Question

The fundamental relationship between economic value creation and competitive advantage is?

		Value
		Opportunity cost
		Price
		Strategic management What describes a process in which the options one faces in a current situation are limited by decisions made in the past? Path Dependence Dynamic Capabilities Casual Ambiguity Social Complexity Identify the two critical assumptions behind the resource base view, and explain each. Identify the questions a manager must ask to formulate an appropriate business-level strategy, and explain each of them.

Answer 1

The fundamental relationship between economic value creation and competitive advantage is?

D- Strategic management

What describes a process in which the options one faces in a current situation are limited by decisions made in the past?

A- Path Dependence

Identify the two critical assumptions behind the resource base view, and explain each.

Two critical assumptions behind the resource base view are heterogeneity and immobility (1).

Heterogeneity assumption is that skills ,capabilities and other resources  that are possessed by organizations differ from company to another (1).

Immobility assumption is that resources are not mobile and do not move from company to company , at least in short run(1).Because of this ,companies cannot replicate rivals 's resources and implement same strategies (1).

Explanation:

Based on heterogeneity assumption if organizations would have same amount and mix of resources ,they couldn't employ different strategies to outcompete one another(1).

Heterogeneity helps a company achieve competitive advantage (1).This assumption is that companies use their different resource bundles to achieve competitive advantage(1).

For example Apple and Samsung compete using their different   resources bundles (1).

Immobility is majorly on intangible resources like brand equity ,processes ,intellectual property or knowledge(1).