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 boardingin order to create a unique business model in which effectiveness and efficiency is the envy of competitors. Southwest Airlines provides an illustration of resource-based theory in action. D) outstanding customer service, innovativeness of products, and reputation. What are original equipment manufacturers (OEMs)? Capacity for innovationc. A) supports only individual primary activities. Knowledge Capacity for innovation Organizational routines Production equipment. Superiority in competitive advantage refers to all of the following factors: 1) Customer service. Choose one of the companies below and identify three key stakeholders. Course Hero is not sponsored or endorsed by any college or university. In working through the decision tree, once a no is obtained, there is no need to continue through the tree. ~~~~~\text{Telephone bill} & & 35.00 & 41.20\\ b. B) in periods of recession or economic boom. ~~~~~\text{Emergency fund} & & 50.00 & 50.00\\ Question: What is the average total cost when two units of labor (L) are employed? False The best measure of a company's ability to meet imminent financial obligations is known as the. What tangible and intangible resources does your favorite restaurant have that might give it a competitive advantage? Cost leadership is a low-cost, broad-based market strategy. D. T or F Social complexity is defined as the socially intricate and interdependent ways firms are typically organized. 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. 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. True B. C) criteria for lease versus purchase decisions. Do firm resources and capabilities add value? Capabilities are needed to bundle, to manage, and otherwise to exploit resources in a manner that provides added value to customers and creates advantages over competitors. The Cambodian plant is an example of which type of business? LegacyRecordingsVEVO. When the talent show audience goes crazy in response, it marks the beginning of a meteoric rise for both the song and the band. Captures how vision and mission will be achieved. D) geographic uniqueness, cause dependency, social ambiguity, and path complexity. 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. D. T or F If a firm has a service that is valuable, rare, and costly-to-imitate, but a substitute exists for the service, the firm will C) National Steel improved its efficiency by consolidating, reducing the number of job classifications, and broadening worker responsibilities. It has observed as much of the firm's internal functioning and technology as it can legally, yet Gamma cannot understand why Ardent has a competitive advantage over it. : a. (1984). \text{Transportation}\\ While there are different schools of thought about how strategy comes about, researchers generally agree the common characteristic across successful organizations is: Strategic focus. Want to create or adapt books like this? D) the firm's resources are path dependent. The balanced scorecard enables managers to consider their business from all of the following perspectives except. In the case of on-time arrival capability, Southwest Airline enjoys a temporary competitive advantage (the third line), but it is not that difficult for rivals to imitate this ability. d. Controlling Selected Answer: a.Production equipment Answers: a.Production equipment b.Organizational routines c.Capacity for innovation 4 out of 4 points4 out of 4 points 4 out of 4 points 4 out of 4 points. Before long, The Wonders perform on television and That Thing You Do! is a top-ten hit record. Centralized decisions 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. _____________ include assets that are deeply rooted in the firms history and have, The firms capacity to deploy resources that have been purposely integrated to achieve a. desired end state are called _____________. 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. Every organization has stakeholders. Resources can be divided into two main types: tangible and intangible. This may provide bargaining power for the firm in the marketplace. This means that a firm has a unique ability to create new capabilities. A) KnowledgeB) Capacity for innovationC) Organizational routinesD) Production equipment. A clothing manufacturing plant in Cambodia produces pants and shirts for a European clothing designer, distributor, and retailer. Southwests culture arose from its very humble beginnings. 10+ million students use Quizplus to study and prepare for their homework, quizzes and exams through 20m+ questions in 300k quizzes. Coca-Cola, for example, has an uncanny knack for building new brands and products as the soft drink market evolves. If not, then this resource only provides Southwest competitive parity. A) Knowledge. Examples of tangible resources (in the resource-based view of the firm) include: A) financial resources, human resources, and firm competencies. 2) Product quality. d. Horizontal diversification Southwest is a rags to riches story that has evolved across several decades. B) effective information systems contributing significantly to a firm's overall cost leadership strategy. 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 bands magic vanishes as quickly as it appeared, however. 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. Cropped. ~~~~~\text{Pocket Money} & & 60.00 & 72.00\\[10pt] A. B. Based on your personal or professional experience, provide an example of when one of these forces caused an organization to change. Walgreens creates value by focusing on the unique capabilities it has built and nurtured and. Capabilities are another key concept within resource-based theory. \text{EXPENDITURES FOR THE MONTH OF JULY} Tangible resources include all except which of the following? Option C is also incorrect here. Historical comparisons are often misleading. C) supports both individual primary and support activities and the entire value chain. This is an example of, A variety of firm resources include interpersonal relations among managers in the firm, its culture, and its reputation with its suppliers and customers. They consist of warehousing, material handling, delivery operation, order processing, and scheduling. After their bass player joins the Marines, Lenny elopes on a whim, and Jimmys diva attitude runs amok, the band is finished and Guy is left to wonder what might have been. The purpose of this paper is to investigate the relative contribution of tangible resource (TR) and intangible resource (IR), and capabilities on firm performance based on the measures of market share, sales turnover and profitability. A resource or capability is said to be ____________ if it allows the firm to exploit. d. Threats posed by new entrants Has Southwest organized this resource of culture to capture value? b. Hierarchical diversification All Rights Reserved. al., 2010). Power or employees Review the material in Chapter 20 and respond to the following: Discuss the modern quantity theory and the liquidity preference theory. It. When analyzing organizations, however, common resources such as cash and vehicles are not considered to be strategic resources. Acknowledged by top management A) Organizational strengths may not lead to competitive advantage, B) SWOT's focus on the external environment is too broad and integrative, C) SWOT gives a one-shot view of a moving target, D) SWOT overemphasizes a single dimension of strategy. Which of the following is a support activity? Recently, shareholders have been vocal about the importance of products made in the US. B) intangible resources and operational measures. Resources that can be readily seen, touched, and quantified, such as cash or equipment, Resources that are not physical, like a firms reputation, a patent, or employee knowledge, Resources that provide an organization with an opportunity to develop competitive advantages over its rivals. Cost leaders must maintain their marketing or face the possible entry of more cost-effectivecompetitors. A) rare, valuable, mobile, nonsubstitutable. You can view this video here: https://youtu.be/BJn-Jl2ZeQU. Most other airlines do not have this philosophy. 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. Despite having three of the four properties of strategic resources, water in the United States has remained cheap; however, this may be changing. 5 Option A Explanation: Tangible resources have a physical form, t . d.Knowledge Question 10 For a differentiation strategy to be effective, the product . Not surprisingly, this firm ranks among the top twelve in Fortunes Worlds Most Admired Companies for 2020. 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. C) financial resources, physical resources, and technological resources. 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O - One approach to focusing is to service either industrial buyers or consumers, but not both, Strategic management process is the coordinated means by which an organization chooses itsmission and vision. To satisfy the mission and vision Southwest Airlines culture fits this standard well. Humans simply cannot live without water, so water has inherent value. c. Extensive market research \end{array} Which of the following lists consists of support activities: A) human resource management, technology development, customer service, and procurement, B) human resource management, customer service, marketing and sales, and operations, C) human resource management, information systems, procurement, and firm infrastructure, D) customer service, information systems, technology development, and procurement, Human resource management consists of activities involved in the recruiting, hiring, training, development, and compensation of all types of personnel. 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} (2020, April 24). gifts} & & 20.00 & 11.65\\ managers should focus exclusively on the current market environment. Barney, J. 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. False D) the effectiveness of its lobbying activities. The best strategies, corporate and business, are based on a thorough SWOT analysis. All Rights Reserved. If yes, go to number 2. For a resource to provide a firm with the potential for a sustainable competitive advantage, it must have four attributes. Which of the following is an example of innovation resources? Not surprisingly, Coca-Cola ranks among the top twelve in Fortunes Worlds Most Admired Companies for 2020. In a nod to Southwest Airlines outstanding reputation, the firm ranks eighth in Fortune magazines 2018 list of the Worlds Most Admired Companies.. c. Leading Instead, capabilities are needed to bundle, to manage, and otherwise to exploit resources in a manner that provides value added to customers and creates advantages over competitors. For the event listed here, identify which of the determinants of demand or supply are affected. why? T or F In the value chain, which of the following activities is deemed to add direct value to a firm? https://youtu.be/BJn-Jl2ZeQU. If yes, go to number 3. Why did it cause this change? Which of the following forms of diversification occurs when a firm operates multiple. 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. Other resources are hard to copy because they evolve over time and they reflect unique aspects of the firm. When analyzing a value chain with a VRIO framework, what is the most important question to begin with? A) Knowledge can be considered an important asset or resource of a company, but it is not physical in nature. A firm's strategy includes which of the following? True When a company's resources are valuable but not rare, the company is said to have which element? How do management and employee self-service portals improve organizational efficiency? To most individuals, cash is an important resource. C) organizational culture and leadership. [Video]. The major diversification strategy through which products are produced that are technically similar to the company's current products but appeal to a new consumer group is: a. Concentric diversification B. Other airlines could not replicate Southwests culture, regardless of how hard they might try, because of Southwests unusual history. Experts are tested by Chegg as specialists in their subject area. a. The industry characteristics that make it very difficult for firms to achieve strategic competitiveness and earn above-average returns includes all of the following EXCEPT: a. Was this amount more or less than the amount they had originally budgeted? The table below presents the output and input levels: Also assume that the per unit cost of capital is $10. B) financial resources, physical resources, and the capacity to combine intangible resources. 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. It does not help or hurt Southwest competitively. A) Compare the firm's financial ratios with ratios of firms in other strategic groups in the industry. C) tangible resources, intangible resources, and organizational capabilities. Resources and capabilities are the basic building blocks that organizations use to create strategies. Distribution centers. Industry characteristics of an attractive industry, one where firms may achieve strategic competitiveness and earn above-average returns includes which of the following? Resource-based theory also stresses the merit of an old saying: the whole is greater than the sum of its parts. Planning A firm's strategy includes which of the following: a. Course Hero is not sponsored or endorsed by any college or university. Receive an answer explained step-by-step. Capacity for innovation Organizational routines d. Production equipment. The resource-based view (RBV) of the firm combines two perspectives: A) the primary and support activities of the firm. b. Cost leaders must maintain their marketing or face the possible entry of more cost-effective competitors. Competitors have a hard time duplicating resources that are difficult to imitate. Which of the following is a tangible reource?*. 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. 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. B) Capacity for innovation. B) Compare the firm's financial ratios over the most recent one-year period. Option A is incorrect here. Select one: a. A) physical uniqueness, path dependency, causal ambiguity, and social complexity. This is an example of their. D) Production equipment. A useful way to identify a company's resources is to view them as: A. divided into two main categories, tangible and intangible. Intangible resources include, for example, the knowledge and skills of employees, a firm's reputation, brand name, exclusive rights . illustrates that while bundling resources in a unique way can create immense success, preserving and managing these resources over time can be very difficult. 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. Physical assets such as a firms property, plant, and equipment, as well as cash, are considered to be tangible resources. Explanation: Tangible resources have a physical form, t, 5. Also assume that the cost of each unit of labor is $50. Low cost Which of the following is a primary activity? Figure 4.2: Planephotoman. \text{Expenses} & & \text{Budgeted} & \text{Spent}\\[10pt] Although the airline industry is extremely competitive, Southwest Airliness turns a profit virtually every year. Intangible resources are quite difficult to see, touch, or quantify. Capabilities are important in part because they are how organizations capture the potential value that resources offer. B) Motorola has revised its compensation system to reward employees who learn a variety of skills. That Thing You Do! Chi, T. (1994). Satisfying only one or two of the valuable, rare, difficult-to-imitate, organized to capture value criteria will likely only lead to competitive parity or a temporary advantage. The balanced scorecard provides top managers with a _____________ view of the business, The balanced scorecard developed by Kaplan and Norton helps to integrate. than firms pursing a cost leader strategy. This makes knowledge an intangible resource. In the 1996 movie That Thing You Do!, unwittingly assembling a unique bundle of resources leads a 1960s band called The Wonders to rise from small-town obscurity to the top of the music charts. d. Moderate to high rivalry Capabilities tend to arise over time as a firm takes actions that build on its strategic resources. RARE resources are those held by few or no other competitors. In assessing its primary activities, an airline would examine. If yes, then Southwests culture is providing a sustained competitive advantage. How was the resistance (if any) overcome? A competitive advantage based on inimitability can be sustained for at least some time if it has the following characteristics. a process through which unique products that command high prices and high margins gradually lose their ability to do so. Although not a formal band member, Mattinglys girlfriend Faye provides emotional support to the group and even suggests the groups name. B) psychographic uniqueness, path dependency, causal ambiguity, and substitutability. d. To spread out risk and opportunities over a larger set of businesses d. Unique style 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. Southwest embraces a culture of fun for both its customers and employees. These two building blocks are tightly linkedcapabilities from using resources over time. 2003-2023 Chegg Inc. All rights reserved. d. Relatively moderate rivalry Specifically, it is important to recognize that strategic resources can be created by taking several strategies and resources that each could be copied and bundling them together in a way that cannot be copied. For a differentiation strategy to be effective, the product difference should NOT be, The different aspects of strategy as distinguished by Mintzberg include which of the, Firms pursuing a differentiation strategy are vulnerable to different competitive threats. In a 300-500 word Learning Journal, identify a management principle or method from the course for each of the four functions of management. Two or more firms competing for differentiation may engage in price wars that drive profits to very low levels. D) gains in financial performance and customer satisfaction must often come at a cost of employee satisfaction. D) reputation with suppliers and customers. A key benefit of Southwests culture is that it leads employees to treat customers well, which in turn creates loyalty to Southwest among passengers. C. "Afirm's reputation D. Afirm's headquarters building. A crash R&D program by one firm cannot replicate a successful technology developed by another firm when research findings cumulate. B) the interrelationships among the primary activities of the firm and corporate management. Superiority in competitive advantage refers to all of the following factors EXCEPT: 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. False Please Explain, What is the relationship between enterprise information management and self-service portals? This video is the song That Thing You Do! by the Wonders. D) short-term perspectives and strategic positioning. One key reason for their success is a legendary organizational culture that inspires employees to do their very best. c. To build a portfolio of businesses much like a portfolio of stock A firm's tangible resource includes which of the following?a. and more. ~~~~~\text{Car registration} & &4.33 & 0\\ The source of Ardent's success is causally ambiguous. Critical to the forming of competitive advantages, _______________ are often based on, developing, carrying, and exchanging information and knowledge through the firms human. Examples of tangible resources (in the resource-based view of the firm) include: A) financial resources, human resources, and firm competencies. Which of the following is an example of a technological resource? -Production equipment B. This should enable the firm to attain, Managers will be able to obtain a proportionately high level of profits they generate (relative to the firm) if. Tangible resources are resources that can be readily seen, touched, and quantified. c. Strong competitive threats from product substitutes 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. Strategic Planning . competitiveness and earn above-average returns includes which of the following? Major cities in hot climates such as Las Vegas, Los Angeles, and Atlanta are confronted by dramatically shrinking water supplies. Also, water cannot be imitated (at least not on a large scale), and no other substance can substitute for the life-sustaining properties of water. Resource-based theory suggests that tangible or intangible resources that are valuable, rare, difficult to imitate, and organized to capture value best position a firm for long-term success. EXPENDITURESFORTHEMONTHOFJULY, ActualAmountAmountExpensesBudgetedSpentFood$160.00$175.70HouseholdElectricbill45.0044.35Telephonebill35.0041.20Heatingfuel50.0015.00Waterbill24.5031.70CableTVbill25.0025.00TransportationGasolinepurchases85.00101.70Parking/tolls15.0015.00PersonalClothing40.0031.75Creditpayments50.0041.74Newspapers. Processes related to passengers are infused with customer service attention and actions. What kind of competitive advantage, if any, does this capability provide? Imagine that a U.S. car manufacturer builds a plant in Mexico, where labor is cheaper. B) rare, inimitable, physically unique, nonsubstitutable. Note that the decision tree is used to assess resources and capabilities, NOT a firms products, services, or the firm itself. a. A firm's tangible resource includes which of the following? (1991). Although firm infrastructure is often viewed only as overhead expense, it can become a source of competitive advantage.
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