CBA Chapter 4

CBA 469 - Chapter 4

Intangible resources or capabilities may be a good basis for creating a competitive advantage because

Multiple Choice

• intangible resources or capabilities are generally rare.

• intangible resources or capabilities are generally easily transferred.

• intangible resource or capabilities are generally easily observed.

• intangible resources or capabilities are generally easily acquired.

• intangible resources or capabilities are generally sticky to the firm.

The resource or capability enables the firm to address customer wants.

Which of the following would be a good argument for why a resource or capability would be valuable?

• The resource or capability enables the firm to address customer wants.

• The resource or capability increases the differentiation for a firm focused on offering a standardized product.

• The resource or capability enables the firm to copy what other firms do well.

• The resource or capability enables the firm to avoid what other firms do well.

• The resource or capability raises the cost of production for a firm offering a differentiated product.

A resource or capability is rare because it developed over time along a unique path.

Which of the following would be a good argument for why a resource or capability position would be rare?

Multiple Choice

• A resource or capability is rare because it increases a firm's cost.

• A resource or capability is rare because it is protected by local governments.

• A resource or capability is rare because it is expensive to develop.

• A resource or capability is rare because other firms do not possess it.

• A resource or capability is rare because it developed over time along a unique path.

If a firm no longer exists, but the issues remain, then the issues are external. However, if the issues also no longer exist, then they are internal.

In SWOT analysis it is important to clearly differentiate between “internal” and “external” issues. Select the response that most accurately defines “internal” and “external” issues.

Multiple Choice

Imagine the firm grows. If the issue would keep the firm from growth, it is internal.

If a firm no longer exists, but the issues remain, then the issues are external. However, if the issues also no longer exist, then they are internal.

External issues will impact suppliers of the firm.

If the issue affects the competitor, it is external.

Internal issues impact the financial performance of the firm.

a coherent set of goal-directed decisions that addresses the environment the firm competes within by utilizing firm resources and capabilities

The video refers to strategic actions. Select the best definition of a strategic action with respect to SWOT.

Multiple Choice

an action taken by that firm that responds to important environmental threats

an action that decreases your product’s price in response to a competitor’s price cut

a coherent set of goal-directed decisions that addresses the environment the firm competes within by utilizing firm resources and capabilities

an action taken by the firm that makes use of the firm’s important resources and capabilities

a decision by the CEO about how to move forward that takes into account the environmental issues

Offering all-day breakfast was expected to stem McDonald’s revenue decline.

In the video, McDonald’s introduction of all-day breakfast was said to be an “adjust” strategy as well as a “turn around” strategy. How is this strategic action a “turn around” strategy?

Multiple Choice

Offering all-day breakfast was expected to sell more coffee.

Offering all-day breakfast was expected to stem McDonald’s revenue decline.

Offering all-day breakfast was expected to increase sales in the 7am to 11am range.

Offering all-day breakfast was expected to improve McDonald’s marginal revenue.

Offering all-day breakfast was expected to reduce costs by eliminating menu complexity.

generate a feedback loop and invest

Honda Motor Company used its competitive advantage in small engines for lawnmowers to ___________Blank in resources and capabilities to build automobiles.

Multiple Choice

perform a SWOT analysis

create activities

create a cash reserve

divest

generate a feedback loop and invest

capabilities

Core competencies derive from the combination of resources and

Multiple Choice

competitive advantage.

capabilities.

intangible resources.

activities.

internal environment.

copyright 

Resources fall broadly into two categories: tangible and intangible. Tangible resources have physical attributes and are visible. Intangible resources have no physical attributes and thus are invisible. Examples of intangible resources are a firm's culture, its knowledge, brand equity, and reputation. Which of the following is another example of an intangible resource?

Multiple Choice

equipment

land

cash

inventory

copyright

1: Engineers - Resources

2: Honda R&D is a separate company - Managerial actions

3: Powerful and reliable small engines - Core products

4: Design and manufacture of small, reliable, and powerful internal combustion engines - Core competencies

5: Small engine innovation and engineering - Capabilities

6: Strong R&D culture - Resources

7: Sport boats, marine engines, ATVs, and power equipment - Core products

8: Scale manufacturing - Capabilities

9: R&D centers created worldwide - Managerial actions

After reading the minicase on Honda, select the correct category for each of the items listed.