MGMT 466 Exam 1 - FLASHCARDS - Chapter 3
True or false: technological resources are tangible resources?
TRUE
True or false: Firms and organizations achieve strategic competitiveness and earn above-average returns by:
acquiring, bundling, and leveraging their resources for taking advantage of opportunities in the external environment to create value for customers?
TRUE
Do all competitive advantages have a limited life?
Yes
What is a competitive advantage’s sustainability based on?
- The rate of core competence obsolescence because of environmental changes
- The availability of substitutes for the core competence
- The imitability of the core competence
Why in today’s global economy, are some of the resources that were traditionally critical to firms’ efforts to produce, sell, and distribute their goods or services, now less likely to be the source of competitive advantages?
because an increasing number of firms are using their resources to form core competencies through which they successfully implement an international strategy as a means of overcoming the advantages created by more traditional resources
What is a global mindset?
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
What is measured by a product’s performance characteristics and by its attributes for which customers are willing to pay?
Value
What does making decisions regarding the firm’s assets involve?
involves identifying, developing, deploying, and protecting resources, capabilities, and core competencies
True or false: making decisions regarding the firm’s assets is challenging and difficult?
TRUE
True or false: making decisions regarding the firm’s assets is increasingly internationalized?
TRUE
True or false: A firm can improve by studying its mistakes?
TRUE
Where does uncertainty exist?
Uncertainty exists about the characteristics of the firm’s general and industry environments and customers’ needs
Where does complexity result from?
Complexity results from the interrelationships among conditions shaping a firm.
How do firms create value?
Firms create value by innovatively building and leveraging their resources to form capabilities and core competencies
What is the source of above average returns for a firm?
Creating value for customers is the source of above- average returns for a firm
True or false: The strategic decisions managers make about the internal organization are nonroutine?
TRUE
True or false: The strategic decisions managers make about the internal organization has ethical implications?
TRUE
True or false: The strategic decisions managers make about the internal organization significantly influence the firm’s ability to earn above-average returns?
TRUE
What is the capability of making successful decisions when no obviously correct model or rule is available or when relevant data are unreliable or incomplete?
Judgement
When exercising judgement, decision makers must be aware of possible cognitive biases, such as overconfidence?
Yes
When exercising judgement, decision makers often take intelligent risks?
Yes
What is the foundation of a competitive advantage?
−Resources
−Capabilities
−Core competencies
True or false: resources are broad in scope?
TRUE
By themselves, do resources allow firms to create value?
No