Hello friends in this post we are you are going to discuss about The Internal Organization: Resources, Capabilities, Core Competencies, and Competitive | The Internal Organization MCQ with answers | The Internal Organization Multiple choice questions | The Internal Organization Answer dumps True False
1. Technology has made it more difficult for companies to find ways to develop competitive advantages.
a. Trueb. False
ANSWER: True
2. Firms should seek to continually develop new core competencies because all core competencies guarantee above-average profit.
a. True
b. False
ANSWER: False
3. In today’s global economy, some resources that were traditionally critical to firms’ efforts to produce, sell, and distribute goods are now less likely to be a source of competitive advantage.
a. True b. False
ANSWER: True
4. Firms achieve strategic competitiveness and earn above-average returns by acquiring, bundling, and leveraging their resources for the purpose of taking advantage of opportunities in the external environment in ways that create value for customers.
a. True b. False
ANSWER: True
5. Analyzing the internal environment enables a firm to determine what it MIGHT DO by identifying what opportunities and threats exist.
a. True b. False
ANSWER: False
6. Analyzing the internal environment enables a firm to determine what it CAN DO by identifying resources, capabilities, and core competencies in the internal organization.
a. True b. False
ANSWER: True
7. Understanding how to leverage the firm’s unique bundle of resources and capabilities is a key outcome decision makers seek when analyzing the internal organization.
a. True b. False
ANSWER: True
8. The best way to understand the relationship between resources, capabilities, and core competencies is to recognize that resources are the source of capabilities. Some capabilities lead to the development of core competencies and these, in turn, may lead to competitive advantages.
a. True b. False
ANSWER: True
9. Value is measured by the variable and fixed costs associated with the production and marketing of a particular product compared with the revenue and profits the product generates.
a. True b. False
ANSWER: False
10. Creating value for customers is the source of above-average returns for a firm.
a. True b. False
ANSWER: True
11. Walmart uses core competencies, such as information technology and distribution channels, to create value for its customers through its “everyday low prices.”
a. True b. False
ANSWER: True
12. The need to meet quarterly earnings results causes managers to accurately examine the firm’s internal organization.
a. True b. FalseANSWER: False
13. The learning generated by making and correcting mistakes is generally unimportant to efforts to create new capabilities and core competencies.
a. True b. False
ANSWER: False
14. By themselves, resources can allow firms to create value for customers as the foundation for earning above-average returns
.a. True b. False
ANSWER: False
15. Chipotle linked fresh ingredients with the marketing and training of employees to build customer service as a capability. This example illustrates the way in which resources must be combined in order to form capabilities.
a. True b. False
ANSWER: True
16. The value of tangible assets, such as the firm’s borrowing capacity and its physical plant, is high because these assets can be easily leveraged to derive additional value.
a. True b. False
ANSWER: False
17. Although an organization’s good reputation is a valuable resource that takes years of superior marketplace competence to achieve, it is not a good basis for building a competitive advantage because it can be destroyed almost instantly by bad publicity. a. True b. False
ANSWER: False
18. When comparing the resources a company has at its disposal, the capacity to innovate or a positive reputation, both of which are intangible, would be an inferior source of capabilities and core competencies than tangible resources such as copyrights, patents, and the ability to generate funds.
a. True
b. False
ANSWER: False
19. Resources, capabilities, and core competencies are the foundation of competitive advantage.
a. True
b. False
ANSWER: True
20. Capabilities of an organization emerge spontaneously through the interaction of tangible and intangible resources.
a. True
b. False
ANSWER: False
21. At a technology firm, human capital would be critical to forming and using the firm’s capabilities in customer relationships, scientific and research skills, and technical skills in hardware, software, and services.
a. True
b. False
ANSWER: True
22. Capabilities are usually developed separately from specific functional areas such as manufacturing, R&D, and marketing.
a. True
b. False
ANSWER: False
23. “Motivating, empowering, and retaining employees” is an example of a capability that resides within the human resources functional area
a. True
b. False
ANSWER: True
24. Core competencies are capabilities that serve as a source of competitive advantage for a firm over its rivals.
a. Trueb. False
ANSWER: True
25. Apple has combined some of its tangible resources (such as financial resources and research laboratories) and intangible resources (such as scientists, engineers, and organizational routines) to complete research and development tasks to create a capability in R&D.
a. True
b. False
ANSWER: True
26. The length of time a firm can expect to create value by using its core competencies is a function of how quickly competitors can successfully imitate a good, service, or process
a. True
b. False
ANSWER: True
27. Valuable capabilities allow the firm to exploit strengths or neutralize weaknesses in the internal environment.
a. True
b. False
ANSWER: False
28. The trust that a firm has built between itself and its suppliers is an example of a costly-to-imitate capability that other firms cannot easily develop.
a. Trueb. False
ANSWER: True
29. Capabilities may be costly to imitate if firms have unique and valuable organizational cultures, are causally ambiguous, or are socially complex.
a. Trueb. False
ANSWER: True
30. At Southwest Airlines, the complex interrelationship between the firm’s culture and human capital adds value for customers in ways that other airlines cannot, such as jokes on flights by flight attendants and cooperation between gate personnel and pilots.
a. True
b. False
ANSWER: True
31. Interpersonal relationships, trust, friendships among managers and between managers and employees, and a firm’s reputation with suppliers and customers are all examples of complex social phenomena that make capabilities easy to imitate.
a. True
b. False
ANSWER: False
32. A company can earn above-average returns only when the value it creates is less than the costs incurred to create that value.
a. True
b. False
ANSWER: False
33. Value chain activities in the value chain create value, whereas support functions generate costs.
a. Trueb. False
ANSWER: False
34. One criterion for a resource or capability to be a source of competitive advantage is that it must allow the firm to perform a value-creating activity that competitors cannot perform.
a. True
b. False
ANSWER: True
35. A firm should outsource only activities where it cannot create value or where it is at a substantial disadvantage compared to competitors.
a. True
b. False
ANSWER: True
36. Firms should never outsource a primary activity because of the danger of the activity being imitated by rivals.
a. True
b. False
ANSWER: False
37. Two concerns about outsourcing are the potential loss of a firm’s innovative ability and the loss of jobs within the focal firm.
a. True
b. False
ANSWER: True
38. Any core competency has the potential to lose its value-creating ability.
a. True
b. False
ANSWER: True
39. All competitive advantages have:
a. a limited life.
b. unrestricted sustainability.
c. the ability to earn above-average returns indefinitely.
d. protections against imitability.
ANSWER: a
40. It is increasingly difficult for a firm to develop and sustain a competitive advantage because of the effects of globalization and:
a. the rapid development of the Internet’s capabilities.
b. extensive use of outsourcing within the borders of the United States.
c. the declining number of inventions and patents developed by U.S. citizens.
d. the simultaneous erosion of the U.S. work ethic and the U.S. education system.
ANSWER: a
41. A marketing manager at GTA Technology wants the next generation of a particular application to include certain features. The product manager of that app insists that the feature would be costly to implement and could not be achieved by the desired release date unless additional resources, both financial and human, were directed to the app. The marketing manager insists that this is necessary, while the product manager feels that the inclusion of these features would not validate the extra investment. It is now up to the project manager to decide how to proceed. Which of the following conditions is most affecting the project manager’s decision?
a. Uncertainty
b. Complexity
c. Intraorganizational conflict
d. Sustainability
ANSWER: c
42. Which of the following is NOT a factor affecting sustainability of a competitive advantage?
a. Availability of substitutes for a firm’s core competence
b. Rate at which obsolescence of the core competence occurs because of environmental changes
c. Imitability of a core competence
d. Length of time the core competence has existed
ANSWER: d
43. Internal analysis enables a firm to determine what it:
a. can do.
b. should do.
c. will do.
d. might do.
ANSWER: a
44. The proper matching of what a firm CAN DO with what it MIGHT DO:
a. balances the internal characteristics of the firm with the characteristics of the external environment.
b. overcomes the rigidity and inertia resulting from a history of success.
c. yields insights the firm requires to select its strategy.
d. develops core competencies based on human knowledge.
ANSWER: c
45. The key to achieving competitiveness, earning above-average returns, and remaining ahead of competitors in the long run is to manage current core competencies:
a. in a way that uniquely bundles and leverages the firm’s existing resources.
b. while simultaneously developing new ones.
c. and imitate the core competencies of successful competitors.
d. in order to preserve and enhance them against the firm’s competitors.
ANSWER: b
46. Which of the following is NOT a component of internal analysis leading to competitive advantage?
a. Tangible and intangible resources
b. Analysis of supplier power
c. Capabilities
d. Core competencies
ANSWER: b
47. Value consists of a product’s:
a. proprietary characteristics and attributes for which customers are willing to pay.
b. performance characteristics and attributes for which customers are willing to pay.
c. proprietary characteristics and attributes for which customers consider paying.
d. performance characteristics and attributes for which customers consider paying.
ANSWER: b
48. __________are the source of a firm’s __________, which are the source of the firm’s __________.
a. Resources; capabilities; core competencies
b. Capabilities; resources; core competencies
c. Capabilities; resources; above-average returns
d. Core competencies; resources; competitive advantage
ANSWER: a
49. The Obama administration expressed a desire to eliminate coal as an energy source, and introduced regulations to drive the coal industry out of business. The Trump administration eased regulations on the coal industry, but also took steps to encourage the development of other forms of energy. In light of this changing regulatory environment, decision makers in the energy industry are most affected by what condition?
a. Uncertainty
b. Complexity
c. Intraorganizational conflict
d. Interorganizational conflict
ANSWER: a
50. By emphasizing core competencies when selecting and implementing strategies, companies learn to compete primarily on the basis of:
a. intangible resources.
b. their primary activities.
c. firm-specific differences.
d. efficiency of production.
ANSWER: c