A) When a firm makes changes to its value chain, it is:

competing on price.

grounding itself in a strategic inversion.

putting a new or modified strategy into action.

flirting with disaster.

initiating the Five Forces.

B) Organizational capabilities are almost always:

easier and less challenging to categorize than resources because there are fewer of them to be concerned about.

more complex than resources and are exercised only through key personnel.

knowledge-based and exist mainly in people--and in the company's intellectual capital, or in organizational processes and systems, which embody tacit knowledge.

require constant evaluation to ensure cooperative support from the firm's upper management

reflective of the industry's driving forces.