Question 1

Which of the following management tools will help determine the external opportunities and threats that affect a firm?
A) Porter's five forces analysis
B) PESTEL analysis
C) VRIO framework
D) Ansoff's matrix

Accepted Answer

External opportunities (O) and threats (T) are in the firm's general environment and can be captured by the PESTEL analysis.

Question 2

Each activity a firm performs along the horizontal value chain adds _____ value.
A) temporary
B) little
C) incremental
D) absolute

Accepted Answer

Each activity the firm performs along the horizontal value chain adds incremental value. Raw materials and other inputs are transformed into components that are finally assembled into finished products or services for the end consumer.

Question 3

Dynamic capabilities are especially relevant for surviving and competing in markets that
A) shift quickly.
B) shift slowly.
C) remain constant.
D) remain unpredictable.

Accepted Answer

Dynamic capabilities are especially relevant for surviving and competing in markets that shift quickly.

Question 4

To increase its competitive advantage,HRV Automobiles seeks to improve the efficiency of its production plants.By doing this,HRV is addressing a _____ in the value chain analysis.
A) primary activity
B) secondary activity
C) support activity
D) premier activity

Accepted Answer

Production plants are part of a firm's operations. Operations are primary activities in the value chain analysis.

Question 5

Dynamic capabilities are essential for moving beyond a(n)_____ advantage.
A) long-lived
B) short-lived
C) competitive
D) inconsistent

Accepted Answer

Dynamic capabilities are essential for moving beyond a short-lived advantage.

Question 6

Clean Rinse Shampoo has been the leader of hair-cleaning products for about 40 years.However,this company relied too long on its competency without refining or upgrading its product.As a result,other shampoo companies that began to offer organic shampoo gained a competitive advantage over Clean Rinse.This case is an example of
A) resource flow.
B) dynamic capabilities.
C) core rigidity.
D) value chain.

Accepted Answer

A core competency can turn into a core rigidity if a firm relies too long on the competency without honing, refining, and upgrading as the environment changes.

Question 7

To gain a competitive advantage,Lopez Industries obtained financing and then used this extra capital to produce the same amount of gaskets in a one-month period that it normally produces in a two-month period.Which of the following is the most likely outcome of this endeavor?
A) inconsistent results
B) same results
C) better results
D) inferior results

Accepted Answer

Trying to achieve the same outcome in a short time period, even with higher investments tends to lead to inferior results.

Question 8

Which of the following is an accurate statement about value chain analysis?
A) The value chain concept can be applied only to manufacturing firms.
B) The value chain concept can be applied only to high-tech firms.
C) The value chain concept can be applied only to manufacturing and high-tech firms.
D) The value chain concept can be applied to all firms, including service firms.

Accepted Answer

The value chain concept can be applied to all firms, including service firms.

Question 9

All Purpose Tires,Inc.is planning to build a manufacturing plant in Tornado Alley-an area that often gets hit by tornados.According to the SWOT analysis,this location is considered to be an
A) external opportunity.
B) external threat.
C) internal opportunity.
D) internal threat.

Accepted Answer

An external threat is a danger in a firm's general environment.

Question 10

Which of the following best exemplifies social complexity as an isolating mechanism?
A) Kristin's Cosmetics attempted to imitate how Monica's Makeup combined its management and product development systems with little success.
B) Kristin's Cosmetics failed to acquire the resources for its eyeliner at a low cost and thereby lost its competitive advantage over Monica's Makeup.
C) Kristin's Cosmetics had difficulty competing with Monica's Makeup because it could not access the many makeup factories in Kentucky as easily as its competitor.
D) Kristin's Cosmetics did not fully understand the reasons for the success of Monica's Makeup and therefore had difficulty competing with the firm.

Accepted Answer

Social complexity describes situations in which different social and business systems interact with one another. Copying the emerging complex social systems is difficult for competitors because neither direct imitation nor substitution is a valid approach. Therefore, Kristin's Cosmetics attempt to imitate how Monica's Makeup combined its management and product development systems with little success is an example of social complexity as an isolating mechanism.

Quiz 4: Internal Analysis: Resources, Capabilities, and Core Competencies

Which of the following management tools will help determine the external opportunities and threats that affect a firm?

Each activity a firm performs along the horizontal value chain adds _____ value.

Dynamic capabilities are especially relevant for surviving and competing in markets that

To increase its competitive advantage,HRV Automobiles seeks to improve the efficiency of its production plants.By doing this,HRV is addressing a _____ in the value chain analysis.

Dynamic capabilities are essential for moving beyond a(n) _____ advantage.

To gain a competitive advantage,Lopez Industries obtained financing and then used this extra capital to produce the same amount of gaskets in a one-month period that it normally produces in a two-month period.Which of the following is the most likely outcome of this endeavor?

Which of the following is an accurate statement about value chain analysis?

All Purpose Tires,Inc.is planning to build a manufacturing plant in Tornado Alley-an area that often gets hit by tornados.According to the SWOT analysis,this location is considered to be an

Which of the following best exemplifies social complexity as an isolating mechanism?