Question 1

Primary value chain activities include activities such as inbound logistics, outbound logistics, sales and marketing and services.

Accepted Answer

A) True 
 B)False

Question 2

Discuss the questions underlying the VRIO framework and use these questions to differentiate between a simple distinctive competence and a sustained distinctive competence.

Accepted Answer

The four questions underlying the VRIO f...

Question 3

The assumption of resource immobility holds that it may be very costly for firms without certain resources and capabilities to develop or acquire them.

Accepted Answer

A) True 
 B)False

Question 4

Most firms have a resource base that is composed primarily of resources and capabilities that are

Accepted Answer

A)   valuable but not rare.
B)   neither valuable nor rare.
C)   valuable and rare.
D)   rare but not valuable.E) None of the above
F) All of the above

Question 5

________ in the RBV are defined as the tangible and intangible assets that a firm controls that it can use to conceive of and implement its strategies.

Accepted Answer

A)   Management controls
B)   Capabilities
C)   Resources
D)   Compensation policiesE) A) and C)
F) All of the above

Question 6

Identify the four questions represented in the VRIO framework that one must ask about a resource or capability to determine its competitive potential.

Accepted Answer

The four questions are:
The Question of ...

Question 7

The range of formal and informal mechanisms to ensure that managers are behaving in ways consistent with a firm's strategies are referred to as

Accepted Answer

A)   formal reporting structures.
B)   organizational charts.
C)   compensation policies.
D)   management control systems.E) B) and C)
F) C) and D)

Question 8

Southwest Airlines' strong internal culture that helps ensure that employees act in ways consistent with the company's strategy is an example of a(n)

Accepted Answer

A)   informal management control.
B)   formal management control.
C)   compensation policy.
D)   formal reporting structure.E) B) and C)
F) C) and D)

Question 9

The theoretical roots of the resource-based view can be traced to research done by

Accepted Answer

A)   David Ricardo.
B)   Adam Smith.
C)   Oliver Williamson.
D)   Joseph Schumpeter.E) C) and D)
F) None of the above

Question 10

Discuss whether a firm must be must be the only one to possess a valuable resource or capability in order for the firm to benefit from the resource or capability's rarity or if other firms may own it as well.

Accepted Answer

A firm does not have to be the sole poss...

Question 11

Inputs whose quantity of supply is fixed and whose demand does not respond to price increases are said to be elastic in supply.

Accepted Answer

A) True 
 B)False

Question 12

A firm's value chain is the set of business activities in which it engages to develop and produce, but not to market, its products and services.

Accepted Answer

A) True 
 B)False

Question 13

In the VRIO framework, the R represents resources.

Accepted Answer

A) True 
 B)False

Question 14

Resources that generate a temporary competitive advantage are

Accepted Answer

A)   valuable, rare and costly to imitate.
B)   valuable but neither rare nor costly to imitate.
C)   valuable and either rare or costly to imitate.
D)   valuable and rare but not costly to imitate.E) C) and D)
F) None of the above

Question 15

In general, imitation can occur in one of two ways: direct duplication or substitution.

Accepted Answer

A) True 
 B)False

Question 16

One of the key assumptions of the RBV is resource homogeneity.

Accepted Answer

A) True 
 B)False

Question 17

If a firm's resources and capabilities are costly to imitate because imitating firms may not understand the relationship between the resources and capabilities controlled by a firm and that firm's competitive advantage, this competitive advantage is said to be protected from imitation by

Accepted Answer

A)   path dependence.
B)   casual ambiguity.
C)   unique historical conditions.
D)   social complexity.E) B) and D)
F) A) and D)

Question 18

Resources and capabilities that are valuable, rare, and costly to imitate are best described as

Accepted Answer

A)   distinctive competencies.
B)   entry barriers.
C)   complementary resources and capabilities.
D)   sustainable distinctive competencies.E) B) and D)
F) B) and C)

Question 19

Resources that are valuable but not rare can be categorized as

Accepted Answer

A)   organizational weaknesses.
B)   distinctive competencies.
C)   organizational strengths.
D)   complementary resources and capabilities.E) A) and B)
F) C) and D)

Question 20

Within the VRIO framework, resources and capabilities that are not valuable are also known as weaknesses.

Accepted Answer

A) True 
 B)False

Exam 3: Evaluating a Firms Internal Capabilities

Discuss the questions underlying the VRIO framework and use these questions to differentiate between a simple distinctive competence and a sustained distinctive competence.

Correct AnswerverifiedThe four questions underlying the VRIO f...View AnswerShow Answer

A firm's value chain is the set of business activities in which it engages to develop and produce, but not to market, its products and services.

Correct AnswerverifiedShow Answer

Most firms have a resource base that is composed primarily of resources and capabilities that are

Correct AnswerverifiedShow Answer

Within the VRIO framework, resources and capabilities that are not valuable are also known as weaknesses.

Correct AnswerverifiedShow Answer

Identify the four questions represented in the VRIO framework that one must ask about a resource or capability to determine its competitive potential.

Correct AnswerverifiedThe four questions are:The Question of ...View AnswerShow Answer

If a firm's resources and capabilities are costly to imitate because imitating firms may not understand the relationship between the resources and capabilities controlled by a firm and that firm's competitive advantage, this competitive advantage is said to be protected from imitation by

Correct AnswerverifiedShow Answer

Resources and capabilities that are valuable, rare, and costly to imitate are best described as

Correct AnswerverifiedShow Answer

Primary value chain activities include activities such as inbound logistics, outbound logistics, sales and marketing and services.

Correct AnswerverifiedShow Answer

Resources that generate a temporary competitive advantage are

Correct AnswerverifiedShow Answer

One of the key assumptions of the RBV is resource homogeneity.

Correct AnswerverifiedShow Answer

In general, imitation can occur in one of two ways: direct duplication or substitution.

Correct AnswerverifiedShow Answer

The range of formal and informal mechanisms to ensure that managers are behaving in ways consistent with a firm's strategies are referred to as

Correct AnswerverifiedShow Answer

Southwest Airlines' strong internal culture that helps ensure that employees act in ways consistent with the company's strategy is an example of a(n)

Correct AnswerverifiedShow Answer

________ in the RBV are defined as the tangible and intangible assets that a firm controls that it can use to conceive of and implement its strategies.

Correct AnswerverifiedShow Answer

The assumption of resource immobility holds that it may be very costly for firms without certain resources and capabilities to develop or acquire them.

Correct AnswerverifiedShow Answer

Inputs whose quantity of supply is fixed and whose demand does not respond to price increases are said to be elastic in supply.

Correct AnswerverifiedShow Answer

In the VRIO framework, the R represents resources.

Correct AnswerverifiedShow Answer

The theoretical roots of the resource-based view can be traced to research done by

Correct AnswerverifiedShow Answer

Discuss whether a firm must be must be the only one to possess a valuable resource or capability in order for the firm to benefit from the resource or capability's rarity or if other firms may own it as well.

Correct AnswerverifiedA firm does not have to be the sole poss...View AnswerShow Answer

Resources that are valuable but not rare can be categorized as

Correct AnswerverifiedShow Answer

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The four questions underlying the VRIO f...
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The four questions are:
The Question of ...
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A firm does not have to be the sole poss...
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Correct Answer
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