Chapter 04 Evaluating a Company’s Resources, Capabilities, and
Competitiveness Answer Key
Multiple Choice Questions
1.
In evaluating how well a company’s strategy is working, the best place to start is with a
2.
Which of the following is NOT one of the six questions that comprise the task of evaluating a
company’s resources and competitive position?
3.
Which of the following is NOT an analytical tool for revealing a company’s competitiveness and for
helping to match the strategy to the company’s own particular circumstances?
4.
The best indicator of how well a company’s strategy is working is whether the company is
5.
Key financial ratios that help to indicate how well a company’s strategy is working DO NOT include
6.
Key financial ratios that help to measure a company’s profitability DO NOT include
7.
One important indicator of how well a company’s present strategy is working is whether
8.
Key “functional” strategies of a company include all of the following EXCEPT
9.
A company’s resources and capabilities represent
10.
A powerful tool for sizing up the company’s competitive assets and determining whether they can
provide the foundation necessary for competitive success in the marketplace is termed
11.
The difference between a resource and a capability is
12.
A useful way to identify a company’s resources is to view them as
13.
A capability of the firm is NOT considered to be
14.
When strategic managers assess the competitive power of company resources, what matters is
15.
Tangible resources DO NOT include
16.
Tangible resources include
17.
Which one of the following is NOT an intangible resource?
18.
The two approaches that can make the process of uncovering and identifying a firm’s capabilities more
systematic are
19.
A company that lacks a stand-alone resource that is competitively powerful may attempt to develop a
competitive advantage through
20.
Organizational capabilities are virtually always
21.
A linked and closely integrated set of competitive assets centered around one or more cross-functional
capabilities is termed
22.
A sustainable competitive advantage is gained when a company
23.
The four tests of a resource’s competitive power are often referred to as the
24.
The spotlight in analyzing a company’s resources, internal circumstances, and competitiveness includes
such questions/concerns as
25.
Which of the following is NOT pertinent in identifying a company‘s present strategy?
26.
The best quantitative evidence of whether a company’s present strategy is working well is
27.
Which of the following is NOT a reliable measure of how well a company’s current strategy is
working?
28.
A resource of a firm is considered to be
29.
How are a company’s organizational capabilities developed and enabled?
30.
The BEST example of a company resource is
31.
Which of the following is NOT a good example of a company’s resources?
32.
If a company doesn’t possess standalone resource strengths capable of contributing to competitive
advantage,
33.
Resource and capability analysis is designed to
34.
Resource and capability analysis is achieved by
35.
When a company has become proficient in modifying, upgrading, or deepening the company’s resources
and capabilities in response to its changing environment and market opportunities, it is called
36.
A company that has competitive assets that are central to its company strategy and superior to those of
rival firms creates a
37.
The competitive power of a company resource strength or competitive capability hinges on all of the
following EXCEPT
38.
What two factors inhibit the ability of rivals to imitate a firm’s most valuable resources and
capabilities?
39.
A competitively valuable resource or capability is a company’s
40.
Imitation by rivals is most challenging when
41.
For a particular company resource/capability to have real competitive power and perhaps qualify as a
basis for competitive advantage, it should
42.
The competitive power of a company’s resource strength is NOT measured by which one of the
following tests?
43.
A company requires a dynamically evolving portfolio of resources and capabilities to
44.
Which of the following is NOT an example of a company’s dynamic capability?
45.
A dynamic capability is the
46.
Identifying and assessing a company‘s resource strengths and weaknesses and its external opportunities
and threats is called a
47.
A first-rate SWOT analysis