SM_Chapter_3

What is the primary focus of the market-based view of strategy?

• Analyzing internal resources and capabilities

• Emphasizing opportunities within the organization

• Examining external macro- and micro-environment

• Developing strategies based on internal characteristics

Which framework helps analyzing the external macro- and micro-environment in the context of the market-based view of strategy?

• SWOT analysis

• P-E-E-S-T framework

• VRIO analysis

• Value chain

According to the resource-based view of strategy, what can explain why firms in the same industry and environment perform differently?

• External opportunities

• Identical resources and capabilities

• Differences in strengths and weaknesses

• Lack of competitive advantage

In the context of the P-E-E-S-T framework, what does the "S" stand for?

• Social

• Society

• Socio-demographic

• Success

Considering the P-E-E-S-T framework, which of the following is true?

• Many of the factors are related to each other

• It is used to analyze the competitive landscape

• It is a tool to analyze specific aspects of an economy in detail

• None of the above

What advantage does the P-E-E-S-T analysis offer?

• It provides an objective assessment of the current economic state

• It is solely focused on short-term performance

• It prompts managers to ignore issues beyond a firm's boundaries

• It provides a "big-picture" perspective into significant environmental issues

Porters five forces can be used to...

• anticipate shifts in the factors underlying the five forces and respond to them

• predict the costs of a company

• decide whether a company becomes market leader or not

• restructure the a company to realize cost saving opportunities

A hardware company regularly orders highly personalized products from suppliers.

This means that...

• the hardware company has a high bargaining power

• the suppliers have a high bargaining power

• both, the supplier and the hardware company, have low bargaining power

• None of the above

According to the VRIO framework, what defines resources and capabilities as valuable?

• Their ability to create a cost disadvantage for the firm

• Their uniqueness in the industry

• Their creation of value for customers and responsiveness to environmental opportunities or threats

• Their low perceived value from the customer's point of view

Which of the following examples is most likely to be considered as rare?

• The white paint of Porsche's cars

• The recommendation algorithm of Netflix

• CocaCola's recipe

• Gucci's leather used to produce shoes