Chapter 3 Flashcards
According to the Chapter 3 Opening Case, all of the following are core competencies of Subway EXCEPT
The challenging economic environment in which even affluent consumers are choosing to dine at quick-service restaurants such as Subway.
It is increasingly difficult for a firm to develop and sustain a competitive advantage because of the effects of globalization and
the rapid development of the Internet’s capabilities.
Which of the following is NOT required for a firm to achieve strategic competitiveness and earn above-average returns from its core competencies?
Core competencies must be internationalized.
Which of the following is NOT a factor affecting sustainability of a competitive advantage?
The length of time the core competence has existed.
Internal analysis enables a firm to determine what the firm
can do
The proper matching of what a firm can do with what it might do
yields insights the firm requires to select its strategy.
The key to achieving competitiveness, earning above-average returns, and remaining ahead of competitors in the long run is to manage current core competencies
while simultaneously developing new ones.
Which of the following is not a component of internal analysis leading to competitive advantage?
Analysis of supplier power.
Value consists of
A product’s performance characteristics and by its attributes for which customers are willing to pay.
____ is/are the source of a firm’s ____, which is/are the source of the firm’s ____.
Resources, capabilities, core competencies
____ is measured by a product’s performance characteristics and its attributes for which customers are willing to pay.
value
By emphasizing core competencies when formulating strategies, companies learn to compete primarily on the basis of
firm-specific differences.
____ of organizational decisions fail.
about half
A decision that results in failure
allows for learning.
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
the learning that occured from making earlier mistakes.
The three conditions that characterize difficult managerial decisions concerning resources, capabilities, and core competencies are
uncertainty, complexity, and intraorganizational conflicts.
As discussed in the Chapter 3 Strategic Focus, CEOs of companies such as Viacom, the Oprah Winfrey Network, the Gap, and Cisco frequently had to make decisions about __________________ and the success of those decisions affected the tenure of those CEOs.
use of the firm’s resources
The overall lesson from the Chapter 3 Strategic Focus about decision-making at several companies was the importance of _________
making decisions about use of the firm’s resources under conditions of uncertainty.
A person who has made a successful decision when no obviously correct model or rule is available or when relevant data are unreliable or incomplete has exercised
judgement
One reason executive judgment can be a particularly important source of competitive advantage is that judgment
allows a firm to build a strong reputation.
Judgment is the capacity for making a successful decision when
no obviously correct model or rule is available.
The most numerous of the following organizational characteristics are
resources
Capabilities typically come from
combining resources
All of the following are tangible resources EXCEPT
firms reputation
Tangible resources include
assets that can be observed and quantified.
Complete the following about the difference between tangible and intangible resources. Tangible resources are ____ constrained because they are _____ to leverage.
more; harder
Compared to tangible resources, intangible resources are
a superior source of capabilities.
Compared to tangible resources, intangible resources are ____ and ____.
less visible; more difficult to copy.
The critical executive skill of the current business age is the ability to
manage human intellect.
