B) Whenever a company improves or developed its capabilities to support innovation, the organization is said to have the capacity for innovation. competitiveness and earn above-average returns includes which of the following? It does not help or hurt Southwest competitively. Said differently, a firm that enjoys a dynamic capability is skilled at continually updating its array of capabilities to keep pace with changes in its environment. 2) Product quality. Is Southwests culture valuable? According to resource-based theory, organizations that own strategic resources have important competitive advantages over organizations that do not. A firm's strategy includes which of the following: Captures how vision and mission will be achieved, Establishes systems and processes used to implement the goals, Sets specific operating procedures to be followed by front line. This is an example of their. Resources such as Southwests culture that reflect all four qualitiesvaluable, rare, difficult to imitate, and organized to capture valueare ideal because they can create sustained competitive advantages. Please analyze the behavior of the markets for goods and money for each area.Cite references to material that you use in preparing the essay. ~~~~~\text{Movies} & & 10.00 & 5.00\\ These two building blocks are tightly linkedcapabilities from using resources over time. Resources and capabilities are the basic building blocks that organizations use to create strategies. \end{array} The key to using the Resource Based View is to evaluate a firms resources and capabilities using the VRIO framework decision tree. O - One approach to focusing is to service either industrial buyers or consumers, but not both, Strategic management process is the coordinated means by which an organization chooses itsmission and vision. O - A firm's tangible resource includes which of the following? See Page 1. For firms such as Walgreen Co. (a chain of drugstores), information systems have been a source of competitive advantage by enabling them to. Knowledge b. Chi, T. (1994). Recently, shareholders have been vocal about the importance of products made in the US. 3) Unique style. As another example, what about Southwest Airlines capability to arrive on time at a much higher rate than the industry average? EXPENDITURESFORTHEMONTHOFJULY, ActualAmountAmountExpensesBudgetedSpentFood$160.00$175.70HouseholdElectricbill45.0044.35Telephonebill35.0041.20Heatingfuel50.0015.00Waterbill24.5031.70CableTVbill25.0025.00TransportationGasolinepurchases85.00101.70Parking/tolls15.0015.00PersonalClothing40.0031.75Creditpayments50.0041.74Newspapers. True B. Cost leaders must maintain their marketing or face the possible entry of more cost-effectivecompetitors. D) Production equipment can be considered an asset or resource of a company that is physical in nature and can be measured, making it a tangible resource. b. XYZ Corp. is focusing on the objective of low-cost, high quality, on-time production by minimizing idle productive facilities and workers. ~~~~~\text{Emergency fund} & & 50.00 & 50.00\\ Low entry barriers Executives strongly encourage flight attendants to entertain passengers, like hiding in an overhead compartment. True Instead, capabilities are needed to bundle, to manage, and otherwise to exploit resources in a manner that provides value added to customers and creates advantages over competitors. B) culture, tangible resources, intangible resources. Strategy formulation is essentially the aim of the organizing, leading, and controlling components ofthe POLC framework This means that a firm has a unique ability to create new capabilities. Coca-Cola has an uncanny knack for building new brands and products as the soft-drink market evolves. ___________ are associated with collecting, storing, and distributing the product or service to buyers. Strategic Management Journal, 15(4), 271290. c. To build a portfolio of businesses much like a portfolio of stock Low cost Resources can be divided into two main types: tangible and intangible. Complete the following statements using either "debit" or "credit": (b) The owner's capital account is increased with a _________. ______________ are the competencies or skills that a firm employs to transform inputs into outputs. These competitive advantages in turn can help the organization enjoy strong profits (Barney, 1991; Wernerfelt, 1981). managers should focus exclusively on the current market environment. Intangible resources are quite difficult to see, touch, or quantify. A firm's tangible resource includes which of the following? & &\text{Amount}& \text{Amount}\\ Straddling strategies as an approach to strategic management is not recommended for which reason: It is an attempt to gain competitive advantage based on overall lowcost provider of a product, Research shows that straddling strategies leads to confusion among managers about the, It is an indication that the firm's managers have not made necessary choices about the, According to Porter straddling strategies is recommended for narrow scope firms that have, The industry characteristics that make it very difficult for firms to achieve strategic competitiveness and. A competitive advantage based on inimitability can be sustained for at least some time if it has the following characteristics. When analyzing a value chain with a VRIO framework, what is the most important question to begin with? and more. When a company's resources are valuable but not rare, the company is said to have which element? False -Production equipment B. Thus an organization cannot hope to create an enduring competitive advantage around common resources. A) if the overall strategy of the firm is the same. What are the degrees of freedom for Retrieved from https://commons.wikimedia.org/wiki/File:Southwest_737_Lonestar_One.jpg. 12.-. Historical comparisons are often misleading. B) Motorola has revised its compensation system to reward employees who learn a variety of skills. Also, water cannot be imitated (at least not on a large scale), and no other substance can substitute for the life-sustaining properties of water. Although firm infrastructure is often viewed only as overhead expense, it can become a source of competitive advantage. What is the firm's secret competitive advantage? A resource is valuable to the extent that it helps a firm create strategies that capitalize on opportunities and ward off threats. This video is the song That Thing You Do! by the Wonders. For example, Southwests culture is complemented by approaches that individually could be copiedthe airlines emphasis on direct flights, its reliance on one type of plane, and its unique system for passenger boardingto create a unique business model whose performance is without peer in the industry. Centralized decisions A. b. Some firms develop a dynamic capability. A resource is organized to capture value when the firm has organizational systems, processes, and structure in place to capitalize on the resource for a competitive advantage. \text{Household} & & & \\ turning over an organizational activity to an outside supplier. Which of these categories of financial ratios is used to measure a company's ability to meet its short-term financial obligations? Before long, The Wonders perform on television and That Thing You Do! is a top-ten hit record. The source of Ardent's success is causally ambiguous. Was this amount more or less than the amount they had originally budgeted? T or F C) criteria for lease versus purchase decisions. Barney, J. Which of the following is not one of these attributes: For a resource to provide a firm with the potential for a sustainable competitive advantage, it must have the following four attributes. Workers at the Cambodian plant produce the clothing according to the European firm's designs and specifications. They consist of warehousing, material handling, delivery operation, order processing, and scheduling. For a differentiation strategy to be effective, the product difference should NOT be, The different aspects of strategy as distinguished by Mintzberg include which of the, Firms pursuing a differentiation strategy are vulnerable to different competitive threats. A) By employing JIT inventory systems, Hewlett Packard has been able to cut lead time from five days to one. If not, then this resource only provides Southwest competitive parity. Satisfying only one or two of the valuable, rare, difficult-to-imitate, organized to capture value criteria will likely only lead to competitive parity or a temporary advantage. If yes, go to number 2. Southwests culture arose from its very humble beginnings. Learn more about how Pressbooks supports open publishing practices. The particular bundles of resources and capabilities that provide unique advantages to the, Core competencies are resources and capabilities that serve as a source of a firms. 11.-. B) financial resources, physical resources, and the capacity to combine intangible resources. Executives who wish to achieve long-term competitive advantages should therefore place a premium on trying to nurture and develop their firms intangible resources. To satisfy the mission and vision accounting. Figure 4.2: Planephotoman. d. Controlling Which of the following lists consists of support activities: A) human resource management, technology development, customer service, and procurement, B) human resource management, customer service, marketing and sales, and operations, C) human resource management, information systems, procurement, and firm infrastructure, D) customer service, information systems, technology development, and procurement, Human resource management consists of activities involved in the recruiting, hiring, training, development, and compensation of all types of personnel. Option C is also incorrect here. The XYZ Corp. is taking advantage of a ____________ system. Cross), The Methodology of the Social Sciences (Max Weber), Civilization and its Discontents (Sigmund Freud), Campbell Biology (Jane B. Reece; Lisa A. Urry; Michael L. Cain; Steven A. Wasserman; Peter V. Minorsky), Give Me Liberty! A useful way to identify a company's resources is to view them as: A. divided into two main categories, tangible and intangible. ~~~~~\text{Car registration} & &4.33 & 0\\ ~~~~~\text{Credit payments} & & 50.00 & 41.74\\ Resources that can be readily seen, touched, and quantified, such as cash or equipment, Resources that are not physical, like a firms reputation, a patent, or employee knowledge, Resources that provide an organization with an opportunity to develop competitive advantages over its rivals. All of the following except which example is a reason that relentless imitation can be a dangerous practice? Southwest Airlines provides an illustration of resource-based theory in action. D) outstanding customer service, innovativeness of products, and reputation. Organizational routines d. Production equipmentd; Easy (Comprehension) 3. To capture more consumers Those resources and capabilities that provide a significant competitive advantage are referred to as what? It is not hard to imagine a day when companies in Maine make huge profits by sending giant trucks filled with water south and west or even by building water pipelines to service arid regions. In contrast, intangible resources are quite difficult to see, to touch, or to quantify. The bands magic vanishes as quickly as it appeared, however. In the value chain, which of the following activities is deemed to add direct value to a firm? Expert Answer. One key reason for their success is a legendary organizational culture that inspires employees to do their very best. D) Compare the financial ratios of firms in the company's strategic group. Relatively moderate rivalry, Copyright 2023 StudeerSnel B.V., Keizersgracht 424, 1016 GC Amsterdam, KVK: 56829787, BTW: NL852321363B01, Design and emergence strategies involve specific levels of the organiz, It is important to note that the concept of strategy is rele. For the Unit 8 Learning Journal, reflect for a few minutes on the four functions of management: Planning, Organizing, Leading, and Controlling, represented by the acronym P-O-L-C. ~~~~~\text{Electric bill} & & 45.00 & 44.35\\ ~~~~~\text{Sporting events/recreation} & & 32.00 & 32.00\\ D) the industry and the competitive environment. Superiority in competitive advantage refers to all of the following factors EXCEPT: a. Resource-based theory also stresses the merit of an old saying: the whole is greater than the sum of its parts. Recruitment c. Service d. Procurement c; Medium Customers do not simply send money to an organization because it owns strategic resources. b. Hierarchical diversification Resources such as cash and vehicles are valuable, of course, but an organizations competitors can readily acquire them. Cost leaders must maintain their marketing or face the possible entry of more cost-effective competitors. The components are then shipped back to the United States, where each complete car is assembled. Resource-based theory contends that the possession of strategic resources provides an organization with a golden opportunity to develop competitive advantages over its rivals (Table 4.1). https://youtu.be/BJn-Jl2ZeQU. (1991). This worked, A number of things organizations can do prior to change to prepare employees include which of the following? A retail chain that sells home entertainment systems, computers, and other electronics is far outselling is competitors based on its innovation processes. Industry characteristics of an attractive industry, one where firms may achieve strategic competitiveness and earn above-average returns includes which of the following? Which of the following is not an advantage of Just-In-Time inventory systems? A) financial analysis and a firm's reputation. D) geographic uniqueness, cause dependency, social ambiguity, and path complexity. Specifically, it is important to recognize that strategic resources can be created by taking several strategies and resources that each could be copied and bundling them together in a way that cannot be copied. Organizing RARE resources are those held by few or no other competitors. Which activity is the least risky candidate for outsourcing? b. ~~~~~\text{Telephone bill} & & 35.00 & 41.20\\ Southwest Airlines culture fits this standard well. Wernerfelt, B. Firm resources and sustained competitive advantage. d. To spread out risk and opportunities over a larger set of businesses By how much? Ratios that reflect whether or not a firm is efficiently using its resources are known as, Historical comparisons provide information to managers about changes in a firm's competitive position. Course Hero is not sponsored or endorsed by any college or university. Which of the following forms of diversification occurs when a firm operates multiple. It depends on the culture and structure of the organization. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. a. Strategic Management by Reed Kennedy is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted. 5 Option A C. "Afirm's reputation D. Afirm's headquarters building. A) Knowledge. Examples of tangible resources (in the resource-based view of the firm) include: A) financial resources, human resources, and firm competencies. The best measure of a company's ability to meet imminent financial obligations is known as the. Southwests culture is complemented by approaches that individually could be copiedthe airlines emphasis on direct flights, its reliance on one type of plane, and its unique system for passenger boardingin order to create a unique business model in which effectiveness and efficiency is the envy of competitors. In the value chain, which of the following activities is deemed to add direct value to a firm? Industry characteristics of an attractive industry, one where firms may achieve strategiccompetitiveness and earn above-average returns includes which of the following? The VRIO tool can be used to determine if resources or capabilities are valuable, rare, difficult-to-imitate, and organized to capture value, and thereby understand what type of competitive advantage they offer to a firm. What are original equipment manufacturers (OEMs)? D) Wal-Mart implemented a sophisticated information system that resulted in reduced inventory carrying costs and shortened customer response times. opportunities or negate threats in the environment. D) gains in financial performance and customer satisfaction must often come at a cost of employee satisfaction. In other words, describe a management practice from the course content relating to each of the four functions of management. Southwests culture arose from its very humble beginnings and has evolved across decades. d. Threats posed by new entrants A dynamic capability exists when a firm is skilled at continually updating its array of capabilities to keep pace with changes in its environment. Choose question tag. The balanced scorecard provides top managers with a _____________ view of the business, The balanced scorecard developed by Kaplan and Norton helps to integrate. : In determining stakeholders who should be consulted as strategy is developed, companies often develop an incomplete list. The VRIO Framework with numbers. CC BY-SA 4.0. When the talent show audience goes crazy in response, it marks the beginning of a meteoric rise for both the song and the band. A firm's tangible resource includes which of the following? C) organizational culture and leadership. The following are examples of socially complex organizational phenomena except. What is this an example of. Do firm resources and capabilities add value? Question 5 A firm's tangible resource includes which of the following? In comparing the two types of resources, intangible resources are more likely to meet the criteria for strategic resources (i.e., valuable, rare, difficult-to-imitate, and organized to capture value) than are tangible resources. True Capacity for innovation Organizational routines d. Production equipment. Cropped. False 12 Test Bank, Peds Exam 1 - Professor Lewis, Pediatric Exam 1 Notes, A&p exam 3 - Study guide for exam 3, Dr. Cummings, Fall 2016, Sociology ch 2 vocab - Summary You May Ask Yourself: An Introduction to Thinking like a Sociologist, Respiratory Completed Shadow Health Tina Jones, Dehydration Synthesis Student Exploration Gizmo, Module One Short Answer - Information Literacy, Seeley's Essentials of Anatomy & Physiology Chapter 1-4, 1-2 Short Answer Cultural Objects and Their Culture, Sample solutions Solution Notebook 1 CSE6040, Kami Export - Jacob Wilson - Copy of Independent and Dependent Variables Scenarios - Google Docs, Leadership class , week 3 executive summary, I am doing my essay on the Ted Talk titaled How One Photo Captured a Humanitie Crisis https, School-Plan - School Plan of San Juan Integrated School, SEC-502-RS-Dispositions Self-Assessment Survey T3 (1), Techniques DE Separation ET Analyse EN Biochimi 1. \text{Transportation}\\ Some difficult to imitate resources are protected by various legal means, including trademarks, patents, and copyrights. Consider the market for minivans. Humans simply cannot live without water, so water has inherent value. How has Walgreens used its core competencies to provide value to its customers? Correct Answer: Explore answers and other related questions. B) minimized idle production facilities and workers. Option D is the right choice here. D) short-term perspectives and strategic positioning. If not, all the effort to develop it is a waste of resources and a competitive disadvantage. Tangible resources can be understood as the resources of a company that can be seen, and measured and are physical in nature. Superiority in competitive advantage refers to all of the following factors EXCEPT: b. Has Southwest organized this resource of culture to capture value? Although the airline industry is extremely competitive, Southwest Airliness turns a profit virtually every year. Social complexity is defined as the socially intricate and interdependent ways firms are typically organized. \text{Food} & & \$160.00 & \$175.70\\ Every organization has stakeholders. The industry characteristics that make it very difficult for firms to achieve strategic competitivenessand earn above-average returns includes all of the following EXCEPT: reading all the available information carefully, prepare a two page (double-spaced) essay and answer the following questions:Assume that we have the following data:C=100+0.50YIp=100-20rMt=0.10YMs=100-10rM=80a. According to value chain analysis, which of the following would be considered part of a firm's infrastructure? In the airline industry, is Southwests culture hard to imitate? c. Gobal economic conditions (2020, April 24). Do you believe most, You work for an organization that has traditionally been very formalized, and managers have had a very broad span of control over direct reports from multiple departments and functions. ~~~~~\text{Water bill} & & 24.50 & 31.70\\ \end{array} Most other airlines do not have this philosophy. economics. the K-W test? B) need to maintain the reputation of the company. Production equipment A firm's strategy includes which of the following: a. 5 Option A Explanation: Tangible resources have a physical form, t . Distribution centers. D. At Intel the key historic decision to abandon memory chips and concentrate upon microprocessors was the result of which of the following? Tangible resources include all except which of the following? O - At Intel the key historic decision to abandon memory chips and concentrate uponmicroprocessors was the result of which of the following? Strategy formulation answers the question. A) KnowledgeB) Capacity for innovationC) Organizational routinesD) Production equipment. Intangible resources include, for example, the knowledge and skills of employees, a firms reputation, brand name, exclusive rights to intellectual property, leadership traits of executives, and a firms culture. Scientific capabiliti Production equipment c. Manufacturing plants d. Formal reporting structures 6. One key reason is a legendary organizational culture that inspires employees to do their very best. c. Product quality Which of the following is an example of a technological resource? False & & &\text{Actual}\\ Capabilities tend to arise over time as a firm takes actions that build on its strategic resources. It is important to note that the concept of strategy is relevant to only large, public companies likeGE. Which of the following is a support activity? False What resistance to the change occurred, if any? Despite Mattinglys objections, Guy spontaneously adds an up-tempo beat to a sleepy ballad called That Thing You Do! during a local talent contest. D) if the firm's stock is publicly traded. ORGANIZED TO CAPTURE VALUE: Having in place the organizational systems, processes, and structure to capitalize on the potential of the resources and capabilities of the firm to provide a competitive advantage. a. B) in periods of recession or economic boom. c. Extensive market research Which of the following is an example of innovation resources? Business Law: Text and Cases (Kenneth W. Clarkson; Roger LeRoy Miller; Frank B. Southwest is a rags to riches story that has evolved across several decades. If yes, go to number 4. Consider how Southwest Airliness organizational culture serves as a strategic resource. The industry characteristics that make it very difficult for firms to achieve strategic competitiveness and earn above-average returns includes all of the following EXCEPT: a. Receive an answer explained step-by-step. Instead, a resource is strategic to the extent that it is valuable, rare, difficult to imitate, and organized to capture value. B) psychographic uniqueness, path dependency, causal ambiguity, and substitutability. Other airlines could not replicate Southwests culture, regardless of how hard they might try, because of Southwests unusual history. B) Compare the firm's financial ratios over the most recent one-year period. When the bands usual drummer has to miss a gig due to injury, the door is opened for charismatic drummer Guy Patterson, whose energy proves to be the final piece of the puzzle for The Wonders. This too is intangible in nature, making Option B an incorrect choice. After their bass player joins the Marines, Lenny elopes on a whim, and Jimmys diva attitude runs amok, the band is finished and Guy is left to wonder what might have been. Verified answer. D) top management providing a key role in collaborating with important customers. a. Power of stockholders Resource-based theory can be confusing because the term resources is used in many different ways within everyday common language. C) Every organization has a routine that it follows for its procedures and processes. All Rights Reserved. Learn More. B) intangible resources and operational measures. A) Organizational strengths may not lead to competitive advantage, B) SWOT's focus on the external environment is too broad and integrative, C) SWOT gives a one-shot view of a moving target, D) SWOT overemphasizes a single dimension of strategy. Design/methodology/approach A cross-sectional survey research design was used in the study. : Ans. Since the firm has two units of capital, the firm's total fixed cost is$20. Imagine that a U.S. car manufacturer builds a plant in Mexico, where labor is cheaper. Provide employees with HR support in the event they choose to leave the. B) effective information systems contributing significantly to a firm's overall cost leadership strategy. Do any of the resources or capabilities of your favorite restaurant have the four qualities of resources (VRIO) that lead to success as articulated by resource-based theory. Communicates to stakeholders the hierarchical corporate structure. Captures how vision and mission will be achieved, O - A firms tangible resource includes which of the following? Production equipment O - At Intel the key historic decision to abandon memory chips and concentrate uponmicroprocessors was the result of which of the following? A resource-based view of the firm. Southwest Airliness culture provides the firm with uniquely strong employee relations in an industry where strikes, layoffs, and poor morale are common. The influence of Southwests organizational culture extends to how customers are treated by employees. ~~~~~\text{Dining out} & & 100.00 & 63.80\\[10pt] gifts20.0011.65PocketMoney60.0072.00EntertainmentMovies10.005.00Sportingevents/recreation32.0032.00Diningout100.0063.80FixedRent625.00625.00Furniture125.00125.00Savings100.00100.00Emergencyfund50.0050.00Life/carinsurancepremiums132.50132.50Carregistration4.330Pledges/contributions8.330\begin{array}{l c r r} Capacity for innovationc. illustrates that while bundling resources in a unique way can create immense success, preserving and managing these resources over time can be very difficult. An important implication of the balanced scorecard approach is that: A) managers need to recognize tradeoffs in stakeholder demands and realize that such demands represent a zero-sum game in which one stakeholder will gain only at another's loss. \text{Fixed} \\ c. Strong competitive threats from product substitutes Then discuss how the company caters for their interests and what may happen if their expectations are not met.A water utility companyA multinational food companyA local airport. A crash R&D program by one firm cannot replicate a successful technology developed by another firm when research findings cumulate. Planning Which of the following would be most difficult to assess?
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