mgt 487 quiz 2

that each firm has different resources

what does resource heterogeneity mean

path dependance

______ suggests that sometimes even random events may have a large impacts on an outcome.

dynamic capabilities perspective

a model that emphasizes a firm's ability to modify and leverage its resource base in a way that enables it to gain and sustain competitive advantage in a constantly changing environment

casual ambiguity

a situation in which the cause and effect of a phenomenon are not readily apparent

valuable

A resource is considered ______ if it helps a firm to deal with an external threat.

core competency

If a firm's resource is valuable, rare, costly to imitate, and the firm is organized to exploit it, this resource is a

capabilites and resources

The core competencies of a business are generated by the interaction of

the main driver of firm performance

The resource-based model views resources as

valuable, rare, inimitable, organized

VRIO framework stands for?

activities

What are the distinct and fine-grained business processes that enable firms to add incremental value by transforming inputs into goods and services?

Tangible assets can be bought on the open market.

Why is competitive advantage more likely to spring from intangible rather than tangible assets?

competitive advantage

______ has a greater chance of arising from intangible resources than from tangible resources.

Resources

any assets that a firm can draw on when formulating and implementing a strategy.

resource heterogeneity

assumption in the resource-based view that a firm is a bundle of resources and capabilities that differ across firms

Isolating Mechanisms

barriers to imitation that prevent rivals from competing away the advantage a firm may enjoy

industry chain

different players, from raw materials to the final product

Time compression diseconomies

trying to achieve the same outcome in a short time period, even with higher investments, tends to lead to inferior results

primary activities

firm activities that add value directly by transforming inputs into outputs as the firm moves a product or service horizontally along the internal value chain

support activities

firm activities that add value indirectly, but are necessary to sustain primary activities

Capabilities

organizational and managerial skills necessary to orchestrate a diverse set of resources and deploy them strategically

social complexity

social and business systems that work for one firm may be hard to imitate because of complex interactions between these systems

firm value chain

the set of activities a firm engages in to create final products from raw inputs

VRIO framework

theoretical model that explains and predicts what resource attributes underpin competitive advantage. It identifies which types of resources are key to firm performance. Multiple choice question.

core competencies

those functions that the organization can do as well as or better than any other organization in the world