Ch. 4 & 5 Flashcards
Which of the following were resources and capabilities that helped Five Guys gain a competitive advantage and develop into a successful restaurant chain?
Carefully choosing the supplier of the potatoes for their fries
Focusing on such details as store layout and design
The core competencies of a business are generated by the interaction of ______.
resources and capabilities
A core competency can help a company achieve which of the following?
to offer products of comparable value at lower cost than rivals can
to create higher value for the consumer to differentiate its products and services
Which of the following are examples of resources for a firm?
cash
intellectual property buildings
Which of the following statements are true about the capabilities of a firm?
They concern the deployment of resources.
They include managerial skills. They include organizational skills.
Which of the following best describes the core competency of the Five Guys Burgers and Fries company?
Making high-quality burgers without limiting costs
What are the distinct and fine-grained business processes that enable firms to add incremental value by transforming inputs into goods and services?
Activities
What do the best firms in an industry seek to identify and manage on an ongoing basis as sources to respond to their external environment?
resources
capabilities core competencies
True or false: Core competencies should be continuously improved so that the firm can acquire or maintain a competitive advantage.
True
A(n) ______ is a unique strength, embedded deep within a firm, that is critical to gaining and sustaining competitive advantage.
Core competency
The resource-based view classifies all resources as ______.
Tangible or intangible
Unlike capabilities, resources can be both ______
Tangible or intangible
Capital, land, buildings, and plants are examples of ______ resources.
Tangible
The organizational and managerial skills necessary to orchestrate a diverse set of resources and deploy them strategically are called ______.
capabilities
______ do not have physical attributes.
Intangeble resources
Which are examples of activities that create value?
invoicing a customer
taking an order from a customer making a physical delivery of a product
Why is competitive advantage more likely to spring from intangible rather than tangible assets?
Tangible assets can be bought on the open market.
In a highly competitive industry, what are the likely consequences of a firm neglecting its current core competencies?
Competitors will gain market share.
Competitors will outperform the firm by creating competitive advantage. Competitors will develop equivalent or superior skills.
According to the resource-based view of a firm, what are defined as any asset, capability, or competency that a firm can draw upon when formulating and implementing strategy?
resources
The resource-based model views resources as ______.
the main driver of firm performance
According to the resource-based model, a firm is assumed to be a unique bundle of resources, capabilities, and competencies.
True
______ resources have physical attributes and are visible.
tangible
What critical assumption comes from the insight that bundles of resources differ across firms?
resource heterogeneity
A firm’s culture, brand equity, and intellectual property are examples of ______.
intagible resources