Ch3

Question 1

Firms analyzing their internal organization should use a

Answer 1

global mind-set

Question 2

What is global mind-set

Answer 2

A global mind-set is the ability to analyze, understand, and manage an internal organization in ways that are not dependent on the assumptions of a single country, culture, or context.

Analyzing the firm’s internal organization requires that evaluators understand how to leverage the firm’s unique bundle of resources and capabilities.

Question 3

Resources can be ……………….. and …………….. .

Answer 3

Tangible and intangible.

Question 4

What is the four Criteria of sustainable advantages?

Answer 4

1-Valuable
2-Rare / نادر
3-Costly to imitate / تقليدها مكلف
4-nonsubstitutanle / غير مستبدله

Question 5

How can you measured the Value?

Answer 5

by a product’s performance characteristics and by its attributes for which customers are willing to pay.

Question 6

How Firms can create value?

Answer 6

by innovatively building and leveraging their resources to form capabilities and core competencies.

Question 7

creating value for customers is the source to achieve above-average returns for a firm. ?
T or F

Answer 7

True

Question 8

Core competencies, in combination with product-market positions, are the firm’s most important sources of…………… ……….….?

Answer 8

competitive advantage

Question 9

The strategic decisions managers make about the internal organization:

Answer 9

• Are nonroutine
• Have ethical implications
• Significantly influence the firm’s ability to earn above-average returns

Question 10

Making decisions regarding the firm’s assets:

Answer 10

1- Involves identifying, developing, deploying, and protecting resources, capabilities, and core competencies.
2- Is challenging and difficult .
3- Is increasingly internationalized

Question 11

A firm can improve by studying its mistakes.
T or F

Answer 11

T
Because The learning generated by making and correcting mistakes can be important in the creation of new capabilities and core competencies.

Question 12

Three conditions affect managers as they analyze the internal organization and make decisions about resources:

Answer 12

1- Uncertainty / شك ؛ عدم يقين
2- Complexity / تعقيد
3- Intra organizational conflict / صراع داخل المنظمه

Question 13

What is the Conditions Affecting Managerial Decisions about Resources, Capabilities, and Core Competencies

Answer 13

1- uncertainty
2- complexity
3- intraorganizationalnconflicts

Question 14

Uncertainty definition

Answer 14

Uncertainty exists about the characteristics of the firm’s general and industry environments and customers’ needs.

Question 15

Complexity definition

Answer 15

Complexity results from the interrelationships among conditions shaping a firm.

Question 16

Intraorganizational Conflicts definition

Answer 16

Intraorganizational conflicts may exist among managers making decisions as well as among those affected by the decisions.

Question 17

The foundation of competitive advantage are ?

Answer 17

1- Resources
2- Capabilities
3- Core competencies

Question 18

Resources are bundled to create organizational capabilities
In turn, capabilities are the source of a firm’s core competencies, which are the basis of establishing competitive advantages.
T or F

Answer 18

T

Question 19

resources only , do not allow firms to create value for customers as the foundation for earning above-average returns.

Answer 19

True

Question 20

What is Tangible resources

Answer 20

Tangible resources are assets that can be observed and quantified.

Question 21

Four primary categories of tangible resources are:

Answer 21

1. Financial
2. Organizational
3. Physical
4. Technological

Question 22

What is Intangible resources

Answer 22

Intangible resources are assets that are rooted deeply in the firm’s history, accumulate over time, and are relatively difficult for competitors to analyze and imitate.

Question 23

Three primary categories of intangible resources are:

Answer 23

1. Human
2. Innovation
3. Reputational

Question 24

Tangible resources are hard to leverage?

Answer 24

Yes it is difficult to derive additional business or value from a tangible resource.

Question 25

Intangible Resources Compared to tangible resources:

Answer 25

• Are less visible and more difficult for competitors to understand, purchase, imitate, or substitute for. • Are more relied on to be the foundation for a firm’s capabilities. • Can be leveraged

Question 26

Capabilities are:

Answer 26

• Created by combining individual tangible and intangible resources • Used to complete the organizational tasks required to produce, distribute, and service the goods or services the firm provides to customers for the purpose of creating value for them • The foundation for building core competencies and hopefully competitive advantages • Often based on developing, carrying, and exchanging information and knowledge through the firm’s human capital • Often developed in specific functional areas or in a part of a functional area

Question 27

Core competencies:

Answer 27

• Are capabilities that serve as a source of competitive advantage for a firm over its rivals • Emerge over time through an organizational process of accumulating and learning how to deploy different resources and capabilities • The activities the company performs especially well compared to competitors • The activities through which the firm adds unique value to the goods or services it sells to customers

Question 28

Two tools help firms identify their core competencies:

Answer 28

1. The four criteria of sustainable competitive advantage 2. Value chain analysis

Question 29

Core competencies are capabilities that are:

Answer 29

1- Valuable • Valuable capabilities allow the firm to exploit opportunities or neutralize threats in its external environment. 2- Rare • Rare capabilities are capabilities that few, if any, competitors possess. 3- Costly to imitate • Costly-to-imitate capabilities are capabilities that other firms cannot easily develop. 4- Nonsubstitutable • Nonsubstitutable capabilities are capabilities that do not have strategic equivalents.

Question 30

Value chain analysis allows the firm to……….. ?

Answer 30

understand the parts of its operations that create value and those that do not.

Question 31

The value chain is:

Answer 31

A template that firms use to analyze their cost position and to identify the multiple means that can be used to facilitate implementation of a chosen strategy

Question 32

What is Value chain activities?

Answer 32

Value chain activities are activities or tasks the firm completes in order to produce products and then sell, distribute, and service those products in ways that create value for customers.

Question 33

What is Support functions include ?

Answer 33

Support functions include the activities or tasks the firm completes in order to support the work being done to produce, sell, distribute, and service the products the firm is producing.

Question 34

What is the support functions in the model of the value chain?

Answer 34

1- Finance 2- Human Resources 3- Management Information System

Question 35

What is the Value chain Activities in the model of the value chain?

Answer 35

1- Supply-Chain Management 2- Operations 3- Distribution 4- marketing (Including Sale) 5- Follow-Up service (customer service)

Question 36

Firms need to make…..……….When the firm cannot create value in either a value chain activity or a support function.

Answer 36

outsourcing

Question 37

Why Firms engaging in effective outsourcing?

Answer 37

To - Increase their flexibility - Mitigate risks - Reduce their capital investments

Question 38

Firms should use outsourcing only for activities where they:

Answer 38

- Cannot create value - Are at a substantial disadvantage compared to competitors

Question 39

………………can be effective because few, if any, organizations possess the resources and capabilities required to achieve competitive superiority in each value chain activity and support function.

Answer 39

Outsourcing

Question 40

There are two significant concerns associated with outsourcing:

Answer 40

1. The potential loss in a firm’s ability to innovate 2. The loss of jobs within the focal firm

Question 41

Having a significant quantity of resources is not the same as having the “right” resources. T or F

Answer 41

T

Question 42

Why is it important for a firm to study and understand its internal organization?

Answer 42

The strategic decisions managers make about the internal organization: • Are non routine • Have ethical implications • Significantly influence the firm’s ability to earn above-average returns

Question 43

What is value? Why is it critical for the firm to create value? How does it do so?

Answer 43

Value is measured by a product’s performance characteristics and by its attributes for which customers are willing to pay. Etc

Question 44

What are the differences between tangible and intangible resources? Why is it important for decision makers to understand these differences? Are tangible resources more valuable for creating capabilities than are intangible resources, or is the reverse true? Why?

Answer 44

Tangible resources are assets that can be observed and quantified. Intangible resources are assets that are rooted deeply in the firm’s history, accumulate over time, and are relatively difficult for competitors to analyze and imitate.