WPC 480 EXAM QUESTIONS AND ANSWERS
LATEST UPDATE (ALREADY GRADED A+)
True or False: Intangible resources are more likely to be a source of durable competitive advantage
than tangible resources.
True
Intangible resources cannot be easily measured or purchased, and are often embedded in the firm's
internal relationships and experiences.
True or False: A firm with successful brand that has been a durable competitive advantage will most
likely spend less on marketing and advertising over time because the brand has been so durable as an
advantage.
false
Durable advantages does not mean they do not require continual investment to maintain; brand, for
example, will erode in value if not backed up by advertising and marketing investments.
Why does IP Protection increase the durability of the competitive advantage?
imitation by other firms of your capability is unlawful
Why does Causal Ambiguity increase the durability of the competitive advantage?
unclear how other firms can copy your firms capability
Why does Relationships that are important increase the durability of the competitive advantage?
they are unique and therefore not possible to copy
Why does Path Dependence increase the durability of the competitive advantage?
it takes time to gain experience necessary to match the capability
True or False: A local plumbing firm is trying to pursue a cost leadership strategy so that they can get
work as a contractor, and still make a profit, from a real estate developer who is also pursuing a cost
leadership strategy. The local plumbing firm will have to lower its labor costs to achieve a competitive
advantage as it currently pays more than some of the other plumbing firms in the area.
False
It is not the absolute cost of labor, but rather, the productivity of labor (cost/amount of work done). So
if the firm's plumbers do more in an hour, they can be paid more and still be lower cost than other firms.
LATEST UPDATE (ALREADY GRADED A+)
True or False: Intangible resources are more likely to be a source of durable competitive advantage
than tangible resources.
True
Intangible resources cannot be easily measured or purchased, and are often embedded in the firm's
internal relationships and experiences.
True or False: A firm with successful brand that has been a durable competitive advantage will most
likely spend less on marketing and advertising over time because the brand has been so durable as an
advantage.
false
Durable advantages does not mean they do not require continual investment to maintain; brand, for
example, will erode in value if not backed up by advertising and marketing investments.
Why does IP Protection increase the durability of the competitive advantage?
imitation by other firms of your capability is unlawful
Why does Causal Ambiguity increase the durability of the competitive advantage?
unclear how other firms can copy your firms capability
Why does Relationships that are important increase the durability of the competitive advantage?
they are unique and therefore not possible to copy
Why does Path Dependence increase the durability of the competitive advantage?
it takes time to gain experience necessary to match the capability
True or False: A local plumbing firm is trying to pursue a cost leadership strategy so that they can get
work as a contractor, and still make a profit, from a real estate developer who is also pursuing a cost
leadership strategy. The local plumbing firm will have to lower its labor costs to achieve a competitive
advantage as it currently pays more than some of the other plumbing firms in the area.
False
It is not the absolute cost of labor, but rather, the productivity of labor (cost/amount of work done). So
if the firm's plumbers do more in an hour, they can be paid more and still be lower cost than other firms.
