The three key types of resources that are central to the resource-based view of the firm are: A) tangible resources, intangible resources, and organizational structure. It is not hard to imagine a day when companies in Maine make huge profits by sending giant trucks filled with water south and west or even by building water pipelines to service arid regions. \text{Fixed} \\ If yes, go to number 3. ~~~~~\text{Savings} & & 100.00 & 100.00\\ A firm's tangible resource includes which of the following? C. physical resources, such as the company's brand, image, and reputation . 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Southwest Airlines provides an illustration of resource-based theory in action. Why did it cause this change? Which of the following examples demonstrates how successful organizations manage their primary activities? d. Relatively moderate rivalry This makes knowledge an intangible resource. B) interpersonal relations among a firm's managers. EXPENDITURESFORTHEMONTHOFJULY\begin{array}{c} For the event listed here, identify which of the determinants of demand or supply are affected. ~~~~~\text{Cable TV bill} & & 25.00 & 25.00\\[10pt] gifts20.0011.65PocketMoney60.0072.00EntertainmentMovies10.005.00Sportingevents/recreation32.0032.00Diningout100.0063.80FixedRent625.00625.00Furniture125.00125.00Savings100.00100.00Emergencyfund50.0050.00Life/carinsurancepremiums132.50132.50Carregistration4.330Pledges/contributions8.330\begin{array}{l c r r} For the Unit 8 Learning Journal, reflect for a few minutes on the four functions of management: Planning, Organizing, Leading, and Controlling, represented by the acronym P-O-L-C. D) the firm's resources are path dependent. It. These two building blocks are tightly linkedcapabilities from using resources over time. Which of the following is not an advantage of Just-In-Time inventory systems? Supply of replacement parts is a _________activity. C) the internal analysis of the firm as well as the external analysis of the industry and competitive environment. The VRIO Framework with numbers. CC BY-SA 4.0. Strategic Management by Reed Kennedy is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted. The influence of Southwests organizational culture extends to how customers are treated by employees. Which of these categories of financial ratios is used to measure a company's ability to meet its short-term financial obligations? For example, Southwests culture is complemented by approaches that individually could be copiedthe airlines emphasis on direct flights, its reliance on one type of plane, and its unique system for passenger boardingto create a unique business model whose performance is without peer in the industry. Which activity is the least risky candidate for outsourcing? How has Walgreens used its core competencies to provide value to its customers? firms that execute the design blueprints provided by western firms. The intersection of IS-LM functions defines four areas. It is an intangible part of the company. Acknowledged by top management & & &\text{Actual}\\ One key reason is a legendary organizational culture that inspires employees to do their very best. Examples of tangible resources (in the resource-based view of the firm) include: A) financial resources, human resources, and firm competencies. Critical to the forming of competitive advantages, _______________ are often based on, developing, carrying, and exchanging information and knowledge through the firms human. DIFFICULT-TO-IMITATE resources often involve legally protected intellectual property such as trademarks, patents, or copyrights. One key reason for their success is a legendary organizational culture that inspires employees to do their very best. Resources such as Southwests culture that reflect all four qualitiesvaluable, rare, difficult to imitate, and organized to capture valueare ideal because they can create sustained competitive advantages. B) the cost to the firm of replacing them is high. b. In comparing the two types of resources, intangible resources are more likely to meet the criteria for strategic resources (i.e., valuable, rare, difficult-to-imitate, and organized to capture value) than are tangible resources. What is the firm's secret competitive advantage? Knowledge b. Copyright 2023 StudeerSnel B.V., Keizersgracht 424, 1016 GC Amsterdam, KVK: 56829787, BTW: NL852321363B01, Forecasting, Time Series, and Regression (Richard T. O'Connell; Anne B. Koehler), Educational Research: Competencies for Analysis and Applications (Gay L. R.; Mills Geoffrey E.; Airasian Peter W.), Biological Science (Freeman Scott; Quillin Kim; Allison Lizabeth), Business Law: Text and Cases (Kenneth W. Clarkson; Roger LeRoy Miller; Frank B. \text{Personal}\\ C) rarity, path dependency, causal ambiguity, and social substitutability. b. According to resource-based theory, one possible road to riches is creatingon purpose or by accidenta unique combination of resources. Strategic Planningb. ~~~~~\text{Electric bill} & & 45.00 & 44.35\\ reading all the available information carefully, prepare a two page (double-spaced) essay and answer the following questions:Assume that we have the following data:C=100+0.50YIp=100-20rMt=0.10YMs=100-10rM=80a. B) Motorola has revised its compensation system to reward employees who learn a variety of skills. D. At Intel the key historic decision to abandon memory chips and concentrate upon microprocessors was the result of which of the following? C) financial resources, physical resources, and technological resources. Superiority in competitive advantage refers to all of the following factors EXCEPT: A firms tangible resource includes which of the following? Recently, shareholders have been vocal about the importance of products made in the US. According to value chain analysis, which of the following would be considered part of a firm's infrastructure? Power of stockholders The best strategies, corporate and business, are based on a thorough SWOT analysis. B) intangible resources and operational measures. D) Production equipment. A) Knowledge. Strategic Management Journal, 15(4), 271290. A firm's strategy includes which of the following: a. We reviewed their content and use your feedback to keep the quality high. Capabilities are important in part because they are how organizations capture the potential value that resources offer. Such competitive advantages are based upon. XYZ Corp. is focusing on the objective of low-cost, high quality, on-time production by minimizing idle productive facilities and workers. ~~~~~\text{Parking/tolls} & & 15.00 & 15.00\\[10pt] A resource that is difficult to imitate, or create ready substitutes for is called, The VRIO criterion that determines whether a resource or capability is the source of, competitive advantage recognized that the firm must have the _______________ capability to. Which of the following is a tangible reource?*. D) Compare the financial ratios of firms in the company's strategic group. True why? Consider the market for minivans. B, a. In assessing its primary activities, an airline would examine. C) rare, valuable, inimitable, nonsubstitutable, B) in periods of recession or economic boom. d. To spread out risk and opportunities over a larger set of businesses In the value chain, which of the following activities is deemed to add direct value to a firm? ~~~~~\text{Emergency fund} & & 50.00 & 50.00\\ The following are examples of socially complex organizational phenomena except. : an American History (Eric Foner), Chemistry: The Central Science (Theodore E. Brown; H. Eugene H LeMay; Bruce E. Bursten; Catherine Murphy; Patrick Woodward), Biological Science (Freeman Scott; Quillin Kim; Allison Lizabeth), Educational Research: Competencies for Analysis and Applications (Gay L. R.; Mills Geoffrey E.; Airasian Peter W.), Forecasting, Time Series, and Regression (Richard T. O'Connell; Anne B. Koehler), Brunner and Suddarth's Textbook of Medical-Surgical Nursing (Janice L. Hinkle; Kerry H. Cheever), Principles of Environmental Science (William P. Cunningham; Mary Ann Cunningham), Psychology (David G. Myers; C. 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B) need to maintain the reputation of the company. illustrates that while bundling resources in a unique way can create immense success, preserving and managing these resources over time can be very difficult. O - At Intel the key historic decision to abandon memory chips and concentrate uponmicroprocessors was the result of which of the following? Congratulations on advancing to the final unit of BUS 1101, the opening course in your degree program! For firms such as Walgreen Co. (a chain of drugstores), information systems have been a source of competitive advantage by enabling them to. C) marketing expertise increasing a firm's revenues and enabling it to enter new markets. Which of the following is an example of a technological resource? b. c. Strong competitive threats from product substitutes 1.3 Intended, Emergent, and Realized Strategies, 1.5 Contemporary Critique of Strategic Management, 1.6 Understanding the Strategic Management Process, 3.2 The Relationship between an Organization and its Environment, 4.4 Intellectual Property & Isolating Mechanisms, 6.2 Understanding Business-Level Strategy through "Generic Strategies", 6.5 Focused Cost Leadership and Focused Differentation, 7.6 Responding to Innovation in the Market, 8.6 Portfolio Planning and Corporate-Level Strategy, 9.2 Advantages and Disadvantages of Competing in International Markets, 9.5 Drivers of Success and Failure When Competing in International Markets, 9.6 Options for Competing in International Markets, 10.3 The Basic Building Blocks of Organizational Structure, 10.4 Creating an Organizational Structure, 10.5 Creating Organizational Control Systems, 11.4 Corporate Ethics and Social Responsibility, 11.5 Contemporary Questions of Corporate Ethics. 11 Tangible assets are those assets, which are physical in nature, eg - Cash, inventory, vehicles, factory, etc A firms reputat . Relatively moderate rivalry, Copyright 2023 StudeerSnel B.V., Keizersgracht 424, 1016 GC Amsterdam, KVK: 56829787, BTW: NL852321363B01, Design and emergence strategies involve specific levels of the organiz, It is important to note that the concept of strategy is rele. Supplier and buyers with strong bargaining positions A key benefit of Southwests culture is that it leads employees to treat customers well, which in turn creates loyalty to Southwest among passengers. A) Compare the firm's financial ratios with ratios of firms in other strategic groups in the industry. C) financial resources, physical resources, and technological resources. C) repairing the product for the consumer, D) monitoring the cost of producing the product through a cost accounting system. Which of the following is not a limitation of SWOT (Strengths, Weaknesses, Opportunity, Threats) analysis? In contrast, intangible resources are quite difficult to see, to touch, or to quantify. ___________ are associated with collecting, storing, and distributing the product or service to buyers. D) Production equipment can be considered an asset or resource of a company that is physical in nature and can be measured, making it a tangible resource. Wernerfelt, B. B) the legitimacy and reputation of a firm, D) the efficiency with which a firm utilizes its assets. O - A firm's tangible resource includes which of the following? Business Law: Text and Cases (Kenneth W. Clarkson; Roger LeRoy Miller; Frank B. Expert Answer. d. Unique style (2020, April 24). Intangible resources are quite difficult to see, touch, or quantify. You can view this video here: https://youtu.be/BJn-Jl2ZeQU. \text{Entertainment} \\ LegacyRecordingsVEVO. O - Firms utilizing a competitive scope strategy can tailor advertising and promotional efforts to aparticular market niche there are several forces for organizational change: workplace demographics, technology, globalization, market conditions, growth, and poor performance. What is this an example of. Correct Answer: Explore answers and other related questions. Executives strongly encourage flight attendants to entertain passengers, like hiding in an overhead compartment. a. Although the airline industry is extremely competitive, Southwest Airliness turns a profit virtually every year. the K-W test? [Video]. Receive an answer explained step-by-step. 2020-2023 Quizplus LLC. competitiveness and earn above-average returns includes which of the following? True B. Which of the following forms of diversification occurs when a firm operates multiple. Since the firm has two units of capital, the firm's total fixed cost is$20. A resource is organized to capture value when the firm has organizational systems, processes, and structure in place to capitalize on the resource for a competitive advantage. D) the industry and the competitive environment. \end{array} D) if the firm's stock is publicly traded. Option A is incorrect here. Cost leadership is a low-cost, broad-based market strategy. How can the members of an organization reach success doing that thing they do? A resource is valuable and rare but neither difficult to imitate nor without substitutes. A firm's tangible resource includes which of the following? d. Moderate to high rivalry ~~~~~\text{Water bill} & & 24.50 & 31.70\\ A firm's strategy includes which of the following? C) tangible resources, intangible resources, and organizational capabilities. While there are different schools of thought about how strategy comes about, researchers generally agree the common characteristic across successful organizations is: Strategic focus. Not surprisingly, Coca-Cola ranks among the top twelve in Fortunes Worlds Most Admired Companies for 2020. These competitive advantages in turn can help the organization enjoy strong profits (Barney, 1991; Wernerfelt, 1981). T or F Other airlines could not replicate Southwests culture, regardless of how hard they might try, because of Southwests unusual history. D. T or F Instead, a resource is strategic to the extent that it is valuable, rare, difficult to imitate, and organized to capture value. Select one: a. Option D is the right choice here. Intangible resources include, for example, the knowledge and skills of employees, a firms reputation, and a firms culture. Consider how Southwest Airliness organizational culture serves as a strategic resource. Every organization has stakeholders. If we assume an increase in Investments by 100 units, please calculate again the IS-LM functions.c. Strategic Management Journal, 5, 171180. than firms pursing a cost leader strategy. A) Knowledge can be considered an important asset or resource of a company, but it is not physical in nature. Note that the decision tree is used to assess resources and capabilities, NOT a firms products, services, or the firm itself. A) By employing JIT inventory systems, Hewlett Packard has been able to cut lead time from five days to one. a. In other words, describe a management practice from the course content relating to each of the four functions of management. Straddling strategies as an approach to strategic management is not recommended for which reason: It is an attempt to gain competitive advantage based on overall lowcost provider of a product, Research shows that straddling strategies leads to confusion among managers about the, It is an indication that the firm's managers have not made necessary choices about the, According to Porter straddling strategies is recommended for narrow scope firms that have, The industry characteristics that make it very difficult for firms to achieve strategic competitiveness and. Tangible resources include all except which of the following? By how much? In a 300-500 word Learning Journal, identify a management principle or method from the course for each of the four functions of management. ExpensesFoodHouseholdElectricbillTelephonebillHeatingfuelWaterbillCableTVbillTransportationGasolinepurchasesParking/tollsPersonalClothingCreditpaymentsNewspapers. The components are then shipped back to the United States, where each complete car is assembled. b. Choose question tag. Other resources are hard to copy because they evolve over time and they reflect unique aspects of the firm. Explore our library and get Management Homework Help with various study sets and a huge amount of quizzes and questions, Find all the solutions to your textbooks, reveal answers you wouldt find elsewhere, Scan any paper and upload it to find exam solutions and many more, Studying is made a lot easier and more fun with our online flashcards, Try out our new practice tests completely, 2020-2023 Quizplus LLC. An effective way to distinguish resources and capabilities is this: resources refer to what an organization owns, capabilities refer to what the organization can do (Table 4.2). A firm's tangible resource includes which of the following? Southwest Airlines Boeing 737 Lonestar One (N352SW) at LAS in November 2005. CC BY 2.0. Physical assets such as a firm's property, plant, and equipment, as well as cash, are considered to be tangible resources. ~~~~~\text{Life/car insurance premiums} & & 132.50 & 132.50\\ Low cost More specifically, capabilities refer to the firms ability to bundle, manage, or otherwise exploit resources in a manner that provides added value and, hopefully, advantage over competitors. Ans. Do any of the resources or capabilities of your favorite restaurant have the four qualities of resources (VRIO) that lead to success as articulated by resource-based theory. A dynamic capability exists when a firm is skilled at continually updating its array of capabilities to keep pace with changes in its environment. Imagine that a U.S. car manufacturer builds a plant in Mexico, where labor is cheaper. When a company's resources are valuable but not rare, the company is said to have which element? B) rare, inimitable, physically unique, nonsubstitutable. In value chain analysis, the activities of an organization are divided into two major categories of value activities: primary and support. Knowledge A resource that is valuable and rare but that can be imitated, for example, might provide an edge in the short term, but competitors can eventually overcome such an advantage. Based on your personal or professional experience, provide an example of when one of these forces caused an organization to change. 10+ million students use Quizplus to study and prepare for their homework, quizzes and exams through 20m+ questions in 300k quizzes. c. Conglomerate diversification What will happen to bond prices if terrorism ended and the world's nations unilaterally disarmed and adopted free trade policies? Use the Kujawas expense summary to answer the question. Tangible goods such as ones car and home are also vital resources. d. Horizontal diversification False C) rare, valuable, inimitable, nonsubstitutable. B) culture, tangible resources, intangible resources. D) geographic uniqueness, cause dependency, social ambiguity, and path complexity. https://commons.wikimedia.org/wiki/File:Southwest_737_Lonestar_One.jpg, https://commons.wikimedia.org/wiki/File:The_VRIO_Framework_with_numbers.png, Next: 4.4 Intellectual Property & Isolating Mechanisms, Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License. Using Southwest Airlines culture as the resource to evaluate with VRIO: For the company culture resource of Southwest Airlines, a yes can be answered for each of the four steps, providing a sustained competitive advantage for this organization. B) the key emphasis on customer satisfaction and financial goals are only a means to that end. Build the IS-LM function.b. D. T or F Resource-based theory also stresses the merit of an old saying: the whole is greater than the sum of its parts. Was this amount more or less than the amount they had originally budgeted? Power or employees Question: What is the average total cost when two units of labor (L) are employed? Cost leaders must maintain their marketing or face the possible entry of more cost-effectivecompetitors. False The particular bundles of resources and capabilities that provide unique advantages to the, Core competencies are resources and capabilities that serve as a source of a firms. Southwests culture arose from its very humble beginnings and has evolved across decades. \text{Food} & & \$160.00 & \$175.70\\ D) top management providing a key role in collaborating with important customers. Firms often bundle together multiple resources and strategies (that may not be unique in and of themselves) to create uniquely powerful combinations. The airline had so little money that at times it had to temporarily borrow luggage carts from other airlines and put magnets with the Southwest logo on top of the rivals logo. Verified answer. B) effective information systems contributing significantly to a firm's overall cost leadership strategy. Choose one of the companies below and identify three key stakeholders. When analyzing a value chain with a VRIO framework, what is the most important question to begin with? Not surprisingly, this firm ranks among the top twelve in Fortunes Worlds Most Admired Companies for 2020. Coca-Cola has an uncanny knack for building new brands and products as the soft-drink market evolves. C) financial analysis and stakeholder perspectives. Cost leaders must maintain their marketing or face the possible entry of more cost-effective competitors. Most airlines struggle to be profitable, but Southwest makes money virtually every year. gifts} & & 20.00 & 11.65\\ Tangible resources are resources that can be readily seen, touched, and quantified. Planning Which of the following is considered an intangible resource? A firms tangible resource includes which of the following? Course Hero is not sponsored or endorsed by any college or university. Experts are tested by Chegg as specialists in their subject area. d.Knowledge Question 10 For a differentiation strategy to be effective, the product . As can be seen from its exceptional organizational performance over many years when compared to other airlines, VRIO shows that company culture is one reason why it is more successful than its competitors. To most individuals, cash is an important resource. In determining stakeholders who should be consulted as strategy is developed, companies often develop an incomplete list. Before long, The Wonders perform on television and That Thing You Do! is a top-ten hit record. giftsPocketMoneyEntertainmentMoviesSportingevents/recreationDiningoutFixedRentFurnitureSavingsEmergencyfundLife/carinsurancepremiumsCarregistrationPledges/contributionsAmountBudgeted$160.0045.0035.0050.0024.5025.0085.0015.0040.0050.0020.0060.0010.0032.00100.00625.00125.00100.0050.00132.504.338.33ActualAmountSpent$175.7044.3541.2015.0031.7025.00101.7015.0031.7541.7411.6572.005.0032.0063.80625.00125.00100.0050.00132.5000. When analyzing organizations, however, common resources such as cash and vehicles are not considered to be strategic resources. \text{Household} & & & \\ A useful way to identify a company's resources is to view them as: A. divided into two main categories, tangible and intangible. Maine has been described as the Saudi Arabia of water because its borders contain so much drinkable water. Low entry barriers A) financial analysis and a firm's reputation. False How do management and employee self-service portals improve organizational efficiency? -Production equipment B. While resources refer to what an organization owns, capabilities refer to what the organization can do. In a nod to Southwest Airlines outstanding reputation, the firm ranks eighth in Fortune magazines 2018 list of the Worlds Most Admired Companies.. VALUABLE resources aid in improving the organizations effectiveness and efficiency while neutralizing the opportunities and threats of competitors. An important implication of the balanced scorecard approach is that: A) managers need to recognize tradeoffs in stakeholder demands and realize that such demands represent a zero-sum game in which one stakeholder will gain only at another's loss. Do you believe most, You work for an organization that has traditionally been very formalized, and managers have had a very broad span of control over direct reports from multiple departments and functions. Firm resources and sustained competitive advantage. : a. Major cities in hot climates such as Las Vegas, Los Angeles, and Atlanta are confronted by dramatically shrinking water supplies. The CEO decides to move the firm's textile manufacturing back to the US to capitalize on the increasing pressure from shareholders to process textiles in the US. A firms strategy includes which of the following? Retrieved from https://commons.wikimedia.org/wiki/File:Southwest_737_Lonestar_One.jpg. Planning Resources can be divided into two main types: tangible and intangible. C) organizational culture and leadership. Resource-based theory can be confusing because the term resources is used in many different ways within everyday common language. As water becomes more and more rare, landowners in Maine stand to benefit. Resources that do not have all four qualities can still be very useful, but they are unlikely to provide long-term advantages. True or False Please explain, Artifacts reflecting values of an organization include, The foundation of many capabilities lies in the skills and knowledge of a firm's stockholders A. Despite having three of the four properties of strategic resources, water in the United States has remained cheap; however, this may be changing. Please analyze the behavior of the markets for goods and money for each area.Cite references to material that you use in preparing the essay. Communicates to stakeholders the hierarchical corporate structure. This is an example of which concept? The intensity of industry competition and an industry's profit potential are a function of which of the following forces of competition? Some resources, such as cash and trucks, are not considered to be strategic resources because an organizations competitors can readily acquire them. Cross), The Methodology of the Social Sciences (Max Weber), Civilization and its Discontents (Sigmund Freud), Campbell Biology (Jane B. Reece; Lisa A. Urry; Michael L. Cain; Steven A. Wasserman; Peter V. Minorsky), Give Me Liberty! The resource-based view includes all except which of the following regarding managers? All Rights Reserved. Southwest Airliness culture provides the firm with uniquely strong employee relations in an industry where strikes, layoffs, and poor morale are common. Centralized decisions C. "Afirm's reputation D. Afirm's headquarters building. If not then culture provides Southwest with a temporary competitive advantage over its rivals, but competitors can imitate it. This is an example of their. Humans simply cannot live without water, so water has inherent value. Organizational routines d. Production equipmentd; Easy (Comprehension) 3. b. A) KnowledgeB) Capacity for innovationC) Organizational routinesD) Production equipment. Captures how vision and mission will be achieved. 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