CHAPTER 3- MGT 4335 EXAM QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026
Value Chain - Answers A visual description of the steps required to turn raw materials into finished
products and/or services. The value chain also describes key functions of the company linked to each
stage and functions that span its productive activities.
What do the horizontal elements of the value chain represents? - Answers a) technology
development
b) human resource management
c) administrative elements
d) the production process (Correct)
What are the four administrative elements that the vertical axis represents? - Answers 1. Firm
infrastructure
2. Human resource management
3. Technology development
4. Procurement
Resources - Answers All assets, brands, lands, information, knowledge, and so on controlled by a firm
that enable it to conceive of and implement strategies that improve its efficiency and effectiveness.
Capabilities - Answers The procedures, processes, and routines firms employ in their activities.
Priorities - Answers A firm's values and rankings of what is most important.
Assets - Answers Tangible or intangible resources or factors of production that create economic value
for the firm when employed.
What are the four categories of resources that are important contributors to competitive advantage?
- Answers 1. Physical resources: plant or equipment
2. Financial resources: free cash flow
3. Human resources: including employee know-how, management skill, and talents
4. Intangible resources: brands and patents
Operating Capabilities - Answers Procedures, processes, or routines for delivering value to customers,
employees, suppliers, or investors.
Dynamic Capabilities - Answers The procedures, processes, and routines firms employ in their
activities.
Processes that are designed to continuously expand existing resources or to improve or modify
operating capabilities
Value - Answers Worth or utility
Rarity - Answers To be uncommon, or not available to other competitors.
Copyright © 2018, 2016 John Wiley & Sons, Inc. All rights reserved.
Inimitability - Answers An attribute of a resource or capability that describes the degree of difficulty a
competitor would face in copying, imitating, or mimicking the value of that resource or capability.
Positive Network Externalities - Answers When the value of a product increases with the number of
users.
Virtuous Circle - Answers When more sellers attract more buyers, who, in turn, attract more sellers.
Organized to exploit - Answers The degree to which the legal, administrative, and operating structure
of the firm allows it to capture the rents generated by resources and capabilities.
Competitive Failure - Answers When firms can't create value for their stakeholders they don't survive.
Competitive Parity - Answers When a company survives but has no real competitive advantage over
rivals.
Sustained Competitive Advantage - Answers The ability of a firm to consistently to capture high
profits. The advantage comes from their valuable, rare, and inimitable resources, capabilities, and
their ability to organize to capture the value from those resources and capabilities.
Value Chain - Answers A visual description of the steps required to turn raw materials into finished
products and/or services. The value chain also describes key functions of the company linked to each
stage and functions that span its productive activities.
What do the horizontal elements of the value chain represents? - Answers a) technology
development
b) human resource management
c) administrative elements
d) the production process (Correct)
What are the four administrative elements that the vertical axis represents? - Answers 1. Firm
infrastructure
2. Human resource management
3. Technology development
4. Procurement
Resources - Answers All assets, brands, lands, information, knowledge, and so on controlled by a firm
that enable it to conceive of and implement strategies that improve its efficiency and effectiveness.
Capabilities - Answers The procedures, processes, and routines firms employ in their activities.
Priorities - Answers A firm's values and rankings of what is most important.
Assets - Answers Tangible or intangible resources or factors of production that create economic value
for the firm when employed.
What are the four categories of resources that are important contributors to competitive advantage?
- Answers 1. Physical resources: plant or equipment
2. Financial resources: free cash flow
3. Human resources: including employee know-how, management skill, and talents
4. Intangible resources: brands and patents
Operating Capabilities - Answers Procedures, processes, or routines for delivering value to customers,
employees, suppliers, or investors.
Dynamic Capabilities - Answers The procedures, processes, and routines firms employ in their
activities.
Processes that are designed to continuously expand existing resources or to improve or modify
operating capabilities
Value - Answers Worth or utility
Rarity - Answers To be uncommon, or not available to other competitors.
Copyright © 2018, 2016 John Wiley & Sons, Inc. All rights reserved.
Inimitability - Answers An attribute of a resource or capability that describes the degree of difficulty a
competitor would face in copying, imitating, or mimicking the value of that resource or capability.
Positive Network Externalities - Answers When the value of a product increases with the number of
users.
Virtuous Circle - Answers When more sellers attract more buyers, who, in turn, attract more sellers.
Organized to exploit - Answers The degree to which the legal, administrative, and operating structure
of the firm allows it to capture the rents generated by resources and capabilities.
Competitive Failure - Answers When firms can't create value for their stakeholders they don't survive.
Competitive Parity - Answers When a company survives but has no real competitive advantage over
rivals.
Sustained Competitive Advantage - Answers The ability of a firm to consistently to capture high
profits. The advantage comes from their valuable, rare, and inimitable resources, capabilities, and
their ability to organize to capture the value from those resources and capabilities.
