Chapter 3

Question 1

Costly-to-imitate capabilities

Answer 1

capabilities that other firms cannot easily develop

Question 2

Global mind-set

Answer 2

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

Question 3

Intangible resources

Answer 3

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

Question 4

Nonsubstitutable capabilities

Answer 4

capabilities that do not have strategic equivalents

Question 5

Outsourcing

Answer 5

the purchase of value-creating activity or a support function activity from an external supplier

Question 6

Rare capabilities

Answer 6

capabilities that few, if any, competitors posses

Question 7

Support functions

Answer 7

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 8

Tangible resources

Answer 8

assets that can be observed and quantified

Question 9

Valuable capabilities

Answer 9

allow the firm to exploit opportunities or neutralize threats in its external environment

Question 10

Value

Answer 10

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

Question 11

Value chain activities

Answer 11

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