Test Bank for Strategic Analysis and Action 8th Edition by Crossan

Test Bank for Strategic Analysis and Action 8th

Edition by Crossan

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 Chapter Six: Resource Analysis
Multiple Choice

MC 6-1 Some of the resources required to execute a strategic proposal include

a. forecasts, budgets, and sales projections
b. financial, procedural, and environmental
c. operating, management, and equipment
d. financial, operating, and marketing

Answer: d
Difficulty: easy
Page: 107

MC 6-2 The adequacy of available resources is relative to the

a. size of the organization
b. demands of the strategic proposal
c. managerial preferences
d. number of competitors

Answer: b
Difficulty: easy
Page: 107

MC 6-3 Distinctive competencies are activities an organization

a. has outsourced
b. performs better than its competitors
c. has integrated with its suppliers
d. requires no improvement

Answer: b
Difficulty: easy
Page: 110

MC 6-4 The core skills of an organization represent

a. managerial know-how and strong links to the investor community
b. knowledge and experience developed over time
c. proprietary technology and alliances with the scientific community
d. capacity to raise capital and flexible work rules

Answer: b
Difficulty: moderate
Page: 110

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MC 6-5 Core competencies give an organization the opportunity to compete on the basis of its
a. product market focus
b. alliances
c. unique resources
d. performance

Answer: c
Difficulty: easy
Page: 110

MC 6-6 Resources that have the potential to give an organization a competitive advantage are
a. expensive, readily transferrable, covered by patents, and developed over time
b. single purpose, embedded in organizational routines, easy to copy, short lived
c. valuable, rare, difficult to copy, and organized effectively
d. codified, sustainable, technical, and sufficient

Answer: c
Difficulty: easy
Page: 111

MC 6-7 Resources that can be used by the organization to address an environmental threat are
a. valuable
b. rare
c. sustainable
d. easy to copy

Answer: a
Difficulty: moderate
Page: 111

MC 6-8 The advantage provided by resources that are held by few competitors is
a. enduring
b. sustainable
c. temporary
d. enabling

Answer: c
Difficulty: moderate
Page: 111

MC 6-9 Resources with the potential to provide a sustainable advantage as opposed to a

competitive advantage can be
a. modified by the competitor
b. upgraded reasonably easily
c. purchased in factor markets
d. leveraged by the organization

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Answer: d
Difficulty: challenging
Page: 111

MC 6-10 Path-dependency refers to resources that arise from a

a. competitive price war
b. series of events occurring over time
c. patent infringement
d. change in government policy

Answer: b
Difficulty: easy
Page: 112

MC 6-11 Competitive advantages that are not intuitively obvious are an example of
a. causal ambiguity
b. competitive parity
c. inimitable resources
d. path-dependency

Answer: a
Difficulty: moderate
Page: 112

MC 6-12 A capability arising from a network of relationships is known as

a. integrative thinking
b. social complexity
c. path dependency
d. managerial know-how

Answer: b
Difficulty: moderate
Page: 112

MC 6-13 Resource durability is sometimes associated with a

a. procedure
b. patent
c. brand
d. position

Answer: c
Difficulty: easy
Page: 112

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MC 6-14 An organization’s resources can be enhanced or undermined by
a. how rare the resources are
b. the organization’s product market focus
c. the break-even point
d. the organization’s social values

Answer: d
Difficulty: moderate
Page: 109

MC 6-15 A resource-pushed strategy is one that

a. lacks sufficiency
b. leverages unique capabilities
c. is sustainable
d. can be readily copied

Answer: b
Difficulty: moderate
Page: 115

MC 6-16 The purpose of evaluating the strategy-resources linkage is to test for

a. profitability
b. managerial fit
c. material gaps
d. sustainability

Answer: d
Difficulty: challenging
Page: 116

MC 6-17 One of the elements taken into consideration when conducting a resource analysis by
strategy component is
a. managerial preferences
b. break-even point
c. government regulation
d. value proposition

Answer: d
Difficulty: easy
Page: 117

MC 6-18 A resource analysis by resource category considers such elements as the

a. market share, technology, and employee capabilities
b. population, social values, and technology
c. economy, government regulation, and product life cycle
d. break-even point, interest rates, and consumer preferences

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Answer: a
Difficulty: challenging
Page: 108 and 117

MC 6-19 One of the considerations when evaluating resource gaps is the

a. cost of failure
b. likelihood of government subsidies
c. nature of a competitive response
d. product market focus

Answer: a
Difficulty: easy
Page: 121

MC 6-20 Strategic proposals that fit well with the environment and available resources are further
evaluated based on
a. product-market focus
b. break-even point
c. the level of initial investment
d. managerial preferences

Answer: d
Difficulty: moderate
Page: 123

MC 6-21 In a rapidly changing environment, organizations need resources that are

a. stable
b. easily replicated
c. adaptable
d. single-use

Answer: c
Difficulty: moderate
Page: 123

MC 6-22 Diversification can be defined as an organization’s ability to

a. define the scope of its operations
b. divest of non-core activities
c. match the capabilities of its competitors
d. leverage its current resources

Answer: d
Difficulty: moderate
Page: 124

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MC 6-23 A firm’s value chain of activities is sometimes referred to as
a. horizontal integration
b. competitive parity
c. structural functionality
d. vertical integration

Answer: d
Difficulty: easy
Page: 123

MC 6-24 The scope of a firm is traditionally defined by its

a. work force, assets, and location
b. product line, production capacity, and technological base
c. product market, geography, and vertical integration
d. technology, employee capabilities, and procedures

Answer: c
Difficulty: easy
Page: 124

MC 6-25 The purpose of assessing an organization’s capabilities is to determine what the

a. competition might do in response
b. government might choose to regulate
c. suppliers might try to copy
d. organization might do to leverage an opportunity

Answer: d
Difficulty: moderate
Page: 124

True/False

TF 6-26 Resources provide an organization with the potential to act.

Answer: t
Difficulty: easy
Page: 107

TF 6-27 A firm’s logistics capability is an example of an operational resource.

Answer: t
Difficulty: easy
Page: 107

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TF 6-28 The value of a resource depends on the context in which it is intended to be used.

Answer: t
Difficulty: moderate
Page: 109

TF 6-29 Resources considered to be valuable give the organization a sustainable competitive

advantage.

Answer: f
Difficulty: moderate
Page: 111

TF 6-30 Resources that are easy to imitate or readily substitutable give the organization a
competitive advantage.

Answer: f
Difficulty: moderate
Page: 111

TF 6-31 Unique historical conditions can give an organization a competitive advantage.

Answer: t
Difficulty: easy
Page: 111

TF 6-32 Interconnected organizational capabilities are seldom sources of competitive

advantage.

Answer: f
Difficulty: moderate
Page: 112

TF 6-33 The social values of an organization can enhance or undermine the resources of the
organization.

Answer: t
Difficulty: easy
Page: 113

TF 6-34 Resources can drive strategy, but they seldom constrain strategy.

Answer: f
Difficulty: easy
Page: 114

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TF 6-35 Innovative strategic proposals built on unique resources are unlikely to fail.

Answer: f
Difficulty: challenging
Page: 115

TF 6-36 Inwardly focused firms that base their strategies on leveraging existing resources are
well positioned to take advantage of changes in customer preferences.

Answer: f
Difficulty: challenging
Page: 115

TF 6-37 One of the factors to consider when evaluating the strategy-resource linkage is the
feasibility of closing any material gaps.

Answer: t
Difficulty: moderate
Page: 115-116

TF 6-38 Qualitative resource requirements are often difficult to predict.

Answer: t
Difficulty: moderate
Page: 117

TF 6-39 A strategy based on superior product features will require a careful analysis of the
development resources of the organization.

Answer: t
Difficulty: moderate
Page: 108 and 118

TF 6-40 Strategic proposals with formidable resource gaps should be abandoned.

Answer: f
Difficulty: challenging
Page: 118

TF 6-41 Gap-closing initiatives that depend on some form of organization change are riskier
than those entailing additional costs.

Answer: t
Difficulty: challenging
Page: 122

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TF 6-42 When an organization is in crisis, it is sometimes easier to advance riskier proposals.

Answer: t
Difficulty: challenging
Page: 122

TF 6-43 Failure to implement a strategic proposal may result in penalties such as loss of
market position.

Answer: t
Difficulty: moderate
Page: 123

TF 6-44 In rapidly changing environments, organizations need resources that can be re-
configured relatively easily.

Answer: t
Difficulty: easy
Page: 123

TF 6-45 Strategic alliances are sometimes used to complement the capabilities of the
organization.

Answer: t
Difficulty: moderate
Page: 123

TF 6-46 Opportunities and threats emerge from a scan of the internal environment.

Answer: f
Difficulty: moderate
Page: 123

TF 6-47 An acquisition could be a mechanism for addressing a resource gap.

Answer: t
Difficulty: moderate
Page: 124

TF 6-48 The purpose of testing the strategy-resource linkage is to establish where value can be
created.

Answer: t
Difficulty: moderate
Page: 124

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Test Bank for Strategic Analysis and Action 8th Edition by Crossan

TF 6-49 Leveraging current resources is an example of horizontal diversification.

Answer: f
Difficulty: easy
Page: 124

TF 6-50 Testing the strategy-resource linkage identifies what the organization needs to do to
compete.

Answer: f
Difficulty: easy
Page: 124

Copyright © 2013 Pearson Canada Inc. 10

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