Chapter 4 MAN 4720

According to VRIO framework, in order for a firm to gain a temporary competitive advantage, a resource must be at least both ___________ & __________.

Valuable and rare

The attempt to negate a firm's resource advantage by directly imitating the resource in question ____________ or through working around it to provide a comparable product or service _____________.

(direct imitation) (substitution)

The resource-based model views resources as: - The critical assumption to resource immobility - The intangible asset - The main driver of firm performance - Threats to competitors

- The main driver of firm performance

___________ _______________ is a theoretical model that explains and predicts what resource attributes underpin competitive advantage - VRIO framework - Dynamic capabilities perspective - Value Chain - SWOT analysis

- VRIO framework

By definition, resource immobility suggest that resources are ______ to move from firm to firm - impossible - difficult - readily available - easy

- difficult

What should a firm do in order to be organized to capture value? - have a rare and valuable resource - have CEOs with forward-thinking vision - have a good org structure - have good coordinating systems

- have a good org structure - have good coordinating systems

Support activities

R&D, Info Systems, HR, Accounting/Finance, and firm infrastructure including processes, policies, and procedure.

According to the ______________ ____________ views, firms are a distinctive collection of resources, capabilities, and competencies.

Resource based

We synthesize insights from an internal analysis of the company's strengths and weaknesses with those from an analysis of external opportunities and threats using the __________ analysis

SWOT

Primary activities are?

Supply chain management, operations, distribution, marketing/sales, and after-sales service

A resource is valuable when (check all): - it is both heterogeneous and immobile - it helps a firm exploit and external opportunity or offset an external threat - it produces tangible, but not intangible competencies - it helps the firm increase its economic value creation

- it helps a firm exploit and external opportunity or offset an external threat - it helps the firm increase its economic value creation

____________ are distinct and fine-grained business processes such as order taking, the physical delivery of products, or invoicing customers. Each distinct activity enables firms to add incremental value by transforming inputs into goods and services. - Resources - Capabilities - Activities - Core competencies

Activities

Competencies that give competitive advantage

Better expectation of the future resource value, path dependence, casual ambiguity, social complexity, and IP protection.

___________ are organizational and managerial skills necessary to orchestrate a diverse set of resources and deploy them strategically. - Capabilities - Core competencies - Activities - Resources

Capabilities

A _____________ is a unique strength, embedded deep within a firm, that is critical to gaining and sustaining competitive advantage - Capability - Core competencies - Resource - Activity

Core competency

Two ket assumptions behind the resource-based view of the firm.

heterogeneity: immobility

_____________ describe a firm's ability to create, deploy, modify, reconfigure, upgrade, or leverage its resources over time in its quest for competitive advantage. - Planned emergence - Strategic misfits - Changing values - Dynamic capabilities

Dynamic capabilities

The firm's internal activities to transform inputs into outputs consist of ________ activities, which add value directly, and ____________ activities, which add value indirectly

Primary; support