C) managers should not look at their job as primarily balancing stakeholder demands; increasing satisfaction among multiple stakeholders can be achieved simultaneously. : an American History (Eric Foner), The Methodology of the Social Sciences (Max Weber), Campbell Biology (Jane B. Reece; Lisa A. Urry; Michael L. Cain; Steven A. Wasserman; Peter V. Minorsky), Principles of Environmental Science (William P. Cunningham; Mary Ann Cunningham). Build the IS-LM function.b. D) short-term perspectives and strategic positioning. Examples include all of the following except: A) negotiating and maintaining ongoing relations with regulatory bodies. If a firm has a service that is valuable, rare, and costly-to-imitate, but a substitute exists for the service, the firm will Customers do not simply send money to an organization because it owns strategic resources. ExpensesFoodHouseholdElectricbillTelephonebillHeatingfuelWaterbillCableTVbillTransportationGasolinepurchasesParking/tollsPersonalClothingCreditpaymentsNewspapers. A strategic resource is an asset that is valuable, rare, difficult to imitate, and organized to capture value (Barney, 1991; Chi, 1994). Supplier and buyers with strong bargaining positions Tangible resources can be understood as the resources of a company that can be seen, and measured and are physical in nature. C) Organizational routines. Major cities in hot climates such as Las Vegas, Los Angeles, and Atlanta are confronted by dramatically shrinking water supplies. B. productive inputs or competitive assets, except human assets and intellectual capital, which are considered capabilities or competencies. earn aboveaverage returns includes all of the following EXCEPT. ~~~~~\text{Rent} & & 625.00 & 625.00\\ A firm's tangible resource includes which of the following? B) interpersonal relations among a firm's managers. Resources that can be readily seen, touched, and quantified, such as cash or equipment, Resources that are not physical, like a firms reputation, a patent, or employee knowledge, Resources that provide an organization with an opportunity to develop competitive advantages over its rivals. Consider, for example, a very generic commodity: water. C) supports both individual primary and support activities and the entire value chain. ~~~~~\text{Gasoline purchases} & & 85.00 & 101.70\\ : Not surprisingly, Coca-Cola ranks among the top twelve in Fortunes Worlds Most Admired Companies for 2020. Course Hero is not sponsored or endorsed by any college or university. Which activity is the least risky candidate for outsourcing? Suppliers and buyers with little bargaining power D) geographic uniqueness, cause dependency, social ambiguity, and path complexity. ___________ are associated with collecting, storing, and distributing the product or service to buyers. In contrast, intangible resources are quite difficult to see, to touch, or to quantify. ~~~~~\text{Emergency fund} & & 50.00 & 50.00\\ b. When a company's resources are valuable but not rare, the company is said to have which element? Why did it cause this change? The VRIO Framework with numbers. CC BY-SA 4.0. It is an intangible part of the company. Firm resources and sustained competitive advantage. Design and emergence strategies involve specific levels of the organization. Such competitive advantages are based upon. Which of the following examples demonstrates how successful organizations manage their primary activities? The following are examples of socially complex organizational phenomena except. D) reputation with suppliers and customers. Physical assets such as a firms property, plant, and equipment, as well as cash, are considered to be tangible resources. Which of these categories of financial ratios is used to measure a company's ability to meet its short-term financial obligations? managers should focus exclusively on the current market environment. In the value chain, which of the following activities is deemed to add direct value to a firm? To capture more consumers b. Hierarchical diversification The best measure of a company's ability to meet imminent financial obligations is known as the. Knowledge ______________ are the competencies or skills that a firm employs to transform inputs into outputs. The VRIO tool can be used to determine if resources or capabilities are valuable, rare, difficult-to-imitate, and organized to capture value, and thereby understand what type of competitive advantage they offer to a firm. Recruitment c. Service d. Procurement c; Medium Tangible resources include all except which of the following? A marketing department that promises delivery faster than the production department's ability to produce is an example of a lack of understanding of the. https://commons.wikimedia.org/wiki/File:Southwest_737_Lonestar_One.jpg, https://commons.wikimedia.org/wiki/File:The_VRIO_Framework_with_numbers.png, Next: 4.4 Intellectual Property & Isolating Mechanisms, Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License. C) financial resources, physical resources, and technological resources. Has Southwest organized this resource of culture to capture value? This culture is also rare in that strikes, layoffs, and poor morale are common within the airline industry. C) financial analysis and stakeholder perspectives. What tangible and intangible resources does your favorite restaurant have that might give it a competitive advantage? You'll get a detailed solution from a subject matter expert that helps you learn core concepts. Do any of the resources or capabilities of your favorite restaurant have the four qualities of resources (VRIO) that lead to success as articulated by resource-based theory. True or False Please explain, Artifacts reflecting values of an organization include, The foundation of many capabilities lies in the skills and knowledge of a firm's stockholders A. They consist of warehousing, material handling, delivery operation, order processing, and scheduling. ~~~~~\text{Newspapers. A. 11 Tangible assets are those assets, which are physical in nature, eg - Cash, inventory, vehicles, factory, etc A firms reputat . gifts} & & 20.00 & 11.65\\ Distribution centers. To most individuals, cash is an important resource. O - Strategy formulation is an essential component of the POLC framework: Instead, a resource is strategic to the extent that it is valuable, rare, difficult to imitate, and organized to capture value. d. Horizontal diversification One resource is lead singer Jimmy Mattingly, who possesses immense musical talent. These strategic resources can provide the foundation to develop firm capabilities that can lead to superior performance over time. False Critical to the forming of competitive advantages, _______________ are often based on, developing, carrying, and exchanging information and knowledge through the firms human. ~~~~~\text{Movies} & & 10.00 & 5.00\\ D. T or F For firms such as Walgreen Co. (a chain of drugstores), information systems have been a source of competitive advantage by enabling them to. a. 11.-. a. 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. Southwest Airlines, for example, has developed the capability of providing excellent customer service by building on its strong organizational culture. \end{array} \text{Personal}\\ See Page 1. Ans. For example, 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 boardingto create a unique business model whose performance is without peer in the industry. This is an example of which concept? accounting. A resource is valuable to the extent that it helps a firm create strategies that capitalize on opportunities and ward off threats. DIFFICULT-TO-IMITATE resources often involve legally protected intellectual property such as trademarks, patents, or copyrights. ~~~~~\text{Telephone bill} & & 35.00 & 41.20\\ A) Knowledge can be considered an important asset or resource of a company, but it is not physical in nature. How has Walgreens used its core competencies to provide value to its customers? b. The resource-based view focuses on which of the following aspects of resources? c. Product quality Strategic Management Journal, 15(4), 271290. Figure 4.2: Planephotoman. Advertising is a ______activity. Centralized decisions Another is guitarist Lenny Haise, whose fun attitude reigns in the enigmatic Mattingly. Superiority in competitive advantage refers to all of the following factors EXCEPT: a. If we assume an increase in Investments by 100 units, please calculate again the IS-LM functions.c. Coca-Cola has an uncanny knack for building new brands and products as the soft-drink market evolves. reading all the available information carefully, prepare a two page (double-spaced) essay and answer the following questions:Assume that we have the following data:C=100+0.50YIp=100-20rMt=0.10YMs=100-10rM=80a. D) gains in financial performance and customer satisfaction must often come at a cost of employee satisfaction. As another example, what about Southwest Airlines capability to arrive on time at a much higher rate than the industry average? Resources such as Southwests culture that reflect all four qualitiesvaluable, rare, difficult to imitate, and organized to capture valueare ideal because they can create sustained competitive advantages. 5 Option A Which of the following forms of diversification occurs when a firm operates multiple. Copyright 2023 StudeerSnel B.V., Keizersgracht 424, 1016 GC Amsterdam, KVK: 56829787, BTW: NL852321363B01, Forecasting, Time Series, and Regression (Richard T. O'Connell; Anne B. Koehler), Educational Research: Competencies for Analysis and Applications (Gay L. R.; Mills Geoffrey E.; Airasian Peter W.), Biological Science (Freeman Scott; Quillin Kim; Allison Lizabeth), Business Law: Text and Cases (Kenneth W. Clarkson; Roger LeRoy Miller; Frank B. False al., 2010). A resource or capability is said to be ____________ if it allows the firm to exploit. Executives strongly encourage flight attendants to entertain passengers, like hiding in an overhead compartment. : a. 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) rare, valuable, inimitable, nonsubstitutable, B) in periods of recession or economic boom. B. C) repairing the product for the consumer, D) monitoring the cost of producing the product through a cost accounting system. Correct Answer: Explore answers and other related questions. D) the firm's resources are path dependent. Although the airline industry is extremely competitive, Southwest Airliness turns a profit virtually every year. A) KnowledgeB) Capacity for innovationC) Organizational routinesD) Production equipment. It signals the market to competent manufacturing, why it is difficult to identify the actual cause of a firm's successful performance. What will happen to bond prices if terrorism ended and the world's nations unilaterally disarmed and adopted free trade policies? Then discuss how the company caters for their interests and what may happen if their expectations are not met.A water utility companyA multinational food companyA local airport. \end{array} Which of the following is a support activity? A resource that is difficult to imitate, or create ready substitutes for is called, The VRIO criterion that determines whether a resource or capability is the source of, competitive advantage recognized that the firm must have the _______________ capability to. A) rare, valuable, mobile, nonsubstitutable. Design/methodology/approach A cross-sectional survey research design was used in the study. (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. 5 Option A Explanation: Tangible resources have a physical form, t . Capabilities tend to arise over time as a firm takes actions that build on its strategic resources. For the event listed here, identify which of the determinants of demand or supply are affected. Choose one of the companies below and identify three key stakeholders. The influence of Southwests organizational culture extends to how customers are treated by employees. 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. A US firm has outsources its textile manufacturing to aBangledesh for the last 10 years. Use the Kujawas expense summary to answer the question. Resource-based theory also stresses the merit of an old saying: the whole is greater than the sum of its parts. A resource is organized to capture value when the firm has organizational systems, processes, and structure in place to capitalize on the resource for a competitive advantage. On occasion, events in the environment can turn a common resource into a strategic resource. If yes, go to number 4. 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. This too is intangible in nature, making Option B an incorrect choice. All of the following except which example is a reason that relentless imitation can be a dangerous practice? B) Compare the firm's financial ratios over the most recent one-year period. than firms pursing a cost leader strategy. Option D is the right choice here. If not then culture provides Southwest with a temporary competitive advantage over its rivals, but competitors can imitate it. C) Every organization has a routine that it follows for its procedures and processes. Captures how vision and mission will be achieved, O - A firms tangible resource includes which of the following? One key reason is a legendary organizational culture that inspires employees to do their very best. The resource-based view includes all except which of the following regarding managers? -Production equipment B. This is an example of, A variety of firm resources include interpersonal relations among managers in the firm, its culture, and its reputation with its suppliers and customers.