BPL Chapter 3 Test Questions and Answers
How is a resource valuable? - Answer-when they enable a firm to formulate and implement strategies that improve its efficiency or effectiveness.
What are environmental models? - Answer-they isolate firm attributes that exploit opportunities and or/neutra...
BPL Chapter 3 Test Questions and
Answers
How is a resource valuable? - Answer-when they enable a firm to formulate and
implement strategies that improve its efficiency or effectiveness.
What are environmental models? - Answer-they isolate firm attributes that exploit
opportunities and or/neutralizes threats. it specifies what firm attributes may be
considered as resources.
Resource based model - Answer-suggests what additional characteristics these
resources must possess if they are able to develop a sustained competitive advantage.
basically when firms will creative competitive advantages and enjoy high levels of
profitability.
How is a resource rare? - Answer-it's all about competition and how easy it is for a
competitor to get that particular resource. so if a large amount of firms can get that
specific resource, it's not rare.
Can the resource be imitated easily? - Answer-it has to have at least one of the four
traits...
1. physical uniqueness
2. path dependency
3. casual ambiguity
4. social complexity
physical uniqueness - Answer-hard to copy. like a gorgeous resort location or even a
patent.
path dependency - Answer-resources are unique and therefore, scarce because of all
that has happened along the path followed in their development and/or accumulation.
casual ambiguity - Answer-a trait of firm's resources that is costly to imitate because the
competitor cannot determine what the resource exactly is, or how it can be re-created
social complexity - Answer-a resource is costly because the social engineering required
is beyond the capability of the competitors, including like interpersonal relations, among
managers, organizational culture and reputation with suppliers and customers.
strategically equivalent - Answer-when each resource can be exploited separately to
implement the same strategies
, sustainability has two forms - Answer-1. it can be impossible for a firm to exactly copy
another firm's resource, but it can be a similar copy.
2. very different firm resources can become substitutes like... internet booksellers like
amazon substituting for brick and mortar stores like Barnes and noble.
four factors that will explain how employees and managers will be able to obtain a
proportionately high level of profit - Answer-1. employee bargaining power
2. employee replacement power
3. employee exit costs
4. manager bargaining power
employee bargaining power - Answer-if employee helps with firm's unique capability,
they will get a good wage.
- sometimes clients are very loyal to SPECIFIC employees that keep them interested in
the firm. because of those specific employees, clients will still continue to work with the
firm, they're not only focused on the firm itself.
employee replacement cost - Answer-if the employees skills are idiosyncratic and rare,
they should have high bargaining power based on the high cost required by the firm to
replace them.
employee exit costs - Answer-factor may tend to reduce an employee's bargaining
power
- an individual can face high personal costs when leaving the organization so then the
individual's threat of leaving might not be credible.
- also an employee's expertise may be firm specific and of limited value to other firms.
manager bargaining power - Answer-the manager's power is based on how well they
create resource based advantages
- they are generally charged with creating value through the process of organizing,
coordinating, and leveraging employees as well as forms of capital such as plant,
equipment and financial capital. these activities give managers the source of information
that isn't exactly always available for others.
Value Chain Analysis - Answer-views the organization as a SEQUENTIAL process of
value-creating activities. it's useful for understanding the building blocks for competitive
advantages
Value - Answer-the amount that buyers are willing to pay for what a firm provides them
and is measured by total revenue
- it's a reflection of the price a firm's product commands and the amount that it can sell
'a firm is profitable' which means..? - Answer-value it receives that exceeds the total
costs involved in creating its products and services.
- creating value for buyers that exceeds the costs of production (margin is a big
example)
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Scholarsstudyguide. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.89. You're not tied to anything after your purchase.
