Bstrat Ch 3

Front 1

According to the chapter 3 opening case, all of the following are core competencies of subway except

Back 1

the challenging economic environment in which even affluent customers are choosing to dine at quick service restaurants such as subway

Front 2

It is increasingly difficult for a firm to develop and sustain a competitive advantage because of the effects of globalization and

Back 2

the rapid development of the internet's capabilities

Front 3

Which of the following is NOT required for a firm to achieve strategic competitiveness and earn


Back 3

Core competencies must be internationalized.

Front 4

which of the flowing is not a factor affecting sustainability of a competitive advantage?

Back 4

the length of time the core competence has existed

Front 5

internal analysis enables a firm to determine what the firm

Back 5

can do

Front 6

the proper matching of what a firm can do with what it might do

Back 6

yields insights the from requires to select its strategy

Front 7

the key to achieving competitiveness, earning above average returns, and remaining ahead of competitors in the long run is to manage current core competencies

Back 7

while simultaneously developing new ones

Front 8

which of the following is not a component of internal analysis leading to competitive advantage

Back 8

analysis of supplier power

Front 9

value consist of

Back 9

a products performance characteristics and by its attributes for which customers are willing to pay

Front 10

____is/are the source of a firms -_____ which is/are the sources of the firms___

Back 10

resources, capabilities, core competencies

Front 11

____is measure by a products performance characteristics and its attributes for which customers are willing to pay

Back 11

Value

Front 12

By emphasizing core competencies when formulating strategies, companies learn to compete primarily on the basis of

Back 12

firm-specific differences

Front 13

___of organization decisions fail

Back 13

about half

Front 14

a decision that results in failure

Back 14

allows for learning

Front 15

today, a substantially slimmed down polaroid is introducing a number of new products including GL20 camera glasses which have a built in camera and LCDs. this wave of new product development is explained by

Back 15

the learning that occurred from making earlier mistakes

Front 16

the three conditions that characterize difficult managerial decisions concerning resources, capabilities, and core competencies are

Back 16

uncertainty, complexity, and intraorganizational conflicts

Front 17

as discusses in the chapter 3 focus, CEOs of companies such as viacom, the Oprah Winfrey network, the gap, and cisco frequently had to made decisions about ____ and the success of those decisions affected the tenure of those CEO's

Back 17

use of the firms resources

Front 18

The overall lesson from chapter 3 focus about decision making at several companies was the importance of ___

Back 18

making decisions about use of the firms resources under conditions of uncertainty

Front 19

A person who had made a successful decision when no obviously correct model or rule is available or when relevant date are unreliable or incomplete has exercised

Back 19

judgement

Front 20

one reason executive judgment can be a particularly important source of competitive advantage is that judgement

Back 20

allows a firm to build a strong reputation

Front 21

judgement is the capacity for making a successful decision when

Back 21

no obviously correct model or rule is available

Front 22

the most numerous of the following organization characteristics are

Back 22

resources

Front 23

capabilities typically come from

Back 23

combining resources

Front 24

all of the following are tangible resources except

Back 24

firms reputation

Front 25

tangible resources include

Back 25

assets that can be observed and quantified

Front 26

complete the following about the difference between tangible and intangible resources. Tangible resources are____ constrained because they are ____to leverage

Back 26

more, harder

Front 27

compared to tangible resources, intangible resources are

Back 27

a superior source of capabilities

Front 28

compared to tangible resources, intangible resources are___ and ____

Back 28

less visible, more difficult to copy

Front 29

the critical executive skill of the current business age is the ability to

Back 29

manage human intellect

Front 30

which of the following is not a reputational resource

Back 30

employees viewing the firm as a terrible place to work

Front 31

An investor is considering buying a restaurant that has been in operation for a number of years. The restaurant has a highly-reputed chef, and many long-term kitchen and wait staff who work together smoothly. It has a reputation for dishes of consistently high quality and an appealing dining atmosphere.

Back 31

The investor will find that the restaurant’s financial statements will undervalue the true value of its resources.

Front 32

Which of the following is a true statement about capabilities

Back 32

capabilities are often developed in specific functional areas such as manufacturing, R&D, and marketing

Front 33

when firms lay off employees they are

Back 33

eroding the organizations knowledge resources

Front 34

because the firm combines tangible and intangible resources to create capabilities,

Back 34

they are often based on developing, carrying, and exchanging information and knowledge through the firms human capital

Front 35

____ can be viewed as the capacity to take action

Back 35

core competencies

Front 36

___ is an example of a capability that is based in the functional area of distribution

Back 36

effective use of logistics management techniques

Front 37

capabilities

Back 37

are often developed in specific functional areas

Front 38

the ch 3 strategic focus on P&G illustrates that the company uses its capabilities and core competencies to grow

Back 38

through cooperative relationships

Front 39

innovation, consumer understanding, brand building, go to market, and scale are activities that P&G performs well and are examples of the companys ___

Back 39

core competencies

Front 40

to provide a sustainable competitive advantage, a capability met satisfy all of the following criteria except

Back 40

be technologically innovative

Front 41

from a customers point of view, for an organizations capability to be a core competence it must be

Back 41

valuable and unique

Front 42

valuable capabilities

Back 42

allow the firm to exploit opportunities or neutralize thrusts in its eternal environment

Front 43

capabilities that other firms cannot develop easily are classified as

Back 43

costly to imitate

Front 44

A major department store chain has a strict policy of banning photographs or videos of its sales floor or back room operations. It also does not allow academics to conduct studies of it for publication in research journals. In fact, some of its own top managers refer to the management’s policies on secrecy as “verging on paranoid.” These policies indicate that the top management of the firm believes the organization’s core competencies are

Back 44

imitable

Front 45

Several months ago, a restaurant developed a new appetizer that is a hit with customers. Many customers go to the restaurant just for the appetizer and it was at the center of a recent highly positive review by a food critic. Preparation involves common ingredients and average culinary skills levels, but requires a very high oven temperature which significantly increases utility costs. Several competing restaurants have since added their own version of the appetizer to their menu. Which criteria for assessing capabilities/core competencies is met?

Back 45

the restaurant has the capability to develop something that is valuable

Front 46

in the airplane industry, frequent flyer programs, ticker kiosks, and E ticketing are all examples of capabilities that are___ but no longer __

Back 46

valuable, rare

Front 47

the capabilities used to create the sustainability/green initiatives at walmart and target are___ but less likely to be___

Back 47

valuable, rare

Front 48

costly to imitate capabilities can emerge for all of the following reasons except

Back 48

lack of scientific transference

Front 49

A financial management firm has existed for over 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 because of its

Back 49

social complexity

Front 50

Southwest Airlines has a complex interrelationship between its culture and staff that adds value in ways that other airlines cannot (such as jokes on flights or the cooperation between gate personnel and pilots). These examples illustrate which of the following criteria for sustainable competitive advantage?

Back 50

costly to imitate

Front 51

McDonald’s culture with an emphasis on cleanliness, consistency, service, and the training that reinforces the value of these characteristics illustrates which of the following criteria for sustainable competitive advantage?

Back 51

costly to imitate

Front 52

organization culture is

Back 52

not easily imitable

Front 53

Gamma, Inc., has struggled for industry dominance with Ardent, Inc., its main competitor, for years. Gamma has gathered and analyzed large amounts of competitive intelligence about Ardent. It has observed as much of the firm’s internal functioning and technology as it can legally, yet Gamma cannot understand why Ardent has a competitive advantage over it. The source of Ardent’s success is

Back 53

casually ambiguous

Front 54

If a firm has a service that is valuable, rare, and costly to imitate, but a substitute exists for the service, the firm well

Back 54

have a temporary competitive advantage

Front 55

ACME Corp. is a leading provider of radios to the commercial market. Its products all rely on printed circuit board technology. ACME has protected its market leadership with continued advancements in this technology which it patents. A competitor has developed a radio for this market with equal performance but uses a software-based solution instead of circuit boards. ACME’s technology leadership fails which capability test?

Back 55

the substitutability test

Front 56

firms that can achieve competitive parity can expect to

Back 56

earn above average returns

Front 57

A veterinary practice has added a pet boarding and grooming facility. Most of the practice’s competitors also provide these services. The veterinary practice is gaining competitive

Back 57

parity

Front 58

A local restaurant, Farm Fresh Ingredients, has become highly successful through its menu based solely on organically-raised chicken, beef, and organic seasonal produce. It has opened new locations in other cities, and these new locations are becoming highly profitable. Farm Fresh can expect that, at best, its competitive advantage will be

Back 58

temporary

Front 59

value chain activities are

Back 59

activities or tasks the firm completes in order to produce products and then sell, distribute, and service those products in ways that create value for customers

Front 60

value chain activities include all of the following except

Back 60

management information systems

Front 61

examples of support activities include all of the following except

Back 61

follow up service

Front 62

value chain analysis is a tool used to

Back 62

understand the parts of the firms operation that create value and those that do not

Front 63

Firms that have strong positive relationships with suppliers and customers are said to have____, an essential ingredient to creating value

Back 63

social capital

Front 64

knowledge transfer and access to resources within the value chain are enhanced by___

Back 64

social capital

Front 65

to build social capital whereby resources such as knowledge are transferred across organizations requires___ between the parties

Back 65

trust

Front 66

outsourcing is the

Back 66

purchase of a value creating activity from an external supplier

Front 67

a major reason outsourcing is effective is that

Back 67

few firms posses superior capability in all primary and support activities

Front 68

which of the following is true about outsourcing

Back 68

outsourcing allows fins to concentrate on those areas in which they can create value

Front 69

A major U.S. manufacturer of children’s toys believes its main competitive advantage lies in its continuing development of innovative toys and games. The company is facing increasing competition on price and it is strongly considering outsourcing to offshore firms as a means of reducing costs. The LAST function this firm should consider outsourcing is

Back 69

research and development

Front 70

The owner of a store retailing fine quality fabrics for home-sewers bewails 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 available 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

Back 70

core competencies that have become core rigidities

Front 71

which of the following is not an external event the reveals the "dark side"" of core capabilities

Back 71

a firm changes its focus to a new core competence

Front 72

Acme Auto Repair has a thriving business based on its reputation for high-quality work, honesty, and skilled employees. For continued long-term success, Acme’s owner should

Back 72

focus on developing acmes future competitive advantages

Front 73

It is possible that Borders’ core competencies of store locations and a desirable physical environment for customers became core rigidities eventually leading to the filing of bankruptcy as a result of

Back 73

a new technology emerging and changing customer shopping patterns