WorksheetsPre-Christmas Exercise Class
Total questions: 10
Worksheet time: 8mins
In the lecture, you have been introduced to the market-based view of strategy and the resource-based view of strategy. Which statement best distinguishes these two views?
The market-based view is based on a firm’s pricing and distribution channels, whereas the resource-based view considers primarily customer relationship management.
The market-based view is about exploiting current market conditions, whereas the resource-based view is about aligning with
ethical and social corporate responsibilities.
The market-based view focuses on external market dynamics, while the resource-based view emphasizes leveraging distinct
internal resources.
An analogy that Prof. König used to describe these views was cooking by recipe versus looking in the refrigerator to see what's available and creating a dish from those ingredients. Which statement correctly aligns with this analogy?
"Looking in the refrigerator" reflects the resource-based view; "cooking by recipe" reflects the market-based view.
"Cooking by recipe" reflects the resource-based view; "looking in the refrigerator" reflects the market-based view.
"Looking in the refrigerator" and "cooking by recipe" both represent the resource-based view.
Which of the following frameworks are commonly used to analyze a firm's external macro- and micro-environment?
The Value Chain and VRIO.
P-E-E-S-T and Porter's Five Forces.
The Strategy Diamond and Porter's Generic Strategies.
Assume the perspective of a leading fashion retailer in Italy. Please identify which of the following changes occurs in the microenvironment rather than the macro-environment of your industry?
The Italian government has introduced a new tax on luxury goods that will affect the pricing of high-end fashion items.
A prominent Italian fashion designer has launched an exclusive line that directly competes with your mid-range products.
There is a growing cultural movement in Italy towards minimalism and reducing consumerism.
According to Jay Barney (1991), for a resource to contribute to a firm’s sustainable competitive advantage, it must meet certain criteria as outlined in the VRIO framework. Which of the following is the correct set of criteria that resources and capabilities must satisfy according to the VRIO framework?
Resources and capabilities must be Valuable, Replicable, Identifiable, and Overseeable, meaning they create value, can be replicated with effort, are easily identified, and are overseen by management.
Resources and capabilities must be Valuable, Rare, Inimitable, and Organizationally supported, meaning they create value,
are unique to the firm, cannot be easily duplicated or substituted, and are supported by an effective organization.
Resources and capabilities must be Valuable, Reactive, Isolable, and Operational, meaning they create value, react to
market changes, can be isolated from other resources, and are fully operational within the firm’s processes.
Consider the following insights about Organic Harvest Co., a premium organic food producer:
a) The recent introduction of government subsidies for sustainable farming creates growth potential in the industry.
b) The company has a loyal customer base due to its reputation for high-quality, ethically sourced products.
c) Rising political tensions have led to tariffs and import restrictions on organic products in key export markets.
Which of these insights pertain specifically to the external opportunities and threats facing Organic Harvest Co.,
rather than internal strengths and weaknesses?
Only insight a)
Insight b) and c)
Insights a) and c)
After a thorough SWOT analysis, the CEO of Organic Harvest Co., Anna M., makes the following statement: “Our recent expansion into vertical farming allows us to capitalize on the growing demand for local organic produce, even in regions with limited arable land.” In which box of the SWOT analysis framework does this conclusion fit best?
Strengths X Opportunities
Strengths X Threats
Weaknesses X Threats
In the lecture, you explored the Value-Process Framework (Enders, König, Hungenberg, & Engelbertz, 2009), which explains how firms create and capture value. Which of the following statements is correct?
Value creation and value capture are interchangeable concepts, as both focus on maximizing customer satisfaction.
Competitive advantage is based on a perceivable benefit that is important to customers and hard for competitors to imitate.
Competitive advantage arises primarily from achieving economies of scale across a firm’s value chain activities.
The value-process-framework following Enders, König, Hungenberg, & Engelbertz (2009) integrates at least three different strategic analysis frameworks. Which ones?
Value-Chain, SWOT, Strategy Diamond.
SWOT, P-E-E-S-T, VRIO.
Porter's Five Forces, VRIO, Value-Chain.
In the lecture, Professor König introduced the concept of Blue Ocean vs Red Ocean Strategies. Which of the following statements accurately describes a "Red Ocean"?
An industry where companies continuously create innovative products to open new market niches and make competition
irrelevant.
An industry that is unattractive from an industrial economics perspective (Porter's Five Forces) due to intense competition
and stagnant growth.
An industry that focuses on sustainable development and environmental protection to achieve long-term customer loyalty and market growth.
