BUSA EXAM QUESTIONS WITH 100% CORRECT ANSWERS
When the perceived value of a product increases - Answer- The firm's profitability increases
resource heterogenety - Answer- means that bundles of resources and capabilities differ across firms
_ refers to the idea that resource differences ar...
BUSA EXAM QUESTIONS WITH
100% CORRECT ANSWERS
When the perceived value of a product increases - Answer- The firm's profitability
increases
resource heterogenety - Answer- means that bundles of resources and capabilities
differ across firms
_ refers to the idea that resource differences are difficult to replicate and don't move
easily from firm to firm - Answer- resource immobility
_ describes situation in which different social and business systems interact with each
other - Answer- social complexity
The VRIO framework refers to the resources - Answer- valuable, rare, costly to imitate,
and organized
_ activities are those activities that add value directly by transforming inputs into outputs
- Answer- primary
The purpose of a SWOT analysis is to - Answer- form a strategy that is tailored to the
unique needs of a company
_ describe a firm's ability to create and leverage its resources to gain competitive
advantage - Answer- dynamic capabilities
T/F: Core competencies need to be refined and upgraded in order to increase the
probability that they will continues to lead to competitive advatages - Answer- true
According to the dynamic capabilities perspective, competitive advantage comes from -
Answer- constantly changing the firm's resource base / capacity to modify and leverage
its resource base to address the constantly changing environment
One of the most popular tools used by firms to evaluate their current situation and future
prospect is - Answer- the SWOT analysis
Understanding the cause and effect of a strategy, including the "why," may, going
forward, _ - Answer- have a significant impact on a firm's competitive advantage
In order to avoid making a costly mistake due to the potential of shortcomings of the
SWOT analysis, a manager should - Answer- use the SWOT analysis together with in-
, depth analysis of the internal and external environment before deriving strategic options
for the firm
dynamic capabilities are most relevant in - Answer- constantly shifting markets
Groupon's initial success was largely due to the company's - Answer- first mover
advatage
Which of the following is not considered an example of "isolating mechanisms" -
Answer- high volatility of future resource value
While the _ helps identify the building blocks of a firm's core competencies, (the) _
enables managers to see how competitive advantage flows from the firm's distinct set of
activities - Answer- resource-based view; value chain perspective
core competencies are created through the interplay of _ and _ - Answer- resources;
capabilities
_ is more likely to spring from intangible resources rather than tangible resources -
Answer- Competitive advatage
_ are the firm's level of investments to maintain or build a resource - Answer- resource
flows
in the dynamic capabilities perspective, _ is the outflow of the firm's capacity to leverage
its resources - Answer- competitive advatage
The culture of Zappos is hard to imitate because it consists of interactions among
employees, processes, procedures, norms, and creating _ - Answer- social complexity
_ are the firm's current level of intangible resources - Answer- resource stocks
profits that can be reinvested back into the firm to upgrade the firm's resources are -
Answer- retained earnings
which insights gained from a SWOT analysis could lead McDonald's to open new
restaurants in China? - Answer- growth in emerging economies and market share
decline in developed economies
dynamic capabilities are - Answer- intangible resource
The two factors critical to evaluating the economic value of a good or service - Answer-
cost value
which of the following is a standard dimension for measuring competitive advatage -
Answer- what is the firm's accounting profitability
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