Chapter 3

Question 1

internal analysis helps a firm

Answer 1

determine if its resources and capabilities are likely sources of competitive advantage

Question 2

resource-based view

Answer 2

assumes that a firm’s resources and capabilities are the primary drivers of competitive advantage and economic performance

Question 3

resources

Answer 3

tangible and intangible assets of a firm

Question 4

capabilities

Answer 4

a subset of resources that enable a firm to take full advantage of other resources

Question 5

the 4 categories of resources

Answer 5

financial
physical
human
organizational

Question 6

2 critical assumptions of the Resource based view

Answer 6

resource heterogeneity

resource immobility

Question 7

resource heterogeneity

Answer 7

a result of “bundling”

Question 8

the VRIO framework

Answer 8

Value
Rarity
Cost of Imitability
Organizational Structure

Question 9

if a firm’s resources are not valuable, then the firm can expect:

Answer 9

competitive disadvantage

Question 10

if a firm’s resources are valuable but not rar, then the firm can expect:

Answer 10

competitive parity

Question 11

if a firm’s resources are valuable and rare, then the firm can expect:

Answer 11

competitive advantage

Question 12

______ resources are usually more costly to imitate than _______ resources.

Answer 12

intangible, tangible

Question 13

imitation costs: unique historical conditions

Answer 13

first mover advantage

Question 14

imitation costs: casual ambiguity

Answer 14

a tool that determines the strategic resource that a company has available to it

Question 15

imitation costs: social complexity

Answer 15

the social relationships entailed in resources may be so complex that managers cannot really manage or replicate them

Question 16

patents

Answer 16

offer a period of protection if the firm is able to defend its patent rights

Question 17

if a firm’s resources are valuable, rare, but not costly to imitate then the firm can expect:

Answer 17

temporary competitive advantage

Question 18

if a firm’s resources are valuable, rare, and costly to imitate then the firm can expect:

Answer 18

sustained competitive advatage

Question 19

Organization

Answer 19

a firm’s structure and control mechanisms must be aligned so as to give people ability and incentive to exploit the firm’s resources

Question 20

competitive dynamics

Answer 20

the strategic decisions and actions of firms in response to the strategic decisions and actions of other firms

Question 21

a firm’s 3 possible responses to competitive dynamics

Answer 21

no response
change tactics
change strategy

Question 22

imitation will _____ lead to competitive advantage

Answer 22

seldom

Question 23

internal analysis tells us:

Answer 23

what the firm should do, given the relative strengths and weaknesses of resources and capabilities

Question 24

competitive advantage will be sustained if

Answer 24

other firm’s costs of imitation are greater than the benefits, and the firm is organized to exploit advantages