Exam 3: The Internal Organization: Resources, Capabilities, Core Competencies, and Competitive Advantages

All of the following were traditional sources of competitive advantage EXCEPT:

When considering the relationships among the various characteristics a firm possesses, it is necessary to understand that _________ are the most numerous.

A financial management firm has existed for more than 70 years.Some of its original clients' grandchildren are now clients of the firm themselves.The partners and staff of the firm have spent most or all of their careers with the firm.Many have even married into each other's families.This firm has capabilities that would be costly to imitate primarily because of its:

If a firm offers a service that is valuable, rare, and costly to imitate, but a substitute exists for the service, the firm will:

A marketing manager at GTA Technology wants the next generation of a particular application to include certain features.The product manager of that app insists that the feature would be costly to implement and could not be achieved by the desired release date unless additional resources, both financial and human, were directed to the app.The marketing manager insists that this is necessary, while the product manager feels that the inclusion of these features would not validate the extra investment.It is now up to the project manager to decide how to proceed.Which of the following conditions is most affecting the project manager's decision?

A firm seeking resources with the potential to be formed into core competencies as the foundation for creating value for customers should focus on assembling _________ resources.

A decision that results in failure:

The owner of a store that sells fine-quality fabrics for home seamstresses bemoans the fact that few young women know how to do fine tailoring, much less simple dressmaking.Many potential customers are unable to appreciate the premium quality of the fabrics and are deterred by the high prices, as well as the complexity of fine sewing.In the past, the store had a strong demand for fabrics, large classes for women learning the fine points of sewing, and a reputation for excellent service and technical advice.Now the store is earning lower-than-average returns.This case is an example of:

Which of the following is a true statement about capabilities?

To provide a sustainable competitive advantage, a capability must satisfy all of the following criteria EXCEPT be:

At a manufacturing facility, which of the following would be categorized as an intangible resource?

Value chain activities in the value chain create value, whereas support functions generate costs.

When firms lay off employees, they are:

Describe a value chain analysis.How does a value chain analysis help a firm gain competitive advantage?

From a customer's point of view, for an organization's capability to be a core competence, it must be:

The need to meet quarterly earnings results causes managers to accurately examine the firm's internal organization.

Capabilities are usually developed separately from specific functional areas such as manufacturing, R&D, and marketing.

Describe an organization with which you are familiar.Does it have a sustainable competitive advantage? Why or why not?

Knowledge transfer and access to resources the firm does not own but needs to complete activities within the value chain are enhanced by:

Consider the criteria necessary for sustainable competitive advantage.Which of the following combinations would most likely bring about a temporary competitive advantage and the possibility for above-average returns?