To gain a competitive advantage, a firm must have the organizational ability to exploit their...
Question:
Explain whether the following statement is true or false.
To gain a competitive advantage, a firm must have the organizational ability to exploit their resources.
Business competition
The business competition is not uncommon as each firm comes into the market to prove its production capability and resource utilization. The basic rationale of business competition is probable innovation and boost economic growth in the country.
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View this answerThis statement is false
The firms are initially required to economize all of its resources for offering the optimal amounts of production. Merely,...
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Foreign and Domestic Business Competition: Definition and Regulations
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Chapter 3 / Lesson 6
15K
Marketing environments are not only influenced by domestic competition, but also by foreign. In both aspects, marketers must analyze their competitors' strengths and weaknesses to thrive. Learn about the types of competitors in different parts of the market and the regulations that dictate the roles of these competitors.
Related to this Question
- All of a firm's capabilities contribute equally to its competitive advantage. Indicate whether the statement is true or false
- Competitive advantage occurs when a firm has more resources than its competitors. Indicate whether the statement is true or false
- One reason a firm may not respond to another firm's competitive advantage is because it does not have the resources or capabilities to do so. Indicate whether the statement is true or false
- A complementary relationship between tangible resources and capabilities gives a firm a competitive advantage. Indicate whether the statement is true or false.
- Tangible resources offer the best opportunity for competitive advantage. Indicate whether the statement is true or false
- Indicate whether the statement is true or false: Competitive advantage is the ability of one company to outperform another because its managers are able to create more value from the resources at their disposal.
- Competitive advantage is facilitated by possessing resources and capabilities that fulfill the VRINE criteria. Indicate whether the statement is true or false
- Competitive advantage is developed when a firm can create value in similar ways to their rivals. Indicate whether the statement is true or false
- Intangible resources offer a better opportunity for competitive advantage than tangible resources. Indicate whether the statement is true or false
- When an organization has numerous internal strengths, it is said to have a competitive advantage. Indicate whether the statement is true or false
- Indicate whether the statement is true or false. Strengths are resources that the organization possesses and capabilities that the organization has developed, both of which can be exploited and developed into a sustainable competitive advantage.
- Firms participating in effective alliances can gain competitive advantage. Indicate whether the statement is true or false
- According to the VRINE model, a firm with generic and imitable resources and capabilities will gain a competitive advantage. Indicate whether the statement is true or false
- Indicate whether the statement is true or false. A firm is motivated to enter an alliance because it expects its resources and capabilities to yield a competitive advantage.
- If a resource or capability is valuable and rare but not costly to imitate, exploiting this resource will generate a sustainable competitive advantage for a firm. Indicate whether the statement is true or false
- Because good employees tend to move from one organization to another, they do not create a resource valuable enough for creating a competitive advantage. Indicate whether this statement is true or false.
- A valuable resource that is readily available contributes to competitive advantage. Indicate whether the statement is true or false
- Corporate-level strategy is the most important for achieving a competitive advantage. Indicate whether the statement is true or false.
- Indicate whether the statement is true or false. The capabilities that employees possess can form the basis of competitive advantage.
- When firms without a resource or capability face a cost disadvantage in obtaining or developing it compared to firms that already possess it, this resource or capability is described as perfectly imitable. Indicate whether the statement is true or false
- A sustained competitive advantage can be competed away by strategic imitation if competing firms face an important cost disadvantage in duplicating a successful firm's valuable resources. Indicate whether the statement is true or false
- Challenges to sustained competitive advantage include anything that threatens VRINE resources and capabilities. Indicate whether the statement is true or false
- A firm that achieves competitive advantage can usually maintain it over time. Indicate whether the statement is true or false
- Anything a firm does especially well, compared to rival firms, could be considered a competitive advantage. Indicate whether the statement is true or false
- Indicate whether the statement is true or false. A firm's ability to provide value to customers that exceed what competitors can provide is called competitive advantage.
- A firm that controls a valuable and scare resource always has a competitive advantage. Indicate whether the statement is true or false
- Low-performing firms typically underestimate their competitor's strengths and overestimate their own strengths. Indicate whether the statement is true or false
- Explain whether the following statement is true or false. Corporate governance has little impact on a firm's ability to create a competitive advantage.
- An organization's tangible and intangible resources can be a source of competitive advantage and these resources play an important role in determining an organization's capabilities and competencies. True or false
- Those companies using cooperative strategies are generally not able to gain a competitive advantage. A. True B. False
- The only way to gain competitive advantage within an industry is to use a competitive strategy. Indicate whether the statement is true or false.
- A resource can be a source of competitive advantage even if the resource is controlled by numerous firms. Indicate whether the statement is true or false
- Competitive advantage is inextricably linked to a firm's human capital. Indicate whether the statement is true or false.
- Once a firm acquires a competitive advantage, it is usually able to sustain it indefinitely. Indicate whether the statement is true or false
- True or false? How an organization manages its people is critical because it can give the firm a competitive advantage.
- Possessing and controlling a resource are necessary and sufficient for gaining a competitive advantage. Indicate whether the statement is true or false
- Competitors may easily imitate acquiring tangible resources. Indicate whether the statement is true or false
- Indicate whether the statement is true or false. An organization's competitive advantage cannot be eroded easily by competitors' actions.
- Firms seek competitive advantage through the quality of their human capital. Indicate whether the statement is true or false
- A process is said to be path dependent when imitating firms are not able to understand the relationship between the resources and capabilities controlled by a firm and that firm's competitive advantage. Indicate whether the statement is true or false
- An organization focuses on a specific competitive priority in order to establish a core competence from which a competitive advantage can be gained. True or false?
- The internal perspective assumes that firms can create a competitive advantage by having resources that are rare or costly to imitate. Indicate whether the statement is true or false
- If a firm has capabilities that are valuable and rare, then vertically integrating into businesses that exploit these capabilities can enable the firm to gain at least a temporary competitive advantage. Indicate whether the statement is true or false
- A firm's strategy should be consistent with its strengths and its ability to seize opportunities. Indicate whether the statement is true or false.
- The resources-based view (RBV) takes the approach that a firm's resources are more important than industry structure in getting and keeping competitive advantage. Indicate whether the statement is true or false
- Indicate whether the statement is true or false. Competitive advantage is what sets an organization apart from other firms in its industry.
- A strategy maximizes competitive advantage and minimizes competitive disadvantage. Indicate whether the statement is true or false
- Indicate whether the following statement is true or false: Organizations are realizing that the ultimate source of competitive advantage and organizational effectiveness lies in fully utilizing technology.
- Indicate whether the statement is true or false: Organizational theory is primarily concerned with how an organization can outperform its competitors.
- Indicate whether the statement is true or false. A "good strategy" does not necessarily have to create a competitive advantage.
- A successful strategy must be consistent with both a firm's resources and the competitive environment. Indicate whether the statement is true or false
- A firm that chooses a cost-leadership business strategy focuses on gaining advantages by reducing its costs to a level equal to all of its competitors. Indicate whether the statement is true or false.
- The internal competitive test focuses on management's ability to create a company that will gain a competitive edge. Indicate whether the statement is true or false.
- Firms should not vertically integrate into business activities where they do not possess the resources necessary to gain competitive advantages. Indicate whether the statement is true or false
- Primary sources of competitive advantage include resources, knowledge, and capabilities. Indicate whether the statement is true or false
- Business strategy is a firm's theory of how to gain competitive advantage by operating in several businesses simultaneously. Indicate whether the statement is true or false
- Indicate whether the statement is true or false. Over time, a change in the basis of competitive advantage will cause advantage to shift from firms favored by industry conditions to those with obsolete resources and capabilities.
- A firm could use an alliance to acquire additional resources and capabilities. Indicate whether the statement is true or false.
- Determine whether the following statement is true or false: Firms cannot achieve a competitive advantage by producing superior goods at a lower cost.
- Weaknesses are resources and capabilities that are lacking or deficient and that prevent the organization from developing a sustainable competitive advantage. True or false
- A strong culture always provides a competitive advantage. Indicate whether the statement is true or false.
- True or false? To create a sustainable competitive advantage, a company must have a strategy.
- Indicate whether the statement is true or false. Transferability is the ability of competitors to use duplicated resources and capabilities to imitate the other firm's success.
- While it is socially responsible to be a good steward of the natural environment, doing so will not enable a firm to gain competitive advantage. Indicate whether the statement is true or false
- Distinctive organizational competencies are the common capabilities that do not distinguish an organization from its competitors. Indicate whether the statement is true or false
- Indicate whether the statement is true or false. Evaluation of competitive advantage involves assessing how relevant a firm's resources and capabilities are in terms of generic strategies.
- Indicate whether the statement is true or false. Capabilities refer to a corporation's ability to exploit its resources.
- Answer true or false: SWOT analysis identifies those activities that make a difference between having and not having a competitive advantage.
- Indicate whether the statement is true or false. Strategies are most effective when firms leverage unique, firm-specific resources and capabilities.
- A sustainable competitive advantage is one that cannot be copied by a firm's competitors. (a) True (b) False.
- According to the guerrilla-based view, a firm's competitive advantage is temporary. Indicate whether the statement is true or false
- Opportunities are a firm's distinctive competencies that cannot be easily matched or imitated by competitors. Indicate whether the statement is true or false
- Indicate whether the statement is true or false. The size of a firm's competitive advantage is the sum of the economic value a firm is able to create and the economic value rivals are able to create.
- The resource-based view focuses on the structural forces within an industry, the firm's competitive environment, and how these influence competitive advantage. Indicate whether the statement is true or false.
- The VRINE model cannot be used to assess every resource or capability for potential competitive advantage. Indicate whether the statement is true or false
- Corporate level strategies are actions firms take to gain competitive advantages in a single market or industry. Indicate whether the statement is true or false
- Organizational capabilities are the special and unique processes that distinguish the organization from its competitors. Indicate whether the statement is true or false.
- If a firm wants to exploit opportunities while withstanding competitive pressures, its strategy must be built on its bureaucracy and structure. Indicate whether the statement is true or false
- Positive reinforcements used to motivate people in organizational settings are said to be equitable if they have some capacity to affect future performance. Indicate whether the statement is true or false.
- Indicate whether the statement is true or false. \\ Going up against some of the toughest competition in the world forces a company to hone its competitive skills.
- An acquisition ensures that a firm enters a new business with viable competitive strength. Indicate whether the statement is true or false
- Firms with strategies that are unlikely to be a source of competitive advantage will rarely provide the same career opportunities as firms with strategies that do generate such advantages. Indicate whether the statement is true or false
- Capabilities are a subset of a firm's resources and are defined as tangible and intangible assets that enable a firm to take full advantage of other resources it controls. Indicate whether the statement is true or false
- Most firms have a resource base that is composed primarily of valuable but common resources and capabilities, some of which are essential if a firm is to gain competitive parity. Indicate whether the statement is true or false
- In the end, competitive advantage is so important to a firm's success, it must remain the sole property of senior management. Indicate whether the statement is true or false
- Outsourcing can help firms reduce costs and focus their efforts on those business functions that are central to their competitive advantage. Indicate whether the statement is true or false
- Firms can achieve a competitive advantage by configuring value -chain activities in ways that add more value to their products and services. Indicate whether the statement is true or false
- Indicate whether the statement is true or false. For the purposes of this book, a firm's strategy is defined as its theory about how to gain competitive advantages.
- The balance of power between a firm and its customers affects its ability to compete effectively and earn above-average returns. True or false.
- According to Michael Porter, the weaker each of the competitive forces, the more limited companies are in their ability to raise prices and earn greater profits. Indicate whether the statement is true or false
- If all a firm does is create value in the same way as its competitors, the best performance it can ever expect to gain is competitive parity. Indicate whether the statement is true or false
- Capabilities refer to a firm's skill in using its resources to create goods and services. Indicate whether the statement is true or false
- A firm that earns below average accounting performance generally experiences a competitive disadvantage. True or false
- Developing a sustainable competitive advantage is important for all organizations. True or false
- Indicate whether the following statement is true or false: Although a company can better match employees with jobs they like, staffing does not influence organizational performance.
- The resource -based view of competitive advantage says that one reason for acquiring another firm would be to absorb and assimilate the target's real estate holdings. Indicate whether the statement is true or false
- Many firms have resources and capabilities that are used to neutralize threats and the use of these resources enables the firms to increase their net revenues. Indicate whether the statement is true or false
- Hiring top executives from rival firms is a way companies obtain competitive intelligence.True or false
- According to Porter, strategies allow organizations to gain competitive advantage from three different bases: cost leadership, differentiation, and decentralization. Indicate whether the statement is true or false
- The origin of competitive advantage lies in the ability to identify and respond to environmental change well in advance of competition. Indicate whether the statement is true or false
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