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. A Firm's Tangible Resource Includes Which of the Following Cost leaders must maintain their marketing or face the possible entry of more cost-effectivecompetitors. 2003-2023 Chegg Inc. All rights reserved. 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. B) Compare the firm's financial ratios over the most recent one-year period. A) interrelationships among functional areas and firm strategies. These strategic resources can provide the foundation to develop firm capabilities that can lead to superior performance over time. c. To build a portfolio of businesses much like a portfolio of stock A firm's tangible resource includes which of the following? Every organization has stakeholders. When the bands usual drummer has to miss a gig due to injury, the door is opened for charismatic drummer Guy Patterson, whose energy proves to be the final piece of the puzzle for The Wonders. Barney, J. Competitors have a hard time duplicating resources that are difficult to imitate. DIFFICULT-TO-IMITATE resources often involve legally protected intellectual property such as trademarks, patents, or copyrights. 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. Examples of tangible resources (in the resource-based view of the firm) include: A) financial resources, human resources, and firm competencies. The contribution of tangible and intangible resources, and capabilities A firm's tangible resource includes which of the following? A) Compare the firm's financial ratios with ratios of firms in other strategic groups in the industry. Tangible resources are resources that can be readily seen, touched, and quantified. B) psychographic uniqueness, path dependency, causal ambiguity, and substitutability. Superiority in competitive advantage refers to all of the following factors EXCEPT: Processes related to passengers are infused with customer service attention and actions. Which of the following is considered an intangible resource? ______________ are assets that can be seen and quantified. Strategic Management by Reed Kennedy is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted. The bands magic vanishes as quickly as it appeared, however. Option D is the right choice here. The tangibility of a firms resources is an important consideration within resource-based theory. Strategic Management Journal, 15(4), 271290. Cropped. Walgreens creates value by focusing on the unique capabilities it has built and nurtured and. why? T or F 5 Option A All of the following except which example is a reason that relentless imitation can be a dangerous practice? [Video]. Intangible resources are quite difficult to see, touch, or quantify. C) financial resources, physical resources, and technological resources. C) rare, valuable, inimitable, nonsubstitutable, B) in periods of recession or economic boom. Consider, for example, a very generic commodity: water. C) rare, valuable, inimitable, nonsubstitutable. A resource is valuable to the extent that it helps a firm create strategies that capitalize on opportunities and ward off threats. The resource-based view includes all except which of the following regarding managers? \text{Entertainment} \\ Other airlines could not replicate Southwests culture, regardless of how hard they might try, because of Southwests unusual history. False Please Explain, What is the relationship between enterprise information management and self-service portals? https://youtu.be/BJn-Jl2ZeQU. 6/28/2017 Chapter 5 Quiz: MAN3025 RVEB 1175 4 / 4 ptsQuestion 6 In the value chain, which of the following activities is deemed to add direct value to a firm? By how much? Which of the following is a support activity? Power of stockholders It. Centralized decisions Ans. Retrieved from https://commons.wikimedia.org/wiki/File:Southwest_737_Lonestar_One.jpg. 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. If a firm has a service that is valuable, rare, and costly-to-imitate, but a substitute exists for the service, the firm will Advertising is a ______activity. 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. D) supports mostly support activities but does have some impact on primary activities. RARE resources are those held by few or no other competitors. Production equipment 12.-. Maine has been described as the Saudi Arabia of water because its borders contain so much drinkable water. ~~~~~\text{Savings} & & 100.00 & 100.00\\ d. Threats posed by new entrants ~~~~~\text{Dining out} & & 100.00 & 63.80\\[10pt] Capacity for innovation Organizational routines d. Production equipment. For a resource to provide a firm with the potential for a sustainable competitive advantage, it must have four attributes. 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. Option C is also incorrect here. Choose question tag. Planning The XYZ Corp. is taking advantage of a ____________ system. YouTube. Resource-based theory also stresses the merit of an old saying: the whole is greater than the sum of its parts. Superiority in competitive advantage refers to all of the following factors: 1) Customer service. Which of the following is a primary activity? Resources such as cash and vehicles are valuable, of course, but an organizations competitors can readily acquire them. Why did it cause this change? EXPENDITURESFORTHEMONTHOFJULY\begin{array}{c} B) Capacity for innovation. d. Horizontal diversification 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. 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. C) the internal analysis of the firm as well as the external analysis of the industry and competitive environment. The intersection of IS-LM functions defines four areas. B) the key emphasis on customer satisfaction and financial goals are only a means to that end. Since the firm has two units of capital, the firm's total fixed cost is$20. If not, all the effort to develop it is a waste of resources and a competitive disadvantage. 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Explanation: Tangible resources have a physical form, t, 5. 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. : See Page 1. (1984). B) the cost to the firm of replacing them is high. This worked, A number of things organizations can do prior to change to prepare employees include which of the following? B. productive inputs or competitive assets, except human assets and intellectual capital, which are considered capabilities or competencies. b. Most airlines struggle to be profitable, but Southwest makes money virtually every year. Business Law: Text and Cases (Kenneth W. Clarkson; Roger LeRoy Miller; Frank B. 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 Low cost These two building blocks are tightly linkedcapabilities from using resources over time. D) geographic uniqueness, cause dependency, social ambiguity, and path complexity. The components are then shipped back to the United States, where each complete car is assembled. Wernerfelt, B. managers should focus exclusively on the current market environment. Ratios that reflect whether or not a firm is efficiently using its resources are known as, Historical comparisons provide information to managers about changes in a firm's competitive position. accounting. False B. Production equipment O - At Intel the key historic decision to abandon memory chips and concentrate uponmicroprocessors was the result of which of the following? Threats posed by new entrants 4.3 Resource-Based View - Strategic Management - Virginia Tech Experts are tested by Chegg as specialists in their subject area. Some firms develop a dynamic capability. a process through which unique products that command high prices and high margins gradually lose their ability to do so. Superiority in competitive advantage refers to all of the following factors EXCEPT: a. It is an intangible part of the company. Resources can be divided into two main types: tangible and intangible. The intensity of industry competition and an industry's profit potential are a function of which of the following forces of competition? Firm resources and sustained competitive advantage. Industry characteristics of an attractive industry, one where firms may achieve strategiccompetitiveness and earn above-average returns includes which of the following? B) intangible resources and operational measures. In working through the decision tree, once a no is obtained, there is no need to continue through the tree. Acknowledged by top management B) in periods of recession or economic boom. Coca-Cola has an uncanny knack for building new brands and products as the soft-drink market evolves. 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. 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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. In assessing its primary activities, an airline would examine. d.Knowledge Question 10 For a differentiation strategy to be effective, the product . Solved 5. Which of the following is considered an intangible - Chegg When analyzing organizations, however, common resources such as cash and vehicles are not considered to be strategic resources. Examples include all of the following except: A) negotiating and maintaining ongoing relations with regulatory bodies. Which of the following is not one of these attributes: For a resource to provide a firm with the potential for a sustainable competitive advantage, it must have the following four attributes. Coca-Cola, for example, has an uncanny knack for building new brands and products as the soft drink market evolves. C) financial analysis and stakeholder perspectives. A competitive advantage based on inimitability can be sustained for at least some time if it has the following characteristics. Physical assets such as a firms property, plant, and equipment, as well as cash, are considered to be tangible resources. Because of this unusual history, other airlines could not replicate Southwests culture, regardless of how hard they might try. B, a. The best strategies, corporate and business, are based on a thorough SWOT analysis. Which of the following is a tangible reource?*. Principles of Management, Chapter 5 Flashcards | Quizlet D) reputation with suppliers and customers. Southwest Airlines provides an illustration of resource-based theory in action. Tangible goods such as ones car and home are also vital resources. b. A firm's strategy includes which of the following? 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. ~~~~~\text{Water bill} & & 24.50 & 31.70\\ How can the members of an organization reach success doing that thing they do? (review sheet 4), The tenpoint plan of the new world order-1, Leadership class , week 3 executive summary, I am doing my essay on the Ted Talk titaled How One Photo Captured a Humanitie Crisis https, School-Plan - School Plan of San Juan Integrated School, SEC-502-RS-Dispositions Self-Assessment Survey T3 (1), Techniques DE Separation ET Analyse EN Biochimi 1, The text defines stakeholders as: Individuals and organizations who are actively involved in the organization or whose interests may be positively or negatively affected as a result of what the organization does (Carpenter et. Learn more about how Pressbooks supports open publishing practices. Consider how Southwest Airliness organizational culture serves as a strategic resource. B) Whenever a company improves or developed its capabilities to support innovation, the organization is said to have the capacity for innovation. 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. ~~~~~\text{Newspapers. than firms pursing a cost leader strategy. competitiveness and earn above-average returns includes which of the following? Choose one of the companies below and identify three key stakeholders. Another is guitarist Lenny Haise, whose fun attitude reigns in the enigmatic Mattingly. 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. (1991). D) Production equipment. 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. Captures how vision and mission will be achieved, O - A firms tangible resource includes which of the following? d. Unique style Recently, shareholders have been vocal about the importance of products made in the US. A) Knowledge. Other resources are hard to copy because they evolve over time and they reflect unique aspects of the firm. What resistance to the change occurred, if any? In a 300-500 word Learning Journal, identify a management principle or method from the course for each of the four functions of management. Which of the following would be most difficult to assess? C) tangible resources, intangible resources, and organizational capabilities. Verified answer. A) Knowledge can be considered an important asset or resource of a company, but it is not physical in nature. Solved 11.- All of the following are tangible resources - Chegg In the value chain, which of the following activities is deemed to add direct value to a firm? C) financial resources, physical resources, and technological resources. On occasion, events in the environment can turn a common resource into a strategic resource. D. T or F C) criteria for lease versus purchase decisions. Course Hero is not sponsored or endorsed by any college or university. If not then culture provides Southwest with a temporary competitive advantage over its rivals, but competitors can imitate it. A resource or capability is said to be ____________ if it allows the firm to exploit. This makes knowledge an intangible resource. ~~~~~\text{Furniture} & & 125.00 & 125.00\\ 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. Firms utilizing a competitive scope strategy can tailor advertising and promotional efforts to a particular market niche. 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. True Strategy formulation is an essential component of the POLC framework: a. 10+ million students use Quizplus to study and prepare for their homework, quizzes and exams through 20m+ questions in 300k quizzes. 11.-. Knowledge ~~~~~\text{Clothing } & & 40.00 & 31.75\\ Capacity for innovationc. How was the resistance (if any) overcome? The resource-based view (RBV) of the firm combines two perspectives: A) the primary and support activities of the firm. The table below presents the output and input levels: Also assume that the per unit cost of capital is $10. Distribution centers. O - At Intel the key historic decision to abandon memory chips and concentrate uponmicroprocessors was the result of which of the following? 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. Although not a formal band member, Mattinglys girlfriend Faye provides emotional support to the group and even suggests the groups name. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. A. Knowledge b. \text{Expenses} & & \text{Budgeted} & \text{Spent}\\[10pt] 11 Tangible assets are those assets, which are physical in nature, eg - Cash, inventory, vehicles, factory, etc A firms reputat . According to resource-based theory, one possible road to riches is creatingon purpose or by accidenta unique combination of resources. According to value chain analysis, which of the following would be considered part of a firm's infrastructure? 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) By employing JIT inventory systems, Hewlett Packard has been able to cut lead time from five days to one. The Wonders-That Thing You Do! Humans simply cannot live without water, so water has inherent value. Planning Southwest is a rags to riches story that has evolved across several decades. A marketing department that promises delivery faster than the production department's ability to produce is an example of a lack of understanding of the. C) Every organization has a routine that it follows for its procedures and processes. Southwest Airliness culture provides the firm with uniquely strong employee relations in an industry where strikes, layoffs, and poor morale are common. Which of the following is not a limitation of SWOT (Strengths, Weaknesses, Opportunity, Threats) analysis? While resources refer to what an organization owns, capabilities refer to what the organization can do. ~~~~~\text{Car registration} & &4.33 & 0\\ Ans. Knowledge Capacity for innovation Organizational routines Production equipment. B. Physical assets such as a firm's property, plant, and equipment, as well as cash, are considered to be tangible resources. When the talent show audience goes crazy in response, it marks the beginning of a meteoric rise for both the song and the band. B) supports only individual support activities. : a. ~~~~~\text{Pledges/contributions} & &8.33 & 0\\ ___________ are associated with collecting, storing, and distributing the product or service to buyers. Not surprisingly, this firm ranks among the top twelve in Fortunes Worlds Most Admired Companies for 2020. Is Southwests culture valuable? c. Product quality earn aboveaverage returns includes all of the following EXCEPT. The influence of Southwests organizational culture extends to how customers are treated by employees. Correct Answer: Explore answers and other related questions. 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). Which of the following is an example of a technological resource? Not all organizations need strategies to survive and thrive. 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. When a company's resources are valuable but not rare, the company is said to have which element? economics. Low entry barriers Suppliers and buyers with little bargaining power Recruitment c. Service d. Procurement c; Medium To satisfy the mission and vision C) supports both individual primary and support activities and the entire value chain. ~~~~~\text{Movies} & & 10.00 & 5.00\\ O - A firm's tangible resource includes which of the following? c. Gobal economic conditions 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. Resources that do not have all four qualities can still be very useful, but they are unlikely to provide long-term advantages. C) repairing the product for the consumer, D) monitoring the cost of producing the product through a cost accounting system. gifts} & & 20.00 & 11.65\\ d. Top-down process A firms tangible resource includes which of the following? \text{Household} & & & \\ Also assume that the cost of each unit of labor is $50. To help them develop an environment in which knowledge is widely spread across all, employees, some organizations have created the new upper-level managerial position of. ~~~~~\text{Heating fuel} & & 50.00 & 15.00\\ firms that execute the design blueprints provided by western firms. A resource is valuable and rare but neither difficult to imitate nor without substitutes. If yes, go to number 2. Trading in strategic resources: Necessary conditions, transaction cost problems, and choice of exchange structure. 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. A. T or F Customer service Has Southwest organized this resource of culture to capture value? B) the legitimacy and reputation of a firm, D) the efficiency with which a firm utilizes its assets. A) rare, valuable, mobile, nonsubstitutable. A dynamic capability exists when a firm is skilled at continually updating its array of capabilities to keep pace with changes in its environment. All Rights Reserved.
a firm's tangible resource includes which of the following?