Question 1

The resource-based view of the firm has which of the following points of view?

Accepted Answer

The resource-based view of the firm focuses on the internal resources, capabilities, and competencies of an organization as the basis for creating a competitive advantage. It emphasizes that a firm's unique resources and capabilities are difficult to imitate and can lead to sustained competitive advantage over time.

Question 2

The industry view of firm performance is illustrated by which of the following?

Accepted Answer

The structure-conduct-performance framework is a widely accepted framework used to analyze and explain firm performance. This framework suggests that a firm's market structure (i.e. number of players, barriers to entry) determines its behavior (conduct), which ultimately affects its performance.

Question 3

Which of the following statements describes 'tacit' knowledge? Please select all that apply.

Accepted Answer

A) The ability to drive expertly is often based on tacit knowledge that has been gained through experience rather than explicit instruction.
C) The formation of team routines often involves the sharing and implementation of tacit knowledge among team members.

Question 4

A methodological problem inherent in trying to add weight to the resource-based view of the firm is that many resources are tacit and intangible and therefore cannot be easily ______________.

Accepted Answer

The answer of A methodological problem inherent in trying to...

Question 5

Organizational culture can be described as an intangible resource.

Accepted Answer

Organizational culture cannot be physically quantified, and therefore is intangible.

Question 6

A competence confers competitive advantage.

Accepted Answer

The answer of A competence confers competitive advantage....

Question 7

Prahalad and Hamel (1990) pointed out that some corporations treat their corporation as a portfolio of discrete businesses. They referred to this as 'the tyranny of the SBU'.

Accepted Answer

Prahalad and Hamel (1990) did indeed point out that some corporations treat their corporation as a portfolio of discrete businesses and called it 'the tyranny of the SBU'.

Question 8

The term ______________can be used in place of the term "core competences".

Accepted Answer

The answer of The term ______________can be used in place...

Question 9

For a distinctive capability to be ________________ it must persist over time.

Accepted Answer

The answer of For a distinctive capability to be ________________...

Question 10

For a distinctive capability to be ____________ it needs to primarily benefit the organization which holds the capability, rather than its employees, its customers, or its competitors.

Accepted Answer

The answer of For a distinctive capability to be ____________...

Question 11

An organization's architecture comprises of:

Accepted Answer

Relational contracts are part of an organization's architecture as they define the informal agreements and relationships that influence how the organization operates internally and externally.

Question 12

Kay (1993:69) stated '________________ does not create extraordinary organizations by collecting extraordinary people. It does so by enabling very ordinary people to perform in extraordinary ways'.

Accepted Answer

The answer of Kay (1993:69) stated '________________ does not create...

Question 13

Reputation could be a source of distinctive capability in markets:

Accepted Answer

Reputation is crucial in markets where consumers rely on long-term experience to judge quality (A), where trust and reliability are built over time (B), and where repeat purchases are common, as reputation influences consumer decisions (D).

Question 14

An organization's ability to innovate successfully is also a source of distinctive capability for sustainability

Accepted Answer

Innovation is a key factor for organizations to remain competitive and adaptable in the constantly changing business environment. A sustained ability to innovate successfully gives an organization a distinctive capability that can help it to survive and thrive in the long term.

Question 15

What three conditions allow distinctive capability to be unreproducible: please select all that apply.

Accepted Answer

A market structure that limits entry, such as legal or regulatory barriers or high start-up costs, can prevent competitors from entering the market and replicating a distinctive capability. 
Organizational history and culture, which are unique and require time to develop and replicate, can also create an unreproducible advantage. 
Tacit knowledge, such as relationships and expertise, cannot be easily transmitted or transferred to others, making it difficult for competitors to replicate. 
Physical assets, on the other hand, can often be duplicated or purchased.

Question 16

Firm A has a machine that machine knits jumpers very cheaply. Firm B employs labour in China that can hand knit jumpers for the same price. Firm B has a _____________________ resource.

Accepted Answer

The answer of Firm A has a machine that machine...

Question 17

For a resource to be considered 'strategic', it must meet four criteria. These are value, difficult to imitate, rare and…

Accepted Answer

The fourth criteria for a resource to be considered strategic is that it must be difficult to substitute. This means that there are no easy alternatives or replacements for the resource, making it even more valuable and important. While the other choices may also be important characteristics for a strategic resource, they do not accurately capture the fourth criteria.

Question 18

An organization's competitive advantage can be sustained when:

Accepted Answer

The answer of An organization's competitive advantage can be sustained...

Question 19

Dyson has sustained its competitive advantage mainly due to:

Accepted Answer

The answer of Dyson has sustained its competitive advantage mainly...

Question 20

If it is difficult to establish cause and effect, i.e. why something happened, this is known as _________________.

Accepted Answer

The answer of If it is difficult to establish cause...

Quiz 5: The Internal Environment: a Resource-Based View of Strategy