12 Questions
What are the three best indicators of how well a company's strategy is working?
Achieving stated financial and strategic objectives, financial performance above industry average, gaining customers and increasing market share
Explain the core concept of resources and capabilities in relation to a firm's competitiveness.
Resources are competitive assets owned and controlled by the company, while capabilities refer to the firm's capacity to perform internal activities competently.
Define competitively important resources and capabilities in the context of internal environmental analysis.
Competitively important resources and capabilities are the firm's assets that enable it to compete and succeed in the marketplace.
How would you describe tangible physical resources in the context of a company's operations?
Tangible physical resources are visible assets like buildings, factories, and machines that a company uses to create and deliver products/services.
What role do financial resources play in a company's competitiveness?
Financial resources, such as money, investments, and credit ratings, impact the company's financial health and ability to obtain more resources.
How can a company determine if it is competitively stronger or weaker than its rivals?
By evaluating its resources, capabilities, and performance relative to its competitors.
What are technological assets in a company?
Tools and know-how such as patents and copyright used by the company.
Explain the concept of resource bundle in business.
A collection of different assets like physical resources, human capital, and intellectual property that work together to give the company a competitive advantage.
What is the VRIN Test used for in evaluating resources?
To determine if a resource is valuable, rare, inimitable, and non-substitutable.
Define social complexity in the context of business.
It includes company culture, interpersonal relationships, trust-based relations with customers or suppliers, and causal ambiguity.
What does the term 'inimitable' mean in the VRIN Test?
It refers to resources or capabilities that are hard to copy, making it costly for rivals to imitate.
How do relationships contribute to a company's resources?
By forming connections and partnerships that enhance the company's network and alliances.
Explore the process of evaluating a firm's internal situation and strategy effectiveness. This quiz covers key questions to ask, indicators of successful strategies, assessment of financial performance, and identification of competitively important resources.
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