My little spit fire

Technology has made it more difficult for companies to find ways to develop competitive advantages.
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Terms in this set (33)
. Walmart uses core competencies, such as information technology and distribution channels, to create value for its customers through its "everyday low prices."TrueThe need to meet quarterly earnings results causes managers to accurately examine the firm's internal organization.False. The learning generated by making and correcting mistakes is generally unimportant to efforts to create new capabilities and core competencies.FalseBy themselves, resources can allow firms to create value for customers as the foundation for earning above-average returns.False. 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 capabilitiesTrue. 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.False. 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.Falsehen 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.FalseResources, capabilities, and core competencies are the foundation of competitive advantage.TrueCapabilities of an organization emerge spontaneously through the interaction of tangible and intangible resources.FalseAt 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.True. Capabilities are usually developed separately from specific functional areas such as manufacturing, R&D, and marketing.False. "Motivating, empowering, and retaining employees" is an example of a capability that resides within the human resources functional area.TrueCore competencies are capabilities that serve as a source of competitive advantage for a firm over its rivals.True. 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&DTrue. 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.True. Valuable capabilities allow the firm to exploit strengths or neutralize weaknesses in the internal environmentFalseThe 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.TrueCapabilities may be costly to imitate if firms have unique and valuable organizational cultures, are causally ambiguous, or are socially complexTruet 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.True. 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.False. A company can earn above-average returns only when the value it creates is less than the costs incurred to create that value.FalseValue chain activities in the value chain create value, whereas support functions generate costs.False