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STRATEGIC MANAGEMENT CHAPTERS 1-5
2026 LATEST QUESTIONS AND ANSWERS|
ACE YOUR GRADES.
Resource immobility - correct answer -Assumption in the
resource-based view that a firm has resources that tend to be
"sticky" and do not move easily from firm to firm.
VRIO framework - correct answer -A theoretical framework that
explains and predicts firm-level CA. A firm can gain a CA if it has
resources that are valuable, rare, and costly to imitate; the firm
must also organize to capture value of the resources.
Valuable resource - correct answer -Allows the firm to take
advantage of an external opportunity and/or neutralize an external
threat.
Rare resource - correct answer -When only a few firms possess
this, they can perform in a unique way.
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Costly to imitate resource - correct answer -When firms do no
possess this, they are unable to develop or buy the resource at a
comparable cost.
Organized to capture value - correct answer -The characteristic
of having in place an effective organizational structure and
coordination systems to fully exploit the competitive potential of
the firm's resources and capabilities.
Value chain - correct answer -The internal activities a firm
engages in when transforming inputs into outputs.
Primary activities - correct answer -Add value directly by
transforming inputs into outputs as the firm moves a product or
service horizontally along the internal value chain.
Support activities - correct answer -Add value indirectly but are
necessary to sustain primary activities. R&D, information systems,
operations management, HR, accounting, finance.
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SWOT Analysis - correct answer -A framework that allows
managers to synthesize insights obtained from an internal
analysis of the company's strengths and weaknesses, with those
from an analysis of external opportunities and threats.
Value - correct answer -The dollar amount a consumer would
attach to a good or service. The consumers MAX willingness to
pay. AKA reservation price.
Economic value created - correct answer -Difference between
value and cost (V - C). AKA economic contribution. Also
Producer surplus - correct answer -Difference between prices
charged (P) and the cost to produce (C). AKA profit.
Consumer surplus - correct answer -Difference between the
value (V) a customer attaches to a good or service and what he or
she paid (P) for it.
Opportunity costs - correct answer -The value of the best
forgone alternative use of the resources employed.
STRATEGIC MANAGEMENT CHAPTERS 1-5
2026 LATEST QUESTIONS AND ANSWERS|
ACE YOUR GRADES.
Resource immobility - correct answer -Assumption in the
resource-based view that a firm has resources that tend to be
"sticky" and do not move easily from firm to firm.
VRIO framework - correct answer -A theoretical framework that
explains and predicts firm-level CA. A firm can gain a CA if it has
resources that are valuable, rare, and costly to imitate; the firm
must also organize to capture value of the resources.
Valuable resource - correct answer -Allows the firm to take
advantage of an external opportunity and/or neutralize an external
threat.
Rare resource - correct answer -When only a few firms possess
this, they can perform in a unique way.
, Page | 2
Costly to imitate resource - correct answer -When firms do no
possess this, they are unable to develop or buy the resource at a
comparable cost.
Organized to capture value - correct answer -The characteristic
of having in place an effective organizational structure and
coordination systems to fully exploit the competitive potential of
the firm's resources and capabilities.
Value chain - correct answer -The internal activities a firm
engages in when transforming inputs into outputs.
Primary activities - correct answer -Add value directly by
transforming inputs into outputs as the firm moves a product or
service horizontally along the internal value chain.
Support activities - correct answer -Add value indirectly but are
necessary to sustain primary activities. R&D, information systems,
operations management, HR, accounting, finance.
, Page | 3
SWOT Analysis - correct answer -A framework that allows
managers to synthesize insights obtained from an internal
analysis of the company's strengths and weaknesses, with those
from an analysis of external opportunities and threats.
Value - correct answer -The dollar amount a consumer would
attach to a good or service. The consumers MAX willingness to
pay. AKA reservation price.
Economic value created - correct answer -Difference between
value and cost (V - C). AKA economic contribution. Also
Producer surplus - correct answer -Difference between prices
charged (P) and the cost to produce (C). AKA profit.
Consumer surplus - correct answer -Difference between the
value (V) a customer attaches to a good or service and what he or
she paid (P) for it.
Opportunity costs - correct answer -The value of the best
forgone alternative use of the resources employed.
