Some difficult to imitate resources are protected by various legal means, including trademarks, patents, and copyrights. ORGANIZED TO CAPTURE VALUE: Having in place the organizational systems, processes, and structure to capitalize on the potential of the resources and capabilities of the firm to provide a competitive advantage. Intangible resources include, for example, the knowledge and skills of employees, a firms reputation, brand name, exclusive rights to intellectual property, leadership traits of executives, and a firms culture. Southwest Airlines provides an illustration of resource-based theory in action. In working through the decision tree, once a no is obtained, there is no need to continue through the tree. Which of the following is not a reason to understand social complexity? This customer loyalty is why many passengers choose Southwest over other airlines. D) outstanding customer service, innovativeness of products, and reputation. B) financial resources, physical resources, and the capacity to combine intangible resources. Although firm infrastructure is often viewed only as overhead expense, it can become a source of competitive advantage. Despite Mattinglys objections, Guy spontaneously adds an up-tempo beat to a sleepy ballad called That Thing You Do! during a local talent contest. What is the firm's secret competitive advantage? Correct Answer: Explore answers and other related questions. C) National Steel improved its efficiency by consolidating, reducing the number of job classifications, and broadening worker responsibilities. 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How should managers assess changes in their firm's competitive position in their industries during a period of unusual economic growth? Southwest Airlines, for example, has developed the capability of providing excellent customer service by building on its strong organizational culture. Course Hero is not sponsored or endorsed by any college or university. Consider the market for minivans. b. A) interrelationships among functional areas and firm strategies. Tangible resources can be understood as the resources of a company that can be seen, and measured and are physical in nature. When analyzing organizations, however, common resources such as cash and vehicles are not considered to be strategic resources. Intangible resources include, for example, the knowledge and skills of employees, a firms reputation, and a firms culture. Production equipment O - At Intel the key historic decision to abandon memory chips and concentrate uponmicroprocessors was the result of which of the following? Strategy formulation answers the question. Capacity for innovationc. Satisfying only one or two of the valuable, rare, difficult-to-imitate, organized to capture value criteria will likely only lead to competitive parity or a temporary advantage. Knowledge b. Which of the following examples demonstrates how successful organizations manage their primary activities? c. Leading C) Every organization has a routine that it follows for its procedures and processes. Cropped. \text{Food} & & \$160.00 & \$175.70\\ Social complexity is defined as the socially intricate and interdependent ways firms are typically organized. In contrast, intangible resources are quite difficult to see, to touch, or to quantify. One resource is lead singer Jimmy Mattingly, who possesses immense musical talent. ~~~~~\text{Pledges/contributions} & &8.33 & 0\\ False Physical assets such as a firms property, plant, and equipment, as well as cash, are considered to be tangible resources. B) financial resources, physical resources, and the capacity to combine intangible resources. 12 Test Bank - Gould's Ch. In a 300-500 word Learning Journal, identify a management principle or method from the course for each of the four functions of management. opportunities or negate threats in the environment. Strategic Management Journal, 15(4), 271290. This too is intangible in nature, making Option B an incorrect choice. Southwests culture is complemented by approaches that individually could be copiedthe airlines emphasis on direct flights, its reliance on one type of plane, and its unique system for passenger boardingin order to create a unique business model in which effectiveness and efficiency is the envy of competitors. Congratulations on advancing to the final unit of BUS 1101, the opening course in your degree program! ~~~~~\text{Sporting events/recreation} & & 32.00 & 32.00\\ Which of the following is considered an intangible resource? Which of the following is a primary activity? Imagine that a U.S. car manufacturer builds a plant in Mexico, where labor is cheaper. B) Compare the firm's financial ratios over the most recent one-year period. Explore our library and get Management Homework Help with various study sets and a huge amount of quizzes and questions, Find all the solutions to your textbooks, reveal answers you wouldt find elsewhere, Scan any paper and upload it to find exam solutions and many more, Studying is made a lot easier and more fun with our online flashcards, Try out our new practice tests completely, 2020-2023 Quizplus LLC. Centralized decisions D) tangible resources, intangible resources, and top management. Chi, T. (1994). Tangible resources are resources that can be readily seen, touched, and quantified. Thus an organization cannot hope to create an enduring competitive advantage around common resources. False Do you believe most, You work for an organization that has traditionally been very formalized, and managers have had a very broad span of control over direct reports from multiple departments and functions. Most other airlines do not have this philosophy. When analyzing a value chain with a VRIO framework, what is the most important question to begin with? 4.3 Resource-Based View - Strategic Management - Virginia Tech Processes related to passengers are infused with customer service attention and actions. Organizational routines d. Production equipmentd; Easy (Comprehension) 3. Capabilities are important in part because they are how organizations capture the potential value that resources offer. More specifically, capabilities refer to the firms ability to bundle, manage, or otherwise exploit resources in a manner that provides added value and, hopefully, advantage over competitors. C) tangible resources, intangible resources, and organizational capabilities. ~~~~~\text{Newspapers. Which of the following is an example of a technological resource? B) minimized idle production facilities and workers. \text{EXPENDITURES FOR THE MONTH OF JULY} For a differentiation strategy to be effective, the product difference should NOT be, The different aspects of strategy as distinguished by Mintzberg include which of the, Firms pursuing a differentiation strategy are vulnerable to different competitive threats. Major cities in hot climates such as Las Vegas, Los Angeles, and Atlanta are confronted by dramatically shrinking water supplies. b. Question: What is the average total cost when two units of labor (L) are employed? Superiority in competitive advantage refers to all of the following factors EXCEPT: a. The following are examples of socially complex organizational phenomena except. The resource-based view includes all except which of the following regarding managers? A useful tool for taking stock of organizational capabilities is the ______________. The tangibility of a firms resources is an important consideration within resource-based theory. Strategy formulation is an essential component of the POLC framework: a. Every organization has stakeholders. See Page 1. d.Knowledge Question 10 For a differentiation strategy to be effective, the product . Trading in strategic resources: Necessary conditions, transaction cost problems, and choice of exchange structure. Which activity is the least risky candidate for outsourcing? Physical assets such as a firms property, plant, and equipment are considered to be tangible resources, as is cash. What is this an example of. Capabilities are another key concept within resource-based theory. In other words, describe a management practice from the course content relating to each of the four functions of management. Knowledge Resource-based theory can be confusing because the term resources is used in many different ways within everyday common language. A. T or F After their bass player joins the Marines, Lenny elopes on a whim, and Jimmys diva attitude runs amok, the band is finished and Guy is left to wonder what might have been. For the Unit 8 Learning Journal, reflect for a few minutes on the four functions of management: Planning, Organizing, Leading, and Controlling, represented by the acronym P-O-L-C. One key reason for their success is a legendary organizational culture that inspires employees to do their very best. In the airline industry, is Southwests culture hard to imitate? Recently, shareholders have been vocal about the importance of products made in the US. Expert Answer. and more. The airline had so little money that at times it had to temporarily borrow luggage carts from other airlines and put magnets with the Southwest logo on top of the rivals logo. What tangible and intangible resources does your favorite restaurant have that might give it a competitive advantage? C) supports both individual primary and support activities and the entire value chain. Walgreens creates value by focusing on the unique capabilities it has built and nurtured and. Why did it cause this change? A firm's tangible resource includes which of the following? EXPENDITURESFORTHEMONTHOFJULY\begin{array}{c} B, a. ~~~~~\text{Gasoline purchases} & & 85.00 & 101.70\\ C) financial resources, physical resources, and technological resources. giftsPocketMoneyEntertainmentMoviesSportingevents/recreationDiningoutFixedRentFurnitureSavingsEmergencyfundLife/carinsurancepremiumsCarregistrationPledges/contributionsAmountBudgeted$160.0045.0035.0050.0024.5025.0085.0015.0040.0050.0020.0060.0010.0032.00100.00625.00125.00100.0050.00132.504.338.33ActualAmountSpent$175.7044.3541.2015.0031.7025.00101.7015.0031.7541.7411.6572.005.0032.0063.80625.00125.00100.0050.00132.5000. D) supports mostly support activities but does have some impact on primary activities. The resource-based view (RBV) of the firm combines two perspectives: A) the primary and support activities of the firm. Other resources are hard to copy because they evolve over time and they reflect unique aspects of the firm. A firm's strategy includes which of the following: Captures how vision and mission will be achieved, Establishes systems and processes used to implement the goals, Sets specific operating procedures to be followed by front line. Intangible resources include, for example, the knowledge and skills of employees, a firm's reputation, brand name, exclusive rights . Resources that do not have all four qualities can still be very useful, but they are unlikely to provide long-term advantages. Acknowledged by top management c. Gobal economic conditions Using Southwest Airlines culture as the resource to evaluate with VRIO: For the company culture resource of Southwest Airlines, a yes can be answered for each of the four steps, providing a sustained competitive advantage for this organization. Production equipment A firm's tangible resource includes which of the following? A resource or capability is said to be ____________ if it allows the firm to exploit. B) interpersonal relations among a firm's managers. Because of this unusual history, other airlines could not replicate Southwests culture, regardless of how hard they might try. A key benefit of Southwests culture is that it leads employees to treat customers well, which in turn creates loyalty to Southwest among passengers. O - Firms utilizing a competitive scope strategy can tailor advertising and promotional efforts to aparticular market niche Other airlines could not replicate Southwests culture, regardless of how hard they might try, because of Southwests unusual history. Strategic Ch. 4 Flashcards | Quizlet Which of the following is not an advantage of Just-In-Time inventory systems? These competitive advantages in turn can help the organization enjoy strong profits (Barney, 1991; Wernerfelt, 1981). c. Product quality It does not help or hurt Southwest competitively. C) Organizational routines. For a resource to provide a firm with the potential for a sustainable competitive advantage, it must have four attributes. D. At Intel the key historic decision to abandon memory chips and concentrate upon microprocessors was the result of which of the following? Some firms develop a dynamic capability. Power of stockholders A) physical uniqueness, path dependency, causal ambiguity, and social complexity. B) Whenever a company improves or developed its capabilities to support innovation, the organization is said to have the capacity for innovation. Another is guitarist Lenny Haise, whose fun attitude reigns in the enigmatic Mattingly. \text{Expenses} & & \text{Budgeted} & \text{Spent}\\[10pt] VALUABLE resources aid in improving the organizations effectiveness and efficiency while neutralizing the opportunities and threats of competitors. Retrieved from https://commons.wikimedia.org/wiki/File:The_VRIO_Framework_with_numbers.png. Industry characteristics of an attractive industry, one where firms may achieve strategic competitiveness and earn above-average returns includes which of the following? B) supports only individual support activities. 11 Tangible assets are those assets, which are physical in nature, eg - Cash, inventory, vehicles, factory, etc A firms reputat . D) Production equipment can be considered an asset or resource of a company that is physical in nature and can be measured, making it a tangible resource. c. Extensive market research B. What kind of competitive advantage, if any, does this capability provide? A. \text{Household} & & & \\ Captures how vision and mission will be achieved. This worked, A number of things organizations can do prior to change to prepare employees include which of the following? Straddling strategies as an approach to strategic management is not recommended for which reason: It is an attempt to gain competitive advantage based on overall lowcost provider of a product, Research shows that straddling strategies leads to confusion among managers about the, It is an indication that the firm's managers have not made necessary choices about the, According to Porter straddling strategies is recommended for narrow scope firms that have, The industry characteristics that make it very difficult for firms to achieve strategic competitiveness and. This should enable the firm to attain, Managers will be able to obtain a proportionately high level of profits they generate (relative to the firm) if. ~~~~~\text{Emergency fund} & & 50.00 & 50.00\\ How was the resistance (if any) overcome? An important implication of the balanced scorecard approach is that: A) managers need to recognize tradeoffs in stakeholder demands and realize that such demands represent a zero-sum game in which one stakeholder will gain only at another's loss. False The resource-based view focuses on which of the following aspects of resources? C) the internal analysis of the firm as well as the external analysis of the industry and competitive environment. B) culture, tangible resources, intangible resources. D) Production equipment. b. c. Strong competitive threats from product substitutes Course Hero is not sponsored or endorsed by any college or university. Figure 4.2: Planephotoman. Journal of Management, 17, 99120. Other difficult-to-imitate resources, such as brand names, usually need time to develop fully. A firms tangible resource includes which of the following a - Studocu Historical comparisons are often misleading. A crash R&D program by one firm cannot replicate a successful technology developed by another firm when research findings cumulate. ~~~~~\text{Life/car insurance premiums} & & 132.50 & 132.50\\ A. Which of the following forms of diversification occurs when a firm operates multiple. Option D is the right choice here. ______________ are the competencies or skills that a firm employs to transform inputs into outputs. As can be seen from its exceptional organizational performance over many years when compared to other airlines, VRIO shows that company culture is one reason why it is more successful than its competitors. If we assume an increase in Investments by 100 units, please calculate again the IS-LM functions.c. d. Relatively moderate rivalry In determining stakeholders who should be consulted as strategy is developed, companies often develop an incomplete list. (review sheet 4), The tenpoint plan of the new world order-1, Leadership class , week 3 executive summary, I am doing my essay on the Ted Talk titaled How One Photo Captured a Humanitie Crisis https, School-Plan - School Plan of San Juan Integrated School, SEC-502-RS-Dispositions Self-Assessment Survey T3 (1), Techniques DE Separation ET Analyse EN Biochimi 1, The text defines stakeholders as: Individuals and organizations who are actively involved in the organization or whose interests may be positively or negatively affected as a result of what the organization does (Carpenter et. A) KnowledgeB) Capacity for innovationC) Organizational routinesD) Production equipment. Review the material in Chapter 20 and respond to the following: Discuss the modern quantity theory and the liquidity preference theory. Resource-based theory contends that the possession of strategic resources provides an organization with a golden opportunity to develop competitive advantages over its rivals (Table 4.1). b. Hierarchical diversification You can view this video here: https://youtu.be/BJn-Jl2ZeQU. In contrast, intangible resources are quite difficult to see, to touch, or to quantify. Figure 4.3: Kindred Grey (2020). Which of the following is a support activity? ExpensesFoodHouseholdElectricbillTelephonebillHeatingfuelWaterbillCableTVbillTransportationGasolinepurchasesParking/tollsPersonalClothingCreditpaymentsNewspapers. 3) Unique style. What resistance to the change occurred, if any? A competitive advantage based on inimitability can be sustained for at least some time if it has the following characteristics. Was this amount more or less than the amount they had originally budgeted? Which of the following is an example of innovation resources? b. To capture more consumers O - Strategy formulation is an essential component of the POLC framework: YouTube. Although not a formal band member, Mattinglys girlfriend Faye provides emotional support to the group and even suggests the groups name. What are original equipment manufacturers (OEMs)? What are the degrees of freedom for D. T or F ~~~~~\text{Heating fuel} & & 50.00 & 15.00\\ Gillette combines several technologies (e.g., metallurgy, physiology, physics) to attain unparalleled success in the wet shaving industry. In assessing its primary activities, an airline would examine. C) criteria for lease versus purchase decisions. On occasion, events in the environment can turn a common resource into a strategic resource. d. Top-down process Such competitive advantages are based upon. b. False Please Explain, What is the relationship between enterprise information management and self-service portals? A strategic resource is an asset that is valuable, rare, difficult to imitate, and organized to capture value (Barney, 1991; Chi, 1994). Executives strongly encourage flight attendants to entertain passengers, like hiding in an overhead compartment. O - A firm's tangible resource includes which of the following? why? ~~~~~\text{Pocket Money} & & 60.00 & 72.00\\[10pt] a. If not, then this resource only provides Southwest competitive parity. According to resource-based theory, one possible road to riches is creatingon purpose or by accidenta unique combination of resources. Captures how vision and mission will be achieved, O - A firms tangible resource includes which of the following? Southwest Airlines culture fits this standard well. gifts} & & 20.00 & 11.65\\ What will happen to bond prices if terrorism ended and the world's nations unilaterally disarmed and adopted free trade policies? & &\text{Amount}& \text{Amount}\\ ~~~~~\text{Clothing } & & 40.00 & 31.75\\ A firm's strategy includes which of the following? View the full answer. BUS 1101 - unit 5 self Quiz - A firm's strategy includes - Studocu ~~~~~\text{Telephone bill} & & 35.00 & 41.20\\ Resource-based theory suggests that tangible or intangible resources that are valuable, rare, difficult to imitate, and organized to capture value best position a firm for long-term success. A Firm's Tangible Resource Includes Which of the Following ___________ are associated with collecting, storing, and distributing the product or service to buyers. Workers at the Cambodian plant produce the clothing according to the European firm's designs and specifications. This makes knowledge an intangible resource. Cross), The Methodology of the Social Sciences (Max Weber), Civilization and its Discontents (Sigmund Freud), Campbell Biology (Jane B. Reece; Lisa A. Urry; Michael L. Cain; Steven A. Wasserman; Peter V. Minorsky), Give Me Liberty! ~~~~~\text{Rent} & & 625.00 & 625.00\\ For firms such as Walgreen Co. (a chain of drugstores), information systems have been a source of competitive advantage by enabling them to. [Video]. : a. Cost leaders must maintain their marketing or face the possible entry of more cost-effectivecompetitors. The three key types of resources that are central to the resource-based view of the firm are: A) tangible resources, intangible resources, and organizational structure. Knowledge Capacity for innovation Organizational routines Production equipment. Executives who wish to achieve long-term competitive advantages should therefore place a premium on trying to nurture and develop their firms intangible resources. c. To build a portfolio of businesses much like a portfolio of stock Explanation: Tangible resources have a physical form, t, 5. b. Not surprisingly, this firm ranks among the top twelve in Fortunes Worlds Most Admired Companies for 2020. 5 Option A ~~~~~\text{Furniture} & & 125.00 & 125.00\\ According to value chain analysis, which of the following would be considered part of a firm's infrastructure? It is important to distinguish strategic resources from other resources. O - The best strategies, corporate and business, are based on a thorough SWOT analysis, The intensity of industry competition and an industrys profit potential are a function of which of the following forces of competition? It signals the market to competent manufacturing, why it is difficult to identify the actual cause of a firm's successful performance. 2003-2023 Chegg Inc. All rights reserved. Supplier and buyers with strong bargaining positions C) financial resources, physical resources, and technological resources. Relatively moderate rivalry, Copyright 2023 StudeerSnel B.V., Keizersgracht 424, 1016 GC Amsterdam, KVK: 56829787, BTW: NL852321363B01, Design and emergence strategies involve specific levels of the organiz, It is important to note that the concept of strategy is rele. A US firm has outsources its textile manufacturing to aBangledesh for the last 10 years. \text{Entertainment} \\ Consider, for example, a very generic commodity: water. : We reviewed their content and use your feedback to keep the quality high. firms that execute the design blueprints provided by western firms. Supply of replacement parts is a _________activity. A resource is valuable and rare but neither difficult to imitate nor without substitutes. Capacity for innovation c. Organizational routines d. Production equipment. Note that the decision tree is used to assess resources and capabilities, NOT a firms products, services, or the firm itself. Specifically, it is important to recognize that strategic resources can be created by taking several strategies and resources that each could be copied and bundling them together in a way that cannot be copied. Which of the following would be most difficult to assess? B) Motorola has revised its compensation system to reward employees who learn a variety of skills. ______________ are assets that can be seen and quantified. Planning B. productive inputs or competitive assets, except human assets and intellectual capital, which are considered capabilities or competencies. A) Organizational strengths may not lead to competitive advantage, B) SWOT's focus on the external environment is too broad and integrative, C) SWOT gives a one-shot view of a moving target, D) SWOT overemphasizes a single dimension of strategy. Physical assets such as a firm's property, plant, and equipment, as well as cash, are considered to be tangible resources. By how much? C) managers should not look at their job as primarily balancing stakeholder demands; increasing satisfaction among multiple stakeholders can be achieved simultaneously. Coca-Cola, for example, has an uncanny knack for building new brands and products as the soft drink market evolves.