typically used in SWOT analysis. The acronym SWOT stands for Strengths, Weaknesses, Opportunities, and Threats.

Question 12

Muji's approach to co-designing with customers includes the following
A) Always using ideas that customers have scored highly
B) Removing all of the company's internal design capacity
C) Inviting customers to submit and pre-evaluate new designs
D) Avoiding feasibility checks and moving straight to manufacture and distribution

Accepted Answer

Muji's approach includes inviting customers to submit and pre-evaluate new designs, as well as involving them in the design process through workshops and feedback sessions. This does not necessarily mean they always use the ideas that customers have scored highly, remove all internal design capacity, or skip feasibility checks before manufacture and distribution.

Question 13

Firms can develop four main approaches to integration including all except one of the following
A) Institutionalize the integration of external and internal resources
B) Internalize external resources and develop synergies with internal resources
C) Increase performance by exploiting distinct and separate external and internal resources
D) Identify critical external resources

Accepted Answer

Option C is the only incorrect option as it suggests that firms can increase performance by exploiting distinct and separate external and internal resources, which is counterproductive to the concept of integration. The other three options all suggest ways in which a firm can integrate internal and external resources to improve their performance.

Question 14

Strategic competitiveness and above average returns involve
A) Focus on external resources to overcome threats in the external environment and take advantage of opportunities to create value for customers
B) Integrating internal with external resources to overcome threats from the internal environment and take advantage of opportunities to create value for customers
C) Integrating internal with external resources to overcome threats in the external environment and take advantage of opportunities to create value for customers
D) Focus on internal resources to overcome threats in the external environment and take advantage of opportunities to create value for customers

Accepted Answer

Strategic competitiveness and above average returns are achieved by integrating internal and external resources to overcome threats in the external environment and take advantage of opportunities to create value for customers. This requires a deep understanding of both the internal and external factors that affect the organization and the ability to align these factors in a way that creates sustainable competitive advantage. Simply focusing on external or internal resources alone is not enough to achieve strategic competitiveness and above average returns. Choice C is the only option that reflects the need for integration of both internal and external resources to achieve these goals.

Question 15

Disruptive technologies transform a company's frame of reference and make fundamental organizational change necessary

Accepted Answer

Disruptive technologies can completely shift a company's market and industry, requiring significant changes in operations, strategies, and even company culture. Companies that fail to adapt to disruptive technologies risk losing market share and becoming irrelevant.

Question 16

Basic modes of integration describe broad, alternative approaches to integrate internal and external knowledge

Accepted Answer

Basic modes of integration are defined as broad, alternative approaches for integrating internal and external knowledge.

Question 17

External resources are lie outside the boundary of the company and may include all expect one of the following
A) Assets
B) Knowledge
C) Employees
D) Skills

Accepted Answer

External resources are defined as resources that lie outside the boundary of the company. Employees, on the other hand, are internal resources that are part and parcel of the company. Therefore, option C is the best choice.

Question 18

Berlitz used the following internal resource to develop the Berlitz Method of language learning
A) French language teachers who were not able to communicate well in English
B) French language teachers who were able to communicate in English and French
C) French language teachers who only used English as the language of instruction in class
D) French speakers who could speak no English

Accepted Answer

The Berlitz Method was developed using French language teachers who were not able to communicate well in English, forcing them to teach using only the target language, which is a key aspect of the Berlitz Method.

Question 19

Acquisitions are instances of corporate development where one corporate entity internalizes another entity, which subsequently ceases to exist independently

Accepted Answer

This statement is true. An acquisition involves one company acquiring another company and incorporating it into its own operations, leading to the acquired company ceasing to exist independently.

Question 20

Consumer ethnography is an approach that seeks to understand consumers and their behavior by employing
A) Information from within the company
B) Secondary research
C) Fieldwork to generate data
D) Statistical information only

Accepted Answer

Consumer ethnography involves direct observation and interaction with consumers in their natural environment to gather data and insights about their behavior, preferences, and attitudes. This is done through fieldwork, which includes techniques such as in-person interviews or focus groups, participant observation, and shadowing. Information from within the company or statistical information alone may not provide a comprehensive understanding of consumers and their behaviors, while secondary research can be helpful, it is not the main approach used in consumer ethnography.

Quiz 4: Integrating Internal and External Resources Open Innovation, Absorptive Capacity and Integration

After studying the external and internal environment and the need to integrate external resources, the firm has the knowledge required to select corporate level strategies and organizational form to realize its goals

The Toyota Production System relies heavily on the creativity and alertness of all employees and the ingenuity of suppliers and sales partners to generate ideas

Not invented here refers to the protection of internal ideas from competitors

Absorptive capacity, or the ability to learn, underpins the successful implementation of practical alternatives to integrating knowledge such as alliances, M&A, lead users, ventures etc.

Recently Proctor & Gamble instituted a policy stating that any idea that originates in its labs must not be offered to outside firms under any circumstances

Stable integration is the purposeful selection of resources that are better sourced externally to substitute specific elements of the value chain

One difficulty resulting from exploiting external resources is understanding highly complex tasks that require tacit knowledge

One of the following countries is often referred to as a BRIC country

Competences can turn into core rigidities when

Muji's products bear the message

One of the following is not used in SWOT analysis

Muji's approach to co-designing with customers includes the following

Firms can develop four main approaches to integration including all except one of the following

Strategic competitiveness and above average returns involve

Disruptive technologies transform a company's frame of reference and make fundamental organizational change necessary

Basic modes of integration describe broad, alternative approaches to integrate internal and external knowledge

External resources are lie outside the boundary of the company and may include all expect one of the following

Berlitz used the following internal resource to develop the Berlitz Method of language learning

Acquisitions are instances of corporate development where one corporate entity internalizes another entity, which subsequently ceases to exist independently

Consumer ethnography is an approach that seeks to understand consumers and their behavior by employing