According to resource-based theory, organizations that own “strategic resources” have important competitive advantages over organizations that do not. A resource is strategic to the extent that it follows the VRIO framework. Which of these scenarios for BMW does not align with the VRIO framework?

Coca-Cola, a leader in the carbonated soft drink industry since 1892, has a long history of exclusive contracts with universities and theme parks, preventing competitors from entering these populated locations. They also have established a strong supply chain by acquiring bottlers over the years, allowing them to control quality and costs. Which of the isolating mechanisms BEST describes how Coke has established and maintained competitive advantage?

This year’s annual review meeting, which includes the company CEO and CFO, was held last Friday. James was responsible for demonstrating how the company is performing compared to competitors in terms of profit margin, debt ratio, and market capitalization. By using these ratios, what did James utilize?

Which of the following would not be considered part of a differentiation strategy?

Gap Inc. has many different brands under its leadership, including Old Navy, Gap, Banana Republic, Athleta, Intermix, Janie and Jack, and Hill City. Within this mix, Old Navy would be considered a(n) __________.

The Northwest United States has two major communications companies in the region: G-Mobile is a telecommunications company specializing in providing wireless voice and data services to consumers, and Dash is a telecommunications company specializing in providing wireless voice, messaging, and broadband services to consumers. Both companies are of similar size and provide similar services, and for that reason they have decided to work together to leverage their resources, rather than splitting the limited market. This is an example of __________.

Jones Company is a company that sells unique jewelry to customers. They have great customer service. This makes customers want to keep coming back and continue buying from the company. This is an example of __________.

You work for the largest manufacturer of aluminum cans in the beverage industry. Your company plans to slightly cut costs on raw materials, but clearly increase spending on manufacturing in order to provide a better quality product. What is the most likely outcome for your company?

John, the owner of a tire manufacturing company, operates in the state of Arizona. After meeting with his team of executives, John decides that the company has significant resources that are not being used (mainly capital) and that the best way to use them is to diversify the company. As a result, John’s company opens a new location in Nevada and begins selling tires in that state, too. Additionally, John’s company acquires another company, Company X. Company X has locations in Nevada and Arizona and specializes in installing tires on a wide range of vehicles. Which of the following types of diversification does John’s company implement?

Express Oil Change has had success in the auto repair shop industry by creating differentiation. Which of the following is NOT a trademark of the company that gives it a competitive advantage through differentiation?