Bài tập Chương 3: Internal organization analysis and competitive advantage môn Business Strategy and Policy | Đại học kinh tế Quốc dân

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CHAP 3: THE INTERNAL ORGANIZATION ANALYSIS
A company can earn above-average returns only when the value it creates is less than the costs F incurred to create that value
A firm should outsource only activities where it cannot create value or where it is at a substantial
disadvantage compared to competitors T
Although an organization's good reputation is a valuable resource that takes years of superior
marketplace competence to achieve, it is not a good basis for building a competitive advantage F
because it can be destroyed almost instantly by bad publicity.
Analyzing the internal environment enables a firm to determine what it CAN DO by identifying T
resources, capabilities, and core competencies in the internal organization
Analyzing the internal environment enables a firm to determine what it MIGHT DO by identifying F
what opportunities and threats exist.
Any core competency has the potential to lose its value-creating ability T
Apple has combined some of its tangible resources (such as financial resources and research
laboratories) and intangible resources (such as scientists, engineers, and organizational routines) T
to complete research and development tasks to create a capability in R&D.
At a technology firm, human capital would be critical to forming and using the firm's capabilities in
customer relationships, scientific and research skil s, and technical skil s in hardware, software, T and services
At Southwest Airlines, the complex interrelationship between the firm's culture and human capital
adds value for customers in ways that other airlines cannot, such as jokes on flights by flight T
attendants and cooperation between gate personnel and pilots.
By themselves, resources can allow firms to create value for customers as the foundation for F earning above-average return
Capabilities are usually developed separately from specific functional areas such as
manufacturing, R&D, and marketing F
Capabilities may be costly to imitate if firms have unique and valuable organizational cultures, are T
causally ambiguous, or are socially complex
Capabilities of an organization emerge spontaneously through the interaction of tangible and intangible resources. F lOMoAR cPSD| 58511332
Chipotle linked fresh ingredients with the marketing and training of employees to build customer
service as a capability. This example illustrates the way in which resources must be combined in T order to form capabilities
Core competencies are capabilities that serve as a source of competitive advantage for a firm T over its rivals.
Creating value for customers is the source of above-average returns for a firm T
Firms achieve strategic competitiveness and earn above-average returns by acquiring, bundling, T
and leveraging their resources for the purpose of taking advantage of opportunities in the external
environment in ways that create value for customers
Firms should never outsource a primary activity because of the danger of the activity being F imitated by rivals.
Firms should seek to continually develop new core competencies because all core competencies
guarantee above-average profit F
In today's global economy, some resources that were traditionally critical to firms' efforts to T
produce, sell, and distribute goods are now less likely to be a source of competitive advantage.
Interpersonal relationships, trust, friendships among managers and between managers and
employees, and a firm's reputation with suppliers and customers are all examples of complex F
social phenomena that make capabilities easy to imitate.
Motivating, empowering, and retaining employees" is an example of a capability that resides T
within the human resources functional area.
One criterion for a resource or capability to be a source of competitive advantage is that it must
allow the firm to perform a value-creating activity that competitors cannot perform. T
Resources, capabilities, and core competencies are the foundation of competitive advantage T
Technology has made it more difficult for companies to find ways to develop competitive T advantages.
The best way to understand the relationship between resources, capabilities, and core
competencies is to recognize that resources are the source of capabilities. Some capabilities lead T
to the development of core competencies and these, in turn,may lead to competitive advantages lOMoAR cPSD| 58511332
The learning generated by making and correcting mistakes is generally unimportant to efforts to F
create new capabilities and core competencies
The length of time a firm can expect to create value by using its core competencies is a function T
of how quickly competitors can successfully imitate a good, service, or process.
The need to meet quarterly earnings results causes managers to accurately examine the firm's F internal organization
The trust that a firm has built between itself and its suppliers is an example of a costly-to-imitate T
capability that other firms cannot easily develop
The value of tangible assets, such as the firm's borrowing capacity and its physical plant, is high F
because these assets can be easily leveraged to derive additional value
Two concerns about outsourcing are the potential loss of a firm's innovative ability and the loss of jobs within the focal firm T
Understanding how to leverage the firm's unique bundle of resources and capabilities is a key T
outcome decision makers seek when analyzing the internal organization
Valuable capabilities allow the firm to exploit strengths or neutralize weaknesses in the internal environment F
Value chain activities in the value chain create value, whereas support functions generate costs F
Value is measured by the variable and fixed costs associated with the production and marketing F
of a particular product compared with the revenue and profits the product generates
Walmart uses core competencies, such as information technology and distribution channels, to T
create value for its customers through its "everyday low prices.
When comparing the resources a company has at its disposal, the capacity to innovate or a
positive reputation, both of which are intangible, would be an inferior source of capabilities and
core competencies than tangible resources such as copyrights, patents, and the ability to F generate funds
1. All competitive advantages have: a. a limited life.
b. unrestricted sustainability.
c. the ability to earn above-average returns indefinitely.
d. protections against imitability
2. 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. lOMoAR cPSD| 58511332
b. extensive use of outsourcing within the borders of the United States.
c. 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
3. Which of the following is NOT a factor affecting sustainability of a competitive advantage?
a. Availability of substitutes for a firm's core competence
b. Rate at which obsolescence of the core competence occurs because of environmental changes
c. Imitability of a core competence
d. Length of time the core competence has existed
4. Internal analysis enables a firm to determine what it: a. can do b. should do. c. wil do. d. might do
5. The proper matching of what a firm CAN DO with what it MIGHT DO:
a. balances the internal characteristics of the firm with the characteristics of the external environment.
b. overcomes the rigidity and inertia resulting from a history of success.
c. yields insights the firm requires to select its strategy.
d. develops core competencies based on human knowledge.
6. The key to achieving competitiveness, earning above-average returns, and
remaining ahead of competitors in the long run is to manage current core competencies:
a. in a way that uniquely bundles and leverages the firm's existing resources.
b. while simultaneously developing new ones.
c. and imitate the core competencies of successful competitors.
d. in order to preserve and enhance them against the firm's competitors.
7. Which of the following is NOT a component of internal analysis leading to competitive advantage?
a. Tangible and intangible resources
b. Analysis of supplier power c. Capabilities d. Core competencies
8. Value consists of a product's:
a. proprietary characteristics and attributes for which customers are wil ing to pay.
b. performance characteristics and attributes for which customers are willing to pay.
c. proprietary characteristics and attributes for which customers consider paying.
d. performance characteristics and attributes for which customers consider paying lOMoAR cPSD| 58511332
9. __________are the source of a firm's __________, which are the source of the firm's __________.
a. Resources; capabilities; core competencies
b. Capabilities; resources; core competencies
c. Capabilities; resources; above-average returns
d. Core competencies; resources; competitive advantage
10. When considering the relationships among the various characteristics a firm
possesses, it is necessary to understand that _________ are the most numerous.
a. resources b. capacities c. capabilities d. core competencies
11. Capabilities typically come from:
a. individual resources. b. one unique resource.
c. several outstanding resources used independently.
d. combining resources.
12. All of the following are tangible resources EXCEPT:
a. production equipment. b. distribution centers
c. a firm's reputation.
d. formal reporting structures.
13. Tangible resources include:
a. assets that are people-dependent, such as know-how.
b. assets that can be observed and quantified.
c. organizational culture.
d. a firm's reputation.
14. Compared to intangible resources, in terms of their value, tangible resources
are __________ constrained because they are __________ to leverage. (tận dụng) a. less; easier b. less; harder c. more; harder d. more; easier
15. Compared to tangible resources, intangible resources are:
a. of less strategic value to the firm.
b. less likely to be the focus of strategic analysis.
c. a superior source of capabilities.
d. more likely to be reflected on the firm's balance sheet.
16. Compared to tangible resources, intangible resources are __________ and __________.
a. less visible; more difficult to copy
b. less visible; less difficult to copy
c. more visible; more difficult to copy
d. more visible; less difficult to copy lOMoAR cPSD| 58511332
17. At a manufacturing facility, which of the following would be categorized as an intangible resource?
a. The forklift b. The quality control process c. The forklift driver
d. The financial investment into building the warehouse
18. Which of the following is NOT a reputational resource?
a. Customers' opinions that the firm's products are high quality
b. Employees' opinions of their supervisors' fairness
c. Suppliers' opinions that the firm pays its bil s in a timely manner
d. Customers' opinions that using the firm's products makes them attractive
19. An investor is considering buying a restaurant that has been in operation for a
number of years. The restaurant has a highly regarded chef and many long-
term kitchen and wait staff who work together smoothly. It has a reputation for
dishes of consistently high quality and an appealing dining atmosphere. Which
of the following should the investor consider when making a decision?
a. The investor should realize that the success of this restaurant is so heavily based
on human resources that the business wil likely be subject to inertia in the future.
b. The investor may find that the restaurant's financial statements undervalue
the true value of its resources.
c. The investor should be aware that intangible assets are difficult to leverage into additional businesses.
d. The investor should search for a firm that has competitive advantages based on tangible resources.
20. Which of the following is a true statement about capabilities?
a. Capabilities are often developed in specific functional areas such as
manufacturing, R&D, and marketing.
b. Valuable capabilities are based almost entirely on tangible resources.
c. Capabilities based on human capital are more vulnerable to obsolescence than
other intangible capabilities because of the tendency for employee knowledge to
become outdated. d. The link between firm financial performance and capabilities is
dependent on whether the capabilities are based on tangible or intangible resources
21. When firms lay off employees, they are:
a. treating employees as an intangible resource.
b. recognizing the reduced value of labor in the value chain.
c. eroding the organization's knowledge resources.
d. temporarily sacrificing a tangible asset that is easily replaced.
22. Because firms combine tangible and intangible resources to create capabilities:
a. These capabilities are fragile and subject to sudden loss of value.
b. capabilities are often based on developing, carrying, and exchanging
information and knowledge through the firm's human capital.
c. capabilities are easily transferred from one firm to another as employees change jobs. lOMoAR cPSD| 58511332
d. These types of capabilities are considered primary activities in the value chain.
23. __________ can be viewed as the capacity to take action. a. Strategic assets b. Human capital c. Core competencies
d. Functional capabilities
24. __________ is an example of a capability that is based in the functional area of distribution.
a. Effective use of logistics management techniques
b. Effective control of inventories through point-of-purchase data collection
c. Effective organizational structure
d. Product and design quality
25. The PRQ chain of retail stores has achieved a high level of efficiency in its
inventory control by collecting data at the point of purchase. This is an example
of a capability in which specific functional area? a. Research and development b. Distribution c. Management
d. Management information systems
26. Innovation, consumer understanding, brand-building, go-to-market, and scale
are activities that P&G performs well and are examples of the company's: a. tangible resources. b. intangible resources. c. core competencies. d. capabilities.
27. To provide a sustainable competitive advantage, a capability must satisfy all of
the following criteria EXCEPT be: a. technologically innovative.
b. hard for competing firms to duplicate. c. without good substitutes. d. valuable to customers.
28. From a customer's point of view, for an organization's capability to be a core
competence, it must be: a. inimitable and unique.
b. valuable and unique.
c. inimitable and nonsubstitutable.
d. valuable and non substitutable.
29. Valuable capabilities allow the firm to:
a. exploit threats in its external environment.
b. neutralize opportunities in its internal environment. lOMoAR cPSD| 58511332
c. exploit opportunities or neutralize threats in its external environment.
d. exploit opportunities and threats in its internal environment.
30. Consider the criteria necessary for sustainable competitive advantage. Which
of the following combinations would most likely bring about a temporary
competitive advantage and the possibility for above-average returns? a.
Valuable, rare, not costly to imitate, and possibly substitutable
b. Valuable, rare, costly to imitate, and possibly substitutable.
c. Valuable, not rare, not costly to imitate, and possibly substitutable.
d. Valuable, not rare, costly to imitate, and substitutable.
31. A major department store chain has a strict policy of banning photographs or
videos of its sales floor or back-room operations. It also does not allow
academics to conduct studies of it for publication in research journals. In fact,
some of its own top managers refer to the management's policies on secrecy
as "verging on paranoid." These policies indicate that the top management of
the firm believes the organization's core competencies are: a. causally ambiguous. b. unobservable. c. imitable. d. common.
32. Several months ago, a restaurant developed a new appetizer that is a hit with
customers. Many customers go to the restaurant just for the appetizer, and it
was at the center of a recent highly positive review by a food critic. Preparation
involves common ingredients and average culinary skills but requires a very
high oven temperature, which significantly increases utility costs. Several
competing restaurants have since added their own version of the appetizer to
their menu. Which of the following criteria for assessing capabilities/core competencies is met?
a. The restaurant has the capability to develop something that is valuable.
b. The restaurant has the capability to develop something that is rare.
c. The restaurant has the capability to develop something that is costly to imitate.
d. Al of these criteria are met.
33. In the airline industry, frequent flyer programs, ticket kiosks, and e-ticketing are
all examples of capabilities that are __________ but no longer __________. a. rare; valuable b. valuable; rare
c. socially complex; rare
d. valuable; causally ambiguous
34. The capabilities used to create the sustainability/green initiatives at Walmart
and Target are __________ but less likely to be __________. a. rare; valuable b. valuable; rare c. socially complex; rare
d. valuable; causally ambiguous lOMoAR cPSD| 58511332
35. Costly-to-imitate capabilities can emerge for all of the following reasons EXCEPT:
a. lack of scientific transference. b. social complexity.
c. unique historical conditions. d. causal ambiguity.
36. A financial management firm has existed for more than 70 years. Some of its
original clients' grandchildren are now clients of the firm themselves. The
partners and staff of the firm have spent most or all of their careers with the
firm. Many have even married into each other's families. This firm has
capabilities that would be costly to imitate primarily because of its: a. access to
large amounts of financial capital.
b. causally ambiguous core competencies. c. social complexity.
d. unique historical conditions.
37. Southwest Airlines has a complex interrelationship between its culture and
staff that adds value in ways that other airlines cannot, such as jokes on flights
or the cooperation between gate personnel and pilots. These examples
illustrate which of the following criteria for sustainable competitive advantage? a. Valuable b. Rare c. Costly to imitate d. Nonsubstitutable
38. McDonald's culture, with an emphasis on cleanliness, consistency, service, and
the training that reinforces the value of these characteristics, illustrates which
of the following criteria for sustainable competitive advantage: a. Valuable b. Rare
c. Costly to imitate d. Nonsubstitutable
39. Organizational culture is:
a. amorphous and changeable.
b. not easily imitable.
c. so difficult to analyze that most firms should choose to ignore it.
d. typically fragile in the face of changes in the external environment.
40. Gamma, Inc., has struggled for industry dominance with Ardent, Inc., its main
competitor, for years. Gamma has gathered and analyzed large amounts of
competitive intelligence about Ardent. It has observed as much of the firm's
internal functioning and technology as it can legally, yet Gamma cannot
understand why Ardent has a competitive advantage over it. The source of Ardent's success is:
a. social complexity. b. causally ambiguous. c. organizational culture. d. historical conditions.
41. If a firm offers a service that is valuable, rare, and costly to imitate, but a
substitute exists for the service, the firm will: a. achieve competitive parity. lOMoAR cPSD| 58511332
b. have a competitive disadvantage.
c. have a temporary competitive advantage.
d. gain a sustainable competitive advantage.
42. ACME Corp. is a leading provider of radios to the commercial market. Its
products all rely on printed circuit-board technology. ACME has protected its
market leadership with continued advancements in this technology, which it
patents. A competitor has developed a radio for this market with equal
performance but that uses a software-based technology instead of circuit
boards. ACME's technology leadership fails which of the following capability tests?
a. Value test b. Rareness test
c. Substitutability test d. Costly-to-imitate test
43. Firms that achieve competitive parity can expect to:
a. earn below-average returns
b. earn average returns.
c. earn above-average returns.
d. initially earn above-average returns, declining to average returns.
44. A veterinary practice has added a pet boarding and grooming facility. Most of
the practice's competitors also provide these services. The veterinary practice is gaining competitive:
a. advantage. b. parity. c. disadvantage. d. neutrality
45. A local restaurant, Farm Fresh Ingredients, has become highly successful
through its menu, based solely on organically raised chicken and beef, and
organic seasonal produce. It has opened new locations in other cities, and
these new locations are becoming highly profitable. Farm Fresh can expect
that, at best, its competitive advantage will be:
a. permanent. b. sustainable. c. temporary. d. defensible
46. Value chain activities are the:
a. activities or tasks most likely to be imitated by competitors.
b. activities or tasks the firm completes in order to produce products and then
sell, distribute, and service those products in ways that create value for customers.
c. activities or tasks the firm completes to support the work being done to produce,
sell, distribute, and service the products the firm is producing.
d. activities or tasks most crucial to implementing the firm's business strategy.
47. Which of the following would be categorized as a value chain activity?
a. Hiring new employees lOMoAR cPSD| 58511332
b. Securing financial capital
c. Investing in organizational functions
d. Conducting customer feedback surveys
48. Which of the following would be categorized as a support function?
a. Developing an advertising campaign
b. Handling customer orders c. Training employees
d. Procuring raw materials
49. Value chain analysis is a tool used to:
a. analyze a firm's external environment for value-creating opportunities.
b. analyze a firm's value chain activities and support functions in isolation from its competitors' value chain.
c. understand the parts of the firm's operation that create value and those that do not.
d. identify the firm's core competencies in each of the primary activities of the firm.
50. Firms that have strong positive relationships with suppliers and customers are
said to have __________, an essential ingredient to creating value. a. customer value b. social capital c. effective marketing d. an attractive industry
51. Knowledge transfer and access to resources the firm does not own but needs
to complete activities within the value chain are enhanced by: a. guidelines for
sharing knowledge and resources. b. social capital.
c. penalties for not sharing knowledge and resources.
d. training employees on how to cooperate.
52. Why is trust necessary to build social capital?
a. Contracts between a firm and its suppliers cannot be enforced.
b. Firms must be reassured that they wil be reimbursed for their expenses.
c. Contracts do not exist between a firm and its customers.
d. Partners must be confident that neither party will take advantage of the other .
53. Outsourcing is the:
a. spinning off of a value-creating activity to create a new firm.
b. selling of a value-creating activity to other firms.
c. purchase of a value-creating activity from an external supplier.
d. use of computers to obtain value-creating data from the Internet. lOMoAR cPSD| 58511332
54. Marin Industries is a U.S. company. It is exploring the possibility of offshoring
in order to create value. Which of the following activities would be an example
of offshoring? (sx ra nước ngoài)
a. Building a manufacturing plant in South America
b. Contracting with an Asian company to provide technical support
c. Purchasing a competitor in the UK
d. Selling its products in Europe
55. Which of the following is true about outsourcing?
a. Outsourcing limits a firm's flexibility and requires minimal coordination.
b. Outsourcing allows firms to concentrate on those areas in which they can create value.
c. Outsourcing strengthens the creative and innovative functions within the firm.
d. Outsourcing is effective only when it includes all support activities.
56. A major U.S. manufacturer of children's toys believes its main competitive
advantage lies in its continuing development of innovative toys and games. The
company is facing increasing competition on price, and it is strongly
considering outsourcing to offshore firms as a means of reducing costs. The
LAST function this firm should consider outsourcing is: a. operations.
b. research and development.
c. supply-chain management. d. distribution.
57. The owner of a store that sells fine-quality fabrics for home seamstresses
bemoans the fact that few young women know how to do fine tailoring, much
less simple dressmaking. Many potential customers are unable to appreciate
the premium quality of the fabrics and are deterred by the high prices, as well
as the complexity of fine sewing. In the past, the store had a strong demand for
fabrics, large classes for women learning the fine points of sewing, and a
reputation for excellent service and technical advice. Now the store is earning
lower-than-average returns. This case is an example of:
a. the hazard of competitors being able to imitate a firm's core competency.
b. the need for firms to stick to their core competencies through temporary downturns in market demand.
c. the lack of intangible resources undermining the core competencies of the firm.
d. core competencies that have become core rigidities (sự cứng nhắc cốt lõi)
58. Which of the following is NOT an external event that reveals the danger of
relying on existing core capabilities?
a. A new competitor figures out a better way to serve the firm's customers.
b. New technologies emerge and replace those used by the firm.
c. A firm changes its focus to a new core competence.
d. Political or social events shift the foundation of current core capabilities. lOMoAR cPSD| 58511332
59. Apex Auto Repair has a thriving business based on its reputation for high-
quality work, honesty, and skilled employees. For continued long-term success, Apex's owner should:
a. concentrate on maintaining Apex's current core competencies.
b. focus on developing Apex's future competitive advantages.
c. place more emphasis on tangible resources, which are less vulnerable to
obsolescence than intangible resources.
d. recognize that core competencies derived from human resources are more subject
to becoming core rigidities than are core competencies based on other types of resources.
60. All of the following were traditional sources of competitive advantage EXCEPT: a. labor costs.
b. access to financial resources. c. protected markets.
d. a highly educated labor market.
61. __________ is the ability to analyze, understand, and manage an internal
organization in ways that are not dependent on the assumptions of a single
country, culture, or context. a. Strategic thinking b. A global mindset c. Profit-pooling
d. Competency-discovering
62. A product's value is created by some combination of:
a. high cost and highly differentiated features.
b. high cost and less differentiated features.
c. low cost and less differentiated features.
d. low cost and highly differentiated features.
63. A firm's core competencies, integrated with an understanding of the results of
studying the conditions in the external environment, should: a. guarantee profits
b. lead to a first-mover advantage.
c. drive the selection of strategies.
d. increase the firm's market share.
64. All of the following are true about the strategic decisions managers make about
their firm's internal organization EXCEPT that they
a. are directly correlated to executive compensation.(lương của giám đốc điều hành)
b. are non routine. (thông lệ)
c. have ethical implications.
d. significantly influence the firm's ability to earn above-average returns. lOMoAR cPSD| 58511332
65. Amazon built a new distribution facility in Robbinsville, New Jersey. It is
immediately off the exit of a major road. This is an example of a(n) __________ resource. a. financial b. organizational c. physical d. technological
66. The corporate research division of Siemens files, on average, 25 patents a day.
The patents are a(n) __________ resource. a. financial b. organizational c. physical d. technological
67. Government agencies are known for having so many layers and rules that
decisions are made slowly and inefficiently. In this case, the __________
resource is a detriment to taxpayers using and paying for the bureaucracy. a. financial b. organizational c. physical d. technological
68. A food bank in Florida was struggling to serve its customers. It asked Walmart
for help. Walmart sent a team of managers who reorganized storage and
transportation. The food bank was able to increase the number of clients
served by tenfold. Walmart shared its expertise in: a. distribution. b. human resources. c. marketing. d. manufacturing.
69. Charmed by Claire is a successful retail boutique that sells women's
accessories. Claire, the owner/manager, knows that women have many options
when buying jewelry. When customers enter her store, they are greeted by
name and given prompt, friendly attention. Customers return to the store
because the service is excellent. Claire says the most important decision she
makes is hiring the best staff because customer service is vital to her business.
Customer service isa(n): a. human resource. b. organizational resource. c. rare resource. d. core competency.
70. Many firms outsource the payroll function of paying employees to firms such
as ADP. Payroll is a(n):
a. value-chain activity. b. operation function. c. support function. d. supply-chain function.
71. Tools such as __________ help the firm focus on its core competencies as the
source of its competitive advantages.
a. marketing b. manufacturing c. outsourcing d. imitation lOMoAR cPSD| 58511332
72. All core competencies have the potential to become core:
a. rigidities. b. stagnation. c. inefficiencies. d. weaknesses.