BUSI 4940 TEST 2 (CH.3&4) QUESTIONS AND
ANSWERS
How do firms stay ahead with competitive advantage? - Answers - Innovation (core
competencies)
3 factors for competitive advantage sustainability: - Answers - 1. Rate of core
competencies
2. Availability of subs
3. Imitability of core competencies
What a firm can do - Answers - a function of its resources, capabilities, and core
competencies in the internal organization
What a firm might do - Answers - a function of opportunities and threats in the external
environment
Global mind set - Answers - 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
Tangible and intangible resources lead to - Answers - Capabilities
Capabilities lead to - Answers - Discovering core competencies
Discovering Core Competencies leads to - Answers - Competitive and strategic
advantage
Value - Answers - measured by a product's performance characteristics and by its
attributes for which customers are willing to pay
Firms create value by - Answers - innovatively bundling and leveraging their resources
and capabilities
The stronger these firm's core competencies - Answers - the greater the amount of
value they are able to create for their customers.
Strategic decisions managers make about internal organization: - Answers - 1.
Nonroutine
2. Ethical implications
3. Significantly influence the firm's ability to earn AAR
ANSWERS
How do firms stay ahead with competitive advantage? - Answers - Innovation (core
competencies)
3 factors for competitive advantage sustainability: - Answers - 1. Rate of core
competencies
2. Availability of subs
3. Imitability of core competencies
What a firm can do - Answers - a function of its resources, capabilities, and core
competencies in the internal organization
What a firm might do - Answers - a function of opportunities and threats in the external
environment
Global mind set - Answers - 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
Tangible and intangible resources lead to - Answers - Capabilities
Capabilities lead to - Answers - Discovering core competencies
Discovering Core Competencies leads to - Answers - Competitive and strategic
advantage
Value - Answers - measured by a product's performance characteristics and by its
attributes for which customers are willing to pay
Firms create value by - Answers - innovatively bundling and leveraging their resources
and capabilities
The stronger these firm's core competencies - Answers - the greater the amount of
value they are able to create for their customers.
Strategic decisions managers make about internal organization: - Answers - 1.
Nonroutine
2. Ethical implications
3. Significantly influence the firm's ability to earn AAR
