Chapter 4

Question 1

What is resource-based theory?

Answer 1

• contends that the possession of strategic resources provides an organization with a golden opportunity to develop competitive advantages over its rivals.
• these competitive advantages in turn can help the organization enjoy strong profits.

Question 2

What is a strategic resource?

Answer 2

-an asset that is valuable, rare, difficult to imitate and nonsubstitutable.

Question 3

Define valuable

Answer 3

-a resource is valuable to the extent that it helps a firm create strategies that capitalize on opportunities and ward off threats.

Question 4

Describe “difficult to imitate” resources.

Answer 4

• competitors have a hard time duplicating resources.
• trademarks, patents, and copyrights.
• some are hard to copy because they evolve over time and reflect unique aspects of the firm.

Question 5

Describe a “nonsubstitutable” resource.

Answer 5

-when competitors cannot find alternative ways to gain the benefits that a resource provides.

Question 6

What is a sustained competitive advantage

Answer 6

-one that will endure over time and help the firm stay successful far into the future.

Question 7

Describe tangible resources.

Answer 7

-resources that can be readily seen, touched, and quantified.

Question 8

Describe intangible resources.

Answer 8

• difficult to see, to touch, or to quantify.
• knowledge and skills of employes, a firm’s reputation, and a firm’s culture.
• more likely to meet the criteria for strategic resources.

Question 9

Describe capabilities.

Answer 9

-resources refer to what an organization owns, capabilities refer to what the organization can do.

Question 10

Describe dynamic capability.

Answer 10

• firm has a unique capability of creating new capabilities.

- skilled at continually updating its array of capabilities to keep pace with changes in its environment.

Question 11

What is a central point of resource-based theory?

Answer 11

-it is an array of resources and capabilities that fuels enduring success, not any one resource alone.

Question 12

Describe distinctive competence.

Answer 12

-set of activities that an organization performs especially well.

Question 13

How is resource-based theory an improvement?

Answer 13

• offers a complete framework for analyzing organizations, not just snippets of valuable wisdom.
• ideas have been developed and refined through scores of research studies involving thousands of organizations.

Question 14

Describe the marketing mix.

Answer 14

-the four Ps of marketing.

Question 15

What is the purpose of the marketing mix.

Answer 15

-provide a strong alignment among the four Ps(product, price, place and promotion to offer customers a coherent and persuasive message.

Question 16

Describe product.

Answer 16

-what a firm sells to its customers.

Question 17

Describe place.

Answer 17

-physical purchase point as well as a distribution channel.

Question 18

Describe promotion

Answer 18

-consists of the communications used market a product, including advertising, public relations, and other forms of direct and indiirect selling.

Question 19

Describe intellectual property.

Answer 19

-creations of the mind, such as inventions, artistic products, and symbols.

Question 20

What are the four main types of intellectual property?

Answer 20

-patents, trademarks, copyrights, and tarde secrets.

Question 21

Describe patents.

Answer 21

-legal decrees that protect inventions from direct imitation for a limited period of time.

Question 22

Describe trademarks.

Answer 22

-phrases, pictures, names or symbols used to identify a particular organization.

Question 23

Describe copyrights.

Answer 23

• provide exclusive rights to the creators of original artistic works such as books, movies, songs and screenplays.
• sometimes sold and licensed.