CIMA-E2 practice - PrepKeys

Q1 Multiple choice

The means by which competitive advantage might be gained differs, depending on whether a resource based approach or a positioning approach is adopted.

Which of the following options characterises the resource based approach?

Select ALL that apply:

Select all that apply.

A
Superior profitability depends on the firm's possession of unique resources.
B
Super normal profits result from either cost leadership, differentiation or focus.
C
Competitive advantage derives from a firm's position in relation to its competitors, customers and stakeholders.
D
Competitive advantage stems from some valuable asset or competence possessed by the firm.
E
Organisations need to ensure they are continually monitoring the market place to make sure that their core competences are still valid.