Question 1

Answering the question "What is the cause of this outcome?" causes managers to think deeply about the resources and capabilities that are at the core of their company.

Accepted Answer

Understanding the cause of an outcome requires managers to analyze the internal factors, such as resources and capabilities, that influence their company's performance.

Question 2

A company might leverage an extraordinary resource position by replicating the resource or capability elsewhere in the organization.

Accepted Answer

A company can leverage a strong resource position by replicating successful resources or capabilities in other parts of the organization to enhance overall performance and competitive advantage.

Question 3

The founders of the Classic Car Club (CCC) described in the opening vignette for chapter six recognized an opportunity to

Accepted Answer

The founders of the Classic Car Club recognized an opportunity to allow people to drive a variety of cars to which they would not ordinarily have easy access.

Question 4

Physical assets such as equipment, buildings, land, furniture, money and patents are ________ resources.

Accepted Answer

Tangible resources are physical and measurable assets that are used in a company's operations, such as equipment, buildings, land, and furniture.

Question 5

The must-have resources a firm needs just to be a credible contender in the industry are called ________ resources.

Accepted Answer

The answer of The must-have resources a firm needs just...

Question 6

Which of the following is the best example of an intangible resource?

Accepted Answer

A company's brand is an intangible resource because it represents the reputation and perception of the company, which cannot be physically touched or quantified like physical assets.

Question 7

Resources that are believed by management to be rare, durable, non-substitutable, non-tradable, and valuable are ________ resources.

Accepted Answer

The answer of Resources that are believed by management to...

Question 8

Which of the following is not one of the dimensions that comprises the VRIST characteristics of extraordinary resources?

Accepted Answer

The VRIST framework includes valuable, rare, inimitable, and non-substitutable as dimensions, but not instrumental.

Question 9

In which of the following ways can a resource be used to create value?

Accepted Answer

All the options describe ways in which a resource can be used to create value by either reducing costs, enhancing features, or expanding the customer base without compromising existing value.

Question 10

While a resource may not be rare or unique by objective measures, it may still be a source of a resource-based competitive advantage by the standard of rareness if it

Accepted Answer

A resource can be a source of competitive advantage if it is perceived to be rare, as perception can influence market dynamics and competitive positioning.

Question 11

Which of the following can make a resource difficult for competitors to imitate?

Accepted Answer

Intellectual property protection and unobservable routines or processes both create barriers that make it difficult for competitors to imitate a resource.

Question 12

The legal means for protecting tangible and intangible assets through such things as patents, copyrights, and trademarks is called

Accepted Answer

Intellectual property protection is the legal means for protecting tangible and intangible assets through such things as patents, copyrights, and trademarks.

Question 13

In the VRIST framework a substitute for a resource is

Accepted Answer

A substitute for a resource in the VRIST framework is another resource that can provide comparable value-creating benefits, as it can replace the original resource in delivering similar advantages.

Question 14

Suppose that Caterpillar has invested in an extensive network of dealers and parts depots around the world to service its heavy equipment with the aim of making spare parts available within 48 hours or less when a piece of equipment breaks down. Komatsu, Caterpillar's rival, can reasonably substitute for this parts availability resource by

Accepted Answer

The answer of Suppose that Caterpillar has invested in an...

Question 15

If one person can be identified with certainty as the resource behind the success of a company and he or she is hired away by another company, the VRIST framework dimension of ________ is being illustrated.

Accepted Answer

The answer of If one person can be identified with...

Question 16

Which criterion below characterizes a resource that is unique to a business and that cannot be appropriated by potential competitors?

Accepted Answer

A resource that is unique and cannot be appropriated by competitors should be rare, non-tradable, and non-substitutable. Each of these criteria contributes to maintaining a competitive advantage.

Question 17

Which of the following is not a contributor to the durability of a resource-based competitive advantage?

Accepted Answer

Intense competition is not a contributor to the durability of a resource-based competitive advantage; rather, it can erode such advantages.

Question 18

A successful new product development team works in a state-of-the-art lab and is aided by a crack team of market researchers. This is likely to be a source of durable competitive advantage for the company because of

Accepted Answer

Social complexity refers to the intricate and interdependent relationships and interactions within a team or organization that are difficult for competitors to replicate, providing a durable competitive advantage.

Question 19

Which of the following is not one of the categories of resources that one might examine for its ability to provide a competitive advantage?

Accepted Answer

"Creative" is not typically categorized as a standalone resource for competitive advantage, whereas knowledge, human, and technology are recognized categories.

Question 20

Sets of tightly integrated activities, organizational skills, and internally developed routines that rely on extraordinary resources are called

Accepted Answer

Capabilities refer to the unique skills and routines that organizations develop, which are supported by extraordinary resources and are crucial for executing integrated activities effectively.

Quiz 6: Resource-Based Competitive Advantage