MGMT 352 CHAPTER 4 EXAM QUESTIONS AND ANSWERS
WITH COMPLETE SOLUTIONS VERIFIED GRADED A++
Core Competencies
unique strengths, embedded deep within a firm, that are critical to gaining and
sustaining competitive advantage
Resources
any assets such as cash, buildings, machinery, or intellectual property that a firm can
draw on when crafting and executing a strategy
Capabilities
organizational and managerial skills necessary to orchestrate a diverse set of resources
and deploy them strategically
by nature, these are intangibles.
their expression in a company's structures, routines, and cultures
Activities
distinct and fine-grained business processes that enable firms to add incremental value
by transforming inputs into goods and services
resource-based view
A model that sees certain types of resources as key to superior firm performance
Tangible Resources
, resources that have physical attributes and thus are visible
intangible resources
have no physical attributes and thus are invisible
resource
any assets as well as any capabilities and competencies that a firm can draw upon
when formulating and implementing strategy
resource heterogeneity
assumption in the resource-based view that a firm is a bundle of resources and
capabilities that differ across firms
resource immobility
assumption in the resource-based view that a firm has resources that tend to be "sticky"
and that do not move easily from firm to firm
VRIO Framework
The resource-based framework that focuses on the value (V), rarity (R), imitability (I),
and organizational (O) aspects of resources and capabilities.
valuable resource
One of the four key criteria in the VRIO framework. A resource is valuable if it helps a
firm exploit an external opportunity or offset an external threat.
rare
One of the four key criteria in the VRIO framework. A resource is rare if the number of
firms that possess it is less than the number of firms it would require to reach a state of
perfect competition.
costly to imitate
WITH COMPLETE SOLUTIONS VERIFIED GRADED A++
Core Competencies
unique strengths, embedded deep within a firm, that are critical to gaining and
sustaining competitive advantage
Resources
any assets such as cash, buildings, machinery, or intellectual property that a firm can
draw on when crafting and executing a strategy
Capabilities
organizational and managerial skills necessary to orchestrate a diverse set of resources
and deploy them strategically
by nature, these are intangibles.
their expression in a company's structures, routines, and cultures
Activities
distinct and fine-grained business processes that enable firms to add incremental value
by transforming inputs into goods and services
resource-based view
A model that sees certain types of resources as key to superior firm performance
Tangible Resources
, resources that have physical attributes and thus are visible
intangible resources
have no physical attributes and thus are invisible
resource
any assets as well as any capabilities and competencies that a firm can draw upon
when formulating and implementing strategy
resource heterogeneity
assumption in the resource-based view that a firm is a bundle of resources and
capabilities that differ across firms
resource immobility
assumption in the resource-based view that a firm has resources that tend to be "sticky"
and that do not move easily from firm to firm
VRIO Framework
The resource-based framework that focuses on the value (V), rarity (R), imitability (I),
and organizational (O) aspects of resources and capabilities.
valuable resource
One of the four key criteria in the VRIO framework. A resource is valuable if it helps a
firm exploit an external opportunity or offset an external threat.
rare
One of the four key criteria in the VRIO framework. A resource is rare if the number of
firms that possess it is less than the number of firms it would require to reach a state of
perfect competition.
costly to imitate
