Question 1

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

Accepted Answer

The answer of Transferability is the ability of competitors to...

Question 2

The business model used by Spirit Airlines in offering a low-priced fare to the mass market is the

Accepted Answer

Spirit Airlines operates on an efficiency model, offering low-priced fares by reducing costs in other areas such as customer service and amenities. This allows them to attract a large mass market who prioritize price over comfort or additional services.

Question 3

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

Accepted Answer

A value chain is a series of interrelated activities performed to design, produce, market, and deliver a good or service to customers. It encompasses all of the activities required to bring a product from conception to the end consumer. This includes sourcing raw materials, manufacturing, distribution, marketing, and customer service. The concept of the value chain was first introduced by Michael Porter in his book "Competitive Advantage: Creating and Sustaining Superior Performance."

Question 4

An example of a cluster in the United States is computer technology found in the Silicon Valley.

Accepted Answer

The Silicon Valley in California is a well-known cluster for computer technology companies such as Apple, Google, and Facebook.

Question 5

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

Accepted Answer

HP's business model for printers and printer cartridges is the multi-component system/installed base model. This model focuses on selling the initial printer hardware at a lower cost to attract customers to build up an installed base, and then generating ongoing revenue through sales of high-margin printer cartridges and other accessories. This model emphasizes the importance of customer retention and loyalty, as customers are more likely to continue purchasing cartridges for their existing printers rather than switching to a different brand.

Question 6

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 question describes IBM's business model as one where they sell their expertise to improve their customer's operations, which aligns with the customer solutions model. The profit pyramid model refers to a model where different products or services are stratified according to their profitability. The advertising model refers to a model where a company earns revenue from advertisements. The efficiency model refers to a model where a company focuses on improving its efficiency to reduce costs. The entrepreneurial model refers to a model where a company seeks to innovate and create new products/services. None of these models apply to IBM's business model as described in the question.

Question 7

On the continuum of resource sustainability,where would streaming movies be placed?

Accepted Answer

Streaming movies would be placed under fast-cycle resources because they require the rapid consumption of energy and technological resources to operate. As technology advances, older systems become obsolete and are quickly replaced, leading to a rapid cycle of consumption and replacement.

Question 8

Durability is the rate at which others can duplicate a firm's underlying resources,capabilities,or core competencies.

Accepted Answer

Durability is the measure of how long a firm's resources, capabilities, or core competencies can provide a competitive advantage before they can be duplicated or replaced by competitors. It is not a measure of how quickly they can be copied.

Question 9

Describe Barney's VRIO framework.

Accepted Answer

The answer of Describe Barney's VRIO framework....

Question 10

Tacit knowledge is harder than explicit knowledge for competitors to imitate.

Accepted Answer

Tacit knowledge refers to knowledge that is difficult to articulate or transfer to another person through written or verbal communication. It is often gained through experience, intuition, and personal reflection. Because it is so deeply ingrained in an individual and difficult to communicate, it is often harder for competitors to imitate compared to explicit knowledge, which is easily expressed in writing, speech, or other formalized means.

Question 11

The attempt to hire brand managers away from P&G to learn how to duplicate the firm's brand management success is a competitor's attempt to address replicability.

Accepted Answer

The statement is true as the competitor is trying to hire brand managers from P&G to learn how to replicate the firm's brand management success, which is an attempt to address replicability.

Question 12

A core competency can be easily imitated to the extent that it is transparent,transferable,and replicable.

Accepted Answer

A core competency that is transparent, transferable, and replicable is easily imitated by competitors.

Question 13

Which of the following is not a primary activity of the value chain?

Accepted Answer

Purchasing is considered a support activity in the value chain, not a primary activity. Primary activities directly concern the creation, sale, maintenance, and support of a product or service.

Question 14

Core competencies may mature and become core deficiencies.

Accepted Answer

Core competencies are not stagnant and can change over time. If a core competency does not evolve with changes in the business environment, it can become a core deficiency. For example, a company that was once known for their expertise in traditional marketing may struggle to adapt to the shift towards digital marketing, making their traditional marketing expertise a core deficiency.

Question 15

When examining the corporate value chain of a particular product or service,which one of the following is not one of the primary activities that usually occur?

Accepted Answer

Auditing and accounting are not typically considered primary activities in the corporate value chain. The primary activities usually include operations, inbound and outbound logistics, marketing and sales, and customer service. Auditing and accounting are considered to be support activities that facilitate the primary activities.

Question 16

Since competitors were not able to understand how Gillette's Fusion razor was produced,it was considered transparent.

Accepted Answer

The statement is contradictory. If competitors were unable to understand Gillette's production process, it would be considered opaque or not transparent.

Question 17

eBay and Amazon.com have successfully used the efficiency model by acting as an intermediary to connect multiple sellers to multiple buyers.

Accepted Answer

The answer of eBay and Amazon.com have successfully used the...

Question 18

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 refers to the core area or function of a company where its greatest expertise and capabilities lie. It is the most important part of the company's value chain and can be a significant source of competitive advantage.

Question 19

Which of the following is not a support activity of the value chain?

Accepted Answer

Marketing and sales is a primary activity of the value chain, not a support activity. The five support activities are procurement, technology development, human resource management, infrastructure (including strategic planning), and firm-level procurement.

Question 20

General Electric is well known for its distinctive competency in management development.

Accepted Answer

General Electric has a proven track record in developing effective managers and leaders, which is considered one of its distinctive competencies. This includes their famous training program known as the GE Managerial Development Course.

Quiz 5: Organizational Analysis and Competitive Advantage