Question 1

Today, a substantially slimmed-down Polaroid is introducing a number of new products including GL20 Camera Glasses which have a built-in camera and LCDs. This wave of new product development is explained by
A) the funds provided by a patent infringement lawsuit won by Poloroid.
B) weaker competitors in its industry.
C) the learning that occured from making earlier mistakes.
D) an easing of regulations governing Intellectual Propery Protection.

Accepted Answer

The fact that Polaroid has made mistakes in the past suggests that they have learned from those mistakes and are now focusing on developing new and improved products.

Question 2

____ is/are the source of a firm's ____, which is/are the source of the firm's ____.
A) Resources, capabilities, core competencies
B) Capabilities, resources, core competencies
C) Capabilities, resources, above average returns
D) Core competencies, resources, competitive advantage

Accepted Answer

The answer of ____ is/are the source of a firm's...

Question 3

Which of the following is NOT a factor affecting sustainability of a competitive advantage?
A) The availability of substitutes for a firm's core competence.
B) The rate at which obsolescence of the core competence occurs because of environmental changes.
C) The imitability of a core competence.
D) The length of time the core competence has existed.

Accepted Answer

The length of time the core competence has existed is not a factor affecting sustainability of a competitive advantage as it is a historical factor and not dependent on current market conditions or the abilities of competitors to imitate or substitute the core competence.

Question 4

The overall lesson from the Chapter 3 Strategic Focus about decision-making at several companies was the importance of _________
A) CEO compensation.
B) the effect of unattractive industries on firm performance.
C) making decisions about use of the firm's resources under conditions of uncertainty.
D) competing against innovative rivals.

Accepted Answer

Throughout the chapter, the focus was on how companies make decisions about resource allocation and investment under conditions of uncertainty. The examples and case studies highlighted the importance of strategic focus and disciplined decision-making processes. The other options (A, B, and D) were not major themes of the chapter.

Question 5

According to the Chapter 3 Opening Case, all of the following are core competencies of Subway EXCEPT
A) Providing continuous training for its franchisees and those working within those units.
B) Offering healthy and nutritious products to consumers.
C) The challenging economic environment in which even affluent consumers are choosing to dine at quick-service restaurants such as Subway.
D) Use of nontraditional locations such as appliance stores, automobile showrooms, and zoos.

Accepted Answer

The opening case mentions Subway's core competencies as providing continuous training, offering healthy and nutritious products, and using nontraditional locations. The challenging economic environment is not mentioned as a core competency.

Question 6

____ of organizational decisions fail.
A) Few
B) About one-quarter
C) About half
D) Most

Accepted Answer

According to research, about half of organizational decisions fail.

Question 7

Which of the following is NOT required for a firm to achieve strategic competitiveness and earn above-average returns from its core competencies?
A) Core competencies must be acquired.
B) Core competencies must be bundled.
C) Core competencies must be internationalized.
D) Core competencies must be leveraged.

Accepted Answer

The answer of Which of the following is NOT required...

Question 8

By emphasizing core competencies when formulating strategies, companies learn to compete primarily on the basis of
A) intangible resources.
B) their primary activities.
C) firm-specific differences.
D) efficiency of production.

Accepted Answer

Emphasizing core competencies means focusing on the unique strengths and capabilities of the company that are difficult for competitors to imitate or replicate. This leads to competing on the basis of firm-specific differences, rather than just efficiency of production or tangible resources. By leveraging their core competencies, companies can create value for customers and achieve a sustainable competitive advantage.

Question 9

It is increasingly difficult for a firm to develop and sustain a competitive advantage because of the effects of globalization and
A) the rapid development of the Internet's capabilities.
B) extensive use of outsourcing within the borders of the U.S.
C) the declining number of inventions and patents developed by U.S. citizens.
D) the simultaneous erosion of the U.S. work ethic and the U.S. education system.

Accepted Answer

The rapid development of the Internet's capabilities has increased the ease and speed of communication and information sharing, leading to increased competition from both domestic and global rivals. This has made it increasingly difficult for firms to maintain a competitive advantage solely through traditional means such as product differentiation or cost leadership.

Question 10

The three conditions that characterize difficult managerial decisions concerning resources, capabilities, and core competencies are
A) complexity, rarity, and human intellectual capital.
B) uncertainty, complexity, and intraorganizational conflicts.
C) imitability, complexity, and interorganizational conflicts.
D) imitability, comparability, and human intellectual capital.

Accepted Answer

The three conditions that characterize difficult managerial decisions concerning resources, capabilities, and core competencies are uncertainty, complexity, and intraorganizational conflicts. Uncertainty refers to the lack of information or predictability of outcomes, complexity refers to the multitude of factors that need to be considered, and intraorganizational conflicts refer to the disagreements or different priorities among members of the organization. The other answer choices do not accurately describe the conditions that make these decisions difficult.

Question 11

One reason executive judgment can be a particularly important source of competitive advantage is that judgment
A) allows a firm to build a strong reputation.
B) gains the loyalty of shareholders.
C) increases human intellectual capacity.
D) allows for superior bundling of resources.

Accepted Answer

Executive judgment allows a firm to build a strong reputation as it demonstrates the leader's ability to make sound decisions and navigate complex business environments effectively. This, in turn, can attract customers, investors, and employees, giving the firm a competitive advantage. Executive judgment also enables leaders to identify opportunities and risks that others may miss, leading to superior decision-making and resource allocation. However, executive judgment does not necessarily gain the loyalty of shareholders or increase human intellectual capacity, nor does it allow for superior bundling of resources.

Question 12

A decision that results in failure
A) is a career-ending event because it is so unusual.
B) often results from lack of accountability.
C) fosters organizational inertia.
D) allows for learning.

Accepted Answer

A decision that results in failure allows for learning. It provides an opportunity to reflect on the reasons for the failure and to identify areas that need improvement. Therefore, failure is not necessarily a bad thing if it leads to learning and growth.

Question 13

Internal analysis enables a firm to determine what the firm
A) can do.
B) should do.
C) will do.
D) might do.

Accepted Answer

Internal analysis focuses on the firm's strengths, weaknesses, resources, and capabilities to determine what the firm can do. It does not necessarily determine what the firm should, will, or might do, as those decisions are influenced by external factors such as market conditions, customer needs, and competitive pressures.

Question 14

The proper matching of what a firm can do with what it might do
A) balances the internal characteristics of the firm with the characteristics of the external environment.
B) overcomes the rigidity and inertia resulting from a history of success.
C) yields insights the firm requires to select its strategy.
D) develops core competencies based on human knowledge.

Accepted Answer

The answer of The proper matching of what a firm...

Question 15

A person who has made a successful decision when no obviously correct model or rule is available or when relevant data are unreliable or incomplete has exercised
A) foresight.
B) judgment.
C) effective strategic thinking.
D) decisiveness.

Accepted Answer

Judgment is the ability to make decisions based on incomplete or unreliable information. It involves weighing risks and benefits and considering all available options in order to come to a thoughtful and informed conclusion. Foresight, effective strategic thinking, and decisiveness are also important skills, but they may not be as relevant in situations where there is no obvious correct model or rule to follow.

Question 16

Which of the following is not a component of internal analysis leading to competitive advantage?
A) Tangible and intangible resources.
B) Analysis of supplier power.
C) Capabilities.
D) Core competencies.

Accepted Answer

Analysis of supplier power is not a component of internal analysis leading to competitive advantage. It is a part of external analysis in the Porter's Five Forces model. The other options - tangible and intangible resources, capabilities, and core competencies - are all components of internal analysis that help a company identify its strengths and weaknesses and build a competitive advantage.

Question 17

As discussed in the Chapter 3 Strategic Focus, CEOs of companies such as Viacom, the Oprah Winfrey Network, the Gap, and Cisco frequently had to make decisions about __________________ and the success of those decisions affected the tenure of those CEOs.
A) how to please customers
B) how to best rivals
C) use of the firm's resources
D) their method of compensation

Accepted Answer

The passage states that the CEOs had to make decisions about the "use of the firm's resources" which affected their tenure. This implies that making the right decisions about resource allocation was critical for the success of the company and the job security of the CEO. The other options - pleasing customers, besting rivals, and method of compensation - are important factors in running a successful business, but the passage specifically mentions resource allocation as the key decision that affected the CEOs' tenure.

Question 18

Value consists of
A) A product's proprietary characteristics and by its attributes for which customers are willing to pay.
B) A product's performance characteristics and by its attributes for which customers are willing to pay.
C) A product's proprietary characteristics and by its attributes for which customers consider paying for.
D) A product's performance characteristics and by its attributes for which customers consider paying for.

Accepted Answer

Value is determined by a product's performance characteristics and attributes for which customers are willing to pay. A product's proprietary characteristics may add to the value, but they are not the sole determining factor. Additionally, customers must be willing to pay for the attributes, not just consider paying for them, for them to be deemed valuable.

Question 19

____ is measured by a product's performance characteristics and its attributes for which customers are willing to pay.
A) Competitive advantage
B) Profit potential
C) Contribution
D) Value

Accepted Answer

Value is the measure of a product's performance characteristics and its attributes for which customers are willing to pay. Competitive advantage refers to the unique edge a company has over its competitors, profit potential is the expected financial gain from a product or service, and contribution is the amount of revenue left over after deducting the variable costs associated with producing that revenue. None of these directly measure a product's performance characteristics and attributes.

Question 20

The key to achieving competitiveness, earning above-average returns, and remaining ahead of competitors in the long run is to manage current core competencies
A) in a way that uniquely bundles and leverages the firm's existing resources.
B) while simultaneously developing new ones.
C) and imitate the core competencies of successful competitors.
D) in order to preserve and enhance them against the firm's competitors.

Accepted Answer

The answer of The key to achieving competitiveness, earning above-average...

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

Today, a substantially slimmed-down Polaroid is introducing a number of new products including GL20 Camera Glasses which have a built-in camera and LCDs. This wave of new product development is explained by

is/are the source of a firm's , which is/are the source of the firm's .

Which of the following is NOT a factor affecting sustainability of a competitive advantage?

The overall lesson from the Chapter 3 Strategic Focus about decision-making at several companies was the importance of _________

According to the Chapter 3 Opening Case, all of the following are core competencies of Subway EXCEPT

____ of organizational decisions fail.

Which of the following is NOT required for a firm to achieve strategic competitiveness and earn above-average returns from its core competencies?

By emphasizing core competencies when formulating strategies, companies learn to compete primarily on the basis of

It is increasingly difficult for a firm to develop and sustain a competitive advantage because of the effects of globalization and

The three conditions that characterize difficult managerial decisions concerning resources, capabilities, and core competencies are

One reason executive judgment can be a particularly important source of competitive advantage is that judgment

A decision that results in failure

Internal analysis enables a firm to determine what the firm

The proper matching of what a firm can do with what it might do

A person who has made a successful decision when no obviously correct model or rule is available or when relevant data are unreliable or incomplete has exercised

Which of the following is not a component of internal analysis leading to competitive advantage?

As discussed in the Chapter 3 Strategic Focus, CEOs of companies such as Viacom, the Oprah Winfrey Network, the Gap, and Cisco frequently had to make decisions about __________________ and the success of those decisions affected the tenure of those CEOs.

Value consists of

____ is measured by a product's performance characteristics and its attributes for which customers are willing to pay.

The key to achieving competitiveness, earning above-average returns, and remaining ahead of competitors in the long run is to manage current core competencies