Filters
Question type
Study Flashcards

How does a firm benefit when its resources are costly to imitate?

Correct Answer

verifed

verified

A resource is costly to imitate if firms...

View Answer

Which of the following statements accurately describes a firm's resource stock?


A) Resource stocks are a firm's level of resources that are common to competitors.
B) Resource stocks are a firm's future estimate of both tangible and intangible resources.
C) Resource stocks are a firm's current level of intangible resources.
D) Resource stocks are a firm's level of investments to maintain or build a resource.

E) B) and D)
F) B) and C)

Correct Answer

verifed

verified

Discuss resource immobility as a critical assumption in the resource-based model of a firm.

Correct Answer

verifed

verified

A critical assumption in the resource-ba...

View Answer

Describe tangible resources.Give a few examples of tangible resources.

Correct Answer

verifed

verified

Tangible resources have physical attribu...

View Answer

During market testing, Elixir Cosmetics (EC) realized that the cosmetics industry was dominated with multiple, well-established brands.These brands mostly sold their products in exclusive outlets and departmental stores.A new entrant like EC would require a different business model to be successful.Thus, EC started selling its products through direct marketing.In this scenario, Elixir Cosmetics accomplished substitution primarily through _____.


A) path dependence
B) technology transfer
C) knowledge diffusion
D) strategic equivalence

E) A) and D)
F) C) and D)

Correct Answer

verifed

verified

D

Elaborate on the resource-based view of competitive advantage.

Correct Answer

verifed

verified

Resource-based view of a firm provides a...

View Answer

How can a firm fully exploit the competitive potential of its resources, capabilities, and competencies?

Correct Answer

verifed

verified

The final criterion of whether a rare, v...

View Answer

Microsoft's eventual industry dominance is largely credited to the:


A) initial breaks that Bill Gates got when starting Microsoft, which were leveraged for several decades through an effective strategy.
B) firm's strong financial resources and market position during the initial stages of the industry.
C) firm's effective organizational structure and coordinating systems that helped the company capture value.
D) ability of Microsoft to pursue an unrelated diversification strategy in different industries.

E) None of the above
F) B) and C)

Correct Answer

verifed

verified

Several senior managers recently left Bass Automobile Inc.and went to work at Unicorn Autos Inc., a rival company.What does this imply?


A) The resource stock of Bass Automobiles Inc. increased.
B) Bass Automobiles Inc. faced resource leakage.
C) The resource flow into Unicorn Autos Inc. reduced.
D) Bass Automobiles Inc.'s tangible assets decreased.

E) A) and D)
F) A) and C)

Correct Answer

verifed

verified

Define path dependence.

Correct Answer

verifed

verified

Path dependence describes a process in w...

View Answer

TrueCandy Inc., a confectionery manufacturing company, lost its competitive advantage when its strategy of placing kiosks at prominent locations throughout the state was followed by most of its competitors.In this scenario, TrueCandy Inc.'s loss of competitive advantage can be primarily attributed to _____.


A) resource immobility
B) knowledge diffusion
C) divergent production
D) technology convergence

E) A) and D)
F) A) and C)

Correct Answer

verifed

verified

Which of the following statements accurately brings out the difference between tangible and intangible resources?


A) Tangible resources contribute to a company's competitive advantage, whereas intangible resources fail to do the same.
B) Tangible assets can be bought on the open market, whereas intangible assets cannot be easily purchased.
C) Tangible resources take a longer time to build, whereas intangible assets can be built comparatively easily.
D) Tangible assets are difficult to imitate, whereas intangible assets can be easily replicated.

E) B) and C)
F) A) and B)

Correct Answer

verifed

verified

How did McDonald's leverage internal strengths in brand name and consistency to minimize the external threat of easy-to-prepare grocery items?


A) By developing an offensive strategic option to launch new restaurants in China and Mexico
B) By launching a chain of premium restaurants that offered customers a healthy food menu
C) By launching a McDonald's line of frozen foods in grocery stores
D) By developing a defensive strategic option and shutting down all its drive-thru outlets

E) A) and D)
F) A) and C)

Correct Answer

verifed

verified

C

If a resource is rare or unique to a particular firm, then:


A) the industry in which the firm operates will experience perfect competition.
B) the mobility of the resource will be high.
C) the firm will be able to maintain a competitive advantage for a long period.
D) it will be less costly for rivals to imitate the resource.

E) None of the above
F) A) and D)

Correct Answer

verifed

verified

The value chain describes the:


A) competitive challenges a firm faces in a highly dynamic external environment.
B) internal activities a firm engages in when transforming inputs into outputs.
C) current consequences a firm experiences due to its decisions in the past.
D) strategic advantages a firm experiences when its resources lack causal ambiguity.

E) A) and B)
F) None of the above

Correct Answer

verifed

verified

Pulse Mobiles Inc.is a cell phone manufacturing company.Its latest range of smartphones bears a straight resemblance to the Y-series range of smartphones from Talkie Gen Inc., in terms of its shape and look-and-feel.Which of the following strategies has Pulse Mobiles Inc.used to replicate the valuable and rare resource of Talkie Gen Inc.?


A) Direct imitation
B) Strategic equivalence
C) Substitution
D) Innovation

E) All of the above
F) A) and D)

Correct Answer

verifed

verified

A

Compare and contrast tangible and intangible resources.

Correct Answer

verifed

verified

Tangible resources have physical attribu...

View Answer

Which of the following is NOT a condition that can help a firm sustain its competitive advantage?


A) When managers have consistently better expectations about the future value of resources
B) When the resource advantage can only be imitated after a long period of time
C) When past decisions act as constraints for the current dynamic capabilities
D) When the source of the competitive advantage is causally ambiguous

E) A) and B)
F) A) and C)

Correct Answer

verifed

verified

If a resource is common:


A) competitive advantage will persist with one firm for a long period of time.
B) it will result in perfect competition.
C) it will result in greater resource immobility.
D) competitive parity will cease to exist.

E) A) and D)
F) B) and C)

Correct Answer

verifed

verified

Explain how the activities of a firm help in achieving a competitive advantage.

Correct Answer

verifed

verified

A firm's activities are one of the key i...

View Answer

Showing 1 - 20 of 127

Related Exams

Exam 1

What Is Strategy

134 Questions

Exam 2

Strategic Leadership: Managing the Strategy Process

125 Questions

Exam 3

External Analysis: Industry Structure, Competitive Forces, and Strategic Groups

129 Questions

Exam 5

Competitive Advantage, Firm Performance, and Business Models

125 Questions

Exam 6

Business Strategy: Differentiation, Cost Leadership, and Blue Oceans

125 Questions

Exam 7

Business Strategy: Innovation, Entrepreneurship, and Platforms

126 Questions

Exam 8

Corporate Strategy: Vertical Integration and Diversification

126 Questions

Exam 9

Corporate Strategy: Strategic Alliances, Mergers and Acquisitions

126 Questions

Exam 10

Global Strategy: Competing Around the World

125 Questions

Exam 11

Organizational Design: Structure, Culture, and Control

128 Questions

Exam 12

Corporate Governance and Business Ethics

126 Questions

Show Answer