Question

Which view of strategy focuses on how individual firms differ from each other and in which industry?

	a.	Industry-based view
	b.	Resource-based view
	c.	Organizational-based view
	d.	Institution-based view

Answer 1

A resource-based view is described as the one that defines how firms differ from other firms in an industry based on their resources and capabilities. These resources and capabilities are developed and integrated into functional areas of the firm. These distinct functional areas are HR, marketing, manufacturing, distribution, and Research and Development. Therefore, the correct option is (b). All other options are wrong.

Answer 2

Answer: a. Industry-based view

Analysis:

Industry-based view (Option a): This view focuses on the competitive situation of different companies in their industries. It emphasizes the impact of industry structure (such as the number of competitors in the industry, the threat of potential entrants, the threat of substitutes, the bargaining power of suppliers and buyers, and other elements of Porter's Five Forces Model) on corporate strategy. By analyzing the characteristics of the industry and the differences in the competitive landscape, the company determines its own strategic positioning. For example, in a highly competitive industry with homogeneous products, the company may adopt a cost-leading strategy; in an emerging industry with rapid technological changes, it may adopt a differentiation strategy to stand out, so it focuses on differences between companies and the industry in which it is located.

Resource-based view (Option b): It mainly focuses on the resources and capabilities within the company, and believes that the company's competitive advantage comes from unique resources (such as patents, brands, talents, etc.) and capabilities (such as R&D capabilities, marketing capabilities, etc.), rather than industry differences. The focus is on exploring and utilizing internal advantages, rather than differences at the industry level.

Organization-based perspective (Option c): Focuses on the impact of organizational factors such as the company's internal organizational structure, process, and culture on strategic implementation and performance, such as how hierarchical structure, team collaboration model, and corporate culture help or hinder the company's strategic advancement, rather than focusing on differences between companies and the industry they are in.

Institutional perspective (Option d): Focuses on the constraints and shaping effects of the external institutional environment (such as laws and regulations, industry norms, social culture, etc.) on corporate strategy, emphasizing that companies must adapt to the institutional environment to obtain legitimacy and resources, rather than focusing on differences between companies and the characteristics of the industry they are in.