Management Analysis Chapter 4

distinct and fine-grained business processes that enable firm to add incremental value by transforming inputs into goods and services. (4.2)

activities.

resources that do not have physical attributes and thus are invisible. (4.3)

intangible resources.

a critical intangible resource that can provide isolating mechanisms, and this help to sustain a competitive advantage. Prevents others from copying legally protected products and services. What are the five major forms of this protection? (4.3)

intellectual property (IP) protection. 1) Patents 2) Designs 3) Copyright 4) Trademarks 5) Trade secrets

barriers to imitations that prevent rivals from competing away the advantage a firm may enjoy. give examples of these barriers? (4.3)

isolating mechanisms 1) Better expectations of future resource value 2) Path Deepdene 3) Casual ambiguity 4) Social complexity 5) Intellectual Property (IP) protection

Give examples of distinct activities. (4.5)

managing supply chain, running the IT system and website, and providing customer service. different thank functional area because functional area made up of set of distinct activities.

how should the firm respond to its environment? (4.1)

must be dynamic (rather than creating a onetime and thus a static fit, the firm's internal strengths need to change with its external environment in a dynamic fashion. At each point the goal should be to develop resources capabilities, and competencies that create a strategic fit with the firm's environment)

one of the four key criteria in the VRIO framework. The characteristics of having in place an affective organizational structure, processes, and systems to fully exploit the competitive potential of the firm's resources, capabilities, and competencies. (4.3)

organized to capture value.

a situation in which the options one faces in the current situation are limited by decision made in the past. (4.3)

path dependence

Firms' activities that add value directly by transforming inputs into outputs as the firm moves a product or service horizontally along the interview value chain. Give examples of these activities. (4.5)

primary activities

one of the four key criteria in the VRIO framework, something that the firm possesses it is less than the number of the firm it would require to each of state of perfect competition. (4.3)

rare resources

Explain the SWOT Matrix (4.6)

--Top left: Offensive --Bottom right: Defensive

What models can measure opportunities and threats? (4.6)

PESTEL and porter five forces.

the firm's level of investments to maintain or build a resource. (4.4)

resource flows.

the firm's current level of intangible resources. (4.4)

resource stocks

any assets that a firm can draw on when formulating and implementing a strategy. reenforces core competencies. (4.2)

resources

in the resources-based view of the firm, a resource includes any assets as well as any capabilities and competencies that a firm can draw upon formulating and implementing strategy. (4.3)

resources

assumptions in the resources-based view that a firm is a bundle of resources and capabilities that differ across firms. Two deli/pizza shops in New York city. (4.3)

resources heterogeneity.

assumption in the resources-based view that a firm has resources that tend to be "sticky" and that do not move easily from firm to firm. Such a deli sub compared to homemade ones. (4.3)

resources immobility

a model that sees certain types of resources as key to superior firm performance. What are the two types of resources examined? (4.3)

resources-based view 1) Tangible view 2) Intangible view

a situation in which different social and business systems interact with one another. Such as Six Sigma or ISO 9000. (4.3)

social complexity

The conceptualization of a firm as a network of interconnected activities. (4.5)

strategic activity system

Firm activities that add value indirectly but are necessary to sustain primary activities. Give examples of these activities. (4.5)

supporting activities.

resources that have physical attributes and thus are visible. (4.3)

tangible resources

When would a resource be considered a weakness? (4.6)

when it is not valuable.

what are two important points to be made about core competencies? (4.2)

1) Core competencies that are not continuously nourished will eventually lose their ability to yield a competitive advantage 2) need to understand invisible parts of the core competency better than the visible.

what are the two critical assumptions on the resources-based view? (4.3)

1) Resource heterogeneity 2) resources immobility

what are the two elements of a clearly defined core competency? (4.2)

1) What the company decides to do. 2) What the company decides not to do.

such as acquisition of resources when it is cheap before demand for them increase. If the expectations can be systematically repeated over time, then it can help a firm develop a sustainable competitive advantage. Think of land development. (4.3)

Better expectations of future resource value

A framework that allows manger to synthesize insights obtained from an internal analysis of the company's strengths and Weaknesses (S and W) and those from an analysis of external opportunities and threats (O and T) to derive strategic implications. (4.6)

SWOT analysis

A theoretical framework that explains and predicts firm level competitive advantages. What does this term stand for? (4.3)

VRIO framework. 1) Valuable 2) Rare, 3) Imitation able 4) Organized to capture value

one of the four key criteria in the VRIO framework. Its help's a firm exploit an external opportunity or offset an external threat. such as superior design and adding attractive features. (4.3)

Valuable resource

The internal activities a firm engages in when transforming inputs into outputs; each activity adds incremental value. each activity the firm performs along the horizontal continuum adds incremental value raw materials and other inputs are transformed into components that are assembled into finished products and services for the end customer. (4.5)

Value chain

how does a company create a core competency? (4.2)

by understanding the available resources and capabilities of the company. also understand what activities will add value.

organizational and managerial skills necessary to orchestrate a diverse set of resources and deploy them strategically. allow manager to orchestrate their core competencies. (4.2)

capabilities

a situation in which the cause and effect of a phenomenon are not readily apparent. Example "Why is Jay so good at Minecraft?" I don't even know. (4.3)

causal ambiguity

Unique strengths, embedded deep within a firm, that are critical to gaining and sustaining competitive advantage. allows a firm to differentiate its product and services from those of its rivals, creating higher value for the customer or offering products and services of comparable quality at lower cost. (4.2)

core competencies

a former core competency that turned into a liability because the firm failed to hone, refine, and upgrade the competency as the environment changed. (4.4)

core rigidity

one of the four key criteria in the VRIO framework, something that is costly to imitate if a firm that do not possess the resources are unable to develop or buy at a comparable cost. Such as competencies. (4.3)

costly-to-imitate resource.

what is direct imitation? what is substitution? (4.3)

direct imitation would be factors such as look and feel, while substitution would be an alternative to what is available.

a model that emphasizes a firm's ability to modify and leverage its resources based in a way that enables it to gain and sustain competitive advantage in a constantly changing environment. (4.4)

dynamic capabilities perspective

a firm's ability to create, deploy, modify, reconfigure, upgrade, or leverage its resources in its quest for competitive advantage. rather than creating a static fit, the firm's internal strength should change with its external environment in a dynamic fashion. (4.4)

dynamic capabilities.