Dell

Chapter 3—The Internal Organization: Resources, Capabilities, Core Competencies, and Competitive Advantages

TRUE/FALSE

1. According to the Opening Case, Apple’s strong financial performance in poor economic times is largely credited to its innovation capabilities.

ANS: F PTS: 1 DIF: Medium REF: 71
OBJ: 03-01 TYPE: comprehension
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Creation of Value | Dierdorff & Rubin: Managing strategy and innovation

2. People are a critical resource for helping organizations learn how to continuously innovate.

ANS: T PTS: 1 DIF: Easy REF: 72
OBJ: 03-03 TYPE: comprehension
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Creation of Value | Dierdorff & Rubin: Managing human capital

3. Firms should seek to continually develop new core competencies because all core competencies have limited life spans.

ANS: T PTS: 1 DIF: Easy REF: 72
OBJ: 03-01 TYPE: comprehension
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Creation of Value | Dierdorff & Rubin: Strategic & systems skills

4. The sustainability of a competitive advantage depends upon the imitability of the core competence, the availability of substitutes for the core competence, and the rate of obsolescence of the core competence.

ANS: T PTS: 1 DIF: Medium REF: 72
OBJ: 03-01 TYPE: knowledge
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Creation of Value | Dierdorff & Rubin: Strategic & systems skills

5. Firms achieve strategic competitiveness and earn above average returns when their unique core competencies are effectively acquired, bundled, and leveraged to take advantage of opportunities in the external environment in ways that create value for customers.

ANS: T PTS: 1 DIF: Easy REF: 72
OBJ: 03-01 TYPE: knowledge
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Creation of Value | Dierdorff & Rubin: Strategic & systems skills

6. Analyzing the internal environment enables a