1. Match each dimension of the VRIO framework with the dataabout a capability measures that dimension.
V A. top management has spent a lot of time build in ways to exploitthis capability.
R B. the capability directly and measurably decreases operatingcapital
I D. other firms in the industry chose not to develop thiscapability because it involved low status activities.
O C. the capability is based upon building trusting socialrelationships that took years to develop.
2. Which of the following is the reason a firm entering a newcountry would want to use a joint venture with a local firm?
Firm wants a simpler and less expensive entry strategy than anon-equity alliance.
Firm believes there are potential strategic synergies betweenthe complementary capabilities of both firms.
Firm wants to overcome liability of foreignness.
Firm wants to increase corporate diversification.
3. Why do firms with a cost leader strategy ideally operate atminimum efficient scale?
It reduces the complexity/riskiness of the firm
It creates a barrier to imitation by other firms
It means the firm has an opportunity to increase efficiencies asscale increases
