Ch 5

1. In thinking about the VRIO framework, which of those letters could be used to explain a situation where a company has repeated failures, and they never seem to learn from the failures, let alone translate the learnings into a new strategy or resource that leads to a core competency or competitive advantage?

1. The balanced scorecard was created to offset some of the negatives of the traditional methods of evaluating firm performance. What is wrong with the traditional method of evaluating performance using shareholder value creation?

1. Make sense of these numbers and show you understand the principles at play: The cost to produce product A is $50. Product A's value is $400. Product A's price is $150. What can you say with some certainty?

1. COMPETITIVE ADVANTAGE: Make sense of these numbers and show you understand the principles at play. Suggestion: Draw this out. Products A and B are identical products sold by different companies. The cost to produce product A is $50. Product A's value is $400. Product A's price is $150. The cost to produce product B is $35. Product B's value is $200. Product B's price is $125. Assuming customers are considering purchasing the products in question, what can you say with some certainty about competitive advantage?

1. CONSUMER SURPLUS: Make sense of these numbers and show you understand the principles at play. Suggestion: Draw this out. Products A and B are identical products sold by different companies. The cost to produce product A is $50. Product A's value is $400. Product A's price is $150. The cost to produce product B is $35. Product B's value is $200. Product B's price is $125. Assuming customers are considering purchasing the products in question, what can you say with some certainty about consumer surplus?

1. COST: Make sense of these numbers and show you understand the principles at play. Suggestion: Draw this out. Products A and B are identical products sold by different companies. The cost to produce product A is $50. Product A's value is $400. Product A's price is $150. The cost to produce product B is $35. Product B's value is $200. Product B's price is $125. Assuming customers are considering purchasing the products in question, what can you say with some certainty related to the relative costs of producing the product?

1. CUSTOMER PERCEPTIONS: Make sense of these numbers and show you understand the principles at play. Suggestion: Draw this out. Products A and B are identical products sold by different companies. The cost to produce product A is $50. Product A's value is $400. Product A's price is $150. The cost to produce product B is $35. Product B's value is $200. Product B's price is $125. Assuming customers are considering purchasing the products in question, what can you say with some certainty about customer perceptions?

1. The balanced scorecard was created to offset some of the negatives of the traditional methods of evaluating firm performance. What is wrong with the traditional accounting methods of evaluating performance?

1. PRICING: Make sense of these numbers and show you understand the principles at play. Suggestion: Draw this out. Products A and B are identical products sold by different companies. The cost to produce product A is $50. Product A's value is $400. Product A's price is $150. The cost to produce product B is $35. Product B's value is $200. Product B's price is $125. Assuming customers are considering purchasing the products in question, what can you say with some certainty about the pricing strategies?

1. Why might one say that core competency and core rigidity could be two sides of the same coin?

1. In order to sustain competitive advantage or overcome core rigidities, a firm needs dynamic capabilities. Which of these is an example of a company with dynamic capabilities?

1. How can a firm achieve sustainable competitive advantage given the resources it has?

1. Strategy that is considered sustainable requires what type of an integrative approach?