Chapter3exercise and test (1)

1、Chapter3 exercise and test一、TRUE/FALSE 1. In the global market, employees move freely from firm to firm, so they are not an important source of competitive advantage for the firm.2. Firms should seek to continually develop new core competencies because all core competencies have limited life spans.3

2、. The sustainability of a competitive advantage depends upon the imitability of the core competence, the availability of substitutes for the core competence, and the rate of obsolescence of the core competence.4. A useful rule for evaluating whether a capability is a core competence is its historica

3、l ability to provide 5. Analyzing the internal environment enables a firm to determine what it might be able to do by identifying what opportunities exist.6. Analyzing the internal environment enables a firm to determine what it can do by identifying what opportunities exist.7. Given enough time, an

4、y firm!s competitive dvantage can be imitated by its competitors. 8. Some resources, such as financial capital, have inherent value to the firm, while others are not inherently valuable.9. In the global economy, traditional factors such as labor costs, access to financial resources and raw materials

5、, and protected or regulated markets are no longer sources of competitive advantage.10. A global mind-set is free of the assumptions of a single country, culture, or context.11. Analysis of the firm!s internal organization eamines the firm!s portfolio of resources but excludes the bundles of heterog

6、eneous resources and capabilities.12. Value is measured by the variable and fixed costs associated with the production and marketing of a particular product compared with the revenue and profits the product generates.13. Value is created when the firm exploits its core competencies or competitive ad

7、vantages to meet or exceed the demanding standards of global competition.14. Creating customer value is the source of the firm!s potential to earn above-average returns 15. The challenge and difficulty of making effective decisions are implied by preliminary evidence suggesting that one-half of orga

8、nizational decisions fail.16. The need to meet quarterly earnings numbers disciplines managers to exercise judgment and to make strategic decisions that are best for the long-run performance of the firm.17. Firms and managers can learn from the failure resulting from a mistake!athat is, whatnot to d

9、o when seeking competitive advantage.18. The core competencies of a firm should be the primary drivers of its strategy.19. Managerial decisions concerning resources, capabilities, and core competencies are characterized by three conditions: ambiguity, interconnectivity, and intraorganizational agree

10、ment.20. In the long run, if an organization does not change it will fail.21. A competitive advantage can be created when several resources are bundled together in a unique fashion.22. Coca-Colas brand name is a tangible ource of competitive advantage for the company.23. Trademarks and copyrights ar

11、e examples of a firm!s tangible resources24. The value of tangible assets such as the firm!sborrowing capacity and its physical plant are high because they can be easily leveraged to derive additional value.25. Although an organization!s good reputation is avaluable resource that takes years of supe

12、rior marketplace competence to achieve, it is not a good basis for building a competitive advantage because it can be destroyed almost instantly by bad publicity.26. Compared to tangible resources, intangible resources are an inferior source of core competencies.27. The capacity to manage human inte

13、llect!aand toconvert it into useful products and services!ais fast becoming the critical executive skill of the age.28. Capabilities of an organization emerge spontaneously through the interaction of tangible and 29. Older employees are less valuable resources to firms than younger employees, becaus

14、e the older employees have lower stocks of knowledge. Consequently, employee reductions should begin with early retirement inducements.30. Capabilities can be developed quickly in response to changes in the new competitive landscape.二、MULTIPLE CHOICE 1. Criticism of 3M!s reduced spending on researc

15、and development represent concerns over what? a. A decline in the firm!s profitability.b. A reduction in the firms capability for innovation. c. The substitution of innovation for efficiency. d. The increase in expenses for downsizing resulting from this decision. 2. Which of the following best desc

16、ribes the effects of 3M!s investments in Six Sigma initiatives?a. These investments resulted in needed increases in operational efficiency. b. These investments had an unintended effect of reducing the firm!s capability ininnovation. c. These investments resulted in the development of an additional

17、capability. d. All of the above are correct. 3. It is increasingly difficult for a firm to develop and sustain a competitive advantage because of the effects of globalization and a. the rapid development of the Internet!s capabilities.b. extensive use of outsourcing within the borders of the U.S. c.

18、 the declining number of inventions and patents developed by U.S. citizens. d. the simultaneous erosion of the U.S. work ethic and the U.S. education system. 4. Which of the following is NOT required for a firm to achieve strategic competitiveness and earn above-average returns from its core compete

19、ncies? a. Core competencies must be acquired. b. Core competencies must be bundled. c. Core competencies must be internationalized. d. Core competencies must be leveraged. 5. Which of the following is NOT a factor affecting sustainability of a competitive advantage? a. The availability of substitute

20、s for a firm!s core competence.b. The rate at which obsolescence of the core competence occurs because of environmental changes. c. The imitability of a core competence. d. The length of time the core competence has existed. 6. Internal analysis enables a firm to determine what the firm a. can do. b

21、. should do. c. will do. d. might do. 7. The proper matching of what a firm can do with what it might do allows the firm to a. balance the internal characteristics of the firm with the characteristics of the external environment. b. overcome the rigidity and inertia resulting from a history of succe

22、ss. c. develop its vision, pursue its mission, and select and implement its strategies. d. develop core competencies based on human knowledge. 8. The key to maintaining competitive advantage and earning above-average returns over the long run is to effectively manage current core competencies a. in

23、a way that uniquely bundles and leverages the firm!s existing resources.b. and develop a continuous stream of new competitive advantages. c. and imitate the core competencies of successful competitors. d. in order to preserve and enhance them against the firm!s competitors.9. Which of the following

24、is FALSE? a. Unique bundles of resources are the ultimate source of wealth creation. b. The critical resource for firms is the ability to use the rapidly evolving Internet. c. A global labor market for employees now exists. d. Any competitive advantage will eventually disappear. 10. Value consists o

25、f a. A products proprietary characteristics andby its attributes for which customers are willing to pay. b. A products performance characteristics and by its attributes for which customers are willing to pay. c. A products proprietary characteristics and b its attributes for which customers consider

26、 paying for. d. A products performance characteristics and b its attributes for which customers consider paying for. 11. _ is/are the source of a firms _,which is/are the source of the firms _.a. Resources, capabilities, core competencies b. Capabilities, resources, core competencies c. Capabilities

27、, resources, above average returns d. Core competencies, resources, competitive advantage 12. _ is measured by a product!s performance chaacteristics and its attributes for which customers are willing to pay. a. Competitive advantage b. Profit potential c. Contribution d. Value 13. By exploiting the

28、ir core competencies to meet or exceed the standards of global competition, firms create _ for customers. a. values b. valuation c. valuables d. value 14. _ of organizational decisions fail. a. Few b. About one-quarter c. About half d. Most 15. By emphasizing core competencies when formulating strat

29、egies, companies learn to compete primarily on the basis of a. intangible resources. b. their primary activities. c. firm-specific differences. d. efficiency of production. 16. A decision that results in failure a. is a career-ending event because it is so unusual. b. often results from lack of acco

30、untability. c. fosters organizational inertia. d. allows for learning. 17. The three conditions that characterize difficult managerial decisions concerning resources, capabilities, and core competencies are a. complexity, rarity, and human intellectual capital. b. uncertainty, complexity, and intrao

31、rganizational conflicts. c. imitability, complexity, and interorganizational conflicts. d. imitability, comparability, and human intellectual capital. 18. Decisions about the firms internal environment involve a. choices about the assets the firm needs to collect and how to best use those assets. b.

32、 choices about which resources should serve as the basis for capabilities. c. choices about how to bundle resources. d. choices about how to bundle capabilities. 19. The condition of uncertainty in managerial decision-making occurs when a. the firm!s fundamental cor competencies are incompatible. b.

33、 there is intraorganizational conflict about the decision criteria to use. c. there are rapid changes in customer needs, economic and political trends, and societal values. d. there is no one optimal solution to a problem. 20. A person who has made a successful decision when no obviously correct mod

34、el or rule is available or when relevant data are unreliable or incomplete has exercised a. foresight. b. judgment. c. effective strategic thinking. d. decisiveness. 21. One reason executive judgment can be a particularly important source of competitive advantage is that judgment a. allows a firm to

35、 build a strong reputation. b. gains the loyalty of shareholders. c. increases human intellectual capacity. d. allows for superior bundling of resources. 22. Judgment is the capacity for making a successful decision when a. there are multiple decision criteria. b. no obviously correct model or rule

36、is available. c. cognitive biases create barriers to rationality. d. there are contradictions between the firm!s vision and itsimplemented strategy. 23. The quality of Hyundai vehicles has increased dramatically. Its cars now rank at the top of the list in vehicle quality, exceeding even Toyota. To

37、management!s surprise, this has not led to an increase in sales. From the standpoint of capabilities, what can we conclude about Hyundai!s quality?a. The increased quality fails the !°value!± testb. The increased quality fails the !°rare!± testc. The increased quality fails the !

38、°costly to imitate!± testd. The increased quality fails the !°nonsubstitutable!± test24. Based on the strategic focus in Chapter 3, which of Hyundai!s capabilities appears LEAST alignedwith the value customers seek? a. The establishment of production facilities in the Czech Repub

39、lic. b. The establishment of production facilities in the India. c. The allocation of additional resources to R&D to increase vehicle quality. d. The allocation of resources to develop a large car. 25. The most numerous of the following organizational characteristics are a. resources. b. capacit

40、ies. c. capabilities. d. core competencies. 26. Competitive advantage typically comes from a. individual resources. b. one unique resource. c. several outstanding resources used independently. d. the unique bundling of several resources. 27. A firm with a unique organizational culture and proprietar

41、y processes developed over a long period of time a. is likely to be undervalued by financial statements. b. is likely to be resistant to inertia in the face of change. c. is less likely to have sustainable competitive advantages than a firm with easily quantifiable resources. d. will be unable to le

42、verage these resources if the firm is sold. 28. All of the following are tangible resources EXCEPT a. production equipment. b. distribution centers. c. firms reputation.d. formal reporting structures. 29. Tangible resources include a. assets that are people-dependent such as know-how. b. assets that

43、 can be seen and quantified. c. organizational culture. d. a firms reputation.30. Complete the following about the difference between tangible and intangible resources. Tangible resources are _ constrained because they are _ to leverage due to _ divisibility and deployability. a. less; easier; unlim

44、ited b. less; easier; limited c. more; harder; limited d. more; harder; unlimited 四、ESSAY 1. Describe the importance of internal analysis to the strategic success of the firm.3. Define capabilities and how they affect the firms strategic success5. Describe a value chain analysis. How does a value ch

45、ain analysis help a firm gain competitive advantage?五、CaseNARRBEGIN: Case Scenario 03-01 Case Scenario 1: Heartsong LLC. Heartsong LLC is a designer and manufacturer of replacement heart valves based in Peoria, Illinois. While a relatively small company in the medical devices field, it has establish

46、ed a worldwide reputation as the provider of choice high-quality, leading-edge artificial heart valves. Most of its products are sold to large regional hospital systems and research hospitals. Specialty heart centers are another emerging, but fast-growing, market for its valves. While Heartsong woul

47、d like to grow quickly, its growth is constrained by the need to finance larger production runs and then carry this additional inventory. For products like those of Heartsong, vendors typically do not collect payment until the unit is actually used in surgery. Moreover, heart valves are usually required o