1. What is likely to be a reason for the occurrence of core rigidities in firms?

   	a.	Managers allocate considerable resources to the pursuit of new ideas and technologies.
   	b.	Managers develop capabilities that can be reoriented to alternative tasks.
   	c.	Managers frequently review whether or not their strategies are delivering desired outcomes.
   	d.	Managers are reluctant to discard products/processes that have been successful in the past.

1. How does internal analysis most help a strategist?

   	a.	Understand a firm's opportunities and threats.
   	b.	Evaluate the strength of the firm's competitive forces.
   	c.	Understand a firm's strengths and weakensses.
   	d.	Substitute for external analysis by providing more valuable tools.