Want to create or adapt books like this? Cost leaders must maintain their marketing or face the possible entry of more cost-effective competitors. Historical comparisons are often misleading. A) supports only individual primary activities. Complete the following statements using either "debit" or "credit": (b) The owner's capital account is increased with a _________. True All Rights Reserved. The intensity of industry competition and an industry's profit potential are a function of which of the following forces of competition? ___________ are associated with collecting, storing, and distributing the product or service to buyers. This too is intangible in nature, making Option B an incorrect choice. Design/methodology/approach A cross-sectional survey research design was used in the study. there are several forces for organizational change: workplace demographics, technology, globalization, market conditions, growth, and poor performance. To satisfy the mission and vision We reviewed their content and use your feedback to keep the quality high. A. T or F Processes related to passengers are infused with customer service attention and actions. _____________ 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 _____________. For firms such as Walgreen Co. (a chain of drugstores), information systems have been a source of competitive advantage by enabling them to. A Firm's Tangible Resource Includes Which of the Following 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. d. To spread out risk and opportunities over a larger set of businesses In other words, describe a management practice from the course content relating to each of the four functions of management. A firm's tangible resource includes which of the following?a. It is an intangible part of the company. Southwests culture arose from its very humble beginnings and has evolved across decades. 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. This means that a firm has a unique ability to create new capabilities. a. O - A firm's tangible resource includes which of the following? What are the degrees of freedom for To capture more consumers You'll get a detailed solution from a subject matter expert that helps you learn core concepts. Option D is the right choice here. This may provide bargaining power for the firm in the marketplace. b. D) reputation with suppliers and customers. B-Strat Ch. 3 Flashcards | Chegg.com If yes, go to number 2. b. BUS 1101 - unit 5 self Quiz - A firm's strategy includes - Studocu If a firm has a service that is valuable, rare, and costly-to-imitate, but a substitute exists for the service, the firm will 5 Option A Explanation: Tangible resources have a physical form, t . : D) Wal-Mart implemented a sophisticated information system that resulted in reduced inventory carrying costs and shortened customer response times. 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. A firms tangible resource includes which of the - Course Hero B) effective information systems contributing significantly to a firm's overall cost leadership strategy. ~~~~~\text{Electric bill} & & 45.00 & 44.35\\ C) managers should not look at their job as primarily balancing stakeholder demands; increasing satisfaction among multiple stakeholders can be achieved simultaneously. A companys value derives not from things, but from ____________. Firms utilizing a competitive scope strategy can tailor advertising and promotional efforts to a particular market niche. 10+ million students use Quizplus to study and prepare for their homework, quizzes and exams through 20m+ questions in 300k quizzes. Which of these categories of financial ratios is used to measure a company's ability to meet its short-term financial obligations? Since the firm has two units of capital, the firm's total fixed cost is$20. One resource is lead singer Jimmy Mattingly, who possesses immense musical talent. ~~~~~\text{Water bill} & & 24.50 & 31.70\\ False Supplier and buyers with strong bargaining positions Other airlines could not replicate Southwests culture, regardless of how hard they might try, because of Southwests unusual history. This is an example of which concept? \text{Expenses} & & \text{Budgeted} & \text{Spent}\\[10pt] Imagine that a U.S. car manufacturer builds a plant in Mexico, where labor is cheaper. D) top management providing a key role in collaborating with important customers. In the value chain, which of the following activities is deemed to add direct value to a firm? D. At Intel the key historic decision to abandon memory chips and concentrate upon microprocessors was the result of which of the following? A firm's tangible resource includes which of the following? Which of the following is considered an intangible resource? A) Knowledge can be considered an important asset or resource of a company, but it is not physical in nature. If not then culture provides Southwest with a temporary competitive advantage over its rivals, but competitors can imitate it. accounting. D) Production equipment. 10+ million students use Quizplus to study and prepare for their homework, quizzes and exams through 20m+ questions in 300k quizzes. d. Relatively moderate rivalry Organizational routines d. Production equipmentd; Easy (Comprehension) 3. Congratulations on advancing to the final unit of BUS 1101, the opening course in your degree program! 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. A resource is valuable to the extent that it helps a firm create strategies that capitalize on opportunities and ward off threats. 2) Product quality. A useful way to identify a company's resources is to view them as: A. divided into two main categories, tangible and intangible. XYZ Corp. is focusing on the objective of low-cost, high quality, on-time production by minimizing idle productive facilities and workers. 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. C) tangible resources, intangible resources, and organizational capabilities. When analyzing a value chain with a VRIO framework, what is the most important question to begin with? Strategy formulation answers the question. Also assume that the cost of each unit of labor is $50. Ans. Social complexity is defined as the socially intricate and interdependent ways firms are typically organized. Ans. D) if the firm's stock is publicly traded. Choose question tag. What kind of competitive advantage, if any, does this capability provide? Question: What is the average total cost when two units of labor (L) are employed? Southwest Airlines provides an illustration of resource-based theory in action. 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. 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. B. What will happen to bond prices if terrorism ended and the world's nations unilaterally disarmed and adopted free trade policies? Some resources, such as cash and trucks, are not considered to be strategic resources because an organizations competitors can readily acquire them. For a resource to provide a firm with the potential for a sustainable competitive advantage, it must have four attributes. 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. Those resources and capabilities that provide a significant competitive advantage are referred to as what? 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! \text{Transportation}\\ 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. Course Hero is not sponsored or endorsed by any college or university. A) By employing JIT inventory systems, Hewlett Packard has been able to cut lead time from five days to one. -Production equipment B. What was the result? Retrieved from https://commons.wikimedia.org/wiki/File:The_VRIO_Framework_with_numbers.png. B) Compare the firm's financial ratios over the most recent one-year period. B) intangible resources and operational measures. False They consist of warehousing, material handling, delivery operation, order processing, and scheduling. Tangible goods such as ones car and home are also vital resources. Some firms develop a dynamic capability. Coca-Cola has an uncanny knack for building new brands and products as the soft-drink market evolves. Knowledge Capacity for innovation Organizational routines d. Production equipment. Other resources are hard to copy because they evolve over time and they reflect unique aspects of the firm. 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. al., 2010). Acknowledged by top management Then discuss how the company caters for their interests and what may happen if their expectations are not met.A water utility companyA multinational food companyA local airport. Resources can be divided into two main types: tangible and intangible. False 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. : ~~~~~\text{Cable TV bill} & & 25.00 & 25.00\\[10pt] For the event listed here, identify which of the determinants of demand or supply are affected. Gillette combines several technologies (e.g., metallurgy, physiology, physics) to attain unparalleled success in the wet shaving industry. Captures how vision and mission will be achieved. B) the interrelationships among the primary activities of the firm and corporate management. When a company's resources are valuable but not rare, the company is said to have which element? Experts are tested by Chegg as specialists in their subject area. Figure 4.2: Planephotoman. Although the airline industry is extremely competitive, Southwest Airliness turns a profit virtually every year. C) financial resources, physical resources, and technological resources. Has Southwest organized this resource of culture to capture value? \text{Fixed} \\ True B. O - Strategy formulation is an essential component of the POLC framework: 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. B) minimized idle production facilities and workers. False Build the IS-LM function.b. Another is guitarist Lenny Haise, whose fun attitude reigns in the enigmatic Mattingly. A resource-based view of the firm. In value chain analysis, the activities of an organization are divided into two major categories of value activities: primary and support. A. C) repairing the product for the consumer, D) monitoring the cost of producing the product through a cost accounting system. As another example, what about Southwest Airlines capability to arrive on time at a much higher rate than the industry average? 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. Review the material in Chapter 20 and respond to the following: Discuss the modern quantity theory and the liquidity preference theory. B) Whenever a company improves or developed its capabilities to support innovation, the organization is said to have the capacity for innovation. 11.-. A resource or capability is said to be ____________ if it allows the firm to exploit. Strategic Management Journal, 15(4), 271290. D) the firm's resources are path dependent. A resource is valuable and rare but neither difficult to imitate nor without substitutes. Firms often bundle together multiple resources and strategies (that may not be unique in and of themselves) to create uniquely powerful combinations. C. physical resources, such as the company's brand, image, and reputation . ______________ are assets that can be seen and quantified. Although not a formal band member, Mattinglys girlfriend Faye provides emotional support to the group and even suggests the groups name. Which of the following is considered an intangible resource? Business Law: Text and Cases (Kenneth W. Clarkson; Roger LeRoy Miller; Frank B. Superiority in competitive advantage refers to all of the following factors EXCEPT: Where does strategy formulation fit within the POLC framework? Instead, a resource is strategic to the extent that it is valuable, rare, difficult to imitate, and organized to capture value. Despite having three of the four properties of strategic resources, water in the United States has remained cheap; however, this may be changing. a. Expert Answer. Recruitment c. Service d. Procurement c; Medium C) marketing expertise increasing a firm's revenues and enabling it to enter new markets. Intangible resources include, for example, the knowledge and skills of employees, a firms reputation, brand name, exclusive rights to intellectual property, leadership traits of executives, and a firms culture. You can view this video here: https://youtu.be/BJn-Jl2ZeQU. 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. The industry characteristics that make it very difficult for firms to achieve strategic competitivenessand earn above-average returns includes all of the following EXCEPT: These competitive advantages in turn can help the organization enjoy strong profits (Barney, 1991; Wernerfelt, 1981). A key benefit of Southwests culture is that it leads employees to treat customers well, which in turn creates loyalty to Southwest among passengers. Centralized decisions Recently, shareholders have been vocal about the importance of products made in the US. The influence of Southwests organizational culture extends to how customers are treated by employees. ~~~~~\text{Credit payments} & & 50.00 & 41.74\\ Resources such as cash and vehicles are valuable, of course, but an organizations competitors can readily acquire them. This culture is also rare in that strikes, layoffs, and poor morale are common within the airline industry. This video is the song That Thing You Do! by the Wonders. Two or more firms competing for differentiation may engage in price wars that drive profits to very low levels. In a 300-500 word Learning Journal, identify a management principle or method from the course for each of the four functions of management.