Question 1

Knowledge that is not easily communicated because it is deeply rooted in employee experience or in a corporation's culture is called

Accepted Answer

Tacit knowledge refers to knowledge that is deeply rooted in experience and is difficult to communicate through words or symbols. It involves skills, beliefs, and values that are acquired through personal experience, observation, and interaction with others. This kind of knowledge is often difficult to formalize and transfer to others.

Question 2

The business model used by IBM to make money not selling IBM products, but by selling its expertise to improve their customers operations is the

Accepted Answer

The customer solutions model is the best choice because it describes IBM's business model of selling its expertise to improve their customers' operations, rather than just selling IBM products. The other options do not accurately reflect this approach.

Question 3

The ability of competitors to use duplicated resources and capabilities to imitate the other firm's success is called

Accepted Answer

The answer of The ability of competitors to use duplicated...

Question 4

According to Barney's VRIO framework, the exploitation of a resource pertains to the ________ of the resource.

Accepted Answer

Exploitation of a resource in Barney's VRIO framework pertains to the organization's ability to effectively organize and utilize the resource to gain a competitive advantage.

Question 5

________ is more valuable because it can provide companies with a sustainable competitive advantage that is harder for competitors to imitate.

Accepted Answer

Tacit knowledge refers to knowledge that is not easily transferred or documented, as it is based on personal experience and intuition. This makes it harder for competitors to imitate, as it requires the same level of experience and intuition. Therefore, it can provide companies with a sustainable competitive advantage. Explicit knowledge, on the other hand, can be easily documented and transferred, making it easier for competitors to imitate.

Question 6

When a company's core competencies are superior to those of competitors, these are known as

Accepted Answer

A company's distinctive competencies are those capabilities that set it apart from competitors and contribute to its competitive advantage. Core competencies refer to the specific skills and abilities that are central to a company's overall strategy and success. While resources, critical success factors, and key performance factors may all contribute to a company's competitive position, they do not necessarily represent its core competencies.

Question 7

The speed with which other firms can understand the relationship of resources and capabilities supporting a successful firm's strategy is called

Accepted Answer

Transparency refers to the ease with which competitors can understand and imitate a firm's successful strategies, based on how observable the resources and capabilities are that underpin those strategies.

Question 8

The part of an industry's value chain that is most important to a company and the point where its greatest expertise and capabilities lie is called the company's

Accepted Answer

The center of gravity is the part of the industry's value chain that a company focuses on and where its greatest expertise and capabilities lie.

Question 9

Which of the following is NOT one of the four question areas Barney proposes in his VRIO framework used to evaluate a firm's key resources?

Accepted Answer

Durability is not part of the VRIO framework. The VRIO framework consists of Value, Rareness, Imitability, and Organization.

Question 10

When a company takes apart a competitor's product in order to find out how it works, this process is known as

Accepted Answer

Reverse engineering involves dismantling and analyzing a competitor's product to understand how it works, with the aim of replicating or improving upon its features. This approach can enable companies to gain a competitive edge in the market by better understanding their rivals' products and processes.

Question 11

A linked set of value-creating activities beginning with basic materials provided by suppliers and ending with distributors getting the final product into the hands of the ultimate consumer is called a(n)

Accepted Answer

A value chain is a series of interconnected activities that are required to produce a product or service, starting from raw materials and ending with the delivery of the final product to the end consumer. It encompasses all the value-adding activities within an organization, from sourcing raw materials and developing products or services to marketing, sales, and customer service. Therefore, option A is the correct answer. The other options do not accurately describe the concept of a value chain.

Question 12

Knowledge that can be easily articulated and communicated is known as

Accepted Answer

Explicit knowledge is knowledge that can be easily articulated and communicated through words or symbols. It can be easily codified, stored, and transmitted. Tacit knowledge, on the other hand, is knowledge that is difficult to articulate and communicate, as it is deeply rooted in individual experience and expertise. Immitable knowledge is knowledge that cannot be easily duplicated by competitors, while transferable knowledge can be easily transferred from one person or organization to another. Durable knowledge is knowledge that has a long life and remains relevant over time.

Question 13

The business model used by HP in selling printers and printer cartridges is the

Accepted Answer

HP uses a multi-component system/installed base model in selling printers and printer cartridges. This model involves selling printers at a low profit margin and profiting from the sales of cartridges, which are sold at a high profit margin. The installed base model involves locking in customers to their printers by making their cartridges work only with their printers, thereby creating a steady stream of revenue from repeat cartridge purchases.

Question 14

Things that a corporation can do exceedingly well across the corporation are called

Accepted Answer

Core competencies refer to a set of skills or capabilities that a corporation possesses and can perform exceptionally well across the organization. These competencies are unique and valuable, give the company a competitive advantage, and are difficult for competitors to imitate. Resources, critical success factors, and key performance factors are all important elements of a corporation's success, but they do not necessarily represent distinctive strengths or competencies.

Question 15

The rate at which a firm's underlying resources and capabilities depreciate or become obsolete is called

Accepted Answer

The term that best describes the rate at which a firm's underlying resources and capabilities depreciate or become obsolete is durability, as opposed to replicability, transparency, imitability, or transferability. Durability refers to the longevity or resilience of a firm's strategic assets and is a critical factor in sustaining a competitive advantage over time. Strategic assets that are durable can withstand market fluctuations, technological advancements, and environmental changes, allowing a firm to maintain its competitive edge.

Question 16

When a company determines a competency's competitive advantage, Barney refers to this issue as

Accepted Answer

The answer of When a company determines a competency's competitive...

Question 17

The rate at which a firm's underlying resources, capabilities, or core competencies can be duplicated by others is called

Accepted Answer

The rate at which a firm's resources, capabilities, or core competencies can be duplicated by others is called imitability. This refers to how easy or difficult it is for other firms to replicate a firm's advantage in the marketplace.

Question 18

A corporation's ability to exploit its resources is referred to as its

Accepted Answer

Capabilities refer to a corporation's ability to exploit its resources, including its skills, knowledge, and technology, in order to create value for customers and achieve competitive advantage. While resources and core competencies are important factors for a corporation, they do not necessarily capture the ability to leverage these resources effectively, which is the focus of capabilities. Critical success factors and key performance factors are related concepts, but they focus more on identifying the key factors that are necessary for success in a particular industry or market.

Question 19

On the continuum of resource sustainability, where would Sony's Walkman be placed?

Accepted Answer

The Sony Walkman would be placed as a fast-cycle resource. This is because it was a product with a short lifespan and intended to be quickly replaced by newer models. The materials used to make the Walkman were not intended for long-term use, and its production and disposal create environmental impacts.

Question 20

Which of the following statements is true concerning clusters?

Accepted Answer

All of the statements are true concerning clusters. Clusters are geographic concentrations of interconnected companies and industries, and they provide access to employees, suppliers, specialized information, and complementary products. Entrepreneurial and fast-growing firms often tend to locate close to their competitors to build or upgrade a core competency. California's Silicon Valley is an example of a cluster in the U.S.

Quiz 5: Internal Scanning and Organizational Analysis