Question 1

When identifying competitive advantages,comparisons made between a firm and its strongest competitors should be based on ________.

Accepted Answer

Competitive advantages are often identified by understanding how customers view the firm in comparison to its competitors. Customer opinions provide direct insight into the firm's strengths and weaknesses from the perspective of those who purchase and use the products or services, making it a valuable metric for comparison.

Question 2

What is the first step in the process of identifying competitive advantages?

Accepted Answer

A

Question 3

Studies show that the resource-based view more accurately predicts firm-level success than the market-based view.

Accepted Answer

The resource-based view emphasizes the importance of a firm's unique resources and capabilities in achieving sustainable competitive advantage, while the market-based view focuses on external market conditions and positioning. Many studies have found that the resource-based view is a more accurate predictor of firm-level success, as a firm's internal resources and capabilities can be developed and leveraged to adapt to changes in market conditions and maintain a competitive advantage over time.

Question 4

What is the difference between a market-based view of strategy development and a resource-based view? Briefly outline the steps for developing a strategy for each philosophy.

Accepted Answer

The answer of What is the difference between a market-based...

Question 5

According to the market-based view of strategy development,the success of a firm most likely depends on ________.

Accepted Answer

The market-based view of strategy development suggests that a firm's success most depends on the attractiveness of the industry in which it operates. This includes market size, growth rate, profitability, and competitive intensity. While organizational resources, employee strengths, and customer loyalty can all contribute to a firm's success, they are ultimately secondary to the external market conditions.

Question 6

Which of the following is a true statement about competitive advantages?

Accepted Answer

Valuable and rare resources that are easily substituted can indeed provide short-term competitive advantages because they are unique and can differentiate a company from its competitors. However, if these resources are easily substituted, the advantage may not last long as competitors find alternatives.

Question 7

The strategic importance of value chain activities varies by industry.

Accepted Answer

Each industry has a unique value chain and the specific activities within it that provide the greatest strategic importance will differ. For example, in a manufacturing industry, supply chain management and production processes may be critical, while in a service industry, customer service and marketing activities may be more important. It is essential for companies to understand the strategic importance of their particular value chain activities to gain a competitive advantage.

Question 8

According to modern strategic management theories,the best competitive advantages are ________.

Accepted Answer

The answer of According to modern strategic management theories,the best...

Question 9

According to a market-based view of strategy development,the attractiveness of an industry is determined by all of the following EXCEPT ________.

Accepted Answer

According to a market-based view of strategy development, the attractiveness of an industry is determined by factors such as the bargaining power of suppliers, the rivalries among competitors, the threats from new entrants, and the availability of transferable resources. Therefore, the correct answer is A, as transferable resources are not a factor in determining industry attractiveness.

Question 10

Which of the following best describes a capability that is valuable,rare,transferable,and easy to imitate?

Accepted Answer

The answer of Which of the following best describes a...

Question 11

A resource-based view of strategy development asserts that a firm's success depends on ________.

Accepted Answer

A resource-based view of strategy development asserts that a firm's success depends on its ability to create and maintain sustainable competitive advantages based on its unique resources and capabilities. Profitability ratios, industry attractiveness, and industry macro environments are important considerations but cannot alone determine a firm's success.

Question 12

What is the first step of strategy development if a firm follows a resource-based view?

Accepted Answer

The first step in strategy development if a firm follows a resource-based view is to analyze the firm's strengths and weaknesses. This involves taking an inventory of the firm's resources, capabilities, and core competencies and determining which ones can be leveraged to create a sustainable competitive advantage. Once these strengths and weaknesses are identified, the firm can then develop a strategy that capitalizes on its strengths and addresses its weaknesses.

Question 13

Which of the following is NOT a characteristic of a resource that provides a firm with a sustainable competitive advantage?

Accepted Answer

Tangible resources are not unique and can be easily imitated by competitors, making them less likely to provide a sustainable competitive advantage.

Question 14

According to the market-based view of strategy development,how a firm competes is more important than where a firm competes.

Accepted Answer

The market-based view emphasizes the importance of the external environment and industry structure, suggesting that where a firm competes (industry attractiveness) is crucial for strategy development.

Quiz 24: Note : Competitive Advantages