Professional Documents
Culture Documents
TRUE/FALSE
1. Firms should seek to obtain a sustainable competitive advantage through implementation of strategies
based on their particular resources, capabilities, and core competencies.
2. Firms can earn above-average returns even if they do not develop or sustain a competitive advantage.
3. The sustainability of a competitive advantage depends upon the imitability of the core competence, the
availability of substitutes for the core competence, and the rate of core competence obsolescence.
4. Analyzing the internal environment enables a firm to determine what it might be able to do by
identifying what opportunities exist.
5. Value of a product is measured by the variable and fixed costs associated with its production.
6. Before the firm can make strategic decisions, managers must prioritize the decisions that generate
adequate quarterly earning numbers.
ANS: F PTS: 1 DIF: med REF: p. 127
OBJ: 1 NOT: comprehension
8. A firm’s ability to achieve a competitive advantage is reflected in its financial capital base.
9. A competitive advantage can be created when several resources are bundled together in a unique
fashion.
10. A resource has high strategic value even if it has no effect on the competitive advantage of the firm.
11. Capabilities of an organization emerge over time through complex interactions between and among
tangible and intangible resources.
12. Capabilities can be developed quickly in response to changes in the new competitive landscape.
14. Every core competence is a capability and every capability is a core competence.
15. Only capabilities that are valuable, rare, costly to imitate, and non-substitutable are sources of
sustainable competitive advantage.
16. Only capabilities that are valuable, common, costly to imitate, and substitutable can be strategic
capabilities.
ANS: F PTS: 1 DIF: hard REF: p. 118
OBJ: 5 NOT: knowledge
17. Capabilities may be costly to imitate if they are causally ambiguous or socially complex.
18. A company can earn above-average returns only when the value it creates is less than the costs
incurred to create that value.
19. For capabilities to be a source of competitive advantage, they must allow a firm to perform value-
creating activities that competitors are also able to complete.
20. There are correct models and rules that must be followed when conducting a value chain analysis or
the correct answer will not be determined.
21. Outsourcing is a way to add value to the business that converts an external value creating activity into
an internal supplier.
22. Outsourcing is a matter of convenience for most firms because they usually possess the resources and
capabilities required for competitive advantage superiority in all primary and secondary activities.
23. Once a core competence has been identified and perfected, it is a stable source of competitive
advantage.
24. The objectives of various stakeholder groups often differ from one another, sometimes placing
managers in situations in which they must make trade-offs.
25. Managers should establish measures that reflect how well the firm responds to needs and desires of
key stakeholders.
26. Sustainable development is strategically important business growth that depletes natural resources.
27. Power is the most critical criterion decision makers use to priortize stakeholder interests.
29. Both shareholders and lenders expect returns commensurate with the degree of risk associated with
their investments.
30. Firms can measure success in supplier relationships in terms of the way suppliers serve them and their
eagerness to engage in business.
31. Union interests and demands are typically consistent with employees’ needs.
32. Most organizations such as McDonald’s and Chipotle define their sustainability programs in terms of
what they are doing to advance technology while at the same time protecting the environment and
serving and protecting the communities and societies in which they operate.
MULTIPLE CHOICE
1. In the global economy, ____ has made it increasingly difficult for a firm to develop and sustain a
competitive advantage.
a. the Internet
b. the increasing homogenization of global culture
c. the increasing hostility to American culture
d. the development of second world economies into true global contenders
ANS: A PTS: 1 DIF: med REF: p. 133
OBJ: 1 NOT: knowledge
2. Which of the following is NOT a factor affecting sustainability of a competitive advantage?
a. The availability of substitutes for a firm’s core competence
b. The rate at which obsolescence of the core competence occurs
c. The imitability of a core competence
d. The availability of resources to the firm
ANS: D PTS: 1 DIF: med REF: p. 107
OBJ: 5 NOT: knowledge
4. The proper matching of what a firm can do with what it might do allows the:
a. development of a top management team.
b. development of a successful low-cost strategy.
c. development of strategic intent, strategic mission, and the formulation of strategies.
d. formation of a strategic group.
ANS: C PTS: 1 DIF: hard REF: p. 107
OBJ: 1 NOT: knowledge
6. The three conditions that characterize difficult managerial decisions concerning resources, capabilities,
and core competencies are:
a. complexity, rarity, and capacity.
b. uncertainty, complexity, and intraorganizational conflicts.
c. imitability, complexity, and interorganizational conflicts.
d. uncertainty, value, and availability of resources.
ANS: B PTS: 1 DIF: hard REF: p. 109
OBJ: 5 NOT: knowledge
II.
CATHERINE. — Ei, hän läksi eilen. Koko tämä asia huoletti häntä
hyvin.
III.
MATHIS, CATHERINE.
MATHIS. — Anna nyt lapsen olla rauhassa, tiedäthän sinä, että hän
pukee päällensä.
IV.
EDELLISET, ANNETTE.
V.
MATHIS (yksinään).
VI.
MATHIS. NICKEL.
VII.
CHRISTIAN. — Lupaan.
MATHIS. — Ota vaari, Christian, minä sitä poltin, minä; minulla oli
uuni, kun onnettomuus tapahtui.
VIII,
CATHERINE. — En.
MATHIS. — No, koska sen siis pitää tapahtua, emme voi parempaa
toivoa.
(Menevät).
IX.
CHRISTIAN, ANNETTE.
ANNETTE. — Rakastin.
CHRISTIAN. — No, sepä oli vasta; tuo asia minua huoletutti, minä
ajattelin: hän ei tahdo laulaa santarmin edessä, hän on liian ylpeä.
X.
EDELLISET, MATHIS.
XI.
EDELLISET, WALTER, HEINRICH, CATHERINE, NOTARIUS, LOIS, NICKEL,
TALONPOIKIA, VAIMOJA JA MIEHIÄ.
I.
II.
ANNETTE, MATHIS, CHRISTIAN, CATHERINE.
III.