Quiz 1 - Chapter 3

Question 1

Internal analysis and questions

Answer 1

Provides a comparative look at firms capabilities

• what are strength and weakness
• find out if resources and capabilities are source of competitive advantage
• establish strategies that will exploit sources of competitive advantage

Question 2

Resource Based View

Answer 2

Answers the question:why do some firms achieve better economic performance then others? (Helps a firm achieve competitive advantage)

Question 3

Resource and 4 categories

Answer 3

Tangible and intangible assets of a firm

1) financial
2) physical
3) human
4) organizational

Question 4

Capabilities

Answer 4

Resources that enable firm to take full advantage of other resources

Question 5

2 assumptions of RBV

Answer 5

1) resource heterogeneity: different firms have different resources (bundling resources and capabilities)
2) resource immobility: some resources may not be easily spread from firm to firm easily

Question 6

VRIO framework

Answer 6

Value: does resource exploit external oppor
Raritytunity
Imitibility
Organization: reporting structures

Question 7

If a firm resource is: Firm can expect
Not valuable. Disadvantage
Valuable, not rare. Parity
Valuable and rare. Advantage
(Valuable, rare, costly sustained advantage
To imitate)
(Valuable, rare, not costly. Temporary advantage
To imitate)

Answer 7

Read front

Question 8

Cost of imitation

Answer 8

Unique historical conditions

Casual ambiguity: (Southwest HR)

Social Complexity: social relationship entailed in resource that managers cannot manage or replicate

Patents

Question 9

Organization

Answer 9

Ability to exploit firms resources

Question 10

Competitive dynamics

Answer 10

Response to strategic choices of other firms

Question 11

Internal analysis assumes

Answer 11

Determinates of economic performance

• heterogeneity (different firms)
• immobility

Competitive advantage stems from resources and capabilities that meet VRIO framework

Question 12

Internal analysis tells us:

Answer 12

What a firm should do

Managers job

Question 13

Value chain

Answer 13

Set of business activities in which it engages to develop, produce, and market it’s products or services

Question 14

Tacit cooperation

Answer 14

Any actions a firm takes that have effect of reducing level of activity of rivals and don’t require a firm to directly communicate with each other

Question 15

Tacit collusion

Answer 15

When tacit cooperation has effect of reducing supply and increasing process (legal methods of business cooperation)