$1.$ Walmart uses core competencies, such as information technology and distribution channels, to create value for its customers through its "everyday low prices." a$.$ True b$.$ False $2.$ Which of the following is NOT a factor affecting sustainability of a competitive advantage? a$.$ Availability of substitutes for a firm's core competence b$.$ Rate at which obsolescence of the core competence occurs because of environmental changes c$.$ Imitability of a core competence d$.$ Length of time the core competence has existed $3.$ The Obama administration expressed a desire to eliminate coal as an energy source and introduced regulations to drive the coal industry out of business. The Trump administration eased regulations on the coal industry but also took steps to encourage the development of other forms of energy. In light of this changing regulatory environment, decision makers in the energy industry are most affected by what condition? a$.$ Uncertainty b$.$ Complexity c$.$ Intraorganizational conflict d$.$ Interorganizational conflict $4.$ Capabilities typically come from a$.$ individual resources. b$.$ one unique resource. c$.$ several outstanding resources used independently. d$.$ combining resources. $5.$ Compared to intangible resources, in terms of their value, tangible resources are $\_\_\_\_\_\_\_\_\_\_$ constrained because they are $\_\_\_\_\_\_\_\_\_\_$ to leverage. a$.$ less; easier b$.$ less; harder c$.$ more; harder d$.$ more; easier $6.$ When firms lay off employees, they are a$.$ treating employees as an intangible resource. b$.$ recognizing the reduced value of labor in the value chain. c$.$ eroding the organization's knowledge resources. d$.$ temporarily sacrificing a tangible asset that is easily replaced. $7.$ What are the $4$ criteria of sustainable competitive advantage? Give a brief rationale behind each criteria. $8.$ Value chain analysis is a tool used to a$.$ analyze a firm's external environment for value$-$creating opportunities. b$.$ analyze a firm's value chain activities and support functions in isolation from its competitors' value chain. c$.$ understand the parts of the firm's operation that create value and those that do not. d$.$ identify the firm's core competencies in each of the primary activities of the firm. $9.$ Which of the following best describes outsourcing? a$.$ The purchase of a value$-$creating activity or a support function activity from an external supplier b$.$ The development of capabilities in$-$house to achieve competitive superiority c$.$ The hiring of temporary employees to complete specific tasks d$.$ The establishment of a partnership with a competitor $10.$ Which of the following can help a firm focus on its core competencies as the source of its competitive advantages? a$.$ Marketing b$.$ Manufacturing c$.$ Outsourcing d$.$ Imitation